Occupy Groups Reimagine The Bank Groups within the Occupy Wall Street movement are trying to overhaul the banking system — and they even dream of a new kind of bank. One activist sees "a bank that would be democratic, that would be owned by its employees and by its customers."
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Occupy Groups Reimagine The Bank

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Occupy Groups Reimagine The Bank

Occupy Groups Reimagine The Bank

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The movement against the corrupting influence of money and power known as Occupy Wall Street is not in the headlines much these days, but behind the scenes there are still many events and working groups. And two we'll hear about now, are most unusual. One is trying to reform the current banking system. The other is trying to create a new kind of bank. NPR's Margot Adler tells us about it.

MARGOT ADLER, BYLINE: Who is the Alternative Banking Group of Occupy Wall Street? You might be surprised. There are actually two groups of people who meet in different places, once a week. Members are older than you might think - 30's, 40's 50's - and many work, or formerly worked, in the financial industry. Cathy O'Neill often facilitates the group that's working on legislation and regulation, to reform the financial system.

CATHY O'NEILL: We have almost no consensus opinion, except that the system's not working. A lot of these people are from finance or have a background in law or SEC regulation. There's lots of people from banks and hedge funds.

ADLER: She, herself was a quant, a quantitative analyst at a hedge fund. She even worked with former Treasury Secretary Larry Summers for a while, but she got disillusioned. Within the Alternative Banking Group are smaller groups working on specific projects. O'Neil talks about their plans for a mobile app to help you move your money away from large banks.

O'NEILL: It would show you which credit unions you are eligible for, which is a big obstacle for people; where the ATM's are in your neighborhood; what kind of paperwork you would need; and what the investing philosophy of that credit union is and what their services are.

ADLER: This group also wrote an article in the Financial Times, looking at a plan by former Republican candidate Jon Huntsman to deal with banks that were too big to fail. They wrote the article in order to say: Hey, President Obama, hey Republican candidates, you should be looking at this too.

The other group, the Occupy Bank Working Group, wants to create a new kind of bank. One of the facilitators is former British diplomat Carne Ross, who says, it's amazing that the system is so broken that some people in finance share the concerns of people who were sleeping in Zuccotti Park.

CARNE ROSS: To the extent that actually we're talking about setting up an alternative system, that's pretty radical stuff. And the fact that you have Wall Street bankers, you know, former regulators, hedge fund traders as part of that project, I find pretty striking.

ADLER: There is always lively discussion. Jerry Weinstein, a writer, wants the new bank to help educate people.

JERRY WEINSTEIN: How do you get people to spend within their means, to save, to make better choices, about not be surprised about a balloon loan?

ADLER: Elizabeth Friedrich works for a trade association of credit unions.

ELIZABTH FRIEDICH: The communities I work in, low income communities of color, like completely underserved and under-banked. And I think that's part of the target market we're looking for with this bank.

ADLER: A couple of times a week, Occupy Wall Street has a spokes council where decisions are made by consensus. Each working group sends a representative.

ROSS: I'm Carne from the Occupy Working Group, greetings to you all. We're not common attendees at spokes.

ADLER: Ross makes a presentation to some 60 people in the room, talking about how this new bank, if it existed, would fulfill the values and ideals of Occupy Wall Street.

ROSS: A bank that would be democratic, that would be owned by its employees and by the customers; it would be transparent; it would follow banking practices that did not expose the broader economy to systemic risk.

ADLER: And ultimately the dream is a national bank. Ross believes if you change banking, you change the whole nervous system of the economy. But he realizes it's a tall order to take on the banking system. The regulatory obstacles are huge, failure very possible.

The Occupy Bank group is inspired by innovative financial institutions like the ShoreBank. Started in the '70s, it was once the largest certified community development financial institution in the U.S., but it failed during the financial crisis. At a weekly meeting, members of the group try to hammer out a press release. They want to acquire or partner with a bank.

Speaking on the phone from Chicago, proposing a third option, is Mary Houghton one of the founders of the ShoreBank.

UNIDENTIFIED MAN: Chicago, you are recognized.

MARY HOUGHTON: Is there a third option in which you buy a substantial stake but you don't control the bank?

ADLER: The group is looking to partner with or acquire an existing financial institution to create the Occupy Bank; democratic, transparent, accessible, competitive, but it shouldn't maximize profits over everything.

The group is now discussing structure and a survey of what people in diverse communities want and need. But so far, no partner has yet knocked on the door.

Margot Adler, NPR News, New York.

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