It’s going to be hard to gauge the actual success of Bank Transfer Day for a while. Not only do we have to wait for record-keeping – and Bank of America, at least, is not giving up the data – but many customers may have just initiated the bank transfer process, opening their account at a credit union or community bank, and are waiting for everything to clear with their other bank account before closing it.
For example, to add an editorial comment, this is what I did yesterday. I participated in Bank Transfer Day by opening an account at a local credit union. But I only put a trivial amount into the account, and will then wire my money over electronically from Bank of America after being assured that all charges have cleared on that account. I’ve been a BofA customer, through sheer inertia, since 1998. Business was pretty brisk at the credit union, and the bank manager said it’s been that way for the last month (we do know from statistics provided by the Credit Union National Association that credit unions have added 650,000 new members with $4.5 billion in deposits since September 29, when Bank of America announced their since-abandoned debit card fee). When I said I was transferring from BofA, the bank manager smiled knowingly.
I suspect there are a lot of people like me, and there’s no question that Bank Transfer Day generated a lot of media attention and localized events. The picture you see up top – and I’ll put a few more at the bottom of the post – came from a Move Your Money event in San Rafael, California. Organizers announced that 250 people attended the event, and almost all of them pulled their money out of big banks and into community banks or credit unions. They also leafleted in front of Wells Fargo, Chase and Bank of America, encouraging other customers to move their money.
And this was replicated throughout the country, generating a lot of local media. There were events in Philadelphia and Buffalo and Dallas and Amarillo and Portland, Oregon and Des Moines and Petaluma, California and Fresno and Santa Cruz and dozens if not hundreds of other sites across the country. Move Our Money USA, the offshoot effort put together by the New Bottom Line, reports over $31 million in bank transfers as of today, and they only started a week ago. And that includes the millions of dollars they are helping to move through the cancellation of banking services by clergy, community groups and municipal governments, a powerful additional spur to the movement.
I don’t know that this will hurt banks. As Zach Carter and Ryan Grim point out, accounts with low balances actually cost the big banks money to manage them, so moving those accounts out saves them a bit of money. I’m not sure I totally buy that, as banks still need working capital and they lose out on a suite of fees, many of which are targeted at customers with low balances. But it’s possible.
What I do know is this: the action of choosing not to participate in the Wall Street economy, to go local, is a powerful one. It’s not as convenient. You may not have global access to your money 24 hours a day, 7 days a week. You may not have all the ATMs in your vicinity that you might like. But you have the pride of knowing that your little piece of global wealth isn’t going into the hands of a bank that uses it as you would a chip in a casino. It’s a statement more than anything, a statement of rejection, of opposition, a withdrawing of support more than a withdrawal of money. And I don’t think it stops with Bank Transfer Day.
Some more pics from San Rafael:








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‘Bank Transfer Day’ a great idea. Would be great to have follow-up days for people who missed this one. This is an action that could catch on big time.
Just saw a Chase ad during NFL game talking about all the investing they are doing “in the little people.” Seems they are feeling the pinch.
About David’s point that the CU may be less convenient, my credit union (SF Firefighters) has a lovely feature where they refund ATM fees from any ATM. The effect in terms of convenience and how it feels is that it’s possibly even *more* convenient than my B of A days – use any bank, use any network, use the one in the convenience store, no fee.
I realize it’s not “free”, and I’m sure the program has a cost for the credit union, which I don’t know the details of but assuming for a moment that they find it sustainable, I hope CUs that have this program will make sure to speak up about it. Maybe more ambivalent people or people who are on the fence will make the leap if they find out that they might not have to go out of their way or adapt their routines.
there are also people like myself, I have to have a boa account to cash payroll checks written to me from work
however I will have transferred out of my savings account all the funds but what’s needed to keep the account open
in addition, I would have transferred about quite a bit of inheritance money into a boa account in about 3 months but instead that money will stay at the local bank
so there is more going on then they can possibly document
Chase has been doing feelgood ads on my cable for a week or two.
The CU in my area is really inconvenient. I went in to transfer some funds to my son’s account at his CU in another state, and the local one said they weren’t tied into that system so couldn’t do it. And the employees were not nice.
To be sure, that was right after Irene or Lee and they had been flooded out, but still, they were high & dry by the time I got there to make my request. Instead of treating me as an annoyance, they could have politely apologized & explained.
And they are doing tons of ads on the local cable.
Yesterday’s mail brought a (third) offer from Chase — I have two VISA Chase cards — Balance Transfer (or write a check to myself) up to my limit at zero percent interest thru 10/12 with a 1% service fee for the transaction.
I think the kind of banking service you need depends a lot on how much you travel. I travel a lot, and it is important to be able to access my account overseas via my debit card when I need cash. Apparently some credit unions and community banks are not set up to do this. Strikes me as a good business opportunity to set up the service for them. I dumped Wells Fargo last spring for excessive charges for using their ATM facility.
Seattle Times reported that Boeing Employees Credit Union (45 branches) had over 650 new customers on Saturday alone. They actually staffed up for the day.
Most credit unions have a policy of cashing recognizable paychecks, keep the pay stub with it, without a waiting period for them to clear, regardless of the maker. Ask your credit union.
I’ve always used PayPal for p2p transfer.
I’ve had a major prob with PayPal in the past and won’t go near it ever again. Amount was only $800 to buy a painting, involved several phone conversations assuring me it was solved, and it wasn’t, i.e. phone jockeys just plain did nothing & lied to me. A disreputable org in my experience.
Paypal and Ebay qualify as one percenter plundering orgs.
Predators and Prey.
They are Predators. We are Prey. This best describes the relationship between the banksters and their customers. Or any big corp and their customers. Health Insurance, Big Oil, Big Ag, etc.
