From The Huffington Post:
Treasury Secretary Timothy Geithner does not think that Move Your Money is a good idea.
Geithner addressed the campaign against too-big-to-fail banks during a recent interview with Politico. While Geithner said he understood the anger against bailed out banks and said it was fair of bank customers to expect more, he did not explain why he thought that it was a bad idea.
But Papa Bonk did, in a comment to a previous post regarding ZsaZsa’s efforts, comments that deserve to be front-paged:
Dog, I love populists! So much idealism. So little information. At this point community banks don’t want your money. Your deposits are a liability that they have to hold capital against, and its hard to build capital in this economy. Moreover, if they are well-managed (i.e. they didn’t get overextended in the great bubble and are still healthy) they have all the money they need and are making all the loans they can reasonably make.
If you want to support your local bank or credit union you should be sure to get your car loan there. Many people find it convenient to get the loan from GMAC or whatever captive financier is available at the dealer. See the local bank or CU before you refinance the house or take out a student loan. If you are using fee income services at Chase, by all means go to the local bank or CU. The fees are probably lower.
Until interest rates go up, no one is making money on money. Park your spare cash someplace safe, try to get a little return on it, but the local bank doesn’t really need it. If you want to burden BofA, leave your money with them.