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Are smaller, local banks nurturing local economies such a bad thing?

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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:07 PM
Original message
Are smaller, local banks nurturing local economies such a bad thing?
Edited on Mon Sep-15-08 01:10 PM by marmar
When I first opened my checking account in college (in the 1990s), my bank was Michigan National. Several name and ownership changes later, it's Bank of America. In that time, the headquarters locations of its parent company have ranged from Farmington Hills, Mich., to Chicago to Amsterdam to Charlotte.

If there's one good thing that comes from all this financial upheaval, I hope it's a return to more localized economies.
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w4rma Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:10 PM
Response to Original message
1. I'm afraid that in the short term it will be larger and larger institutions as they buy one another
out at fire sale prices.
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sandnsea Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:10 PM
Response to Original message
2. Local banks are in better shape
I was just doing some checking and most local banks didn't get involved in all this sub-prime and book cooking stuff. As long as their money isn't in a bigger failing bank, it looks like they should be okay.
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BlooInBloo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:11 PM
Response to Original message
3. Unfortunately, they typically put their money in securities from larger banks....
So you end up in the same rut - or worse, since the small banks can't take that kind of a shock.

It's sorta like wargames: The only way to win is to not play in the first place. I heart Boeing Employees Credit Union!

The BECU reference: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4002171
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lapfog_1 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:11 PM
Response to Original message
4. Well, so far it's the opposite.
Monopoly power is what they want... and it's what they are getting.
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baldguy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:14 PM
Response to Original message
5. Small, local banks are more vulnerable to local economic problems.
Large nation-wide institutions are more capable of weathering a general downturn in the nation's economy than smaller ones.

Unless they do something stupid like invest heavily in unsecured loans.
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flvegan Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:16 PM
Response to Original message
6. I'm currently considering switching to my "local" credit union.
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soothsayer Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:17 PM
Response to Original message
7. Depends what they invest in. Local banks investing in local businesses and communities
would be ideal, but good luck finding them. That's really the answer and guess what? We could do it today if we all voted with our $$, by putting them in places that do this. But everyone's chasing the higher savings/checking interest rates and higher cd rates, which local banks can't afford UNTIL we all start putting money there. check out www.solari.com for lots of ideas on how to invest locally.
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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:20 PM
Response to Reply #7
9. Thanks for the link......
I'm trying....


Local stores, trying to avoid chains unless absolutely necessary.
Locally-owned coffee houses (which are WAY better than Starbucks anyway).
I'm about to switch my account to a local credit union.....
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RB TexLa Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:20 PM
Response to Original message
8. Localized economies, as in no scale to lower costs. I'm sure everyone will love
paying $20 a month for a checking account, getting 1.5% interest on their savings account and if the bank offers it maybe paying $35 a share for stock trades.


But I guess since it's local they will hand that money over proudly.
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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:22 PM
Response to Reply #8
11. Funny, I don't know of any local credit union that charges $20 for a checking account....
.... and it's typically free with direct deposit.

But Bank of America wants to charge $9 a month, even with direct deposit. :think:
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:23 PM
Response to Reply #8
13. not alway true.. Our small bank gives us FREE checking, free checks, free safety deposit
free online banking and pays us an extra 1% on our CDs for having direct deposit there..

You have to shop around..
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RB TexLa Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:25 PM
Response to Reply #13
15. But if you don't have the national or international banks in your localized community
Edited on Mon Sep-15-08 01:26 PM by RGBolen
where do you go to "shop around," you know after the economies have been localized.
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:26 PM
Response to Reply #15
16. We'll probably all be bartering for services by then
and won't have any money to bank anyway :rofl:
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:22 PM
Response to Original message
10. I just closed our WaMu account this morning, and moved our accounts to
Provident Bank.. They have a direct phone number..No phone robots.. they recognize my voice on the phone when I call them .. we have a few savings accounts , some CDs there, adn I had my own "fun money" account there...but now it's also our main bank.. We'll keep the account at Union bank too, but no more WaMu for us..
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The2ndWheel Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:23 PM
Response to Original message
12. Wal-Mart started out small too
My guess is there would be far more upheaval before more localized economies show up.

Plus, aren't local economies pretty much the opposite of everything we do? How would a national healthcare system work with local economies?
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:24 PM
Response to Reply #12
14. Just like it does now, when you show your insurance card to your local doctor's office
:)
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leftofthedial Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:31 PM
Response to Original message
17. commie
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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-15-08 01:32 PM
Response to Reply #17
18. I know.....I'm going to change my screen name to marxmarx....
:P
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