A group of Vermonters met at the Hartland Library on January 12 to hear how a Vermont State Bank would benefit the state.
Gwendolyn Hallsmith and Henry Jacqz of Vermonters for a New Economy, explained that a state-owned bank could easily hold and manage $350 million — the average uncommitted balance in the state’s bank accounts — so Vermonters could reap the benefits of leveraging capital and extending credit, instead of giving those benefits to shareholders of a private bank.
While Vermont earns .75 percent interest annually on its deposits — less than $3 million — the bank holding those funds, People’s United, charges Vermont $800,000 each year in service fees.
“The CEO of the Bank of North Dakota earns [a salary of] $250 thousand,” Hallsmith said. “The CEO of People’s United makes $25 million a year.”