What if $2 trillion dollars of corporate, brokerage and fund money began to migrate back to Main Street using the full 7,800+ population of banks instead of hyper-concentrating in under 100 too big to fail institutions?
In December 2009, my friend Arianna Huffington called with this idea to educate "ordinary" people about the financial system. We called that project "Move Your Money" and the tool has been running ever since.
The FDIC closed another bank in Georgia this week bringing the total to three so far in 2012. Global Commerce Bank in Doraville became the latest casualty of the bank clean up's march through the South.
The general pattern of the FDIC closing banks with weak operating characteristics and deepening asset quality troubles continues. The FDIC shuttered four additional banks today bringing the 2012 count to seven.
Come April Fool's Day, the free ride is over. The "base assessment amount" changes to a new formula. From now on it's the bank's total assets minus its tangible common equity (TCE) that determines the base amount.
The U.S. is a big country and D.C. isn't the only place exploring ways to find economic recovery formulae. Across the country, cities and states are beginning to chart independent paths to creating their own "islands of recovery".
These hearings that could improve the Community Reinvestment Act, the 1977 law designed to ensure banks remain connected to communities. Regulators decided it may be time to update how this law is enforced.