Obama acts as their personal atty.
I have to question the costs that they cite… With everything computerized now, it really does not cost them anything extra unless you have to do your banking at an actual branch. The banks moved us away from physical checks, which lowered their costs, and if we are direct deposit, it is simply a matter of tracking everything by computer. Yes, computerization costs money, but based on the profits they have been reaping, I would say that it is nowhere near what the banks are citing.
I, too, went to my credit union and opened a checking account. As soon as everything clears with BoA, it is “Bye Bye!!”
That sounds like third-party tsoris. I used PayPal years ago when I bought a used Sony Betamax machine from someone off eBay, but otherwise I’ve only used it for $ transfers.
Banks charge for a wire transfer, mailing a check costs nearly $.50, PayPal costs nothing unless you’re OCS and figure in the cost of your ISP, PC, electricity, etc.
Regions gets 35 bucks for a wire transfer. Fuckin’ highway robbery.
You remind me: Used to be that most or all states paid merchants something like one point for collecting the state sales tax, recording it, and sending it to the state. Since software has been doing all the figuring, since credit/debit transactions include the all the computations, I wonder if the merchants still collect their cost of doing the state’s business. I have other pending class-action grievance suits, but I’ve yet to meet a lawyer where I live.
Moving his money yesterday is proof that the guy reads his own blog and practices what he preaches.
I think this action is much more important than the dollar amounts moved. This is a mass Public Shunning of some of the most corrupt institutions in the world.
It took the Occupy Movement to turn a small two year old idea into a Mass Movement of rejection of the status quo.
A new website that tracks arrests at #Occupy across the country.
http://occupyarrests.moonfruit.com/
All I have to say is that on Friday after work I went to the local bank to open up a new account in preparation for transferring from MegaGothicMostroBank. (Had to wait due to automatic deposits of paychecks.) The bank officer who opened the account said it had been an EXTREMELY busy day, and wasn’t in the least surprised to hear that I was there in order to leave Teh Big Bank. Tomorrow I’ll set up new automatic deposits, and then tell Teh Big Bank to go stuff it.
Just call if the Free Market competition. Charge too much, treat your customers bad and they will walk across the street.
My driver’s license photo shows me scowling with my war face. I mean, why would I be smiling in that situation? And my happy countenance in person becomes effective counterpoint.
The other key issue is many of us did not transfer to just Credit Unions. I transferred my money from a major bank to a small local bank that I knew gave great loans to small companies and people who borrowed for an upgrade to their home, etc.
So Credit Unions are not the only place where people transferred their holdings.
Also is the realization that 1% own 40% of the wealth, so our effort is a gesture not a CHANGE!
I’ve heard that one too quite a bit, but it just doesn’t seem to pass my personal smell test either. I mean, if this really was the case why did they back down on the fees? I suppose maybe BOA did it because of just how much bad press they got, but Wells Fargo’s $3 fee they were thinking about? They already got the bad press, but even if they keep the fee BOA gave them plenty of cover. They could’ve quietly made it clear that they were ok with losing the small accounts and used the fact that BOA was first and with a worse fee to keep themselves from getting much more bad press then they already had to deal with. While I doubt this will have a huge affect on the banks, it still seems like if they really were ok with these accounts being moved they would’ve stuck to their guns and pushed out even more of the small accounts.
My own pet theory that I’ve been forming is that this affects their liquidity requirements. I’m not entirely sure specifically what those requirements are, but if $4.5 billion was moved after roughly 650,000 accounts (and this is just to CUs, not including smaller banks like jrubin said), and we’re supposedly up to 1 million accounts moved, I think it’s fair to guess that no less then $6 billion was just taken out of their liquid assets. Now they have to cash in some of their other assets just to have enough physical cash on hand. So even if those accounts weren’t profitable, they kept the banks in compliance. Having to cash in 6 billion in assets seems like it would be a big enough deal that that could cause them to back down on the fees. At least until they can find a more hidden way of charging them.
OT, but just posted on Politico is a piece from Schneiderman and Biden on their investigation.
Native American music show, Two Worlds, on WMNF airing protest songs. Free trade agreements, environmental non-regs. The Native Americans are on top of it and standing up. Very cool.
Even if every 99%er made a run on the bank, the Fed would give the banks loans at 0% to cover any losses.
Equality before the law?
Let’s see any of you get a 0% loan when your business has no customers!
Chase has been doing Ronnie Raygun caliber lie campaigns in Seattle ever since they swallowed WAMU.
and, just like with the morning in amerika ads, I watch and I think – ‘shit, if 1/2 of what they said was true, instead of bald faced f’king lies, I’d want to support ‘em!’
rmm
Yeah, free market competition. The reason it usually doesn’t work (e.g., health insurance, actual health care, used cars, etc.) is because of lack of information on the customer side. In most of these phony “markets” the basic assumptions of neoclassical economics do not exist. There are few suppliers, entry af a new supplier is restricted or expensive, products are not actually alike, etc. In this case the banks didn’t realize that their customers have started sharing information about alternative suppliers of the services they are selling and the customers are able to find out about the differences and prices. Actually, it’s amazing more people don’t understand how rare real competitive markets are — that’s why the neoliberals have been able to take over.
I’m surprised you stayed this long given your in depth knowledge of these blood devils! I’ve been in a CU for 20 years and love it. No problems whatsoever.
Yeah, it takes a while. I already had an account at a regional credit union, but the bulk of my money was in my Wells Fargo account. I’m setting up to move almost all of my money to the CU, but I’ll probably have to keep my WF account for a while. However, moving $20,000 from WF to a CU is more than just a symbolic act, and hopefully actions like this — in aggregate — will make them stand up and take notice.