WSJ Reports: Bank of North Dakota Outperforms Wall Street

While 49 state treasuries were submerged in red ink after the 2008 financial crash, one state’s bank outperformed all others and actually launched an economy-shifting new industry.  So reports the Wall Street Journal this week, discussing the Bank of North Dakota (BND) and its striking success in the midst of a national financial collapse led by the major banks. Chester Dawson begins his November 16th article:

It is more profitable than Goldman Sachs Group Inc., has a better credit rating than J.P. Morgan Chase & Co. and hasn’t seen profit growth drop since 2003. Meet Bank of North Dakota, the U.S.’s lone state-owned bank, which has one branch, no automated teller machines and not a single investment banker.

He backs this up with comparative data on the BND’s performance:

[I]ts total assets have more than doubled, to $6.9 billion last year from $2.8 billion in 2007. By contrast, assets of the much bigger Bank of America Corp. have grown much more slowly, to $2.1 trillion from $1.7 trillion in that period.

. . . Return on equity, a measure of profitability, is 18.56%, about 70% higher than those at Goldman Sachs and J.P. Morgan. . . .

Standard & Poor’s Ratings Services last month reaffirmed its double-A-minus rating of the bank, whose deposits are guaranteed by the state of North Dakota. That is above the rating for both Goldman Sachs and J.P. Morgan and among U.S. financial institutions, second only to the Federal Home Loan Banks, rated double-A-plus.

Dawson goes on, however, to credit the BND’s remarkable performance to the Bakken oil boom. Giving his article the controversial title, “Shale Boom Helps North Dakota Bank Earn Returns Goldman Would Envy: U.S.’s Lone State-Owned Bank Is Beneficiary of Fracking,” he contends:

The reason for its success? As the sole repository of the state of North Dakota’s revenue, the bank has been one of the biggest beneficiaries of the boom in Bakken shale-oil production from hydraulic fracturing, or fracking. In fact, the bank played a crucial part in kick-starting the oil frenzy in the state in 2008 amid the financial crisis.

That is how the Wall Street-owned media routinely write off the exceptional record of this lone publicly-owned bank, crediting it to the success of the private oil industry. But the boom did not make the fortunes of the bank. It would be more accurate to say that the bank made the boom.

Excess Deposits Do Not Explain the BND’s Record Profits

Dawson confirms that the BND played a crucial role in kickstarting the boom and the economy, at a time when other states were languishing in recession. It did this by lending for critical infrastructure (roads, housing, hospitals, hotels) when other states’ banks were curtailing local lending.

But while the state itself may have reaped increased taxes and fees from the oil boom, the BND got no more out of the deal than an increase in deposits, as Dawson also confirms. The BND is the sole repository of state revenues by law.

Having excess deposits can hardly be the reason the BND has outdistanced even JPMorganChase and Bank of America, which also have massive excess deposits and have not turned them into loans. Instead, they have invested their excess deposits in securities.

Interestingly, the BND has also followed this practice. According to Standard & Poor’s October 2014 credit report, it had a loan to deposit ratio in 2009 of 91%. This ratio dropped to 57.5% in 2014. The excess deposits have gone primarily into Treasuries, US government agency debt, and mortgage-backed securities. Thus the bank’s extraordinary profitability cannot be explained by an excess of deposits or an expanded loan portfolio.

Further eroding the Dawson explanation is that the oil boom did not actually hit North Dakota until 2010. Yet it was the sole state to have escaped the credit crisis by the spring of 2009, when every other state’s budget had already dipped into negative territory. Montana, the runner-up, was in the black by the end of 2009; but it dropped into the red in March of that year and had to implement a pay freeze on state employees.

According to Standard & Poor’s, the BND’s return on equity was up to 23.4% in 2009 – substantially higher than in any of the years of the oil boom that began in 2010.

The Real Reasons for Its Stellar Success

To what, then, are the remarkable achievements of this lone public bank attributable?

The answer is something the privately-owned major media have tried to sweep under the rug: the public banking model is simply more profitable and efficient than the private model. Profits, rather than being siphoned into offshore tax havens, are recycled back into the bank, the state and the community.

The BND’s costs are extremely low: no exorbitantly-paid executives; no bonuses, fees, or commissions; only only one branch office; very low borrowing costs; and no FDIC premiums (the state rather than the FDIC guarantees its deposits).

