LP of Contra Costa and Alameda switch banks in response to bailouts and raised fees
May 12, 2010
LIBERTARIANS QUIT BANK OF AMERICA
CONCORD, CALIFORNIA — In response at government bailouts of banks, the Contra Costa County and Alameda County Libertarian Parties severed all financial ties with Bank of America.
Annoyed at the federal government’s Troubled Asset Relief Program (TARP), the two Libertarian groups wanted to put their resources in a bank that did not accept taxpayers’ dollars. Bank of America has accepted TARP funds.
Moreover, the two groups — which are considered small organizations — were incensed that Bank of America, on the brink of collapse, raised its bank-service charges and provided only minimal service.
In February, New York State Attorney General, Andrew Cuomo, brought a lawsuit against retired Bank of America Chief Executive Officer, Ken Lewis. In the lawsuit, Mr. Cuomo accused Lewis of defrauding the bank’s investors and customers. Mr. Cuomo’s actions made the Libertarians feel justified in putting their money in a more trustworthy institution.
The Libertarians found two acceptable banks: Bank of the West and Mechanics Bank. Contra Costa Libertarian Party Chairman, Mr. Cory Nott, said: “Both banks are excellent to work with.”
According to Mr. Nott, the two Libertarian groups settled on Mechanics Bank. Mr. Nott said that that Mechanics Bank “will provide more convenience for all party officers, did not need or apply for any TARP funds, and can give superior service to our organizations.”
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