I have been struggling with the Move Your Money deadline that is coming up. I love the idea of moving my money away from big banks that are contributing to corporate greed – but I wonder if there is anywhere I can really put it where I won’t be contributing to corporate greed.
I am a member of a credit union – keep a small savings account there and that is no longer feeling safe to me for "moving my money", after I found out that the Credit Union National Association (CUNA) – “the premier national trade association serving credit unions. Ninety percent of America’s credit unions are affiliated with CUNA” is a member of ALEC.
The melt-down of our economy was precipitated by the big banks, and wall street and home mortgage companies - so I thought I would take a look at ALEC's participation in ways to screw the consumer from the financial perspective.
Unless otherwise noted the following list is taken from the ALEC Exposed webpage for corporations and trade associations of organizations with ties to the American Legislative Exchange Council (ALEC) (with some excerpts from Wiki pages)
Bank of America
CashAmerica ("pawn loans and fast cash advances"),
Chemical Bank is at the core of what today is JPMorgan Chase.
Coldwell Banker
Dell Webb Corporation (Source: 1995 ALEC Guide to Private Sector Membership)
EZCorp (pawn shops and payday loans),
Fidelity Investments
First Chicago NBD (merged with Banc One Corporation to form Bank One Corporation, today a part of CHASE).
Fleet Bank (now part of Bank of America)
GE Capital (Source: 1995 ALEC Guide to Private Sector Membership)
General Motors Corporation, (which included GMAC Mortgage) (now known as Ally Financial – a bank holding company)
Harris Trust and Savings Bank (Harris Bank)
Household International (one of the nation’s leading providers of consumer loans and credit cards to middle-income consumers. Some of our principal businesses are Household Finance Corporation, MasterCard/Visa, Private-Label Credit Cards)
Macquarie Capital Advisors USA Inc
PNC Mortgage Corp. of America
Prudential Financial[4]
American Bankers Association,
America's Credit Unions
Association for Commercial Real Estate
Credit Union National Association (CUNA) ("ALEC created a new financial services subcommittee and CUNA attended the first meeting," Source: CUNA)
Illinois Financial Services Association
National Association of Home Builders
National Multi Housing Council
National Pawn Brokers Association
National Association of Realtors (Source: 1993 ALEC Annual Meeting Brochure)
NationsBank (was acquired BankAmerica to become Bank of America) (Source: 1993 ALEC Annual Meeting Brochure)
VISA – Sponsored Dick Armey’s presentation at the 2011 ALEC Annual Conference
Will we ever know all the corporate sector / private enterprise members? Probably not – so this list is, in my opinion, woefully understated. I say that because - what corporations in the United States wouldn’t pay ALEC dues to have legislators in their pocket to write legislation that benefits the corporation at the expense of the general public.
But it is important to understand that the banking and financial institutes are repesented by ALEC.
The summary of this ALEC annual meeting workshop presentation from 1993 is eery – knowing what we know now – 20 plus years later. It really makes you wonder what crap they have been "educating" our legislators with for the past 20 years that led to the melt-down we had.
A sound and competitive banking system is critical to the nation's economic vitality and the financial well-being of our citizens. However, restrictive and archaic regulations are preventing the financial growth and competitiveness of our banks. Regulations adopted in the 1920s and 1930s, prior to new technology and international competition, restrict banks from transacting business or operating branches across state lines. This prohibits banks from diversifying their loan portfolios and base of depositors, thus insulating themselves against economic downturns in any one local area. The panelists in this workshop will discuss current banking policies which are threatening the economic growth of our country and present legislative strategy to strengthen the nation's banking industry as well as improve the states' local economies. 1993 ALEC Annual Meeting Workshop
In addition ALEC has been trying to get their “model legislation” passed for over 20 years that would benefit banks and financial institutions and hurting consumers. A few examples of that include (but is definitely NOT limited to) some of the following legislation.
ALEC “model legislation” that they would like to see passed in their “Banking, Consumer Rights & Housing” task force includes:
Resolution in Opposition to a Consumer Financial Protection Agency
THEREFORE BE IT RESOLVED; that the American Legislative Exchange Council
(ALEC) opposes the creation of a Consumer Financial Protection Agency.
FREE CONTRACT IN FINANCING ACT
The Free Contract in Financing Act removes restrictions on interest rates for all loans and sales, including those to both consumers and businesses, and allows borrowers and lending institutions to contract for a mutually agreeable interest rate.
{ALEC Sourcebook, Vol. n, pg. 267)
RESOLUTION URGING CONGRESS TO OPPOSE MEASURES
DESIGNED TO IMPOSE CEILINGS ON CREDIT CARD RATES
The Resolution Urging Congress To Oppose Measures Designed To Impose Ceilings On Credit Card Rates opposes a national interest rate ceiling on credit cards. Such a national cap would be inconsistent with free market principles and would inhibit the availability of credit. (ALEC Sourcebook, Vol. n, pg. 268)
RESOLUTION IN OPPOSITION TO GOVERNMENT IMPOSED CAPS OR ELIMINATION OF ATM SERVICE CHARGES
This resolution opposes government imposed caps or elimination of ATM service charges.
RENT CONTROL PREEMPTION ACT
This legislation would effectively preempt all rent control ordinances at the local level. As a result, local governments would be prohibited from enacting, maintaining or enforcing an ordinance that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property.
And then - mainly for the 1% - you have this goodie found in the “model legislation” from the “Tax and Fiscal Policy” taskforce.
THE CAPITAL GAINS ELIMINATION ACT
This Act repeals all state taxation on capital gains of corporations and individuals.
Knowing how deeply ALEC has enmeshed themselves in the banking and financial sectors of our country makes me wonder if there is any place safe to put my money – to put it somewhere to get it away from corporate greed.
ALEC is tenacious and ALEC is devious and ALEC is dangerous.
ALEC will keep working at getting legislation like this passed - UNLESS we get rid of ALEC by making sure that all ALEC legislators are NOT RE-ELECTED.
For more information on ALEC –
Please read this or this or this
or this series of six articles.
This is what ALEC is About - Mark Pocan on the 2011 ALEC Annual Conference