BofA puts 7-day hold on California IOUs

SFBizjournal ^ | 6/6/09

[anniegetyourgun]

Bank of America will accept California IOUs, but it won’t credit depositor accounts for at least a week.

The fine print was included in an interview in Monday’s American Banker with a BofA spokeswoman.

[GOPsterinMA]

Thank you for keeping me on my diet!

[eyedigress]

Check Phoenix or Charlotte. I don’t know.

[ninergold3]

I am so glad I no longer live in the Communits state of California.

Me too! I mean, glad I don't live there either - not that you don't. . well, I'm glad you don't too but. . . . I need caffine 'cuz this post makes ZERO sense at all. Sorry.

[dragnet2]

B of A used to be headquartered in California, but that changed 5 or so years ago —does anyone now know where they’re based?

The White House basement?

[rabscuttle385]

Has anybody actually seen one of this instruments.

[Miss Behave]

You are right correct. ;-)

[Danae]

LOL grab me a cup... cause it made sense to me...

(scratches head)

[jiggyboy]

The bottom feeders are starting to appear on craigslist:

http://sfbay.craigslist.org/search/sss?query=california+iou&minAsk=min&maxAsk=max

My car registration is coming due. I have put the word out to my local friends that I would like to try to pay it with an IOU, and that I will write up the details of the transaction (or, as I believe is more likely, the refusal) for the local papers (SF Chronicle, SJ Mercury News).

[NEMDF]

The banks are not worried. Since we would not bail out the State of California, they know we will bail out the banks if they start to go under for holding this bad paper.

[Miss Behave]

BofA was the one that a couple of years ago was offering credit cards and I think home loans to illegals. BofA’s customers were livid but BofA let it be clearly known that they cared not.

[anniegetyourgun]

Can’t wait to see your story!

[jude24]

IMHO, they’re time-limited bills of credit, forbidden by Article 1, Section 10 of the United States Constitution.

Educate yourself.

[TexasFreeper2009]

BoA was bat crazy stupid to accept those IOU’s at face value to begin with!

Maybe at 70-80% of face value would of been a calculated risk worth taking.

[Oldeconomybuyer]

[Carismar]

I smell bailout.

[silverleaf]

Why only a 7-day hold. Does the bank expect cash available by then?

[silverleaf]

oh noze- that used to be Maria Shriver??? Does she have cancer?

[Selene]

Note also you have to be a B of A customer. Min checking a/cfee = $10/mo

[GOPJ]

If it’s good for the goose - should be good for the gander.

[Selene]

I believe you are allowed to do that. However, what happens if you need change from your warrant (the warrent is greater than the car reg)?