[Noisebridge-discuss] community banks?

girlgeek girlgeek at wt.net
Tue Nov 1 04:36:08 PDT 2011


I have a strong feeling that Move Your Money is going to be a mixed 
blessing to all involved.  These are small, sometimes sleepy 
institutions that often rely on doing less common operations manually 
because that is appropriate to current scale.  What is going to happen 
when the sudden influx of customers overwhelms manual operations?

I strongly support move your money.  I also recommend patience with your 
new institutions while they scale up.  Consider how good it will be for 
community investing if we all move our money into small banks, and then 
just as they commit finances to new systems we move our money back out.

Pessimistically I also wonder how much we are going to see of cases of 
moving our money to Little Bank of San Francisco only to find six months 
later that Little Bank of San Francisco is bought by Bank of America.  I 
guess this is why we need various legislation.

-Claudia


On 10/31/2011 6:25 PM, Olya K wrote:
> Does anyone have experience with New Resources Bank?
> https://www.newresourcebank.com/
>
> Apparently they're about sustainability..
>
> Olya
>
> On Thu, Oct 27, 2011 at 10:22 PM, Ryan Rawson <ryanobjc at gmail.com 
> <mailto:ryanobjc at gmail.com>> wrote:
>
>     charles schwab is great - smartphone checking deposits and refund of
>     ATM fees.  no cash services, but oh well.
>
>     On Thu, Oct 27, 2011 at 10:16 PM, Nick P <nickbp at gmail.com
>     <mailto:nickbp at gmail.com>> wrote:
>     > SF Fire does have a catch -- their deposits are only privately
>     > insured. Since the insurance risk pool is far smaller compared to
>     > FDIC/NCUA, and since they lack government backing, if one member
>     > institution fails, there is a much greater risk of a panicked run
>     > powerful enough to bring down all other member institutions, even
>     > those which may have been solvent before the run began.
>     >
>     > To put it a bit plainly, SF Fire's management decided a few
>     years ago
>     > that saving a bit on deposit insurance fees was worth the
>     tradeoff of
>     > more risk for their members' deposits. So if you do decide to go
>     with
>     > them, I don't recommend leaving a significant amount of money in
>     your
>     > account. See also: the failure of RISDIC back in 1991, which
>     closed 45
>     > institutions and froze 300,000 accounts, and the similar failures in
>     > Ohio and Maryland in 1985:
>     > http://www.bos.frb.org/economic/neer/neer1993/neer393a.pdf
>     >
>     > I use USAA checking myself; their banking is open to all. They,
>     Schwab
>     > Bank, and Ally Bank all offer ATM refunds, but if you frequently
>     need
>     > to see a banker in person then these are probably not too practical,
>     > since they mostly do things by internet/phone/mail, but with things
>     > like free postage-paid deposit envelopes, they're a good option for
>     > most people.
>     >
>     > Mechanics Bank also offers ATM refunds with their Relationship
>     > Checking account, though they're mostly East Bay, with the exception
>     > of a branch in the financial district.
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