Proposed public bank awaits county's big deposit
Alameda County is going alone to fund groundbreaking public bank, at least, for now
COUNTY NEWS
BOARD OF SUPERVISORS
—The dream of a public bank in the East Bay could soon be capitalized with a $40 million investment by the Alameda County Treasurer-Tax Collector’s Office.
—The Alameda County Board of Supervisors are expected to receive the request at its July 23 meeting.
—The goal of a regional public bank has slowly gained steam over the past few years. Proponents believe a public bank will better serve minority groups and areas often ignored by large financial institutions.
—If approved, the Public Bank of the East Bay will be the first such institution created in the U.S. in more than a century.
—At this time, the public bank has not yet been chartered by the FDIC or the California Department of Financial Protection and Innovation.
—Alameda County Treasurer-Tax Collector Henry Levy said approval is around the corner. Levy will ask county supervisors to formally allow him to invest $40 million into the public bank in two weeks upon FDIC approval.
—The origins of the public bank began in Richmond, Oakland and Berkeley. But for now, Alameda County will be, by far, the public bank’s biggest investor.
—While Richmond has allocated nearly $1 million to the effort, Levy said. A non-profit created to support the public bank has raised another $1 million, he added.
—Meanwhile, Oakland and Berkeley have not yet committed any funding. Levy hopes the combined investment of Oakland and Berkeley could be around $10 million.
—The fate of public banking in the U.S. may rest upon success in Alameda County, Levy acknowledged on Tuesday.
—“This thing has to be successful financially,” Levy told the board. “If not, the whole movement to create public banking will suffer.”
—Scott Waite, the public bank’s CEO expects the proposed institution will make money by its third year. He attempted to assuage concerns by some county supervisors about any financial risks for the county.
—“They don’t want any failure of a public bank on their watch,” Waite said, referencing the FDIC. “We’re merely tryin to be an alternative to what you have now.”
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