A Short Preview:
Full Interview – Organizing a Sovereign State Bank with Professor Richard A. Werner:
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“The single biggest selling point—why one needs to do this—is the question of sovereignty…. Proverbs 22:7 says, ‘The borrower is servant to the lender.’ Politicians…are supposed to be servants of the sovereign people, but not of the bankers. If they don’t want to be servants to the bankers, then they need, by definition, a sovereign bank.”
~ Professor Richard A. Werner
By Catherine Austin Fitts
For the first Solari Report interview of 2025, I am pleased to welcome back Professor Richard A. Werner, one of the world’s top experts in banking and finance. He returns to deepen our discussion of sovereign state banks, a topic he previously addressed in his superb briefing memo titled Why A Sovereign State Bank Is Good for Tennessee, which was part of our 2023 report on The Future of Financial Freedom. Richard has now produced a similar document for the state of Florida, which has announced its interest in creating a State Bank of Florida.
Currently, North Dakota is the only U.S. state with a sovereign state bank—the very successful Bank of North Dakota (BND). Given that one of the principal aims of a sovereign state bank is to support (and not compete with) the small local banks that are the backbone of vibrant local economies, it is no accident that North Dakota’s community banks and credit unions—and hence, its small businesses—are thriving. In North Dakota, 83% of the state’s total bank deposits are in community banks and credit unions, versus just 30% on average in other states.
In this conversation, drawing on BND’s experience, we discuss some of the “nuts and bolts” issues that make sovereign state banks both desirable and workable. These include:
- Ownership (in a state-owned bank, the profits remain in the state)
- Governance
- Auditing and reporting considerations
- The services that state banks are most suited to provide
- The merits of including a bullion depository function
- Risk issues
As the BND example has proved, a sovereign state bank provides many economic benefits for the state. Creating a bank and systems that are independent of the Federal Reserve is also one of the most powerful actions that a state can take to protect state sovereignty as well as the individual sovereignty of its residents.
As a reminder, we are now offering monthly briefings for state legislators and other officials. Subscribers who bring their representatives are invited. We will make our portion of the presentation available to all subscribers. We would be delighted to do a briefing for interested state legislators about the benefits of a sovereign state bank and other steps that states can take to protect financial freedom.
Related:
CFO Patronis Proposes “Sunshine Freedom Bank,” a First-of-Its-Kind State Bank of Florida
Alberta’s Public Bank: How ATB Can Help Shape the New Economy
Related at the Solari Report:
What the States Can Do: Building the Legal and Financial Infrastructure for Financial Freedom
Monthly Briefings for Freedom-Focused State Legislators and Officials
Why a Sovereign State Bank Is Good for Tennessee
1st Quarter 2023 Wrap Up: The Future of Financial Freedom with Richard A. Werner
The Profits of Economic Shock: Case Studies with Professor Richard A. Werner
The Case for Building Wealth with Richard A. Werner
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