Recently, several letters have appeared in The New Mexican opposing a public bank for Santa Fe. The key argument is that the bank would be managed by the city. That’s not how a public bank works. As a chartered bank, a public bank would be managed by professional bankers and overseen by a policy-setting board. The bank would be subject to the same regulations and oversight as any stockholder-owned chartered bank in New Mexico. A public bank is not a retail bank. It serves only the city, not individuals: No tellers, branches, ATMs or advertising. As a result, the operating costs are low.
A public bank is an innovative way to provide long-term, nontax income for the city. According to the feasibility study, profits from a public bank could earn $10 million in the first five years. Make up your own mind; read the two independent studies that examine the proposed public bank. They’re on the web at BankingOnNewMexico.org.
Alan Webber – Santa Fe
