Oakland, like so many other big cities, is hampered at every turn by its ties with Wall Street, yet no existing local bank can handle the size of the city’s budget.
The City of Oakland issued an RFQ (request for qualifications) for the feasibility study. Applications are due by February 24. The City Council’s Finance Committee meets February 28, and will select among applicants either by then or (we hope!) soon after.
Along with three Oakland City Council members, we hosted a hugely successful forum on public banking at Oakland City Hall on February 9. See our front page for details and the video. The Oakland Post’s report on the evening is here and their photo is just above. Hoodline also provided a good write-up.
On January 5, 2017, our own Susan Harman spoke at the City of Oakland’s housing forum. Here’s a Twitter video clip of her speech, thanks to TDL:
— TDL (@tdlove5) January 5, 2017
On November 29, 2016, the City Council passed this resolution, written by City Councilmember Rebecca Kaplan, and cosponsored by City Councilmembers Dan Kalb and Abel Guillen, requiring the City Administrator to provide a report on the scope and cost of a feasibility/implementation study for a public bank.. City Administrator Sabrina Landreth‘s report is due in 90 days, or by the end of February, 2017.
On November 27, 2016, our own Susan Harman and City Councilmember Rebecca Kaplan’s Policy and Legislative Director Laura Holtan talked about public banking on Kitty Kelly Epstein’s radio show, Education Today on KPFA.
The Refund and Rebuild Oakland Coalition provides background here.
This white paper lays out exactly what a public bank could do for Oakland, and how it can be done.
Oakland can use liquid assets it owns as part of the capitalization base required to create the bank. Other funds necessary to get the bank up and running will come from the General Fund or a small bond levy, ultimately repaid many times over as Oakland prospers. A total of some $20 million to $30 million in capitalization will be required.
Oakland will deposit some or all of the over $1 billion a year that flows into the City from taxes, fees, and State and Federal government grants into the Public Bank of Oakland.
The Bank will make various types of loans – described in part below – that are both financially sound and in the public interest. It may also provide certain services. Interest from these loans and reasonable fees for services will generate a flow of funds into the bank to pay for its operations, build its capital, and create its profit. This profit will not go to pay for million-dollar bonuses to already-wealthy executives as happens on Wall Street. (As of 2013, the President of the Bank of North Dakota, a civil servant, made just over $200,000.) Instead, because the City of Oakland will own the stock of the Public Bank of Oakland, the profit the bank makes will be returned to the City of Oakland as dividends or be re-deployed to make more publicly-beneficial loans.