Don’t Forget Main Street!
Posted On: February 1, 2009
San Francisco – San Francisco’s Financial District recently had an earful from several groups protesting varied issues, from the Israeli–Palestinian hostilities, to the killing of a black man by a Bart police on New Years Day, to the billions in bailout money for banks and no help in sight for taxpayers.
The last group, composed of a hundred or so protesters mostly in suits and wingtips, showed up in front of major “Bailout” Banks that have received a portion of the $350 B of taxpayers’ money, to deliver a message from Main Street. “What’s in it for Taxpayers?”
The group led by the Greenlining Institute’s President, Bob Gnaizda, Executive Director, Orson Aguilar and Managing Attorney Samuel Kang, together with community advocates like Faith Bautista of Mabuhay Alliance, National Federation of Filipino American Associations Region 8 Chair, Jose Pecho, Latino groups from San Jose and the EastBay, and other Asian representatives went from bank to bank in an orderly manner. There was no screaming, just controlled disbelief and impassioned denouncement of how the banks seem to have forgotten about ordinary citizens, small business, immigrants and the underserved.
The six-bank protest started at the main lobby of Bank of America on California Street, followed by Wells Fargo and Citibank on Montgomery St., then back to California St., stopping in front of Washington Mutual and US Bank. No executives from any of the banks came out to speak with the protesters. Instead, bank security held their ground behind bank doors. Some even just locked their doors altogether.
The march to major “Bailout” Banks protest wound up at the Federal Reserve Bank of San Francisco on Market Street whose Community Development head, Scott Turner, greeted the group at the front door. With him was State Senator Ted Lu. The senator and Turner reiterated their commitment to assist Main Street folks and even act as a conduit to other banks in communicating concerns of non-profits and Main Street. The Federal Reserve Bank even provided boxed lunch for the protesters.
In essence, the message brought to the banks was composed of eight Pro-Main Street banking principles:
• Foreclosure Prevention: Each institution must enact measures to protect homeowners who are currently or in danger of foreclosure, including foreclosure moratoriums and greater assistance for community home counselors. Further, bankruptcy legislative reform and modifications of investor pool securities are essential. To this, they commend efforts by Chairman Barney Frank’s proposals on loan modifications and positive efforts by JP Morgan Chase, Citigroup, and BofA on some provisions.)
• Philanthropy: Each institution shall provide a minimum of 1% annually of its bailout funds for philanthropy to low-income communities and none should reduce its philanthropy from its highest level during the last 3 years (B of A is closest to this commitment and Citigroup the farthest).
• Executive Compensation: Executive compensation of senior management should reflect the performance of the banking institution over a 5-year period and be subject to annual shareholder approval (B of A, Citigroup and Morgan Stanley have taken some steps on this issue says the Greenlining Institute.)
• Tenant Protection: Tenants living in foreclosed properties should not be subject to automatic eviction.
• Small Business Support: Institutions must demonstrate an increased and sustained commitment to small businesses and micro-business. (Commendable efforts by Wells Fargo, Comerica and US Bancorp)
• Banking the Unbanked and Underbanked: Institutions should develop new and creative products to serve the unbanked, immigrants and the poor. Institutions should develop a culture of trust and cultivate sensitive marketing, as well as expand services to the working poor, immigrants, and the underbanked.
• Transparency of Taxpayer Funds: Institutions should be fully transparent regarding the use of bailout funds by publishing monthly public reports to the regulators and congress that include annual or semi-annual goals on lending and spending to low and moderate income communities.
• Outside Board of Directors that Represent the Community: To ensure an independent and diverse Board of Directors, each institution shall include a community member on its board and strive to achieve the diversity of the Obama Cabinet. (Citigroup and Wells Fargo boards are cited as examples.)
Bob Gnaizda said that they plan to replicate this unique way of delivering Main Street’s message right on the banks’ front steps if not in their board rooms.
