Should the State of Hawaii borrow billions of dollars and use it to capitalize a state-run bank headed by the Governor and his cronies? Broken Trust is what happened last time Abercrombie's cronies were given billions of dollars to play with....
Rep. Ward Addresses a State Bank HB 2103
Stand. Comm. Rep. No. 278-12H.B. No. 2103, H.D. 1 RELATING TO THE BANK OF THE STATE OF HAWAII.(Financial Institutions; State Bank; Mortgage Foreclosure)
Establishes the bank of the state of Hawaii. The bill amends the Hawaii Revised Statutes, HRS, by adding a new chapter that establishes the bank, its purpose, and its powers; creates the board of the bank; and creates the advisory board of directors. The board includes the governor; the director of finance; the director of labor and industrial relations; the director of business, economic development, and tourism; and the chairperson of the board of land and natural resources. The bill also requires the bank to establish a short-sale program for problematic mortgages wherein the state bank may purchase residential property in situations where the mortgagor is an owner-occupant and the mortgagee is a securitized or non securitized trust that cannot adequately demonstrate that it is a holder in due course...The only existing state-owned bank is North Dakota. In 2011, Massachusetts published a report on the feasibility of creating a state bank. Among other things, they found that the Bank of North Dakota capitalized through $2 million bond issue in 1919 and that today's equivalent in MA would be about $3.6 billion, about 21 percent of the state's direct debt outstanding. Contact: email@example.com
Rep. Gene Ward's 8 minute debunk of the State Bank: http://www.youtube.com/watch?v=5wqUMur3PmU
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The Bank of North Dakota: A Model for Massachusetts and Other States?
New England Public Policy Center Research Report No. 11-2
by Yolanda K. Kodrzycki, director and vice president, and Tal Elmatad, research assistant, Federal Reserve Bank of Boston
In 2010, Massachusetts legislators considered whether to create a state-owned bank as a means to address concerns about credit availability and other economic challenges stemming from the financial crisis and Great Recession of 2007-09. In 2011 a commission was established to investigate the feasibility of setting up such an institution. This research report informs the work of that commission.
The report provides an in-depth examination of the only state-owned bank in the nation, the Bank of North Dakota (BND). It discusses BND’s history and current operations, and analyzes the degree to which the bank stabilizes the state economy, provides local businesses improved access to credit, augments the lending capacity of private banks, and contributes revenues to the state government. The authors conclude that, in recent years, BND’s most important role has been to serve as a lending partner for North Dakota’s numerous small banks, but that its willingness and capacity to offset a serious credit crunch has not been shown, owing to the comparatively limited stresses on North Dakota banks in the recent national crisis and economic downturn. The report estimates that the potential costs of starting up a state-owned bank in Massachusetts could be significant.
Last Year: HB853: State-Owned Bank to be run by Takamine, Abercrombie