Watchdog Report Reveals Big Banks Are Salivating Over Prospect of Postal Privatization

Truthout, an independent news organization, recently reported on a Revolving Door Project analysis that revealed big banks are salivating over the prospect that the Postal Service will soon be broken up and privatized by the new Administration. In February, Wells Fargo equity analysts circulated a document within the banking industry arguing that postal privatization could be a huge money-maker for investors. They advise the Administration to sell off the most profitable parts of the service – primarily packages and parcels, while putting taxpayers on the hook for the rest.

They called the Postal Service, which generates nearly $80 billion in revenue each year, “an obvious source of value.” That is $80 billion in the public domain that Wall Street investors can’t get their hands on.

Privatization would lead to significant price increases – potentially doubling them, and mass layoffs. These layoffs could drastically reduce the number of unionized employees in the U.S., as 91 percent of the Postal Service’s 640,000 employees are unionized.

“We know that privatized postal services will lead to higher postage prices, and lower service quality to the public,” said APWU President Mark Dimondstein in a statement about the leaked Wells Fargo report.

Read the entire Wells Fargo report HERE

Find the Truthout breakdown of the report HERE