From Wall Street to main Street

An interesting article appeared in the Wall Street Journal that increasing numbers of customers where switching their accounts from large high street banks (such as Chase) to much smaller credit unions. The article cites that a selection of the large banks were in the process of introducing charges to the savers accounts and it is that which motivated the customers to move.

The changes to how the banks conduct their business may well of been the stick to motivate swaps, but the carrot of the credit unions (CU) is something else. CU's lack of stock or debt makes them a much more durable option in the present climate. Also the deposits that the CU have at their disposal are likely to only be utilised for community or ethical international development, and are highly unlikely to be used to provide leverage for stocks, bonds or currency. 

It seems if Main street has found an effective way to remind Wall street that ultimately they, the depositors, are the ones in ultimate control.