We believe that establishing a mutually-owned private bank will change the current industry paradigm. A mutual ownership structure will eliminate the inherent conflict of interests in a shareholder controlled banking and investment institution by replacing shareholder ownership with client ownership (read our paper on Conflicts of Interest in Private Banking). There are no other private banks that currently provide private banking, trust and asset management with mutual ownership and control. Mutuality will be a game-changer in the business of serving families, individuals and trustees.
To learn more, read on or contact us.
Do you think this project is a good idea? Spread the word to others.
Mutual defined in federal banking statute
“The term ‘mutual savings bank’ means a bank without capital stock transacting a savings bank business, the net earnings of which inure wholly to the benefit of its depositors after payment of obligations for any advances by its organizers.”
12 United States Code 1813(f)
Project Background
(throughout this website, click on blue words for more information)
Have you been wondering what options are available to you to protect your family’s wealth? Are you worried that your trusts are no longer receiving proper attention? Does the condition of your bank worry you? Are you concerned about conflicts of interest in your bank?
If you are wealthy, or represent a wealthy family or individual, consider the advantages of pooling your resources with others like you to secure the banking and fiduciary services you require (see this database for list of proposed services and contribute your ideas), without concern about conflicts of interest.
Join us in an exciting project to start a new private bank with a business model that avoids conflicts of interest. We are developing a business plan to start a new private bank using mutual ownership. In a mutual, YOU, the client, are the owner. YOU select the board. YOU vote. YOU are in the driver’s seat. Go to the project section of this website to get more information about the plan and how you can participate.
The idea was originally inspired by Jack Bogle's book Battle for the Soul of Capitalism, in which he argues that investors are not served well by stock-holder owned investment firms because the fiduciary duty to clients is trumped by the interests of the firms' owners. So, he founded Vanguard Investments, a mutually-owned investment company where the client is the owner. We believe this approach is very relevant in our current environment, and should be applied to banks that offer fiduciary services to high net worth families and individuals.
Please contact us to arrange a confidential discussion about our project. We will share the business plan, provide a status report on the work done so far, and discuss your needs and expectations. We will also give you access to the secure sections of this website containing planning documents and status updates.
Read these sources:
• Barron's Private Bank Survey
• Jack Bogle
• American Bankers Association
• Office of Thrift Supervision
• Code of Federal Regulations
more suggested reading...
Do you think this project is a good idea? Spread the word to others. We seek introductions to trust and estates attorneys, family offices, and investment advisors.
Project News
(click for previous posts)
+ NEW Stephen presented to the Institute for Private Investors, Spring Client Forum, on May 26. He addressed the subject of Conflicts of Interest in Private Banking. Read a transcript of his remarks. (posted June 10, 2010)
+ Read the February project update. (posted 2/22/10)
+ The team will be meeting with approximately 20 family offices and individual investors in Houston, Fort Worth, and Dallas on February 15 and 16. (posted 2/13/10)
+ Stephen has been invited to present to the Institute for Private Investors Summer Forum on May 26th. He will speak on the subject of Conflicts of Interest in Private Banking.
(posted 2/12/10)
+ Read the January project update. (posted 1/12/10)
+ Read our project overview.
(posted 1/12/10)
+ We are pleased to announce that Teresa McCann joined our team to lead our development and delivery of banking services. See her biography on our team page. (posted 1/12/10)
+We are pleased to announce that my former colleague John Ravalli and money manager, author, and teacher, Dr. Christopher Piros joined our team to implement our investment process and lead our asset management services. See their biographies on our Team page.
(posted 12/10/09)
+ We adopted the new name Members' Private Financial Services to better reflect our mission and vision.
(posted 12/2/09)
+ Read the November project update. (posted (11/19/09)
+ Paper on Conflicts of Interest published by Family Office Exchange FOX Connects. (posted 11/18/09)
+ We conducted a pre-filing meeting with FDIC on September 28. Read about it in the October update. (posted 10/15/09)
+ This recent article in The Economist points to the classic principal-agent problem in banks as a factor leading to overexpansion of the finance industry. It suggests that agents (ie, banks) have an information advantage over clients (principals), and so can over charge and sell complex, and socially useless, finance products. (posted 10/1/09)
+ Read this excellent analysis of cooperative banking by the consulting firm Oliver Wyman. (posted 9/21/09)
+ Read the September project update. (posted 9/5/09)
+ We conducted a pre-filing meeting with the Office of Thrift Supervision on August 3. Read about it in the August project update. (posted 8/7/09)
+ Read the July project update. (posted 7/3/09)
+ Read the June project update. (posted 6/6/09)
+ The Mutual Private Bank project was profiled in cover article in the June edition of CNBC European Business. Click here to read the article. (posted 6/5/09)
+ May Project Status Report has been posted to Project Documents. (posted 5/4/09)
+ Review model Charter and Bylaws of a Federal Mutual Savings Association. (posted 4/14/09)
Project News archive...
This website is for information purposes only. The entity described in the related project information is not a bank (yet). The contents of this website do not constitute a solicitation of any kind, nor an offer of banking services. Read the full disclaimer.