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Great story about how --- and why --- North Dakotans smoked all others for PPP (small business) loans
Posted by: deckeda
Date: May 15, 2020 09:46PM
[www.washingtonpost.com]

Spoiler alert: ND has the only public bank left in the nation. What does that mean?

"What’s their secret? Much credit goes to the century-old Bank of North Dakota, which — even before the PPP officially rolled out — coordinated and educated local bankers in weekly conference calls and flurries of calls and emails.

"According Eric Hardmeyer, BND’s president and chief executive, BND connected the state’s small bankers with politicians and U.S. Small Business Administration officials and even bought some of their PPP loans to help spread out the cost and risk."


OK but what does that mean?

"They were really expeditious and efficient,” said Robert Hockett, a Cornell Law School professor and a veteran of the Federal Reserve Bank of New York. “There was no leakage — the sort of ridiculous fee-charging that tends to happen when you do it through larger banking entities.” He added later that because BND is a public institution, “it isn’t really designed to maximize revenue lines by finding as many places to assess fees or brokerage charges as possible.”


Hmm, a public-owned entity that's expeditious and efficient. Lemme go and ponder that. Great, so can I open a personal checking account and ... nah you're missing the relationship here.

"But BND offers few retail services or direct loans, with the notable exception of student loans. Instead it partners with local banks, multiplying their lending power and guiding them through the ever-evolving global financial system."

and so ... the kicker,

"After the rocky rollout of the PPP, BND’s Hardmeyer said, “the federal government figured out what we knew for years: The best way to deliver these disaster programs is through community banks.”"

Makes the ever-present concentration of banking into enormous, for-profit entities a real hoot, yeah?
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Re: Great story about how --- and why --- North Dakotans smoked all others for PPP (small business) loans
Posted by: N-OS X-tasy!
Date: May 15, 2020 11:11PM
You're preaching to the choir here -- been a credit union member since 2004 when I figured out Wells Fargo was drowning me in fees.



It is what it is.
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Re: Great story about how --- and why --- North Dakotans smoked all others for PPP (small business) loans
Posted by: MrNoBody
Date: May 16, 2020 05:44AM
Thanks deckeda for the informative post!

some interesting info from Wikipedia:

The Bank of North Dakota (BND) is a state-owned, state-run financial institution
based in Bismarck, ND. It is the only government-owned general-service bank in the USA.

Under state law, the bank is the State of North Dakota dba the Bank of North Dakota.
The state and its agencies are required to place their funds
in the bank, but local governments are not required to do so.

Deposits are not insured by the FDIC, but guaranteed by the State (taxpayers).

I too belong to a credit union, gave up on banks long ago old fogey smiley



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The search engine that doesn't track you.





Edited 1 time(s). Last edit at 05/16/2020 05:45AM by MrNoBody.
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Re: Great story about how --- and why --- North Dakotans smoked all others for PPP (small business) loans
Posted by: lost in space
Date: May 16, 2020 09:32AM
Been a credit union user since the 60s, when my dad helped found the Travis Air Force Base Credit Union.



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Re: Great story about how --- and why --- North Dakotans smoked all others for PPP (small business) loans
Posted by: deckeda
Date: May 16, 2020 09:49AM
The relevant question here is, how many of you are small business owners, and where do you bank? Is it with some Big Name, or is it with a small community bank that may be able to move more flexibly during times of financial stress?

Granted, this story above depends a great deal on local banks having what’s apparently a one-of-it’s-kind resource in North Dakota, but for me it highlights how the public-facing bank isn’t often “the bank” that creates the working environment we all have to abide by.
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