First it was Seattle and now Portland considering the idea ofmoving funds from banks to CUs in an apparent fallout from Bank Transfer Day and the Occupy movement in the Northwest.

Portland Mayor Sam Adams said this week he will pursue a plan tomove Portland's funds “out of national banks and into local creditunions” as part of a campaign to support local institutions.

An announced candidate in next year's mayoral election, stateRep. Jefferson Smith, said he too shares Adams' view.

Other city leaders noted that Wells Fargo holds the largestamount of city funds which would be placed into credit unions oncea collateralized pool system is arranged. The Northwest CreditUnion Association has said it is developing such a plan next yearto accommodate municipalities' funds should that take place.

“Our proposal is not some assault on Wall Street — indeed, ourmodest local government resources won't break or make big banks,”Smith said in a letter to supporters. “At its core, our proposal isabout how we operate as a city and how we try to grow our economy.Not-for-profit financial institutions, like credit unions, don'tpay boards or stockholders, meaning they are able to offerdepositors advantageous interest rates, and a credit union'searnings are more likely to stay within the local area.”

Meanwhile, Seattle City Council voted unanimously last week to review thecity's funds practices that could lead to the removal of city fundsfrom large banks. The resolution was sponsored by Councilmen NickLicata and Mike O'Brien, both of whom announced on Bank TransferDay that they were joining CUs.

In Oregon, Smith said in his letter that as Occupy's “99%movement take shape, many of us are wondering what we can do toinvest in Main Street more than Wall Street. I'm writing to ask youto join me because there is something modest and tangible thatPortland can and should do.”