PRESS CONTACT FOR IMMEDIATE RELEASE 9/18/23

Debbie Notkin

dnotkin@publicbankeastbay.org

Phone: #510.831.5350

Historic Moment for Public Banking: East Bay Leads the Way

The Public Bank East Bay is the first Public Bank in over 100 years to hire a CEO.

Oakland, CA [September 18, 2023] Today, Friends of the Public Bank East Bay .nnounces its first‐in‐the‐nation milestone of bringing on a chief executive, a prospective Board and Board leadership for the planned public bank. Public Bank East Bay (PBEB) has a slate of highly qualified Board candidates, led by Co‐Chairs Paulina Gonzalez‐Brito and Jennifer Esteen, and is introducing its first CEO, Scott Waite.

Additionally, PBEB has raised its first $1M to bring on a high quality CEO and board slate and to support the writing of a business plan that also serves as the bank charter application. It is now launching its “next $1M fundraising campaign,” continuing the organization's incredible momentum.

“The East Bay is leading the public banking movement in reaching these milestones, but we couldn’t have gotten here without the whole movement’s forward progress. We celebrate our East Bay community’s eagerness to take this innovative leap,” shares Debbie Notkin, the Chair of the Board of the nonprofit group that has been leading the Public Bank East Bay effort. Today, there are many efforts across the country to establish new public banks. The only existing public bank in the U.S. today is the Bank of North Dakota, which has been very successful in its over 100 year history.

Public Bank East Bay is pressing forward with its plan to open by 2024 or early 2025. It will be a transformative institution that keeps our municipal money local, allowing local governments to divest from Wall Street, while reinvesting its profits back into our community. As a wholesale bank, PBEB will partner with community banks, credit unions and CDFIs to finance affordable housing development, small businesses (especially for marginalized entrepreneurs), the renovation and electrification of existing buildings, and the opportunity for cities and counties to refinance their municipal debt locally.

Four local jurisdictions – Alameda County and the cities of Richmond, Oakland and Berkeley – have all demonstrated support of a public bank in the East Bay and have contributed financially to the bank’s planning, including laying the groundwork for the business plan – the next major milestones in the bank’s development.

Marcum Search LLC, the executive recruiting firm hired by the Friends, began their search in June, and cast a very wide net to find the right person for this unique position. As Marcum’s Peggy Sand put it, “We were looking for a unicorn: a very experienced banker with a strong commitment to democratizing money for the public good. And we found him.”

“With my long career in CEO and CFO roles in credit unions, I know what it takes to successfully operate a regulated financial institution that has the interests of the community at the center of its mission,” Public Bank East Bay CEO Scott Waite comments. “I look forward to engaging with our jurisdictional partners and our broader set of stakeholders in advancing the development of a sound business plan that will meet regulatory requirements, and to partnering with the Board Chairs, Board slate and the Friends to build on this momentum. It is thrilling to be a part of the public bank initiative that is in line to be the first public bank in the United States in over 100 years.”

“As we step into leadership of the Board slate, we are looking forward to our partnership with our first CEO, Scott Waite, whose leadership will be critical to advancing the business plan, our regulatory engagement, and continued partnership with our local jurisdictional partners. Together, we will continue to engage our community stakeholders to help the bank hone in on the ways we can create the most positive impact, which is elemental to our planning,” shared Board Co‐Chairs Esteen and Gonzalez‐Brito.

Gonzalez‐Brito underscores the importance of public banking by saying, "Communities of color have long been underserved by Wall Street banks. From redlining to targeting us for subprime mortgages, traditional banks have erected obstacles that have not only prevented BIPOC from building generational wealth but they have extracted wealth from our communities too. East Bay communities deserve a bank that will put people over profits and use public money for the public good and that is exactly what the Public Bank of the East Bay will do."

Esteen emphasizes the needs in our communities that the Public Bank East Bay could support by sharing these thoughts, “Public Bank of the East Bay offers the Bay Area an opportunity to realize our wildest dreams by funding community enhancing investments that traditional banks may refuse to fund. By funding creative and innovative investments that return dividends back into our local municipalities, it’ll set an example that this financial model is the best for community benefit. We no longer have to rely on standard models of capitalism that rely on profit margins to pad shareholder returns while leaving little to no benefit for our community. It’s a great honor to be a part of the founding of this historic Bank.”

Friends of the Public Bank East Bay expresses tremendous gratitude for all of the supporters of this effort to date, including its financial supporters that helped it achieve its first $1M fundraising milestone, including numerous individual donors as well as the County of Alameda, the San Francisco Foundation, the Irvine Foundation, Cal Wellness Foundation and the Y & H Soda Foundation. The participation of local governments and foundations in this effort underscores their commitment to the potential for public banking to improve the economic and social health of our region.

“We stand alongside many other efforts across the state of California and the nation in advancing the public banking movement. Whether we look at the recent banking collapses or misbehavior by Wall Street banks ‐‐ not to mention causing the Great Recession ‐‐ the time is now for public banking,” Notkin emphasizes. “We urge anyone who wants to see our local governments’ assets being put to use to strengthen our local economies to help us raise our second $1M, which will support the public bank’s start‐up expenses, including navigating the regulatory and approval process. We welcome small donors, volunteers, and all who would contribute to a new economy. Please join us in making this a reality!”

Jen Esteen and Paulina Gonzalez‐Brito (bank Board slate Co‐Chairs) and Scott Waite (CEO) will be introduced to the Berkeley and Richmond City Councils as well as the Alameda County Board of Supervisors on Tuesday, September 19th, and to the Oakland City Council on October 3rd.

About Public Bank East Bay

The Public Bank East Bay (PBEB) will be a wholesale bank allowing cities and counties in the East Bay to invest their funds locally. It will not take any retail deposits from consumers, but fulfill its mission by reinvesting public funds (money collected as taxes, fines and fees) into the local economy prioritizing the environmental, social and economic needs of the East Bay community. As mandated by the California Public Banking Act (AB 857), it will achieve its mission primarily in partnership with existing local financial institutions, like community banks, credit unions and Community Development Financial Institutions (CDFIs).

Learn more at: https://www.publicbankeastbay.org