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Retirement Savings: How Much Should I Save Each Month?How the Big Banks and the Credit Unions Are Handling California's IOUs
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POSTED
ON BY Ken Tumin
Customers of the big banks in California may have problems after July 10th. That's the cutoff date in which many major banks plan to stop accepting California's IOUs (registered warrants). As described by the California State Controller's Office, the registered warrants are being issued due to the California government being unable to enact budgetary solutions to provide enough cash for the State to pay all of its bills. Assuming there is adequate cash in the Treasury, those warrants may be redeemed on October 2, 2009.
As reported by the LA Times, many big banks including Bank of America, Chase, Wells Fargo and Union Bank have said they'll only cash the state IOUs from customers through July 10. On the other hand, many credit unions plan to continue accepting them as described in this Union-Tribune article.
Mish at Global Economic Trend Analysis has this say about the banks:
He's careful to make the distinction that the issue of accepting these IOUs is different than supporting California's issurance of these IOUs.
Here's a short list of California credit unions that have stated they'll continue to accept the registered warrants. If you know of others, please leave a comment:
Thanks to the reader who emailed me info on this issue.
As reported by the LA Times, many big banks including Bank of America, Chase, Wells Fargo and Union Bank have said they'll only cash the state IOUs from customers through July 10. On the other hand, many credit unions plan to continue accepting them as described in this Union-Tribune article.
Mish at Global Economic Trend Analysis has this say about the banks:
Every one of those blood sucking banks was bailed out by taxpayers (California taxpayers too) and now will not take an IOU from the State of California for the citizens of California. This is disgusting.
He's careful to make the distinction that the issue of accepting these IOUs is different than supporting California's issurance of these IOUs.
Here's a short list of California credit unions that have stated they'll continue to accept the registered warrants. If you know of others, please leave a comment:
- The Golden 1 Credit Union
- LBS Financial Credit Union
- Patelco Credit Union
- Schools First Federal Credit Union (formerly OCTFCU)
- Southland Credit Union
- Star One Credit Union
Thanks to the reader who emailed me info on this issue.