Letter to the editor: Change needed to end cycle of failing banks

When it comes to banks, it appears we are in a vicious cycle (“Army of lobbyists helped water down banking regulations,” March 21, TribLIVE). Due to mismanagement, banks fail, the taxpaying middle class bails them out, Congress enacts regulations, over time the regulations get watered down, banks fail and the cycle repeats itself over and over.

It is time for a change. Instead of calling the rules “regulations,” call them “laws.” When bad actors break the law, they can be criminally charged.

Better yet, let’s have a public state bank. North Dakota has successfully had a state-owned bank since 1919. Instead of engaging in risky behavior to increase profits for shareholders, that money could be invested into the community to meet the public needs. Money from Pennsylvania for Pennsylvania. Billions each year are paid in high interest rates by local governments to private banks, which give local governments lower credit scores than private corporations even though private corporations are more likely to default.

A public bank is a way to finance state and local investment that doesn’t go through Wall Street and doesn’t leave the community and turn into a windfall for shareholders. It is about community development. It is about accountability to the public and not stockholders.

Sandy Kremer

Youngwood