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The Post Office as an Alternative to Shady Private Banks


The Post Office as an Alternative to Shady Private Banks

Brian Wakamo

Millions of Americans live in “banking deserts,” without adequate access to brick and mortar banks and the services they provide. Rural and poor communities, where local banks left town thanks to the recession or the big banks buying them out, are especially affected.

Often it’s risky payday lenders who come along to fill the void.


The article ends with a question:

“Who doesn’t want that?”

Why, predatory banks and ripoff payday lenders, for starters, as well as those who want to privatize the Postal Service.

But the rest of us think it’s a grand idea.



Question: just how long do you think it will be in days or weeks before some rich, corrupt person gets his hooks in the Post Office and makes it run like a bank?

I think you underestimate the slimeyness of the rich to corrupt anything that smells of money to them.


Seeing how Postal banking thrived until it was disbanded a half century ago, it is worth reviving despite risks, which will likely include bail-in so Congress can loot depositors’ money directly.

This is not just about a loan source for the unbanked…it gives them a place to cash their pay checks sans extortion and park their cash somewhere other than under a mattress.

World wide postal money orders have been considered the most secure non electronic means for foreign workers to send money to their families abroad during the past century. Probably not an issue as foreign workers become extinct in Murka.


This probably be an improvement, and I do think that I would go to a state or US bank before I would go to the for-profit entities.

I do not think that this is the best of all possible solutions, however. The Post Office itself functions reasonably, for the most part. But I wonder how long that would be the case were it given powers that would enable it to launder money. Since the “intelligence” and “para-governmental” agencies now function largely by running most of the “illegal” drug and arms trades and by selling personal information, I wonder whether a single state bank would not be all too easy to infiltrate and command–to obviously very bad ends, though perhaps not worse than what is happening already.

I wonder whether local financial nonprofits and even a multi-tiered system of capital might not be a better attempt. I do not imagine that the CIA will not trouble itself to infiltrate such groups, but it sounds to me like a more problematic circumstance that leaves these predatory agencies less to gain.


In the UK, one of the early casualties of Thatcher’s privatisation was the Post Office Giro Bank, an innovative organisation which later governments tried to re-invent although only shadows of its former self.

Girobank grew rapidly to become Britain’s sixth biggest bank in a few years after its launch in 1968

According to wikipedia , It was the first bank designed with computerised operations in mind; the first bank in Europe to adopt OCR (optical character recognition) technology; the first UK bank to offer free accounts to individuals; and the first bank in Europe to offer telephone banking, beating the much trumpeted First Direct service by several years. It is widely credited for shaking up the UK banking market, forcing competitors to innovate and respond to the needs of the mass market…Although the Giro did offer personal loans through a third party, it did not offer many of these main services on its own behalf until after the relaunch in 1978. It added savings accounts, overdrafts, revolving credit accounts, credit and debit cards, and was instrumental in the formation of the LINK ATM consortium of smaller banks and building societies which led the commercial clearing banks to begin linking their own networks which they had hitherto refused to do. It was also quick to establish internet banking and mass market it to its customers. So although the Girobank ended up looking much like any other bank, it was clearly nothing like the type of bank it originally expected to be, but it had also been instrumental in changing the competitive nature of the banking market in the UK and had been a great innovator.

It will also be remembered for introducing the first interest-paying current account in a move that forced the high street banks to fall into line.

If memory serves me right, it was sold for £300-odd million yet surprisingly enough, Alliance and Leicester valued it in its following financial report at about a billion pounds .


Didn’t know anything about Girobank. Very interesting! Imagine where we’d be if there’d been no Thatcherism or Reaganomics…


Fat chance of it happening with an entrenched stranglehold on both party elitists and not really sure which side Kristin is really on? Sure running up to 2020 Presidential strategies, I don’t trust her as was horrified by my votes for Obama.

Progressives (far left) need a bigger microphone as lamestreet media does not give them one like they did the tea party blow hards.

First line of business when progressive win would be break up the media consolidations the thief’s running these fascists organization.


the microphone is owned by the same people who run the treasury,the fed and the banks. Good luck getting truth to the masses.


A sorry situation of distrust of everything money. But I have to agree with you.


I am all for bringing it back here. I hope Gillibrand’s efforts bear fruit. Will Congress deliver justice? I’m skeptical, but hopeful.


Another thing that could be done is for you and your neighbors to get after your state and local officials to get your lawmakers to start a public state bank. One big savings that your state could receive by having their own public state banks would be when they wanted to finance, let’s say a new bridge. Normally if your town wanted to build a bridge across a river, they would price the cost of the bridge at $50 million dollars. but once the local community or the state ended up going to one of the too big to fail banks in New York City, the cost of that new bridge would be up anywhere from $200 million to $250 million once the TBTF banks added on their percentages to the deal. Now this is just a blow up of a real possible deal, but this does happen everyday across amerika when a people, town or state have to borrow cash from a TBTF bank. Borrowing from a state bank would be cheaper, the percentage you pay on the loan would be much less than borrowing from a big private bank, and the percentage you pay would end up going back into your state bank! That would be both for you wanting to finance a car or a home or your hometown wanting to finance infrastructure! People come out way ahead when they use a publicly held bank compared to a TBTF big bank!


It would be a great idea if it was honestly implemented. How likely is that at the time?


I know you are right, I just keep hoping.