Bank of America Cuts Ties to ALEC

Submitted by Rebekah Wilce on

BofABank of America (BofA), one of the largest banks in the United States with a major role in the financial crisis, is cutting ties with the American Legislative Exchange Council (ALEC). A company spokesperson informed Timothy Smith, Senior Vice President of Walden Asset Management, by phone that Bank of America is not renewing its membership in ALEC for 2013 "due to budget constraints." BofA did not return the Center for Media and Democracy's (CMD's) calls to independently verify this information.

The company's exit brings the total to 42 major American and multinational corporations that have departed ALEC in recent months. Wells Fargo was the first megabank to cut ties with ALEC, in September 2012, as CMD has reported.

Bank of America's Involvement with ALEC

BofA has been a member of ALEC's Commerce, Insurance, and Economic Development Task Force in 2011, and provided funding for ALEC's 1998 annual meeting. The commerce task force has adopted bills to oppose the Consumer Financial Protection Bureau, oppose limits on astronomical credit card rates, oppose limits on ATM fees, and prohibit local governments from regulating unfair or predatory lending practices.

The Rush to Cut Ties to ALEC

Tell ALEC Corporations It's Time To Cut Ties!Corporations that have publicly cut ties to ALEC since the launch of ALECexposed.org and related public interest campaigns include Wells Fargo, General Electric, Western Union, Sprint, General Motors, Walgreens, Best Buy, Hewlett-Packard, MillerCoors, John Deere, Dell, Johnson & Johnson, Wal-Mart, Amazon.com, Procter & Gamble, Mars, Wendy's, McDonald's, Kraft Foods, PepsiCo, and Coca-Cola. The addition of Bank of America brings the total to 42. Four non-profits -- Lumina Foundation for Education, the National Association of Charter School Authorizers (NACSA), the National Board for Professional Teaching Standards (NBPTS), and the Gates Foundation -- and at least 70 state legislators have also cut ties with ALEC. In addition, as CMD has reported, 117 ALEC members were voted out of office in 2011 and 2012.

CMD and advocacy groups including Common Cause, ColorOfChange.org, Progress Now! affiliates, and Greenpeace are now asking State Farm, eBay, and Duke Energy to cut ties to ALEC. Credo Action, a project of Working Assets, is also calling on its supporters and customers to call eBay and urge the company to stop funding ALEC.

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Comments

The Erinyes replied on

I am overjoyed to hear that Bank of America has ejected from ALEC! Wow and awesome!!!

Lisa Graves replied on

To learn more about Bank of America's record, you can see our SourceWatch entry here: https://www.sourcewatch.org/index.php/Bank_of_America

Anonymous replied on

You see, BofA may have withdrawn from ALEC, but their character hasn't changed. You see, people are flocking to Credit unions ... everything banks once were, and more. AND, they are local. Locally owned and operated ... the profits from these Credit Unions are funneled back to th emembership. Think about it ... a wolf in sheeps clothing is still a wolf, and I can hear B o fA howling from here.

The Erinyes replied on

Thank you, Anonymous. Yes, I do see that BofA's character has not changed, and I am aware that people are flocking to credit unions and local banks, which are being choked by the Corporate Banksters. And yes, I can also hear BofA still howling, as you say. I merely responded to the news that BofA withdrew from ALEC. That is one tiny step forward. I do believe there are other banks that we can create for the people, called public banks, like the Bank of North Dakota. I haven't seen anyone on this website discuss public banks as an alternative to the TBTF Banksters like BofA, Chase, Wells Fargo, Citi, and of course Goldman Vampire Squid (and the rest). Maybe you are familiar with the work of Ellen Brown, or Dr. Michael Hudson, or Prof. Wm Black, who have written quite a bit about public banking? And BTW, public banks are NOT government banks or credit unions. IMO, as an alternative to the Corporate Banksters, Public Banks can radically change the way the financial system works in America. It would return control of the banks back to the people whom they are supposed to serve. This type of Banking has already been used in North Dakota successfully for almost a hundred years. There is a description of what public banks are at: http://www.youtube.com/watch?feature=player_detailpage&v=LawAiv18xig Author and Attorney Ellen Brown writes extensively about public banks and other kinds of banks on the ‘Public Banking Institute Newsletter at: http://publicbankinginstitute.org and her Web of Debt blog at: http://WebofDebt.com There is also great discussion of the history of banking in the video documentary “The Secret of Oz” (by Mr. Bill Still) which can be found at: http://www.youtube.com/watch?v=swkq2E8mswI I am convinced that public banking is ONE great way to solve the banking dysfunction problems we have. Regulations, the Robin Hood Tax, and a financial transaction tax would be great too. But the behemoth corporate banks are risking our money, creating great waste and abuse of hard-earned taxpayer money, and paying almost no interest. They are choking us. And yes, the banksters probably will not want people to know anything about banks like the Bank of North Dakota, but there is a growing grass-roots movement for public banks in quite a few states now. The more people learn about them, the more I believe, they will want to participate in them.

Junius Junior replied on

The news that BoA, like many others, is withdrawing from ALEC is welcome news indeed. However, it only means the relationship has been exposed to the light of day and now needs to be determined to what deeper hole they and the others are now scurrying to. I would find it quite hard to believe it is being done out of any sense of moral conscience, altruism, or a born again faith. Else wise, why not make a public statement? IMHO.

Anonymous replied on

Still "anking" with banks? Why? They aren't what they used to be, and they are getting worse. You see, what were once large investment houses are now banks. They are buying up and taking over all of we once knew as banks. Those "banks" you see around town ... those ones that used to be "local" ... well, they aren't. Fact is, local banking is gone - over - done with. Those building are simply BINO's ... Banks In Name Only, and they have only one goal - to take and drain as much money out of your local area as they can, and line their pockets with it. Y o u r - a l t e r n a t i v e . . . CREDIT UNIONS. They, for the most part, are what local banks once were.

Kim Brechtel replied on

Do we really HAVE any proof that they actually did so.....we all know that Skank of America isn't necessarily very honest, truthful or honorable. Look at how they treated those with mortgages!