These are all features that set publicly-owned banks apart from privately-owned banks. Beyond that, they are safer for depositors, allow public infrastructure costs to be cut in half, and provide a non-criminal alternative to a Wall Street cartel caught in a laundry list of frauds.

Dawson describes some other unique aspects of the BND’s public banking model:

It traditionally extends credit, or invests directly, in areas other lenders shun, such as rural housing loans.

. . . [R]etail banking accounts for just 2%-3% of its business. The bank’s focus is providing loans to students and extending credit to companies in North Dakota, often in partnership with smaller community banks.

Bank of North Dakota also acts as a clearinghouse for interbank transactions in the state by settling checks and distributing coins and currency. . . .

The bank’s mission is promoting economic development, not competing with private banks. “We’re a state agency and profit maximization isn’t what drives us,” President Eric Hardmeyer said.

. . . It recently started offering mortgages to individuals in the most underserved corners of the state. But Mr. Hardmeyer dismisses any notion the bank could run into trouble with deadbeat borrowers. “We know our customers,” he said. “You’ve got to understand the conservative nature of this state. Nobody here is really interested in making subprime loans.”

The Downsides of a Boom

The bank’s mission to promote economic development could help explain why its return on equity has actually fallen since the oil boom hit in 2010. The mass invasion by private oil interests has put a severe strain on the state’s infrastructure, forcing it to muster its resources defensively to keep up; and the BND is in the thick of that battle.

In an August 2011 article titled “North Dakota’s Oil Boom is a Blessing and a Curse”, Ryan Holeywell writes that virtually all major infrastructure in the boom cities and counties is strained or exhausted. To shore up its infrastructure needs, the state has committed hundreds of millions of dollars in revenue. Meanwhile, it is trying to promote industries other than oil and gas, such as companies involved with unmanned aircraft, manufacturing associated with wind energy equipment, and data centers; but the remoteness of the western part of the state, along with the high cost of labor, makes doing business there complicated and expensive.

Hydrofracking, which has been widely attacked as an environmental hazard, is not as bad in North Dakota as in other states, since the process takes place nearly two miles underground; but it still raises significant environmental concerns. In 2011, the state levied $3 million in fines against 20 oil companies for environmental violations. It also undertook a review of industry regulations and was in the process of doubling its oil field inspectors.

The greatest stresses from the oil industry, however, involve the shortage of housing and the damage to the county road system, which in many places consists of two-lane gravel and dirt roads. Drilling a new well requires more than 2,000 truck trips, and the heavy rigs are destroying the roads. Fixing them has been estimated to require an investment of more than $900 million over the next 20 years.

These are external costs imposed by the oil industry that the government has to pick up. All of it requires financing, and the BND is there to provide the credit lines.

Lighting a Fire under Legislators

What the Bank of North Dakota has done to sustain its state’s oil boom, a publicly-owned bank could do for other promising industries in other states. But Dawson observes that no other state has yet voted to take up the challenge, despite a plethora of bills introduced for the purpose. Legislators are slow to move on innovations, unless a fire is lit under them by a crisis or a mass popular movement.

We would be better off sparking a movement than waiting for a crisis. The compelling data in Dawson’s Wall Street Journal article, properly construed, could add fuel to the flames.


Ellen Brown is an attorney, founder of the Public Banking Institute, and author of twelve books, including the best-selling Web of Debt. In The Public Bank Solution, her latest book, she explores successful public banking models historically and globally. Her 200+ blog articles are at

65 Responses

  1. Given the assets and the state economy , supported by the energy sector, I’m not surprised.

  2. This is the only example of such a public bank in the country ! We must guard against it’s downfall, as wallstreet has tried many times, and has in it’s latest plans, using TPP to destroy it because “it might hurt wallstreet banking profits” ….NO KIDDING ! We need a nation full of this type of banking…perhaps at our failing post offices like Elizabeth Warren champions…. ? What a great combinational effort that would be to help save the country !

  3. North Dakota is also the only state called “North Dakota”. What of it ? The success of the example has more to do with the economics at this time, rather than the banking. I see nothing measurable to support the banking argument …. nor do I see what curbs over-creation of new money. Whether you create IOU’s with interest or without interest does not preclude that the currency is created from thin air.

