As the Occupy movement highlighted last year, and recent scandals have confirmed, the financial industry has been overrun by greed and risk. This is especially true of giant consumer/investment banks and the banksters who run them. In 2012, there was another set of huge losses by JP Morgan Chase based on more gambling, sorry, “trading”. Note: Chase was one of those banks “too big to fail” who got government TARP bailout money back in 2008, while struggling homeowners got nothing. Then there was Barclay’s caught rigging the interest rates in Europe (among other suspected participants). And then there was HSBC enabling money-laundering in Mexico.
Need more? See August 22 BBC “Global Banking Scandals: Who is under scrutiny?” The largest and most profitable banks are gambling with derivatives and doing other unsavory things to grow their fortunes, while thousands of families are losing their homes due to unfair mortgages that the big banks won’t even consider renegotiating (and some don’t even bother reviewing the paper-work, preferring to robo-sign the foreclosures).
What’s a conscientious consumer to do? Withdraw. Yes, it’s possible to withdraw your money from the financial giants and stay on the grid with finances and all. There is a marvelous invention called the Credit Union. Credit Unions are local, member-owned, not-for-profit financial cooperatives. They lend money responsibly, are federally insured and since they’re customer-owned, they are the safest place for your money as you (not some shareholder, stock price or commission) is truly their focus. Also, some credit unions offer credit cards, although if you want to boost the economy and help small business, cash is always preferable. I use Metro Credit Union in Boston (with ATM surcharge reimbursement and a credit card option).
If you can’t find a qualifying credit union near you, look for a relatively small, local (non-national) bank. Here are some resources:
- Why Are We Moving Our Money? (Move Our Money)
- Banxodus local banks and credit unions
- Massachusetts credit unions
- Smarter Choice – Find a Credit Union
- Credit Union Access (listing by state)
- Alternately, as a friend suggested, you can search online for Credit Union plus your city/state to quickly find those nearest to you.
Note: some credit unions are exclusive (of where you live or work), you’ll have to check membership details to see which you qualify for.
