4 Simple Steps for Taking Your Money Out of the Vampire Banks

Can't pitch a tent at Zuccotti Park? Not to worry. There's something meaningful you can do to stand up to vampire banks that bleed the economy -- and your wallet. The feeling of satisfaction amply rewards the inconvenience.

I know. I decided to break up with my bank this week. The whole thing was an arranged marriage from the start. HSBC and I were joined because it gobbled up Marine Midland, the bank I actually signed up for in the late 90s. The truth is that my bank was taking advantage of my trust and abusing my loyalty. So I said sayonara.

Does my bank care? From a financial perspective, not really. (Although if enough municipalities, states and big pension funds move their money, that could start to hurt.) But breakups are bad for PR, and the symbolic action against the menace of Too Big to Fail is good for citizen morale.

Bank Transfer Day is the brainchild of Kristen Christian, a 27-year-old Los Angeles art-gallery owner who picked Nov. 5 as a hat tip to British folk hero Guy Fawkes. In 1605, Fawkes attempted to blow up the House of Lords and was captured and executed, but not before impressing King James with his "Roman resolution." (When asked what he was doing with so much gunpowder, Fawkes memorably replied: "to blow you Scotch beggars back to your native mountains.") If the 28,000 likes on the Bank Transfer Day Facebook page is any indication, Christian's idea has sparked a wave of populist enthusiasm. We're in a season of inspiration, and it feels good to stand up and be counted. By something other than your vampire bank's actuary. Let's get started.

1. Facing Reality

If your institution's name is Bank of America, Wells Fargo, Citibank, or Chase, you may skip this step. Your bank is a Too Big to Fail behemoth that helped tank economy and used your tax dollars as a life preserver. It's time to sail on.

Otherwise, do a little research. My own bank, HSBC, is a bit lower down in the list, but according to Forbes magazine, it's the world's second-largest banking and financial services group and second-largest public company -- what William K. Black calls a "systemically dangerous institution" (SDI). In other words, a Too Big to Fail poster child.

HSBC is guilty of several crimes against humanity, including star billing in the subprime crisis and a penchant for fighting regulation that would make the banking industry safer.

Furthermore, HSBC is currently making mind-blowing profits (they doubled in 2010). Yet it has recently sent letters informing me of jacked up fees on ATM usage and line of credit accounts. Why? Could it be that HSBC is colluding with Bank of America, which recently announced open season on customers with its new debit card fee? Something sure smells rotten.

I therefore proclaim HSBC unworthy of our relationship. If you're not sure about your bank, there's a handy tool available to help you make an assessment. In partnership with the Move Your Money campaign kicked off in '09 by Arianna Huffington, economist Rob Johnson, and filmmaker Eugene Jarecki, Chris Whalen's firm Institutional Risk Analytics offers a proprietary system that grades banks using FDIC data. Simply enter your zip code and you will find a list of high quality banks in your area. If your bank is not on that list, take a long, hard look. Small doesn't necessarily mean better, which is why Whalen's tool only lists banks which are financially sound and FDIC insured, no matter what the size.

And consider the financial advantages of escaping the clutches of monster megabanks. Smaller banks and credit unions usually give you better deals on credit cards, for example, because their business models have not relied on penalty fees and the shady practices that go along with them. They also often superior rates on loans and other services.