Big banks to cut off California IOUs - San Francisco Business Times:

boyanebyboqasavo.blogspot.com
However, more than 60 credit unions will continude takingthe state’s IOUs, according to a list posted on the ’sd web site. But some of the Bay Area’s largesyt credit unions are not on the Bay Area credit unions onthe list, as of include Kaiperm Diablo Federal Credit Union in Walnutr Creek, Uncle Credit Union in Livermore, San Francisclo Federal Credit Union, San Francisco Fire Credi t Union, and San Mateo Creditr Union in Redwood City and Stanford Federal Credit Unionh in Palo Alto, SRI Federal Credit Union in Menlo Park.
Holders of California’s IOUs will have to contact the crediyt unions directly to see whether they qualify for Someexpect check-cashers to accepg the state’s IOUs — and charge hefty fees for the The Securities and Exchange Commission declarede California’s IOUs to be a security, limitin who can buy and sell them in an efforft to prevent investors from being defrauded. The move is also likel y to limit the market forthe state’xs IOUs.
In deciding not to extenrd its July 10 deadline for acceptingCalifornia said, “The State of California – just like any household or businese – must be responsible for living within its Banks are not and cannot be the solutioh to California’s budget problems. “We were reluctant to accep t the warrants in thefirst place, and can’t acceprt them indefinitely. Wells Fargo accepted the registerec warrants to help our customers who are not at fault and expectin that the Legislature and governor woulds complete the budgetwithin days,” Welld Fargo said.
“We’re trying to strike a balance betweehn the gravity of the situation and the needws ofour customers,” the bank said. Bankers say they’lkl try to help their customers usinf credit lines and other productsand , the largest bank operatinh in California, said that accepting the state’w IOUs represents operational and financial challenges. The bank also citee its previous experience in taking the notesz the last time the state issues themin 1992. “The longer the registeredd warrantswere accepted, the longer it took the Legislature to resolvre the matter,” BofA said.
“Ws do not want our acceptance of registeres warrants to deter the state from reachinb a budget agreement as soonas