    • Yes, and what of it, Ms. goldbug? “From thin air” is a good thing when a sovereign government does it responsibly to promote the general welfare, bad when private banks like the TBTFs and the Fed do it for their own private gain. That’s the whole point of this blog, which I suppose you know well but are diametrically opposed to. “It is not enough to tell me that you worked hard for your gold. So does the devil work hard.” — H.D. Thoreau

      • From thin air, as you acknowledged, relies on the honesty and integrity of those who reside in the apex of power. This is a structural problem that fosters co-dependency. Better to use a currency that does not rely on a power focal point. Decentralization is much more democratic. Where an asset such as gold or any precious metal comes into it is based on the fact that you can only fully decentralize an asset. Debt creation and a focal point for power are inseparable. Hierarchy sucks is the basis message. I take special note on your words “when a sovereign government does it responsibly”. I trust the market far more than I trust any government.

        • What market? It’s a blind faith I don’t have. I don’t trust markets at all. Look at how the precious metals market is totally manipulated with naked shorts (accordin to Paul Craig Roberts and others.) “Free markets” are intrinsically criminogenic according to economist James Galbraith. The 2008 financial breakdown proved it. And I don’t buy the hate-all-government bag, which is the height of cynicism. There is such a thing as good government. And good luck getting rid of hierarchy–it ain’t gonna happen, nor is it intrinsically bad, especially given functioning checks and balances which we unfortunately don’t have right now, but DID.

          • Going through a “monetary wormhole” is a challenge. There are “necessary evils” in this script, no doubt. These things must happen, unfortunately . As for hierarchy, it’s already unraveling thanks to the age of information. Cash flows (and power) distributions are now limited to the imagination as real-time technology has made this possible. This is an issue of the capability-incapability axiom, something we had little to no power over until recently. We are definitely creating a “rounder world”. It’s these technical possibilities that make the practical application of real-time asset currency possible.

            You cannot pour new wine into old wineskins.

            • Dear Lise,
              Another option is a structural challenge that must be met. Authentic democracy only functions among small populations in conjunction with a democratized economic organization. I think Americans are culturally well suited to that option.
              You be well.
              Sincerely yours, Reed Kinney

      • Dear Ernie,
        You are right. The Federal Reserve System dominates the national economy. But, decentralization may very well superseded this dystopia. H. D. Thoreau was anarchistic. He represents an aspect of American culture that fortunately we do possesses, our propensity for humane cooperation in a decentralized society. But, that is nonetheless a structural challenge. I think that option can be created.
        You be well.
        Sincerely yours, Reed Kinney

      • What about when a private corporation is doing it irresponsibly, with no competent oversight? Still a good thing?

    • Lise, apparently you don’t understnand ; 1. that BOND plows all it’s profits back into the state economy as either valid new loans or direct tax refunds to the people of the state, vs. the wallstreet private banking model for private profit instead of public benefit….besides the difference between debt-free money generation and what the ‘fed’ does ?

    • What’s your agrument here? All wealth is created from thin air. Do you not understand the basics of economics? Gold, silver, diamonds, seashells, it’s only the agreement that it has value that gives it value.

      • hmmm . . . thought-provokingly put! Money is basically tickets based on agreement (fiat, thin air), tho some have the false-to-fact idea that the tickets must be a commodity. But wealth, on the other hand, roughly equivalent to abundance, is based on physical conditions centered on availability and control of space and things, often the result of work, but also of inheritance, theft (expropriation and exploitation) and right.

        • Okay, good, now we are getting somewhere. Sovereignty is a concrete condition grounded on economic independence and economic stability with privacy. At its most decentralized, sovereignty is a semi-self-sufficient homestead. A more pragmatic sovereignty is actualized via a semi-self-sufficient community composed of semi-self-sufficient homesteads, with all of community services and decision-making process owned equally by its people, including its own bank, and so on. But, for real independence and a self-realizational culture, then, community confederation is needed, organized on the basis of authentic democracy. Confederation defends the sovereignty of each community, which schemata I will not elaborate here. The point is that if we want real independence, then, we will have to create a mutualistic, production-based economy, for the purpose of engendering the individuation of each person. Independence means independence from the economies of scale, the consumer-based economy, and independence from the central bank; “black and white”.

      • Exchange-value is coercive when it is manufactured by a private firm, and is given the illusion of having “intrinsic-value” with the “status” of private “property” and when it “warrants” interest payments for loans. And, when no limit is placed on the amount of money an individual can amass. (The bank creates money when convenient for its own malevolent purposes; undisclosed to the people (1)) The bank continually forecloses on use-value. The whole scheme is a criminal organization. The bank intends to destroy American national sovereignty. The bank is behind Agenda 21. (2)

        1. Alan Grayson: “Which Foreigners Got the Fed’s $500,000,000,000?” Bernanke: “I Don’t Know.”

        2. Agenda 21 Explained

        Agenda 21, by Lord Monckton

        And, see: Fox ‘News’ Glenn Beck outlined the Rothschild Central Bank.

