It Works, and It Saves the Taxpayer Money, So Let's Make it Illegal

I am referring to the state-owned bank of North Dakota, which will be made illegal by the Trans-Pacific Partnership (TPP):

Clearly, from Wall Street's perspective, the North Dakota bank must go, and all other state efforts to replicate it must be thwarted. Wall Street's stealth weapon may be lodged within the latest corporate trade agreement called the Trans-Pacific Partnership (TPP), which currently is being negotiated in secret. We already know that Wall Street is seeking to remove all tariff restrictions that prevent the U.S. financial services industry from doing business in countries like Brunei, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The biggest banks also want the treaty to eliminate "non-tariff" barriers including regulations that create "unfair" competition with state-owned financial enterprises.

Depending on the final language, it is possible that the activities of the Bank of North Dakota could be ruled illegal because "foreign bankers could claim the BND stops them from lending to commercial banks throughout the state," according to an analysis by Sam Knight in Truthout. How perfect for Wall Street: a foreign bank can be used as a shill to knock out the BND.

The nickel tour on BND is that it is a state-owned wholesale bank (it only makes loans to other banks), and the state keeps its money in an account there.

It generates significant savings, and significant savings for the taxpayer, and its senior executives are paid less than the President of the United States.  (The most highly paid executive is paid about ½ that of POTUS.)

Also, the bank provides a financing alternative to bond sales managed by Wall Street firms.

Considering the Obama administrations neoliberal philosophies, along with its predilections toward direct and indirect government subsidies for the TBTF banks, I'm inclined to believe it.  Particularly since that is what the Obama Administration's point person is explicitly saying the trade agreement:

Publicly owned enterprises, for example, are being targeted by negotiators. One such entity in the United States that has been the subject of considerable interest in recent years is the Bank of North Dakota (BND) - the only fully publicly owned financial institution in the country. The BND, which is only allowed to lend wholesale, was a stabilizing force that helped keep the already energy-rich state insulated from the shock of the financial crisis (Alaska, for example, didn't fare as well). It has also brought a small fortune to the state's treasury - $340 million in net tax gain between 1997 and 2009. Legislators in at least 13 different states have proposed studying or emulating the North Dakota model - state-owned development of central-bank style institutions guaranteed by tax revenue. But if the TPP is passed, that option might not be available. [Chief TPP Negotiator for the Office of the US Trade Representative Barbara] Weisel said that State Owned Enterprises (SOE) are routinely "competing directly with private enterprises, and often in a way that is considered unfair."

"Some of the advantages that can be conferred on State Owned Enterprises are things like preferential financing," Weisel said. "Those are things that wouldn't be provided to private companies - preferential provision of goods and services provided by a government."

She said that "State Owned Enterprises - which in some cases can comprise a significant percentage of an economy - can be used to undermine what we're otherwise trying to gain from this free trade agreement."

What they are "trying to gain" with this agreement is to replace democracy with unregulated markets (aka looting).

Call your Congresscritter and tell him that you are absolutely opposed to the TPP.