Banking, social justice style
Editor's Note: Readers, we hope you'll join us in giving a warm welcome to our newest staff member, Dorsol Plants. Dorsol is a veteran who recently ran for Seattle City Council Position 4. He made a strong showing for a first time candidate, coming in only a few percentage points behind David Bloom for third place. We are delighted to have him as part of the NPI team.
Like many others, I was annoyed and frustrated when the federal government started bailing out our biggest and most ambitious banks.
After all, a lot of why we were in this mess in the first place was their greed and hubris. It also seemed strange to me that some banks would get saved with a load of cash and other by being completely taken over by other banks.
If they were to big to fail, why did we still have to watch many of our friends who worked at Washington Mutual (WaMu) lose their jobs? Then, to top things off, the government exercised no oversight and lots of our money went to excessive expenditures that could fill our wildest dreams at night.
By the end, after my emotions had settled, I started to see some logic to the 'to big to fail' concept, and while I would have changed a hundred things about the way it was handled it had already happened and we had other problems to deal with.
That was around the time when I started to have troubles with my bank (Bank of America), which was one of the we need money badly but really only to fly private jets banks. After spending two weeks fighting with Bank of America to have a whole bunch of fees reversed that they admitted needed to be refunded or were their mistake, I started shopping for a new bank.
Then it dawned on me.
We made the decision to prop up these banks not because they deserved to be helped by we the taxpayers, but because they had managed to reach a size where their failure would cause hardship or catastrophe for those that did play by the rules. Including many of their own employees.
If all of us who spent days and weeks blogging, Facebooking, or arguing in bars over the bank bailout were to just take our money someplace else, we would see the social justice many of us believe the government isn't providing.
If the banks had all failed at once, then millions would have lost their jobs completely, devastating our economy. That's why Congress approved TARP.
However, if we voted with our dollars and punished the banks that only care about profit instead of people, we would see new financial institutions rise to take their place, providing new jobs and opportunities to Americans.
Since Congress can't seem to learn this lesson (look where the bailout money went) and we can't afford to keep waiting for the government to act (look at how much they've given up on healthcare, just can't wait to see regulatory reform), this is something we are going to have to just do ourselves.
This isn't a new idea, and its been something we've done with corporations practicing slave labor or by only buying local to support our community. We do not just vote in November, we also take the time to vote by spending our money where we choose. This is what we need to do about these greedy corporate banks.
There are other options besides Bank of America or Chase, and they are getting better all of the time. Credit unions have been around for decades, and are owned by their members. A good example would be BECU, which only requires you to live in Washington State to join.
At that credit union, profits are returned to members in the form of better rates and lower fees (i.e. overdraft fees are $15 compared to $35 at most banks) and their loan officers are paid a flat rate, not a commission, so they have no incentive to convince you to sign up for extra loans you don't need.
BECU and other credit unions are advertising as banking with a conscience, and their model is growing. By moving our banking to these institutions, we are saying, Enough is enough: We want a fair deal.
Voting with our dollars requires effort. Changing our habits isn't a quick fix, but buy local campaigns weren't either, and we are starting to see them having an effect. Several corporations such as Barnes and Noble are now advertising that they are "local" stores in hopes of bringing customers back in.
That's a sign this approach can work. At the very least, if you're like me, someone who was angry at the way that big banks set us up and then took from us, just consider switching to a credit union or community bank. It's how capitalism is supposed to work... we buy what works for us and that market grows.
All I'm asking is you take a look. I was dubious at first, but now I'm making the switch, and I couldn't be happier.
Like many others, I was annoyed and frustrated when the federal government started bailing out our biggest and most ambitious banks.
After all, a lot of why we were in this mess in the first place was their greed and hubris. It also seemed strange to me that some banks would get saved with a load of cash and other by being completely taken over by other banks.
If they were to big to fail, why did we still have to watch many of our friends who worked at Washington Mutual (WaMu) lose their jobs? Then, to top things off, the government exercised no oversight and lots of our money went to excessive expenditures that could fill our wildest dreams at night.
By the end, after my emotions had settled, I started to see some logic to the 'to big to fail' concept, and while I would have changed a hundred things about the way it was handled it had already happened and we had other problems to deal with.
That was around the time when I started to have troubles with my bank (Bank of America), which was one of the we need money badly but really only to fly private jets banks. After spending two weeks fighting with Bank of America to have a whole bunch of fees reversed that they admitted needed to be refunded or were their mistake, I started shopping for a new bank.
Then it dawned on me.
We made the decision to prop up these banks not because they deserved to be helped by we the taxpayers, but because they had managed to reach a size where their failure would cause hardship or catastrophe for those that did play by the rules. Including many of their own employees.
If all of us who spent days and weeks blogging, Facebooking, or arguing in bars over the bank bailout were to just take our money someplace else, we would see the social justice many of us believe the government isn't providing.
If the banks had all failed at once, then millions would have lost their jobs completely, devastating our economy. That's why Congress approved TARP.
However, if we voted with our dollars and punished the banks that only care about profit instead of people, we would see new financial institutions rise to take their place, providing new jobs and opportunities to Americans.
Since Congress can't seem to learn this lesson (look where the bailout money went) and we can't afford to keep waiting for the government to act (look at how much they've given up on healthcare, just can't wait to see regulatory reform), this is something we are going to have to just do ourselves.
This isn't a new idea, and its been something we've done with corporations practicing slave labor or by only buying local to support our community. We do not just vote in November, we also take the time to vote by spending our money where we choose. This is what we need to do about these greedy corporate banks.
There are other options besides Bank of America or Chase, and they are getting better all of the time. Credit unions have been around for decades, and are owned by their members. A good example would be BECU, which only requires you to live in Washington State to join.
At that credit union, profits are returned to members in the form of better rates and lower fees (i.e. overdraft fees are $15 compared to $35 at most banks) and their loan officers are paid a flat rate, not a commission, so they have no incentive to convince you to sign up for extra loans you don't need.
BECU and other credit unions are advertising as banking with a conscience, and their model is growing. By moving our banking to these institutions, we are saying, Enough is enough: We want a fair deal.
Voting with our dollars requires effort. Changing our habits isn't a quick fix, but buy local campaigns weren't either, and we are starting to see them having an effect. Several corporations such as Barnes and Noble are now advertising that they are "local" stores in hopes of bringing customers back in.
That's a sign this approach can work. At the very least, if you're like me, someone who was angry at the way that big banks set us up and then took from us, just consider switching to a credit union or community bank. It's how capitalism is supposed to work... we buy what works for us and that market grows.
All I'm asking is you take a look. I was dubious at first, but now I'm making the switch, and I couldn't be happier.
# Posted by Dorsol : 5:02 PM
Comments:
I have been an Olympia Brewery CU member for 23 years and have never been happier with any banking institution.
I had done most of my banking by phone before they went online back in the early '90s. Never had a problem all these years.
As a store front business they can't be beat; you walk in to see a teller and you get to SIT at a counter with a rep.
My Mastercard has been around 10% for years. No fees etc.
CU's are the way to go.
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