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Bank of America to accept California state IOUs
Market Watch ^
| Jul 1, 2009
| Michael Kitchen
Posted on 07/01/2009 7:34:48 PM PDT by Lorianne
LOS ANGELES (MarketWatch) -- Bank of America said Wednesday it would accept warrants issued by the California government on a limited basis through July 10, which the state is using as a budget crisis freezes its spending.
"Bank of America recognizes the State of California budget crisis will impact our clients and customers," it said. "To support our customers, while giving the state legislature additional time to pass a budget, we will accept California state-registered warrants -- or IOUs -- from existing customers and clients
(Excerpt) Read more at marketwatch.com ...
TOPICS: Business/Economy; Government
KEYWORDS: banking; boa; credit; iou
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Defacto bail out of California since BOA has access to the (perhaps unlimited) TARP funds.
1
posted on
07/01/2009 7:34:48 PM PDT
by
Lorianne
To: Lorianne
They will 40% interest until they get real money.
2
posted on
07/01/2009 7:37:00 PM PDT
by
razorback-bert
(We used to call them astronomical numbers. Now we should call them economical numbers.)
To: Lorianne
So, does the federal government accept these, IOU’s?
What a mess.
3
posted on
07/01/2009 7:37:53 PM PDT
by
TruthConquers
(Delendae sunt publici scholae)
To: Lorianne
The backdoor way for the Obama Administration to bail out California...!
4
posted on
07/01/2009 7:39:18 PM PDT
by
2banana
(My common ground with terrorists - they want to die for islam and we want to kill them)
To: Lorianne
Can't believe after all the spending cuts mandated that California is STILL broke. /s
5
posted on
07/01/2009 7:40:49 PM PDT
by
EGPWS
(Trust in God, question everyone else)
To: Lorianne
Lets see I’m unemployed. Do you think the government will take an IOU in place of money for the taxes I owe? I didn’t think so. :-{
6
posted on
07/01/2009 7:40:53 PM PDT
by
YankeeReb
To: Lorianne
Our whole money system is based on IOU’s.America is BROKE.The Founders warned us.
7
posted on
07/01/2009 7:41:46 PM PDT
by
taxtruth
To: Lorianne
If only California had imploded a decade or so ago, I could still smoke in NM's rural bars and restaurants.
Too bad, but I will applaud the implosion anyway.
8
posted on
07/01/2009 7:42:17 PM PDT
by
elkfersupper
(Member of the Original Defiant Class)
To: Lorianne
BOA also dearly loves illegal aliens and has for years.BOA also is great at outsourcing jobs to india.
9
posted on
07/01/2009 7:43:18 PM PDT
by
Frantzie
(Remember when Bush was President and Americans had jobs (and ammo)?)
To: Lorianne
Bank of America did this last time the state issued IOU’s.
10
posted on
07/01/2009 7:43:29 PM PDT
by
ThomasThomas
(I eat Cheerios's with out a Prescription!)
To: Lorianne
Good fricken grief, and it’s my stinkin state.
11
posted on
07/01/2009 7:43:53 PM PDT
by
DoughtyOne
(_res__ent of the United States, Barack Hussein Obama)
To: Lorianne
LOL
California follows washington and creates its own currency. I love it!
12
posted on
07/01/2009 7:47:37 PM PDT
by
sickoflibs
(Socialist Conservatives: "'Big government is free because tax cuts pay for it'")
To: Lorianne
Worthless paper for more worthless paper. And somehow the dollar still doesn’t fall against the yen and yuan. Let nobody say that the Japanese, Chinese and their tiger pals are manipulating currency, however. They’re friendly. /sarc
13
posted on
07/01/2009 7:47:46 PM PDT
by
LibertarianInExile
(When Republicans don't vote conservative, conservatives don't vote Republican.)
To: Lorianne
They will put them on their books at 100% of face value as “assets”.
14
posted on
07/01/2009 7:51:17 PM PDT
by
ikka
(Brother, you asked for it!)
To: Lorianne
An insolvent bank accepts IOUs from an insolvent state.
Makes perfect sense to me!
15
posted on
07/01/2009 7:52:32 PM PDT
by
KoRn
(Department of Homeland Security, Certified - "Right Wing Extremist")
To: YankeeReb
Will they take an IOU for my mortgage payment? Do they trust CA politicians more than they trust me?
I guess since their HQ is in CA, maybe that helps.
To: DoughtyOne
LOL!That statement made my night.
17
posted on
07/01/2009 7:54:19 PM PDT
by
taxtruth
To: KoRn
An insolvent bank accepts IOUs from an insolvent state. LOL!
18
posted on
07/01/2009 8:00:20 PM PDT
by
dragnet2
To: Lorianne
NOW people are only starting to consider the possibility - these IOU’s are NOT money! They are unsecured debt, never seen before, from a Government this is effectively bankrupt.
This could start sliding downhill with increasing speed.
19
posted on
07/01/2009 8:00:25 PM PDT
by
PGR88
To: Lorianne
....but some people will need their money. I expect a market will spring up in discounted IOUs and people will sell for spot cash.
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