The New Mexico legislature has just voted to move a significant portion of the state bank accounts to small community banks and credit unions:

New Mexico’s House of Representatives voted Monday to pass a bill that allows the state to move $2 billion – $5 billion of state funds to credit unions and small banks.

The municipal funds bill was approved 65-0, and is subject to a vote by New Mexico’s Senate. Governor Bill Richardson told the bill’s sponsor that he supports the legislation.

It’s a good start.

If we can defund the to big to fail institutions, they shrink, and lose influence in the corridors of power.