Public Banking - "Banking in the Public Interest"

By Greg Wendt An excellent article was just written called "Reviving Main Street - A Call for Public Banks" highlighting the opportunity states across America have to restore a healthy economy - simply by creating a state bank. Surprisingly, North Dakota is the only state in the union which has created its own bank. The article highlights work of thought leader Ellen Brown , and the Public Banking Institute which educates policymakers about the opportunities from the straightforward process of forming a state owned bank. Her site shares that:

Public Banks are...

• Viable solutions to the present economic crises in US states.
• Potentially available to any-sized government or community able to meet the requirements for setting up a bank.
• Owned by the people of a state or community.
• Economically sustainable, because they operate transparently according to applicable banking regulations
• Able to offset pressures for tax increases with returned credit income to the community.
• Ready sources of affordable credit for local governments, eliminating the need for large “rainy day” funds.
• Required to promote the public interest, as defined in their charters.
• Constitutional, as ruled by the U.S. Supreme Court

...and are not

• Operated by politicians; rather, they are run by professional bankers.
• Boondoggles for bank executives; rather, their employees are salaried public servants (paid by the state, with a transparent pay structure) who would likely not earn bonuses, commissions or fees for generating loans.
• Speculative ventures that maximize profits in the short term,  without regard to the long-term interests of the public.