      • Cyrano, you couldn’t be more WRONG ! Money should be created for the common benefit of all by the government…not a bunch of private banks, which is the definition of COUNTERFEITING…yaknow, art. 1, sec.8, par. 6 ? It SHOULD be created out of thin air…by the government only, supported by legal tender law and backed at least by the full faith and force of government to promote the general welfare of the nation, not some do-nothing wallstreet firm that gave up production of goods ages ago to become the “super-class” of the “service economy” nonsense ! If a nation does not produce goods for jobs and export it dies…as we are, or did you miss that too ? We have not had no-debt, sovereign money save a few times in our entire nation’s history if you are aware ? Ben Franklin is the classic case, whereby he ticked off the Brits so much with it that they started our revolution !…his second form of debt-free money got us through that one before the Brits…again…….COUNTERFEITED it out of favor, as there were no legal tender laws back then, and currency competition was allowed…sorta like the bit-coin crowd is trying to do, or the liberty dollar tried…and it was even backed by gold ! (so they say, and gold is a false god anyway). I have a system I designed and keep improving that uses assets as the basis for currency surrender value as the government could provide, even including gold if available, etc. , but we have suffered under LABOR based money since gold left the building with Nixon if you remember that either. Labor based money is the most punitive to….labor and all classes that must honor the work ethic for a living…yaknow, REAL people ?, and as soon as an economy can move into a better place as asset bases rise, it should be based on that (except in wartime, etc.)…huge subject and too little space here…but that’s my USA. try my FB

        • What you suggest is reminiscent of the position taken by Bill Still. (1) If that step were taken it would help to stabilize our regional economies. But, for real independence we must do away with “globalization.” Americans need to establish an altogether different type of economic organization, and adopt the structures of authentic democracy. Only through real community can we defend ourselves from the incremental encroachments on American sovereignty by the UN, which is backed by the Federal Reserve System and the Bank of England, the World Bank, and so on. Agenda 21 is an “ecological” front for world dictatorship; an impossibility, but the men who advocate and promote it and legislate for it are magalomanic sociopaths and will kill the masses in the pursuit of their endeavors. (2)
          1. Bill Still:

          2. Jane Gaffin:

          • Yes, Reedkinney, I totally agree with you, we just seem to be speaking of different parts of the overall total number of problems being created for America after the fall of the ussr especially IMO. I fear for us all. It is truly sad to realize that the super-rich could be incentivizing the world to a better place for all, but instead remain steadfastly selfish to ultimate fault and wish nothing but destruction and malevolent control over humanity as i see it. The “global” crowd who want the race to the bottom miss the fact that this also means that the warnings of Lord Acton will go unheeded to our collective detriment if we aren’t lucky and more forthright in our pursuit of a better world for all.

            • Dear Roundel, and Ellen,

              You are absolutely right.

              I too, am significantly concerned.

              It is unfortunate that the “globalists” in positions of control appear to be sociopaths.

              I think that the people, if left to their own devices, know what is good for the people; so much so, that the oligarchy pours wealth and intelligence into an ongoing, colossal effort of mind control and distraction to prevent the people from practicing real dialogue. I have the impression that the oligarchy fears that the people will, at any moment, “wake each other up” as to how they are deceived, and conditioned, and will, of their own accord, “go their own way.”

              Our challenges include bringing to the people the types of organizational structures that can reinstate their power of “self-determination.” We are bemired in socioeconomic/political structures that prevent people from coming together in effective ways for establishing their independence, both psychic independence and material independence.

              But, I think that independence is approaching. It seems that always more folks understand, to varying degrees, that the causes of poverty, war, and mayhem are none other than the centralized powers that counter and attack the will of the people. And, it seems that always more people see through the deceptions presented as “for your own good, for your security, and for the good of the planet.”

              The time is ripe for independence, and the key that can open the way are those needed organizational options that we agree are viable and doable.

              Ellen, you keep up your good work!

              You be well Roundel, and friends.

              Always yours, Reed Kinney

              My Blog:

              • Reedkinney ..

