Recently, Michael van Norstrand, president of Independent Bankers of Colorado (IBC), wrote an Op-Ed for CP: “Public Banks Would Pose Risks, Play Politics.” The Op-Ed makes numerous incorrect assumptions and assertions.
All three types of banking are public alternatives to the Wall St. style, for-profit, large commercial banks which we are used to providing both retail (taking deposits from individuals and providing personal banking services) as well as commercial services (lending to and working with institutions, governments, and businesses). However, each type of bank is designed for a unique purpose. Read on to learn more.
The Fed’s policy tools – interest rate manipulation, quantitative easing, and “Special Purpose Vehicles” – have all failed to revive local economies suffering from government-mandated shutdowns. . The Fed must rely on private banks to inject credit into Main Street, and private banks are currently unable or unwilling to do it. The tools the Fed actually needs are public banks, which could and would do the job.
Self-regulation by statue and by-laws, a public bank as an LLC, the banking corporation model doesn’t fit, public banks for non-home rule communities, public banks as public benefit corporations and cooperatives