patrick.net

It is only a matter of time before the huge national banks create some kind of entities that they disguise as "credit unions". Maybe even merge their entities with legitimate legacy credit unions.

Moved my money last year. Wish I had more to move!

I'll preface this by saying that I am all for it. Nothing is going to hit them harder than taking away their source of cash to leverage themselves on.

Now, some questions. What is the ultimate goal? Do we want to see the large banks go down completely? What will become of the tens of thousands (or hundreds of thousands?) of people that work for them? Will they all get re-employment in credit unions that will have presumably popped-up all over to soak up all the new demand? Or, do we want to see these TBTF banks shrink down to a size where they no longer have the financial means to pay Washington to keep its lips locked around their dicks?

At this point, I almost don't care what happens to theTBTF banks, as long as it involves them getting f***ed. But, that is sort of irrational, and I figure that we probably should have some sort of solid goals. At the least, we should have some idea of what to do with the thousands of middle class folks that work as tellers/accountants/managers/etc. I can't subscribe to a scorched-earth policy that says, "fuck them, they whored themselves out to the TBTF."

If the big banks folded the credit unions would become big banks and the cycle would start anew.

How about just not getting loans and paying off your credit card each month? When you borrow money from anyone it's going to be a rocky relationship. Spend only what you have and there aren't any problems.

APOCALYPSEFUCK is Tony Manero says

EAT the Bank of Asmodeus!

Better to clean before cooking; someone may have shat on their faces.

B.A.C.A.H. says

It is only a matter of time before the huge national banks create some kind of entities that they disguise as "credit unions". Maybe even merge their entities with legitimate legacy credit unions.

Key Words: "non-profit" and "member-owned" credit unions. The legal structure of these organizations are most relevant. Check the charter first.

For-profit corporations on the other-hand are sociopathic legal entities of pure avarice and greed.

Financial corporations who exploit the legal privileges granted to banks in a debt based fractional reserve banking system: are the perfect instruments of economic oppression.

Taking your business elsewhere is simply the only virtuous choice.

Smedly,

I was already a credit union member a long time before the 99ers made it an issue. For years. Decades. I hear you.

I just don't trust the banks with all their quants, lobbyists, revolving door into government posts, smarty-pants Ivy League finance and MBA grads.

It doesn't look good for us 99ers.

Here is the problem:

If all the credit unions end up with lots of surplus deposits, they will deposit them at the Federal Reserve, and the Fed will promptly lend the money back to the big banks via a Repo loans secured by some bad mortgage bonds that were created by lending out your original big-bank deposits in the first place.

This will certainly be more problematic for the big banks than just getting the money directly from the suckers, er, depositors, but still.

Even worse, the credit union may even "invest" your deposit in big-bank bonds.

By all means transfer your money out of BofA, but don't don't expect immediate results.

justme,

There was an article in the Monday (11/7) print edtion of the Wall Street Journal that said the banks were glad to see most of the small depositors go. It said that the costs of maintaining those accounts exceeded the fees they collect. They were glad to lose that business. It was claimed that the accounts that the banks wanted to keep did not move their deposits. I wish I could've found a link to that article to post here. Maybe someone else will find it.

Perhaps Balance Transfer Day was a shenanigan started by the banks themselves, get rid of customers they didn't want, make them think it was their own idea, make them feel good about it too.