                Congratulations on your recognition of the sociopaths that have a great hold on other people’s lives. It’s not their sickness or emotional or mental condition, all on its own, that can be blamed however. There are a great many people who suffer the same fate who have no negative influence of your life or mine …. so what makes the difference ? I can tell you in a word. Structure. Classical structures have always been hierarchical, regardless of which “ism” they hold in the moment. An apex is like a light to moths. The attraction is power and it will draw the wicked and the evil toward it like nothing else.

                You and I cannot change the nature of these people but we can create a “rounder world” by way of a continuing trend in forming a “rounder world”. The process of decentralization is the process by which focal points for power can be weaned out of the system.

                Having said the above, mankind could not possibly deal with these complex issues without the real-time tools and digital capabilities of the information age. Restructuring systems to make them more diverse and less consolidated is a function of capability and that capability can only do what is permitted within its own given time.

                • Dear Rooster, and Ellen,

                  You are absolutely right.

                  * The Globalists use terms like environmentalism, Non Government Organization, smart growth, sustainable growth, democracy, etc. which are among many terms they use to hide their agenda of global totalitarianism intended to end private property, sovereignty and the last vestiges of democracy. They advocate what appear to be some types of decentralization, such as regional “food sovereignty,” while stressing the need for global welfare systems, and taxing the developed countries to afford that, and, other such programs. The central bank and its U.N. are the same ilk as all centralized power. To them, the people are the scourge of the earth, and they regard them as such.

                  * Real decentralization puts everything, all organization, and all executive functions in the hands of the people. Its economic organization is semi-self-sufficient, and the basis of their sovereignty. They are able to defend themselves from external encroachment. Real independence will be an ongoing fight against globalization. And, decentralization will superseded centralized power.

                  * The way to the success of emancipation is through all regions and through each rural population, as well as through each urban neighborhood. It’s the people themselves that can engender, maintain, and defend permanent decentralization, and its sovereignty. I will not elaborate here. For a better idea see my essay, What is Community?, which is the prelude, to a larger prelude in progress:

                  * You be well Rooster, and Ellen. Yours, Reed Kinney

                  See, Jane Gaffin:
                  These are Globalization narratives:


                  This one is a sketch of Central Bank/U.N. totalitarianism now in progress:

                  I include these again:
                  Agenda 21 Explained

                  Agenda 21, by Lord Monckton

  4. Dear Ellen,
    I cannot be too specific in making this brief evaluation.
    The primary, structural flaw of our society is allowing unlimited capital wealth to be owned privately. The consequence of that flaw is a stratified society, an economic class-based society, which is to say that society is dominated by a criminal regime.
    The people are indoctrinated to believe in the ‘necessity’ of an unregulated, competitive economy, which is wrong on two counts, 1) it is the opposite of a convivial society, and 2) it is invariably overtaken by economic monopolies.
    The whole scheme is a sham, a deceit, a criminal organization that, allegorically speaking, expects its dominated subjects to act like helpless chickens in a chicken coop.
    The causes of the severe problems that plague our society are kept hidden from the people. The sacrifice, the waste and abuse of human life continues unabated, while the people are conditioned to believe complete falsehoods regarding what is largely our dystopia. Everything is taught but the truth.
    Murder and mayhem and every type of wickedness are brought down upon the people consequent of the hegemony of the unconscionable oligarchy, and the extents they will go to expand their power.
    The people are subjugated by many levels power managed by anonymous men who conceal themselves behind the closed doors of institutions and write legislation in favor of oppression.
    There is a way out from under this rock, and many are making their contributions to those ends.
    Ellen, your contribution is important. It adds concrete momentum to the burgeoning movement towards decentralization. And, as importantly, it strengthens that concept in peoples’ minds, which will help facilitate the greater decentralization as it emerges.
    Keep up your good work!
    You be well.
    Sincerely yours, Reed Kinney

    • ReedKinney …. I won’t debate the hideous symptoms that you listed above. I agree that they are there but I think you might be able to zero in on the cause a bit better. We can do little to nothing to affect a person’s character or the evil that may lurk within. We are all “there” in some sense. It is not the evil within people, by itself, that creates the listed afflictions, but the evil that is combined with positional leverage and advantage according to structure and the focal points for power that accompany the formation of these power structures that are typically hierarchical by their geometric configuration.

      IOW, we are in “bad shape” and the proximately to any power apex is like a light to moths, attracting the greedy and the wicked.

