News & Media Coverage

Brockton switches banks for payroll

July 11, 2012  |  The Brockton Enterprise  |  Link to article

 

The city will move its payroll account to Eastern Bank after cutting ties with Bank of America.

Treasurer Martin Brophy announced the move after reviewing proposals from five banks.

The city’s 3,500-person, approximately $170 million payroll account had previously been held by Bank of America.

Brophy said he evaluated the financial institutions on a number of categories including: Veribanc rating; dedicated government banking team; physical branch locations in the city; lowest fees; interest rate provided on account and participation in the community.

Members of Brockton Interfaith Community had asked Brophy at a March Finance Committee meeting for him to divest from Bank of America and other national banks, charging them with being uncooperative with city residents and the Neighborhood Housing Services of the South Shore in helping homeowners avoid foreclosure.

The treasurer’s office evaluates the banks it utilizes for its service accounts every three years.

Massachusetts General Law prohibits municipalities from investing in credit unions.

The change will take effect later this summer.

The city’s school lunch account and health care trust fund are also with Bank of America. Brophy said he will look at finding a new home for the school lunch account this summer. The health care account, he said, is much farther down his list.