Economy prompts fresh look at ND's socialist bank

[dbackjon]

BISMARCK, N.D. – It has no automatic tellers or drive-up windows, doesn't issue credit cards, and tends only a few thousand checking and savings accounts. Its only location is a glass, steamboat-shaped headquarters near the Missouri River, where the business moved from its original 1919 home in a former auto assembly plant.

The Bank of North Dakota — the nation's only state-owned bank — might seem to be a relic. It was the brainchild of a failed flax farmer and one-time Socialist Party organizer during World War I.

But now officials in other states are wondering if it is helping North Dakota sail through the national recession.

Gubernatorial candidates in Florida and Oregon and a Washington state legislator are advocating the creation of state-owned banks in those states. A report prepared for a Vermont House committee last month said the idea had "considerable merit." Liberal filmmaker Michael Moore promotes the bank on his Web site.

"There's a lot of hurt out there, a lot of states that are in trouble, and they're tying the Bank of North Dakota together with this economic success that we're having right now," said the bank's president, Eric Hardmeyer.

Hardmeyer says he's gotten "tons" of inquiries about the bank's workings, including questions from officials in California, Michigan, New Mexico, Ohio and Washington state. North Dakota has the nation's lowest unemployment rate at 4.4 percent, soaring oil production and a robust state budget surplus — but Hardmeyer says the bank isn't responsible for the prosperity.

http://news.yahoo.com/s/ap/20100216/ap_ ... alist_bank

[JayJ79]

I don't really pay much attention to economics beyond my own checking account, and thus don't know the complete definition of economic terms.

Is it "socialist" simply because it is owned by the state?

Other than who owns it, I'm guessing it is pretty much the same as any other bank, as far as the actual accounts go. *shrug*

[Col Hogan]

North Dakota has the nation's lowest unemployment rate at 4.4 percent, soaring oil production and a robust state budget surplus — but Hardmeyer says the bank isn't responsible for the prosperity.

Funny, put this sentence first, and the story isn't a story...

So if oil is the reason for the economy in North Dakota...and it along with related industries are...WHY IS THIS EVEN A STORY???

[Ursus A. Horribilis]

North Dakota has the nation's lowest unemployment rate at 4.4 percent, soaring oil production and a robust state budget surplus — but Hardmeyer says the bank isn't responsible for the prosperity.

Funny, put this sentence first, and the story isn't a story...

So if oil is the reason for the economy in North Dakota...and it along with related industries are...WHY IS THIS EVEN A STORY???

And I know this from first hand experience and conversation with relatives and county officials in Richland county (Montana's richest county) that the oil is the main reason if not the only one. The fact that North Dakota is also smart enough to offer the oil companies tax breaks that had them capping wells on the Montana side of the Bakken shelf and moving operations heavily to the ND side also has a shitload to do with it. North Dakota gave a 24 month tax holiday to the oil boys and shit really started moving East across the Montana border in a hurry.

[youngterrier]

I say we get rid of the Federal Reserve and let States that want Banks to get make their own

[AZGrizFan]

BISMARCK, N.D. – It has no automatic tellers or drive-up windows, doesn't issue credit cards, and tends only a few thousand checking and savings accounts. Its only location is a glass, steamboat-shaped headquarters near the Missouri River, where the business moved from its original 1919 home in a former auto assembly plant.

The Bank of North Dakota — the nation's only state-owned bank — might seem to be a relic. It was the brainchild of a failed flax farmer and one-time Socialist Party organizer during World War I.

But now officials in other states are wondering if it is helping North Dakota sail through the national recession.

Gubernatorial candidates in Florida and Oregon and a Washington state legislator are advocating the creation of state-owned banks in those states. A report prepared for a Vermont House committee last month said the idea had "considerable merit." Liberal filmmaker Michael Moore promotes the bank on his Web site.

"There's a lot of hurt out there, a lot of states that are in trouble, and they're tying the Bank of North Dakota together with this economic success that we're having right now," said the bank's president, Eric Hardmeyer.

Hardmeyer says he's gotten "tons" of inquiries about the bank's workings, including questions from officials in California, Michigan, New Mexico, Ohio and Washington state. North Dakota has the nation's lowest unemployment rate at 4.4 percent, soaring oil production and a robust state budget surplus — but Hardmeyer says the bank isn't responsible for the prosperity.

http://news.yahoo.com/s/ap/20100216/ap_ ... alist_bank

What a crock of shit. Bank pays no federal or state taxes. Is not required to carry deposit insurance. Nice "level playing field". I wouldn't want to be another bank or credit union in THAT state.

And Michael Moore promoting it is the kiss of death as far as I'm concerned.

[FargoBison]

North Dakota has the nation's lowest unemployment rate at 4.4 percent, soaring oil production and a robust state budget surplus — but Hardmeyer says the bank isn't responsible for the prosperity.

Funny, put this sentence first, and the story isn't a story...

So if oil is the reason for the economy in North Dakota...and it along with related industries are...WHY IS THIS EVEN A STORY???

I'm guessing this is why....

It made $58.1 million in profits in 2009, setting a record for the sixth straight year. During the last decade, the bank funneled almost $300 million in profits to North Dakota's treasury.

The bank has the advantage of being the repository for most state funds, which can be used for loans and occasional relief for private banks that need a jolt of cash during sluggish credit markets.