      Human nature is not within your reach or my reach to change. Structure is something else, altogether. I suggest that we apply efforts where we can actually create change for the better.

      • Dear Ellen,

        It’s good to get word from you.

        I agree with you entirely!

        Your work, within convention, to decentralize monetized organization for the good of the people is an invaluable contribution. You have the background and the knowledge to carry that through. I appreciate your good work.

        I plan civil, civic, civic-economic organization for creating decentralized community, and community confederations, which plans will see the light of day soon enough. My current thesis, which I started to write November 26, 2013, is completed in its final draft, which will be copyrighted in the near future. Then, I will make it ready for publication.

        I distinguish between contrasting socioeconomic structures and the impact they make on the quality of peoples’ lives. Decentralized political power, authentic democracy, is contingent on a decentralized economy; sovereignty. I think that creating real community and decentralize civilization is our best option for curbing the destructive momentum that we are witness too.

        You keep up your good work!

        You be well!

        Always yours, Reed Kinney

  5. Public banking sounds like the way forward. Excellent article.

  6. You know, it’s really sad that we have to use public banking due to private sector criminal intent and result as we have experienced so often over the last 100 years especially, since the fed was created, but that’s the situation, and the BOND is doing spectacularly for the common man in America and setting the example for all the world to see, but I would so have my faith in my fellow banking people bolstered to see them not shrink from the responsibility of being fair and open about their activities, which they of course have not over the last, especially 100 years when they finally got totally organized to totally rob the American public of all it’s labor…the most powerful force in any civilization.

  7. Reblogged this on Joseph Davis.

  8. […] I highly recommend reading this entire article by Ellen Brown. […]

  9. Hi Ellen, this is a fantastic analysis you did of the WSJ article, bravo to you! Well, I lost the congressional campaign with 36% of the vote with $22 000 in campaign contributions against an incumbent who had a three million dollar plus campaign chest in the spring. So not bad considering.

    We are planning our next CGO conference in Southfield near Detroit. Please let me know if you would like me to connect with anyone in your network from there so that we can keep building the”land/money” connection.

    Best to you,


  10. […] profit growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  11. […] profit growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  12. […] drop since 2003.†The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  13. […] growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  14. […] profit growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  15. […] profit growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  16. […] profit growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  17. […] growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  18. […] WSJ reports that the Bank of North Dakota (BND) is outperforming Wall Street .. “It is more profitable than Goldman Sachs Group Inc., has a better credit rating than J.P. Morgan Chase & Co. and hasn’t seen a drop in profit growth since 2003. Meet Bank of North Dakota, the U.S.’s lone state-owned bank, which has one branch, no automated teller machines and not a single investment banker.” . Ellen Brown* delves in what is behind this success of the state-run bank .. yes it is true that BND has derived more profit from its investments than on an excess of deposits .. but the big reasons why BND has been successful include its policy to recycle back into the bank, the state & the community, & also: “The BND’s costs are extremely low: no exorbitantly-paid executives; no bonuses, fees, or commissions; only one branch office; very low borrowing costs; and no FDIC premiums (the state rather than the FDIC guarantees its deposits).” .. BND also allows public infrastructure costs to be cut in half!!!. [Theme point: The Bank of North Dakota is NOT designed to model itself on the privately controlled Bank of England (Bank of England was private until it went Bankrupt at the beginning of WWII). The American Revolution fought against that institution itself & the principle that it stood for (it was a force against freedom). The founders of the United States understood that it was important for the freedom of the American people to NOT ALLOW private control of the public’s money. Why do Americans think it is OK now?] LINK HERE to the WSJ articleLINK HERE to the commentary […]

  19. […] profit growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  20. […] profit growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  21. […] profit growth drop since 2003.” The article credited the shale oil boom; but as discussed earlier here, North Dakota was already reporting record profits in the spring of 2009, when every other state […]

  22. […] a terrible idea it is to have anything to do with Wall Street. They do have other options, such as starting their own banks, conserving their tax revenue, and refusing to share any of it with ungrateful investors who are […]

  23. […] banking has had difficulty in expanding beyond North Dakota, the only state with its own bank, a remarkably profitable and socially efficacious one. Since 2009 a plethora of bills have been introduced in legislatures […]

  24. […] banking has had difficulty in expanding beyond North Dakota, the only state with its own bank, a remarkably profitable and socially efficacious one. Since 2009 a plethora of bills have been introduced in legislatures […]

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