April 9, 2013

So What Shall We Call The Proposed State Bank?

Monique Chartier

That is correct; Kim Kalunian at WPRO reports that a bill

... submitted by Rep. Charlene Lima (D-Cranston) would create a Rhode Island state bank.

The bill would establish a Rhode Island state bank to “protect the financial welfare and economic vitality of the citizens” and create jobs.

The state bank would have the same banking powers as a commercial bank, and could accept deposits, pay interest and make loans. The lending and guaranteeing powers of all state departments and agencies, like the Rhode Island Economic Development Corporation, would be transferred to the state bank.

Lima submitted the bill at the request of Keven McKenna, a lawyer and former candidate for Attorney General.

You're going to point to the state's long, dubious record in matters of finance, aren't you? Well, that should not enter into your calculations - at least, according to Mr. McKenna.

Following the 38 Studios debacle, McKenna said people cannot be afraid of government and the state’s money management skills.

“You cannot deal with paranoia,” he said. “If you are fearful of government then have the government do nothing at all: no roads, no education, no support for the elderly, nothing.”

Huh. Some of us might view the natural skepticism at such a proposal as more along the lines of open-eyed caution rather than paranoia. But we're glad to be corrected and no one wants to be a party-pooper. So, once more unto the breach, dear friends.

Possible names for our new bank. I'm thinking "RISDIC Savings & Loan". What would you suggest?

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"If you are fearful of government then have the government do nothing at all"


Give me a break

Posted by: jgardner at April 9, 2013 11:28 PM

"Following the 38 Studios debacle, McKenna said people cannot be afraid of government and the state’s money management skills."

That about says it all. Remember that famous movie line....."Pay no attention to that man behind the curtain". At least the Wizard didn't rob Dorothy. RI is the laboratory of government dis-functionality run amok. "Progressive" elitists running the populace into the ground. Get out while you still can. Paradise Lost.

Posted by: ANTHONY at April 10, 2013 12:30 AM

American Standard.

Posted by: John at April 10, 2013 8:34 AM

Maybe we can name it Bear-Stearns? Or Lehman Brothers?

I think those names might be available.

Posted by: Patrick at April 10, 2013 9:48 AM

Okay, okay, there are enty of Italians here, so let's just call it Latrina Bank. Sounds nice, no?

Posted by: John at April 10, 2013 10:08 AM

Only in Rhode Island would the General Assembly take banking advice from a morally and economically bankrupt attorney.

Is this the progressive answer to payday loans?

Posted by: Max D at April 10, 2013 11:20 AM

Gosbank? Cyprus2? How better to seize the people's money that to be the banker?

Posted by: Mike678 at April 10, 2013 12:35 PM

If it's truly an independent for-profit that is properly restricted, then I can actually see some benefits to this.

For one thing, it could be used to transfer benefits in an accountable, secure, low-cost way.

It could contract out accounting, payments, and invoicing that the cities all have to do on their own. Right now the cities all contract individually with out-of-state vendors. An operation the size of RI, with $8B in outlays, shouldn't have to contract credit card processing with an outside vendor that takes a 3% cut.

It would allow the state to more easily tie-in payments on things like parking tickets and taxes to car registration, etc.

I have my doubts that it would be properly run, though.

Posted by: mangeek at April 10, 2013 12:38 PM

Why doesn't Rhode Island work on correcting its most fundamental public policy problems first before it starts taking on huge new roles and gambling on these speculative statist/progressive projects. The politicians are like the delusional restaurant owners on Kitchen Nightmares who are dreaming about internationally branding their marinara sauce while their restaurant is going under from cockroaches in the kitchen and disgusting food nobody wants. When the state can pave its roads, police its streets, and put out fires without huge budget shortfalls, labor wars, politicians going to jail, and municipal bankruptcies, perhaps we can talk about something like a state bank. Until then, this is just another "expert-driven" gimmick to wallpaper over the deep cultural rot that pervades state government.

Posted by: Dan at April 10, 2013 1:46 PM

I like your idea for the new name for the bank Monique. Just in case the taxpayers forgot about the massive insider corruption that was going on in the 1980's that led to the credit union collapse in 1990.

Posted by: Mike at April 10, 2013 2:29 PM

I agree, Dan. First things first.

Roads, schools, and fiscal stability before anti-smoking campaigns, banking ventures, and EDC bonds.

Posted by: mangeek at April 10, 2013 4:34 PM

Thank you, Mike.

John, could you be implying that if we open a state bank, taxpayers money would be flushed?

Posted by: Monique at April 10, 2013 9:41 PM

I once set up a mortgage company in Massachusetts known as CFM Financial. I believe the name is now available.

Posted by: Warrington Faust at April 11, 2013 9:41 AM
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