Friday, September 18, 2020
Hawai'i Free Press

Current Articles | Archives

Friday, February 24, 2012
HB2193: State Bank to be Controlled by Abercrombie, Insured by Taxpayer
By Rep Gene Ward @ 12:47 PM :: 5345 Views :: Energy, Environment

by Rep Gene Ward (R-Hawaii-Kai)

The Hawaii Bankers Association reports setting up a state-owned bank, like the one suggested in HB 2103, is complex and potentially costly. The issue deserves thorough analysis. There needs to be proper vetting in order avoid burdening the state with more costly bureaucracy and a huge infrastructure startup cost.

Presently, there is no detailed business plan that addresses any of the implementation issues (startup time and diversion of funds; unknown funding source; state liability; policy conflict of social good versus profits; tying up of public funds, etc).

Per Hawaii Credit Union League, funds would be deposited into a state bank that would be insured by the state itself. Without the benefit of being insured by a separate entity, the state would be in an extremely precarious situation in the event of any financial difficulty within the bank or in the state.

DCCA's DFI offered "comments only", but those comments mostly warn of negative consequences. They stress that the creation of a task force is the more prudent approach.

  • The bank's board of directors is appointed by, and serves at the pleasure of, the Governor. Unintended consequence: when a new governor is elected, the entire board will have to be reappointed.
  • Bank advisory board -- as a policymaking group, its members should be aware of the federal management interlock act re: conflicts of interest. The act could limit their advisory board rulemaking ability. Rulemaking generally is by government agencies, versus policies generally made by private businesses.
  • DFI doesn't have enough staff to do the bank's site exam. Usually site exams for a bank this size would take about 3 weeks.
  • DFI would need new team of 10 additional staff to do the required quarterly reports. Reports takes 3 to 4 weeks to complete. Exam results are subject to federal confidentiality rules and only shared with specific board members of bank, not the general staff of any institution.
  • The bill's 45-day timeline for application review is not sufficient.

---30---

VIDEO: http://www.youtube.com/watch?v=yVUmsYqEQhU

Related: HB2103 Should Hawaii Borrow $3.2B to create Bank of Abercrombie?

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT