Houston City Controller Annise Parker gathered more than 60 Houston area bank and credit union executives together today for the kick off of Bank on Houston , a new program to provide starter bank accounts for all Houstonians. “Why do the poorest pay the most for financial transactions,” asked Controller Parker. “That's just not right and I am asking local credit unions and banks to join with me in doing something about it. As prices rise for food, gas and utility everyone is hurting. We are making a commitment to help low income Houstonians keep more of their hard earned dollars in their pockets.”

Bank on Houston is modeled after the successful “Bank on San Francisco ” program which helped more than 11,000 unbanked San Franciscans open starter checking accounts at mainstream financial institutions in the last year. The Federal Deposit Insurance Corporation; the National League of Cities and the Federal Reserve Bank of Dallas, Houston Branch have been working closely with Controller Parker to get the program to this point. The next step is formation of a steering committee of bank and credit union representatives to develop a variety of alternative products and services to help Houston 's unbanked residents achieve financial stability and wealth. Wachovia Regional President Lori Vetters is already on board. “We are looking forward to working with Controller Parker and our colleagues in the Houston banking community on this very important endeavor,” said Vetters.

An in-depth analysis of five minority dominated Houston neighborhoods by the Houston Planning Department found that more than 45,000 households do not have relationships with banking institutions. This represents about 51 percent of the households in the study area. Another study found that seven of 10 Hurricane Katrina evacuees who came to Houston did not have bank accounts. “Without a bank account, people must turn to high cost check cashers or payday lenders to conduct financial transactions,” said Parker. They also do not have safe places to keep their money. As a result, many New Orleans residents saw their money wash away when the levies broke and their Social Security checks piled up at post offices. I don't want that to happen to Houstonians.”

This is new territory for the controller's office. “As the elected financial watchdog at Houston City Hall , I am charged with safeguarding public dollars,” said Parker. “If there is a way I can help residents protect their personal finances, then I am going to do it.”

Controller Parker envisions Bank on Houston being fully operational in late summer to early fall.

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