Banking - 101

New Mexico House Votes to Move Money to Community Banks
The New Mexico House this week voted unanimously for legislation to move money from the state’s general fund depository account from Bank of America to New Mexico community institutions. The legislation, sponsored by Rep. Brian Egolf (D-Santa Fe), would direct the New Mexico Department of Finance and Administration to give preference to community banks and credit unions to act as fiscal agents for up to $5 billion in state funds. The bill is headed to the Senate, and Gov. Bill Richardson (D) has said he supports it.
Egolf has said the plan would free up credit for local communities because community banks have been lending during the financial crisis while the largest financial institutions have reined in credit. He also has introduced a joint memorial encouraging New Mexico residents to bank with community institutions instead of the nation’s largest banks. ICBA and the Independent Community Bankers Association of New Mexico strongly support the measure.

Finally, some truth and wisdom from our elected officials. I hope other states catch on.