City of Seattle releases RFP for Public Bank Feasibility Study
March 02, 2018
(SEATTLE, WA.) – The city of Seattle has made its effort to possibly create a Public Bank official by issuing a request for proposals for a Seattle Public Bank feasibility study.
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The city expects the final report to be submitted by August 1, 2018. Read the full proposal here .
For more information and contact details check here .
Big banks got huge tax cuts, then hiked states' and cities' interest rates
An email sent out to its readers by the Public Banking Institute reads, “The monster banks get monster tax cuts … then turn around and hike interest rates for states and cities. The hikes could translate into millions of dollars of extra costs for cash-strapped municipalities.”
The Institute, which encourages states and cities to start their own public banks, claims that, “Creating Public Banks would cut these middlemen — along with the enormous soaring drain of interest payments and fees — out of public budgets.
In a story published Feb. 15th Bloomberg noted:
“As U.S. banks were tallying up the billions of dollars in extra profits they’ll reap from the sweeping tax cuts signed into law by President Donald Trump, they were quietly delivering unwelcome news to local governments: The interest rates on their loans were about to go up.
That’s because banks often include clauses in contracts when they lend to states and cities giving them the right to trigger the increases if legal changes lower the returns on their investments.
The tax cut did just that. Slashing the corporate rate made the tax-exempt loans less valuable than before compared with other assets, once federal taxes are taken into account. So companies including Wells Fargo & Co., U.S. Bancorp and SunTrust Banks Inc. demanded more interest to make them whole.”
Read the full Bloomberg report here here .