tag:blogger.com,1999:blog-8931336921664864284.post7335371790493690914..comments2023-05-08T17:52:28.786-07:00Comments on Within Our Means Berkeley: Risky Business: Berkeley Mayor and Councilmember Robinson Propose a Public Bank with Startup Costs of $40 Million in Taxpayer FundsWithin Our Means Berkeleyhttp://www.blogger.com/profile/01291002374420315120noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-8931336921664864284.post-82118672533477243212023-03-15T10:09:30.157-07:002023-03-15T10:09:30.157-07:00Will arreguin run a bank like he runs Berkeley? No...Will arreguin run a bank like he runs Berkeley? No thanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-72606309267555495382023-03-09T07:10:20.991-08:002023-03-09T07:10:20.991-08:00They should quit their cit council jobs and open a...They should quit their cit council jobs and open a bank themselves.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-25978856128870699692023-03-06T15:10:59.560-08:002023-03-06T15:10:59.560-08:00Berkeley uses Wells Fargo, the most notoriously fe...Berkeley uses Wells Fargo, the most notoriously felonious of the lot. Debbiehttps://www.blogger.com/profile/02522230556161048822noreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-61541804354178764262023-03-05T12:41:36.751-08:002023-03-05T12:41:36.751-08:00Local credit unions are great, and we support them...Local credit unions are great, and we support them unequivocally, for exactly the reasons you list. I do all of my banking through one. That being said, they aren't either legally or practically equipped to handle public money, especially when public banks develop to the point of cash management for the cities and other government entities. Community banks come closer, but have a lot of the same limitations.<br /><br />The California Public Banking Act _requires_ local public banks to partner with these entities (and also Community Development Financial Institutions) and forbids competition. These partnerships will be one of the strongest aspects of Public Bank East Bay.Debbiehttps://www.blogger.com/profile/02522230556161048822noreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-71520824876871786532023-03-05T08:46:33.771-08:002023-03-05T08:46:33.771-08:00Thank you Debbie, the post has been updated based ...Thank you Debbie, the post has been updated based on the comment above.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-91746350598150672952023-03-05T08:30:54.116-08:002023-03-05T08:30:54.116-08:00The following comments we made on Nextdoor and the...The following comments we made on Nextdoor and the post has been revised to address inaccuracies:<br /><br />That article from the "womberkeley" is very inaccurate and misrepresents how public banking works. Please read the response from Debbie Notkin included here: I'm the chair of the Friends of the Public Bank East Bay (publicbankeastbay.org). We are 100% in support of cities and other governments living within their means, and public banks are part of the way that can happen. Currently, Berkeley pays tens if not hundreds of thousands of dollars a year to the Wall Street banks for the privilege of managing our tax dollars. With a public bank, that money would go to a bank which invests locally (rather than funneling money to rich outside investors and antisocial projects) and passes some of its profits back to the cities as return on investment.<br /><br />Corrections of fact:<br /><br />1) Berkeley (and the other cities) did not put any money into the viability study, which was totally funded by the Friends of the Public Bank East Bay.<br /><br />2) the California state law regulating local public banks requires FDIC insurance (the reason the Bank of North Dakota is not FDIC insured is that it was established before there was an FDIC).<br /><br />3) The Board of Directors will have a majority of bankers and community experts in areas of investment such as affordable housing and small business loans. Berkeley will have one seat on the proposed 15-member board; all the cities and county together will have 5 of those 15 seats. The Bank will be run by qualified, experienced bankers (not politicians) and be regulated by the State of California as well as the FDIC.<br /><br />4) The American Banker is a very biased site, but even they cannot realistically claim that the bulk of losses from the 2008 subprime crisis were from public banks, when it has already been noted that there is only one functioning public bank in the U.S., and it is from the small state of North Dakota--which, in fact, had the lowest subprime mortgage loss in the country, in significant part due to its public bank.<br /><br />5) The complexity of the arrangement is in part to make good use of Alameda County's much larger budget. A good precedent is East Bay Community Energy, which is thriving, has paid its debts to the county, and is creating returns for homeowners.<br /><br />We would be happy to have a public conversation about these issues with the principals of Within Our Means. We all want the same thing, which is thriving cities which can serve their residents and manage their money well.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-72118481050983092082023-03-05T00:20:04.452-08:002023-03-05T00:20:04.452-08:00which wall street banksbdoes the city use?which wall street banksbdoes the city use?