Photo: U.S. Marines
While Washington DC continues to treat our major banking institutions with kid gloves (apologies to Sen. Dodd fanboys), the states are growing increasingly hostile towards them.We’ve already done some reporting on the scene in California, where the LA City Council has kicked off a campaign to not only extricate itself from some swap deals, but also implement new CRA-like regulations which, if not complied with, would result in the loss of city business for major deals.
A trend — which in a sense is related to HuffPo’s Move Your Money campaign — is starting to permeate other states.
According to WSJ, lawmakers in Maryland, Massachusetts, Minnesota, and New Mexico are all pushing for a move away from large financial institutions, and towards doing business with the local little guys. Michael Bloomberg is even depositing city money with credit unions, according to the report.
For the time being, this won’t be anything huge, and won’t have a major impact on large bank business. But as the beginning of a trend it’s interesting, and it’s refreshing to see that some public official actually want to do something about too-large banks, rather than talk about it.