Massachusetts to remove money from banks to protest credit card charges




We should see more of this both at the state level as well as the federal level. If banks don’t want to go along with fair play, fine. That means they lose out on hundreds of millions of dollars that will now go elsewhere. That is how the market works or at least how it should work. Washington Post:

State Treasurer Timothy Cahill said the state has removed Bank of America, Citi and Wells Fargo from a list of institutions approved for new state investments. Massachusetts, which is the only state to make such a move, is also beginning to divest $243 million in funds held at those banks, though the process could take up to six months.

“We want to bring some fairness into the issue,” said Cahill, who is running for governor. “I don’t think what we’re asking is . . . out of line.”

The announcement — made at a raucous rally on Capitol Hill organized by the Metro Industrial Areas Foundation, a network of religious and citizen advocacy groups — is part of a wave of consumer backlash over the banking industry’s role in the worst financial crisis since the Great Depression. Congress has enacted sweeping credit card reforms that limit how and when issuers can raise rates and is in the midst of debating the creation of an agency dedicated to protecting consumer rights.


An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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