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View Diary: San Jose: Millions Withdrawn from Bank of America and Wells Fargo! (288 comments)

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  •  I have a question: (7+ / 0-)

    I want to move my money out of a big bank, but I'm wondering, and have always wondered, money being fungible -- don't these smaller institutions just send their funds into an account that is essentially controlled by and feeding upwards into the larger corporate hierarchy?  I mean, where do these community banks put their excess funds and how do they prevent their money from feeding the corporate machine?

    Help new teachers to grow and love their work at

    by Mi Corazon on Thu Oct 13, 2011 at 07:27:36 AM PDT

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    •  I hope you get an answer to your question. (1+ / 0-)
      Recommended by:
      Senor Unoball

      I don't know but would like to, as well.

      Inspiration is hard to come by. You have to take it where you find it. --- Bob Dylan.

      by figbash on Thu Oct 13, 2011 at 08:10:51 AM PDT

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    •  I think by law (3+ / 0-)
      Recommended by:
      science nerd, Senor Unoball, Matt Z

      Credit unions are not allowed to put money in the Market. We have both our checking, business account and mortgage in OnPoint which was/is the OR state teachers CU. We also took our savings and put it in CD's there which we were told is invested in other members and stays in your local economy.  We moved everything from WaMU in 2008 on the advise of our tax accountant.    

    •  Different markets. (2+ / 0-)
      Recommended by:
      Senor Unoball, Sparhawk

      When most people talk about bank stock trading they are describing what is known as "proprietary trading".  (Trading for an internal account, rather than trading only for customer demand.)

      I spent most of two years as a prop trader.  Even though I never handled one dollar of customer money, the material for that is on the securities license exam.

      "Brokerage services offered to customers" are something that many or most people would say is a reasonable activity for Banks.

      There are plenty of non-stock markets that are not what people often think of when they talk about trading.  "Commercial Paper" is a very short term bond market - durations less than a week are common.  Oftentimes companies need short loans to cover payroll before a customer payment clears, etc.

      I don't know for sure, but I would expect that many credit unions are players in the Commercial Paper market.  It's possible that they are entirely invested in local commercial and residential property mortgages, but that would leave a lot of odd small dollars sitting around.

      The Treasury Bond market and other Bond markets are almost certainly something that Credit Unions invest in.

      -7.75 -4.67

      "Freedom's just another word for nothing left to lose."

      There are no Christians in foxholes.

      by Odysseus on Thu Oct 13, 2011 at 03:33:50 PM PDT

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