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Photo: Community Bank Borrowers
Featured Article filed under Banking, Independent Business | Written by Stacy Mitchell | No Comments | Updated on May 5, 2015

One in Four Local Banks Has Vanished since 2008. Here’s What’s Causing the Decline and Why We Should Treat It as a National Crisis.

The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/vanishing-community-banks-national-crisis/

This article was co-published with Yes! Magazine.

Here’s a statistic that ought to alarm anyone interested in rebuilding local economies and redirecting the flow of capital away from Wall Street and toward more productive ends: Over the last seven years, one of every four community banks has disappeared. We have 1,971 fewer of these small, local financial institutions today than at the beginning of 2008. Some 500 failed outright, with the Federal Deposit Insurance Corporation (FDIC) stepping in to pay their depositors. Most of the rest were acquired and absorbed into bigger banks.

To illustrate this disturbing trend and highlight a few of the reasons we should treat it as a national crisis, we’ve published a trove of new graphs. These provide a startling look at the pace of change and its implications. In 1995, megabanks — giant banks with more than $100 billion in assets (in 2010 dollars) — controlled 17 percent of all banking assets. By 2005, their share had reached 41 percent. Today, it is a staggering 59 percent. Meanwhile, the share of the market held by community banks and credit unions — local institutions with less than $1 billion in assets — plummeted from 27 percent to 11 percent. You can watch this transformation unfold in our 90-second video, which shows how four massive banks — Bank of America, JP Morgan Chase, Citigroup, and Wells Fargo — have come to dominate the sector, each growing larger than all of the nation’s community banks put together.

“If we continue to go down this path, we’ll kill this concept of relationship banking,” contends Rebeca Romera Rainey, the third-generation CEO of Centinel Bank in Taos, New Mexico. Like other community banks, Centinel makes lending decisions based on its relationships with its customers and deep knowledge of the local market. It underwrites a wide range of business loans and home mortgages to local families. Many of these borrowers would likely not qualify for big-bank financing because they do not fit neatly into the standardized formulas megabanks use to evaluate their risk of default. Continue reading

North Carolina
Featured Article filed under Broadband | Written by Lisa Gonzalez | No Comments | Updated on May 22, 2015

North Carolina Files Petition Opposing FCC Ruling to End Anti-Muni Laws

The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/north-carolina-files-petition-opposing-fcc-ruling-to-end-anti-muni-laws/

It took a while, but the State of North Carolina finally decided to take its turn at the throat of the FCC. Attorneys filed a Petition for Review in the 4th Circuit Court of Appeals similar to the one filed by the State of Tennessee in March. The Petition is available for download below. Our… Continue reading

Cost of Residential Solar v. US Residential Retail
Featured Article filed under Energy, Energy Self-Reliant States | Written by Rebecca Toews | No Comments | Updated on May 15, 2015

Beyond Utility 2.0: Part 4 “Next Steps”

The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/beyond-utility-2-0-part-4-next-steps/

Principles, Structure, and Policies of Energy Democracy Energy democracy can best be described as an electricity system that empowers the individuals and communities that have the energy resources of the 21st century (e.g. wind and solar) to economically benefit from their use. It shares the principles of utility 2.0 – an efficient, low- carbon, and… Continue reading

Oct. 8, 2014
"A portrait of the President as he listened during a meeting with staff in the Rose Garden. The meeting was originally scheduled in the Oval Office but the President moved it outside because the weather was so pleasant."
(Official White House Photo by Pete Souza)
Featured Article filed under The Public Good | Written by David Morris | No Comments | Updated on May 18, 2015

Obama’s Advance Team Should Be Fired

The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/obamas-advance-team-should-be-fired/

The Obamas are proving singularly inept at choosing appropriate venues to highlight their initiatives. In June 2011 Michelle invited giant retailers, including Walmart to the White House to launch her effort to persuade the country’s largest retailers to move into inner city “food deserts.” She later visited a Walmart in Springfield, Illinois to applaud its… Continue reading

Illustration: Seesaw
Featured Article, ILSR Press Room filed under Independent Business | Written by Stacy Mitchell | No Comments | Updated on May 8, 2015

How Washington Punishes Small Business

The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/how-washington-punishes-small-business/

Small business looms large in American political rhetoric. From the campaign trail to the floor of the U.S. House and Senate, members of Congress love to evoke the diner and dry cleaner, the neighborhood grocer and local hardware store. Ensuring the well-being of Main Street, we might easily assume, is one of their central policy aims. The legislative track record tells another story. It is one in which the interests of big corporations are dominant, and many laws and regulations seem designed to bend the marketplace in their favor and put small, independent businesses at a competitive disadvantage. Continue reading