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April 26, 2018
NY Senator Introduces Bill to Turn Post Offices into Banks
Salina Wang
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New York democratic Senator Kirsten Gillibrand
has introduced a bill that would allow
30,000 post offices to offer banking services.
Those services could include small, low-fee loans,
checking and savings accounts, and cash withdrawals.
She says offering loan services will save people
from taking out expensive payday loans
which can charge 400% the loan’s
value in annual interest.
But some have pointed out that it will be tricky
to make the government into a bank.
Taxpayers will have to pick up
the tab on defaulted loans
and possibly subsidize low interest rates
to keep them lower than the free market.
There’s also the question of whether the
government can effectively offer these services.
The USPS, one of the few companies the
federal government runs, is already struggling.
Last year, it reported a $2.7 billion net loss.
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