Move Your Money - A National Week of Action

I've blogged about the importance of moving your money from the large corporate banks and Wall Street institutions to local banks and credit unions.  In this blog post about local banking, I provided some criteria for choosing a local bank.  In this blog post, I addressed the Move Your Money movement and provided some links to useful information and resources.  

Now, the Occupy Portland movement is asking supporters to remove their money from the Wall Street banks this week, and to move that money to a community bank.  I hope you will join me in this collective action. 

If we, the 99 %, removed our money from the big banks, we will send a clear message that conscious consumers will not support the unethical business practices of the mega banks. The 1% will take notice. 

As we know, there are better alternatives than big banks. Safe, convenient credit unions and smaller, local banks can supply all the services you need.  People protesting in Occupy Portland are sacrificing safety, home, and family time to shed light on the terrible abuses the banks have perpetrated on all of us.  However, the occupiers cannot do it alone; we all need to work together.  It is time for you to put your money where your mouth, soul and future are. So here is the plan:

·      Open a new account at a local credit union or small local bank.

·      Transfer your funds to the new account from your by bank account by Nov 5th

·      Follow your big bank’s procedure for closing your accounts.

It's that easy!

Here are some important pieces that will help clarify why this is so important and motivate you to move forward:

 

1. If you want to know more about this grassroots movement please see this ABC's World News Tonight report click here:

http://www.huffingtonpost.com/huff-tv/abc-news-profiles-move-yo_b_417014.html

 

2. Check out this cool video about the project to move your money here: http://moveyourmoneyproject.org/watch-video

Also check out there website here: http://moveyourmoneyproject.org/

 

3. If you want to know the difference between banks and credit unions click here:  

Part 1 http://www.youtube.com/watch?v=cawzTSVTP2M

Part 2 http://www.youtube.com/watch?v=-rEW6ff3Zao0

Part 3 http://www.youtube.com/watch?v=RkQUVs-Kghg

 

4. If you want to find a local small banks and credit unions click here (Note that this document is dated August 2010 and information may have changed):

•  http://equitydesign.com/wp-content/uploads/2010/10/MYM-PDX.pdf

5. If you want to feel the power and pure joy we feel when we fight back, check this out.

http://www.youtube.com/watch?v=gdxTcaCS65Y

Please share this information widely.

Move Your Money

There is a movement afoot for people and organizations to move their banking from the mega-banks to a local bank.

The mega-banks (Bank of America, JP Morgan Chase, Goldman Sachs, Citigroup, Wells Fargo, Morgan Stanley, etc.) aren't particularly interested in you or your small business. Sure, they'll take your deposits while paying less than 1 percent on your account and they'll give you a credit card with interest rates in the range of 15-35 percent, but their real motivation is making money and serving their Wall Street masters.

The 10 largest banks hold over 60 percent of the nation's deposits. There are now 23 banks with over $100 billion in assets.

Local banks on the other hand serve their community. Their future prosperity is directly tied to the communities they operate in. Local banks don't give their executives million-dollar bonuses. Local banks hire local service providers like CPAs, attorneys, advertising agencies, marketing consultants, janitors, and other various service providers. At your local bank you'll find friendly people who know your name and want to help you.

Tomorrow, in Portland's Pioneer Courthouse Square, local bankers will be on hand to help answer questions as we encourage people to "Move Their Money." The festivities are from 1-4pm and should be a family fun event complete with music and speakers.

According to pollster John Zogby, nearly 10 percent of Americans have moved at least some of their money due to Wall Street abuses and the current banking crisis.

I hope you'll join me in moving your money and banking from the mega-banks that nearly brought down our economy to a local bank that is committed to and serves your community.

Local banking, David Korten and more

I want to remind my Portland readers that David Korten will be speaking tomorrow night (Saturday) at the First Baptist Church at 12^th and SW Taylor.   There is a community celebration starting at 5pm, David’s presentation at 7pm and we step outside for the Starlight Parade after the talk.  It should be a fun evening.  Please bring your family and friends to learn about, discuss and implement the new economy.

The Sustainable Business Network of Portland (SBNP) is beginning a campaign to get people to move their money from multi-national banks designed to serve shareholders to local banks designed to meet community needs.  I recently moved my daughter’s college fund CD from WAMU/Chase to Albina Community Bank and ShoreBank Pacific.

SBNP used three simple questions to help you gauge how your bank relates to your community.

1. Is your money rooted in your community?  (The more a bank operates in multiple communities, the less commitment they have to yours).
2. Who owns your bank? (Where do the profits go and who controls it?)
3. Do your deposits create good loans in YOUR community?  (This can range from progressive lending policies to help underserved communities to predatory/subprime lending.)
   

Needless to say, the major banks all scored low on this assessment.  Moving your money to a community rooted bank will help your business community thrive.

My bank is making loans

Last week I mentioned that I was applying for a bank loan (The Green CPA: Local Banks Still Making Loans) and that I would report back on my results.

I stopped by my bank this morning and found out my new business was approved for a VISA card as well as a $10,000 3 to 5-year fixed rate loan to acquire equipment. The loan fee was 1% with a 10 percent rate. This feels a bit steep but there you have it.

I'm sure I could have gotten approved for more but I'm not likely to use this loan since I have access to cheaper sources of money. The point of the story remains the same - local banks with whom you have a relationship are making loans, even in this uncertain market.

Credit Crunch tips

The professionals at Grant Thornton have released an excellent report providing guidance on how to survive the credit crunch.

The 36-page guide was a quick read and offered 10 practical steps to survival. It also gave a nice overview of the causes of the current crisis.

While most of the tips are simply good business practices, they become super important during a downturn.

A few of the important reminders:

1. Cash is King!!!
2. Get closer to your bank
3. Evaluate your customers and suppliers

The guide goes into additional detail. I recommend it for anyone with CFO responsibilities.

Local Banks Still Making Loans

I attended a Sustainable Business Network of Portland luncheon this week and the speakers were Dave Williams from Shorebank Pacific and Margo McCoy from Albina Community Bank. While they both talked about the causes and ramifications of the banking crisis (Insert macroeconomic lecture here), they also made it clear that their banks and many other banks had money to loan.

What has changed is some of the lending ratios (50-70% of equity rather than 90%) and collateral valuations. Due to declining asset values, firms that at one time borrowed 80% of an asset's value may actually be upside down due to market declines.

While there are problems with the banking industry and many banks have temporarily stopped loaning to each other, banks make money by making good loans and companies seeking funds shouldn’t give up. Having a solid banking relationship is important for every business both in good times and in bad.

I’m actually filling out a bank loan application today to buy some computer equipment for my new firm. I am hoping for a response early next week. I’ll keep you posted.