Creating a State Bank

Phil Murphy Progressive

So Governor Murphy is at it again with creating a State Bank. No other state has had created one in about hundred years.

From, “Gov. Phil Murphy on Wednesday took the first step toward creating a state-run bank, and he’s tapped a member of his administration touched by financial scandal to help develop the details.

The 14-member “implementation board” Murphy empaneled to research how a public bank would work will include Derrick Green, whose work on a campaign in Bermuda several years ago drew attention early in Murphy’s tenure to the governor’s hiring practices.

Green’s hiring as a senior adviser in Murphy’s administration raised concerns with some lawmakers last year but his connection to the scandal known as “Jetgate

Furthermore, “Lt. Gov. Sheila Oliver, who will also sit on the board, said one of the benefits of a state bank would be to provide access to capital for people who have been traditionally blocked from it.

A public bank is about power to the people,” she said.

All I see is more opportunities for corruption and the misuse of public funds. I wrote about the idea of a State Bank in a blog just after Murphy was elected and I still agree with my conclusions I made at that time.

There is no way that this will truly benefit the the taxpayers of New Jersey, much less those who would chiefly benefit from its creation. I have even less faith in this idea because of Murphy appointing Mr. Green as the senior adviser. As the Governor is now trying to move ahead, I foresee many obstacles in the way. Both economic and political, for Murphy and the legislature are not exactly on the same page anymore.

From NJ Spotlight, “The basic premise of a public bank is to leverage the millions of dollars in taxpayer deposits that are typically held in large commercial banks to ensure those funds are used to serve some sort of public-policy mission. Advocates of public banks also say they can provide borrowers with fairer interest rates and other favorable lending terms because there’s no need to charge high fees to fund things like large executive bonuses or to pump up shareholder profits.

What I see is a political patronage pit that only will serve those who have the political pull to get loans from a state taxpayer backed bank. This is just another bad idea from our governor.

That is my opinion- Jumpin Jersey Mike

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