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Create a Public Bank by Renationalizing Ally Financial – People's Policy Project
To me, it seems like the easiest way to get a public retail bank going would be to renationalize Ally Bank and then build from that base. Ally Bank is not a particularly big bank (compared to the Big Four) and currently has a market capitalization of $11.88 billion. Issuing treasury bonds to buy out the bank would not be that difficult and the dividends from the bank would provide a source of funding to pay off those bonds.
banks  finance  crisis  socialism  government 
12 weeks ago by max_read
Permanently Nationalize the Banks During the Next Crisis – People's Policy Project
The United States has sought to avoid being an active shareholder, instead using complicated mechanisms to ensure that even companies in which it holds a majority ownership stake are not run as public services. The government placed its AIG shares in an irrevocable trust administered by three trustees recruited from the private sector, and provided the trustees with complete power to vote and dispose of its shares. In Citigroup, the government agreed to vote its shares in proportion to all other votes cast except in certain designated matters, notably the election or removal of directors. It never exercised that right, despite various scandals.

The approach was criticised by centre-right Swedish politician Bo Lundgren who argued “for me, that is a problem. If you go in with capital, you should have full voting rights.” Hanna argues that “by going to such extreme lengths to avoid any straightforward nationalization, the U.S. government response… became unnecessarily complicated, devoid of transparency, and replete with backroom deals and perverse incentives”.
banks  finance  nationalization  crisis  gfc 
12 weeks ago by max_read
Banks As Socialist Collectives - Bloomberg - Matt Levine
If a company pays workers a medium (or, sure, large) amount of money in mediocre years, and vastly more money in great years, then that is I think a decent sign that it is run partially for the benefit of the workers—that the workers think of themselves as residual claimants on the firm, entitled to help themselves out of the profits in good years. (Of course in bad years the employees still get paid—still get bonuses, even—so it is not a perfect measure.) A Residual Marx Ratio that tracks, say,...
capitalism  socialism  marx  banks  finance  economics  labor 
may 2018 by max_read

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