Bank owned by union sets its sights on Washington

Washington Post - Keith Mestrich likes to say he’s the most unconventional banker in town. And he might just be right.

As senior vice president of Amalgamated Bank, an institution founded and owned by a labor union, Mestrich’s mission is more worker solidaritythan bottom-line profits.

Amalgamated, which was founded in New York in 1923, has begun beefing up its Washington presence. As the labor movement shifts from local trade unions to more national operations, so too has the bank’s focus.

In the past year, Amalgamated has brought on former Obama staffers and wooed Democratic candidates as part of a plan to position itself as the bank of the left. Mestrich, formerly chief financial officer of the Service Employees International Union, was hired to oversee the Washington expansion.

“We’re probably late to the party in getting here,” he said. “But it’s a great place to build out our business.”

A major turning point came late last year, when the Democratic National Committee announced that it was moving its funds out of Bank of America and into Amalgamated, which is largely owned by Workers United.

“That’s really when our renaissance began,” Mestrich said. “We were able to carve out a space as a bank for progressive politics.”

Since then, Washington area deposits have risen 70 percent to about $150 million. More than 100 new unions, non-profits and Democratic party campaigns have opened commercial accounts at the bank, which also handled funds for President Obama’s second inauguration.

“We are a partisan bank that’s owned by a union,” Mestrich said. “There’s no question that unions are very tight with the Democratic party, and we make no bones about that.”