U.S. Federal Reserve Bank Courts Mexican Immigrants

Wall Street Journal staff writer Miriam Jordan reports today on a unique program being marketed to Mexican immigrants, many of them illegally in the United States, by the Bush Administration and the U.S. Federal Reserve Bank.

It sounds controversial, and some critics have already raised concerns, but it could also been seen as simply another bank getting into th business of international remittances or money transfers.

From a marketing perspective (I teach ethnic marketing to Master's degree students at Johns Hopkins University), the story and the subject help provide terrific information for a case study into how banks are aggressively marketing to Hispanic consumers.

Jordan writes:

As U.S. leaders craft policies to curb illegal immigration from Mexico, the U.S. Federal Reserve is devising programs to extend banking services to undocumented immigrants. A new remittance program aims to bring Mexican migrants who send money home into the mainstream U.S. financial system, regardless of their immigration status.

Dubbed "Directo a Mexico," the remittance program enables U.S. commercial banks to make money transfers for Mexican workers through the Federal Reserve's own automated clearinghouse, which is linked to Banco de Mexico, the Mexican central bank.

She goes on to report that:

Critics, however, say the Federal Reserve Bank is coddling illegal immigrants and helping them engage in capital flight. "Anything that makes it easier for people to live in this country illegally is an inducement for illegal immigration," says Ira Mehlman, a spokesman for the Federation for American Immigration Reform, an immigration-restrictionist group. "On top of that, it is draining money out of our economy."

I found this link to some recent public events promoting the program in Texas. And this link to one held in St. Louis. And [here] is a link to a downloadable Directo a Mexico brochure in PDF format. And finally, [here] a page with a lot more information and downloads.

Click [here] to read the full article online or read it [here] if you subscribe to wsj.com.