Public banking — an idea whose time has come

Berl Brechner (“Is public banking sound policy for city?,” My View, Sept. 17), is concerned that public banking may be too “complex” in a city “where auditors routinely find flaws.”

Brechner and your readers might be interested to know that, according to the “City of Santa Fe, New Mexico Comprehensive Annual Financial Report for the Fiscal Year ended June 30, 2016,” the city held uninsured deposits of about $95 million in 2016, of which about 63 percent were held by Wells Fargo Bank. Most of your readers will recognize Wells Fargo as the financial institution that has recently paid in excess of $26 billion in “settlements” with the U.S. Department of Justice for defrauding its own customers.

According to an assessment by the Federal Reserve Bank of Dallas, the 2007-09 financial crisis erased from $6 trillion to $14 trillion of wealth from U.S. households — due primarily to the actions of private banks. We might take Brechner’s assurance that “private banks handle government accounts because they have experience and expertise, independence, professional and technical resources in place” with a grain of salt.

Public banks, where community welfare and public investment are guiding principles, have accountability measures far superior to those of the private sector where profit and personal gain encourage criminal behavior. Brechner favors the advocacy that continues the control of private bankers to enhance the fortunes of out-of-state wealthy bankers with questionable professional integrity.

We think most middle-class voters welcome the communitybased “advocacy” that public banking represents. Profits earned by public banking that would otherwise go to out-ofstate banks like Wells Fargo will be used to benefit the people of Santa Fe by investing in programs for the public good. It’s an idea whose time has come and truly a “no-brainer.”

Rachel Stofocik and Mark Paris are residents of Santa Fe and proud advocates of a strong community.