|
|
Article: Banks tell state to keep its IOUs; Credit Unions rejoice.(FINANCE)
- Article from:
- San Diego Business Journal
- Article date:
- July 20, 2009
- Author:
CopyrightCOPYRIGHT 2009 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
As if the banking industry wasn't dealing with-enough bad news, it s getting even more negative publicity as a result of most banks not accepting IOUs the state has been handing out in lieu of checks, due to Sacramento's inability to pass a budget.
Most commercial banks accepted the state warrants for a set time period, but stopped as of July 10. Some, such as Citibank, agreed to accept the warrants until at least July 17, but the majority of the biggest banks said they didn't want to continue the practice. Some said extending more credit on the warrants would encourage the Legislature to delay passing a budget.
Several community banks, such as ...