HOUSE JOINT MEMORIAL 23

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Brian F. Egolf and Timothy M. Keller

A JOINT MEMORIAL

REQUESTING THAT THE RESIDENTS OF NEW MEXICO HAVE BANK ACCOUNTS WITH SMALL, COMMUNITY INSTITUTIONS RATHER THAN LARGE NATIONAL BANKS.

     WHEREAS, our nation's financial system is in urgent need of reform; and

     WHEREAS, despite efforts by congress and the current administration to increase bank lending, including a seven-hundred-billion-dollar ($700,000,000,000) bank bailout, the nation's four largest banks have collectively cut their loans to businesses by more than one hundred billion dollars ($100,000,000,000) over the last six months; and

     WHEREAS, Bank of America and Citigroup each received forty-five billion dollars ($45,000,000,000) of bailout money, and Wells Fargo and JP Morgan Chase each received twenty-five billion dollars ($25,000,000,000); and

     WHEREAS, New Mexico needs a strong and fair regulatory system that has the resources and authority necessary to prevent the collapse of the financial sector caused by Wall street and the large banks; and

     WHEREAS, statutes that affect state-chartered banks are enacted by the state legislature, which is more attuned to local needs and conditions than congress; and

     WHEREAS, community banks are more accountable to the residents of New Mexico than are large national banks; and

     WHEREAS, community banks typically make more conservative investments and are inclined to make smarter loans with a better chance of payback; and

     WHEREAS, community banks earn greater risk-adjusted yields than large banks, suggesting that they are the better choice for small businesses and individuals; and

     WHEREAS, community banks are more closely connected to the people and businesses near them; and

     WHEREAS, community banks invest in communities and businesses to create good jobs and strong neighborhoods; and

     WHEREAS, community banks work to ensure that the banking system helps people stay in their homes; and

     WHEREAS, community banks are stable and reliable and take a people-oriented approach to banking; and

     WHEREAS, the residents of New Mexico value personal service, good jobs and strong communities;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the residents and state government of New Mexico be urged to move their money from large national banks to small community banks in order to support responsible lending practices and the state's economy; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the state treasurer, the secretary of finance and administration, the secretary of state and the state investment council.

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