DC PUBLIC BANKING CENTER
Creating Public Money for the Public Good
Problems a DC Public Bank
Lack of jobs which are due to artificial scarcity
of affordable credit.
Government deposits are not safe in today’s
Financing is lacking to meet Sustainable DC
DC Public Bank Solutions
Creates new jobs and spurs economic growth
Enhances the financial health and security of
the city's general fund
Promotes a Sustainable DC
DC Gov't Deposits
Where does DC government
currently deposit its money?
Do you think your DC tax
dollars are safe in the big
Current U.S. law puts
DC government deposits at risk
2010 Dodd-Frank law: taxpayers will no longer bail out failing banks.
Now we have bail-ins.
Government deposits above $250,000 are not FDIC insured.
No DC government deposit accounts are less than $250,000 (as of Jan.
Many DC government deposits are held in uninsured accounts.
Confiscation of deposits to save a
bank is called a “bail in”!
FDIC & Bank of England
Approve Bail-in Policy
“Resolving Globally Active, Systematically Important, Financial Institutions”
A joint memorandum by the Federal Deposit Insurance Corporation and
the Bank of England,10 December 2012, which says…
Under Dodd-Frank Act authority, the FDIC would assign losses to
shareholders & unsecured creditors if a such bank fails.
Derivatives Held by Bank Receive
Priority When Bank Fails
Government accounts may be subject to bail-in
Derivatives have super priority claim on bank
There may not be any funds left for local
government deposit claims.
Source: Ellen Brown, “Winner Takes All: The Super Priority Status of Derivatives”
No! Globally, 40% of all banks
are publicly owned.
Germany has had public banks since the 19th
The Bank of Canada operated as a public bank
from 1935 to 1971.
Brazil, Russia, India and China all have very
large, mature public banking sectors.
Japan & New Zealand have public banks through
their post offices.
The United States once had public postal banks!
Public Banks Resist Recession
That’s why, around the world, public
banks have escaped the credit
crisis and helped their economies to
North Dakota owns its own public bank
The Shawnee Tribe in Oklahoma also has its
own public bank.
At least 15 states, one city, and one county
are considering creating public banks.
Public Banking in the U.S. Today
North Dakota has had its own bank
• The farmers were
losing their farms to
the Wall Street
• They organized,
won an election,
legislation to create
a public bank.
Photo thanks to Ellen Brown
The Bank of North Dakota (BND)
How It Works
All state revenues are deposited in
BND by law.
BND is wholly owned by the state
BND makes participation loans
with local banks.
BND’s home today
What does BND do for ND today?
Partners with local banks to increase local lending
Makes low interest loans for designated local projects
Redirects credit away from speculation in derivatives toward local lending
Fulfills mandate to deliver quality, sound financial services that promote
agriculture, commerce and industry in North Dakota.
The only state to escape the credit crisis
State budget surplus every year since
financial meltdown in 2008
Lowest unemployment rate in US
Lowest foreclosure rate in US
Lowest loan default rate in US
How's North Dakota's Economy Now?