The City of Portland is considering following the lead of thousands of Americans who took part in Bank Transfer Day on Nov. 5, switching their accounts from large, corporate banks to smaller, not-for-profit credit unions. Mayor Sam Adams agreed at a Nov. 14 city council meeting to consider a responsible banking resolution that focuses on using local banks for public funds. However, he was quick to note that the city’s largest investment is already held with a local bank—Umpqua.
Todd Olson, the coordinator of Move Our Money Oregon, raised the issue at the city council meeting. The newly formed organization was inspired by Move Your Money, the L.A.-based non profit behind the campaign for the nationwide Bank Transfer Day. The local group’s mission according to its Facebook page is to urge local governments to immediately look for ways to divest as much money as possible from Wall Street banks.
Olson cited a recent resolution passed in Seattle as an example of how a local government can impact the economic and political issues being protested by the Occupy movement across the nation. On Nov. 12, Seattle’s city council unanimously passed a responsible banking resolution as part of a larger, sweeping statement that indicates support for the ideals of the Occupy movement.
Adams pledged to “look into responsible banking.” He also pointed out that Portland already has nearly $30 million, its largest investment, with locally based Umpqua Bank.
City commissioner Amanda Fritz posted figures on her blog that break down the amounts of funds the city has in various banks. Umpqua indeed holds the largest account, with Wells Fargo coming in second with approximately $22.1 million in city funds. U.S. Bank, Albina Community Bank and Key Bank also hold city funds, although far less—less than $665,000 combined.
According to Adams, switching public funds to credit unions will be more feasible after 2013, when a federal regulation goes into effect that will raise the maximum amount of money a credit union is allowed to insure. Currently, that limit is set at $250,000, the precise amount of the city’s current holdings at Albina Community Bank.