Zero Cost Banking from Gov. Newsome!
October 22, 2021 by Dr. Letitia Wright
Filed under Featured Articles, Front Page
Edward Henderson, California Black Media
Sacramento, CA —On Oct. 4, Gov. Gavin Newsom signed legislation paving the way for a new public banking system in California.
AB 1177, known as the ‘California Public Banking Option Act’, creates a zero-penalty, zero-fee, and zero-minimum-balance platform for basic financial services.
These services include direct deposit from employers and public benefits, automatic bill pay to registered payees, recurring payments and donations to account holders’ organizations or charities of choice, and an infrastructure to support account holders in building credit.
“AB 1177 will help Californians stay protected from overdraft fees and penalties and give them an opportunity to save money and build wealth while fighting the racial wealth gap,” said Assemblymember Miguel Santiago (D-Los Angeles), lead author of the bill.
“California is leading the nation’s public banking movement and we must keep working to provide no-fee banking services to all Californians,” he added.
Santiago wrote the bill with the intention to help close the financial services gap that leaves 1 in 4 Californians unbanked or underbanked. Modeled after the state’s public retirement program CalSavers, the bill forms a commission of representatives from the Treasurer’s office, the Department of Financial Protection and Innovation, financial access experts and community members to oversee market analysis on how the program should be implemented.
Proponents of public banking in California say Wall Street banks have failed low-income communities, particularly people of color. They also say the banks will provide easier access to capital that will be critical to helping small businesses and neighborhoods rebound after the pandemic.
“Financial exclusion and scarcity have been a tool for oppression, discrimination and systemic inequity for too long. Public banking options such as BankCal, along with new technology that allows for free exchange over the internet, are urgently needed to decentralize power, privilege and financial control,” said Briana Marbury, Executive Director of the Interledger Foundation, a non-profit that advocates for standards and technologies that support an open and integrated global financial system.
Opponents of the bill believe that government-owned banks open the door for corruption and that the cost of any mismanagement of funds will come out of taxpayers’ pockets.
A 2015 article published by the Cato Institute critiques past public banking projects, highlighting shortcomings and failures.
Mark A. Calabria, who was chief economist to Vice President Pence and former director of the Federal Housing and Finance Agency authored the article.
He cites devastating losses Germany’s public banks suffered during the sub-prime mortgage crisis of 2008.
Calabria also points to public banking failures closer to home.
“The recent history of Fannie Mae and Freddie Mac, quasi? public banks at the federal level, illustrates that mismanagement and corruption are alive and well at the intersection of the public and private,” he wrote.
However, Trinity Tran, co-founder of the California Public Banking Alliance, argues instead that AB1177 does not create a new bank but “creates a statewide retail banking option trough which every California worker can access zero-cost services.”
While California is known for its groundbreaking legislation, it will not be the first state with a banking system like this. North Dakota’s public banking system was founded back in 1919.
Marbury believes that the bill is only the first step toward a more broader initiative that would revolutionize accessibility to financial growth and equality.
“This is an exciting development, but not far-reaching enough. Public banking initiatives should be introduced in other states across the US to ensure equal access to financial services for the most vulnerable sectors of our population while elevating the economic health of society as a whole,” she said.
In addition, global financial inclusion should encompass both “brick and mortar” bank access for everyone and a more inclusive internet,” she added.Previous PostCal Black Caucus Gives Thumbs Up to Law Reforming Courtroom SentencingABOUT POST AUTHOR
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Caring By Seth Godin
March 1, 2018 by Dr. Letitia Wright
Filed under Featured Articles, Front Page, Wright Ideas
Caring By Seth Godin
No organization cares about you. Organizations aren’t capable of this.
Your bank, certainly, doesn’t care. Neither does your HMO or even your car dealer. It’s amazing to me that people are surprised to discover this fact.
People, on the other hand, are perfectly capable of caring. It’s part of being a human. It’s only when organizational demands and regulations get in the way that the caring fades.
If you want to build a caring organization, you need to fill it with caring people and then get out of their way. When your organization punishes people for caring, don’t be surprised when people stop caring.
When you free your employees to act like people (as opposed to cogs in a profit-maximizing efficient machine) then the caring can’t help but happen.
MabelAmber / Pixabay
How to Buy Homes Without Borrowing From the Bank
August 15, 2013 by Dr. Letitia Wright
Filed under Dr. Wright Live (Events), Featured Articles, Front Page
Location in the state of California (Photo credit: Wikipedia)
Don Nay has purchased more than 3,300 residential properties during the past 30 years and has never borrowed money from a bank to purchase a home. Now he wants to teach other people in Southern California how to buy homes the same way he did.
“Banks are financial institutions, not people,” explains Nay. “They have a cookie-cutter approach to making and servicing home loans in Southern California that is without concern for the person responsible for repaying that loan. I figured it was time to share what I’ve learned about the home buying process so that it might just help a few folks to buy a home or avoid foreclosure. It might help wake the banks up, too.”
I live in San Bernardino County and this county has been hit the hardest with foreclosures. Real estate has also been tough in Riverside County. There was an increase in foreclosures by 34% in the first part of 2013. I meet a lot of agents who say now is the time to get back into the market. I know people HAVE to be educated. The market is different. Even if you have experience, it’s best to learn what is working now and why. Don recommends a Purchase Money Mortgage and he can teach you how to use it.
Don Nay will conduct three free workshops that provide an overview of his approach to home buying. The free workshops will take place at Hilton Orange County, 3050 Bristol Street, Costa Mesa, CA 92626 on Tuesday, September 10, 2013 12:00 p.m to 3:00 p.m.; Thursday, September 12, 2013 6:00 p.m. to 9 p.m.; and Tuesday, September 17, 2013 from 12:00 p.m. to 3 p.m.
He will also conduct a three-day, in-depth seminar where he provides detailed information on how to use his process to purchase homes without bank loans. The seminar will take place on Friday, September 20, 2013 through Sunday, September 22, 2013, from 8:00 a.m. to 5:00 p.m. at Hilton Orange County, 3050 Bristol Street, Costa Mesa, CA 92626.
Watch this video!
To register for the free workshops or the three-day seminar visit www.donnayzerorules.com call (800) 596-8196, or email donnay@don-nay.com.
