The 'Move Your Money' uproar
Is it time to punish big Wall Street banks by moving your business to small, local institutions?
Is it time to move your money to a smaller bank?
(Corbis/Lucas Allen)
"Move Your Money," a new initative from Huffington Post founder Arianna Huffington, urges Americans to move their savings into small, community-based banks, thereby punishing the Big Four — Citibank, Chase, Wells Fargo and Bank of America — for triggering a financial crisis with their "reckless investments." Though traffic has been pouring into the Move Your Money website, where search tools help consumers find a strong community bank near them, will enough people make the switch to send a significant message to big banks? (Watch the "Move Your Money" viral campaign video)
Moving your money won't do any good: The Move Your Money campaign might make you feel good, says Yvette Kantrow in The Deal, which is why Arianna Huffington is "having a small, if probably temporary success in turning the decision on where to bank into a moral choice, like being green or buying organic." But it won't get you a better deal, or shame big banks into mending their ways. Like so many other reactions to the crash, this one "emphasizes symbolism over reality."
"It's the politics, stupid"
Not switching is "defeatist": "I don't really care whether switching my bank account from Chase to Mechanics Bank would strike a substantive blow against The Man," says Andrew Leonard in Salon. I'm switching because leaving my money in a big bank would be "defeatist." Maybe I won't get a better deal, and maybe I can't make Chase feel my pain — "but I'll feel better about myself in the morning."
"Why I plan to move my money"
The Big Four don't need your chump change: The average U.S. bank account has $4,000 in it, says Martha C. White in The Washington Post. To deprive the Big Four of even 5 percent of their deposits you'd have to get 2.6 million Americans to make the switch to small banks, and, with all the hassles that come with changing accounts, that's not going to happen. Besides, the small banks partner with the large banks to help finance many of their loans and other transactions, and that will "cushion any blow the big banks might feel."
"Ordinary Americans lack the power to hurt the big banks"
It's still worth doing: "The point here isn't to bring the big four to their knees," says Felix Salmon in Reuters. The Move Your Money campaign is "a much more positive thing," because it's telling people that they will be better off if they move their money to community institutions "(friendlier bank managers, lower fees, etc) and so will their community more generally. It’s a win-win proposition."
"The upside of the Move Your Money campaign"
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10 Comments
Posted by Kat, Monday, January 11, 2010, 4:50 pm Move your money to a credit union! Randolph Brooks FCU is amazing! They are friendly, don't charge stupid fees and you don't get the shaft like you do with the big banks. I doubt it will really hurt them, but it can't hurt you so go for it. Due to location, I had a Bank 1 now Chase account in college after having a credit union account for years in high school and it was AWFUL! Bad service, high fees, the list goes on. As soon as I could, I closed that sucker and have happily lived with a credit union ever since!
Posted by Greg, Monday, January 11, 2010, 5:44 pm Maybe it is symbolism, maybe it is not. It is if people keep acting the fool than yes a minority will have made a statement. If enough people realize they are the only thing that can make a difference though, than it will not be. There really isn't any reason for any taxpaying american to fund the idiots who nuked our economy to line their own pockets by indebting our children. To keep doing so is insane. Of course I'm going to close my BofA accounts.
Posted by Tyler, Monday, January 11, 2010, 6:42 pm People who claim that switching loyalties won't do any good are wrong. Very, very wrong. It isn't just a symbolic move. When you switch to local banks, they make more money. When you take out loans from them, pay them fees, etc. they make more money. With that money, they grow.Simultaneously, the big bank who didn't get your money, do NOT collect earnings from you directly. Yes, smaller banks use them at times. They shrink. Who cares if the result isn't HUGE and immediate? Support competition with your choice as a consumer.
Posted by Doug, Monday, January 11, 2010, 8:39 pm Money talks louder than political rhetoric. We cast a vote with every dollar we spend and the more people realize that, the more empowered we all become. Let's keep that in mind when we need something from Walmart, or, in the case of this article, when our ethically questionable big banks purport to give us a better deal.
Posted by dj spellchecka, Monday, January 11, 2010, 8:47 pm Paul Raushenbush over at Huffington Post has an article worth looking at titled 'The Religious Case for Moving Your Money Where Your Heart Is'....'Religious people should seriously consider the merits of this growing movement, as the way we treat our money is tied into our spiritual commitments.'
Posted by jfs, Monday, January 11, 2010, 8:50 pm The big banks have their hands in your pockets they nickel and dime you to death. I have my funds in a credit union and a smaller bank. The credit union is great and I would not even consider putting funds in one of the major banks. I have a mortgage with Citibank. When you call them you get someone out of the country who usually has no clue on how the account is setup. I have tried to stop a letter I get monthly, same message each time, costs 44cents or over 5 per year. They don't get it. I finally gave up. Multliply 5 by a million stupid
Posted by Darlene, Tuesday, January 12, 2010, 4:20 am I moved all of my money to a Credit Union. Credit Unions are NONPROFIT and don't pay BILLIONS on bonuses like the Giant MegaMonster Wall street banks which are sucking money out of our pockets like a Vampire Squid with its gelatinous tentacles wrapped around our faces clutching and sucking the life out of us and readying its white beak of death.
Posted by Gotchcamdotbiz, Tuesday, January 12, 2010, 4:24 am Great Idea! I am moving my money tomorrow morning. Mr. Potter will need to find another willing victim. JUST SAY NO to Super Mega Monster anti human banks.
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