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-64760887135668002222023-03-04T16:23:52.661-08:002023-03-04T16:23:52.661-08:00Why not use a local credit union so the members ha...Why not use a local credit union so the members have direct say how money is spent in the city it’s in and can also vote on use and vote in credit union reps who are versed in the skills to interact with city council etc as big items come up that would require savvy negotiation and helpful reporting back to its customer membership??<br />Local credit union, local members, local reps, local money stays in the community to circulate for the best interest running a town along with city council who because of membership affiliation and not just city council bulldozing would be required to include all credit union stakeholders.<br />Please note, I am not particularly literate on the ins and outs of the current public bank construct. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-11219589255426723052023-03-04T15:15:16.164-08:002023-03-04T15:15:16.164-08:00I'm the chair of the Friends of the Public Ban...I'm the chair of the Friends of the Public Bank East Bay (publicbankeastbay.org). We are 100% in support of cities and other governments living within their means, and public banks are part of the way that can happen. Currently, Berkeley pays tens if not hundreds of thousands of dollars a year to the Wall Street banks for the privilege of managing our tax dollars. With a public bank, that money would go to a bank which invests locally (rather than funneling money to rich outside investors and antisocial projects) and passes some of its profits back to the cities as return on investment.<br /><br />Corrections of fact: <br /><br />1) Berkeley (and the other cities) did not put any money into the viability study, which was totally funded by the Friends of the Public Bank East Bay. <br /><br />2) the California state law regulating local public banks requires FDIC insurance (the reason the Bank of North Dakota is not FDIC insured is that it was established before there was an FDIC). <br /><br />3) The Board of Directors will have a majority of bankers and community experts in areas of investment such as affordable housing and small business loans. Berkeley will have one seat on the proposed 15-member board; all the cities and county together will have 5 of those 15 seats. The Bank will be run by qualified, experienced bankers (not politicians) and be regulated by the State of California as well as the FDIC.<br /><br />4) The American Banker is a very biased site, but even they cannot realistically claim that the bulk of losses from the 2008 subprime crisis were from public banks, when it has already been noted that there is only one functioning public bank in the U.S., and it is from the small state of North Dakota--which, in fact, had the <a rel="nofollow">lowest subprime mortgage loss in the country</a>, in significant part due to its public bank. <br /><br />5) The complexity of the arrangement is in part to make good use of Alameda County's much larger budget. A good precedent is East Bay Community Energy, which is thriving, has paid its debts to the county, and is creating returns for homeowners. <br /><br />We would be happy to have a public conversation about these issues with the principals of Within Our Means. We all want the same thing, which is thriving cities which can serve their residents and manage their money well. <br /><br />Debbiehttps://www.blogger.com/profile/02522230556161048822noreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-48697010277027010482023-03-04T14:19:58.480-08:002023-03-04T14:19:58.480-08:00Good article. Stepping on the toes of existing cre...Good article. Stepping on the toes of existing credit unions is not going to expand services to anyone.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-48707609000509034102023-03-04T13:33:10.154-08:002023-03-04T13:33:10.154-08:00My mistake! I didn't realize I needed to indic...My mistake! I didn't realize I needed to indicate and enter a choice to make sure my comment was attributed to me and not anonymous. The Anonynous commenter I responded to probably made the same error (I apologize for that, Anonymous on March 4, 2023 @ 11am). I made the Anonymous comment @ 1:27pm.<br /><br />I Jessica Behrmannoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-10977313412260892572023-03-04T13:27:18.785-08:002023-03-04T13:27:18.785-08:00@Anonymous: Help me understand: what points in thi...@Anonymous: Help me understand: what points in this article inform your opinion? I pose this question respectfully and in all seriousness. Without reasoning and substantiation, your comment is it's own kind of fear-mongering and erodes fruitful discussion. (Not posting anonymously would also help take your comments seriously.)<br /><br />I'm truly open to all views based in fact and evidence - that's the only way we'll get to truth and good results - but you provided no basis for yours. It's irresponsbile.<br /><br />The article has references and citations...my read is that it's responsible reportage and a public service. Any read of fear-mongering is about how reckless our leaders are with the City's finances - that's a real scare. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-15943815283821284552023-03-04T11:00:27.480-08:002023-03-04T11:00:27.480-08:00What a piece of crap reporting!! It looks like the...What a piece of crap reporting!! It looks like the author is hand in glove with Wall Street firms!! Shameful fear tactics are being used to scare the public. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8931336921664864284.post-47013965929787946012023-03-04T06:21:42.091-08:002023-03-04T06:21:42.091-08:00Shameful. Shameful. Anonymousnoreply@blogger.com