Guest blogged by Ernest A. Canning
A new movement, led by economist Robert Johnson, who previously served on the Senate Banking and Senate Budget Committees, is urging citizens to move their money out of the big banks, Citigroup, JPMorgan Chase, Bank of America, and Wells Fargo and into local community banks in order to “stop this toxic side effect of derivatives lobbying and ‘too big to fail’ lobbying" --- a move that is secure so long as the selected community banks are covered by the F.D.I.C. for deposits up to $250,000.
According to Johnson, who was interviewed recently by Amy Goodman on Democracy Now, those four banks, along with Morgan Stanley and Goldman Sachs, control 97% of the derivatives market:
ROBERT JOHNSON: Well, that requires a little bit of research, but we do have friends at Institutional Risk Analytics that’s on this website, moveyourmoney.info, and they have rated all the FDIC call report banks, and they’ve separated out the big banks from the small, or what you might call the behind-the-scenes ownership, and given you a menu. If you plug in your zip code, it gives you a menu of the banks that they rate A or B, which is safe.
The 01/04/10 Democracy Now segment on the Community Bank Movement follows below...