NEW YORK (3/30/12)--Credit unions are a key beneficiary in the movements to use local government funds as "a battering ram against big banks," said The Wall Street Journal Online in an article Thursday.
The article, written by David Weidner and entitled, "It Takes a Village to Battle a Bank," outlines numerous community anti-big- bank efforts that have gained momentum since the start of the year among cities moving their money out of big banks for one reason or another.
It cites movements in Brockton, Mass.; Los Angeles; Kansas City, Mo.; and New York City that have resulted in resolutions, ordinances, and legislation; and it notes similar actions are underway in Austin, Texas; Boston; Chicago; Minneapolis; San Francisco; San Jose, Calif.; and Portland, Ore.
Some "dump your bank" actions have worked, said the Journal. It referred to estimates from the Move Your Money movement that roughly $59 million was moved from four big banks since mid-2011. Bank of America's deposit base 5% rose in 2011, but the bank experienced a $5 billion decline during fourth quarter at the height of the Occupy protests, it said.
"The biggest beneficiaries might be federally insured credit unions," said the article. "Credit unions added 1.3 million new member accounts and $41 billion in new deposits in 2011, according to the National Credit Union Administration," it added.
"The gains may not be entirely attributable to protesting customers, but it surprised the credit-union industry, which was expecting little if any such growth in 201. Whether account holders have continued to move away from big banks will become clearer next month when first-quarter earnings and deposit data are released," the article said.
The article also said the events mean that "big banks will take the little guys a little more seriously." For the complete article, use the link.