Reps. Alexandria Ocasio-Cortez, D-N.Y. and Rashida Tlaib, D-Mich., introduced a bill on Oct. 30 that would help create a federally chartered public banking system in the U.S.
Known as the Public Banking Act, it would establish a grant program. The program will be administered by the secretary of the Treasury and the Federal Reserve Board. In turn, the bill would provide grants for the formation, chartering and capitalization of public banks.
Expect the bill to codify that public banks are members of the Federal Reserve. It would require banks to compete with the commercial banking industry. It also barred them from charging fees on checking or savings accounts. In turn, they will require customers to have a minimum balance and levy interest rates of over 15%.
The lawmakers said…