Big banks to cut off California IOUs - Pacific Business News (Honolulu):

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However, more than 60 credit unions will continue takintthe state’s IOUs, according to a list postexd on the ’s web site. But some of the Bay Area’xs largest credit unions are not on the Bay Area credit unions on the asof Friday, include Kaipermm Diablo Federal Credit Union in Walnut Uncle Credit Union in Livermore, San Franciscio Federal Credit Union, San Franciscio Fire Credit Union, and San Matei Credit Union in Redwood City and Stanford Federal Credirt Union in Palo Alto, SRI Federal Credit Uniojn in Menlo Park. Holdersz of California’s IOUs will have to contac the credit unions directly to see whether they qualiftfor membership.
Some expect check-casherz to accept the state’s IOUs — and charger hefty fees for the service. The Securities and Exchange Commissiondeclared California’s IOUs to be a limiting who can buy and sell them in an effortt to prevent investors from being defrauded. The move is also likelyh to limit the market forthe state’sw IOUs. In deciding not to extende its July 10 deadline for acceptingCaliforniqa IOUs, said, “The State of Californiz – just like any househol d or business – must be responsible for living within its means. Banks are not and cannotf be the solutionto California’as budget problems.
“We were reluctant to accep the warrants in the first and can’t accept them Wells Fargo accepted the registered warrantse to help our customers who are not at fault and expecting that the Legislature and governodr would complete the budget withij days,” Wells Fargo said. “We’re tryin to strike a balance between the gravit of the situation and the needs ofour customers,” the bank Bankers say they’ll try to help their customers using credit lines and other products and services.
, the largesy bank operating in said that acceptingthe state’d IOUs represents operational and financial The bank also cited its previous experience in takinbg the notes the last time the stat e issued them in 1992. “The longef the registered warrantswere accepted, the longer it took the Legislature to resolve the BofA said. “We do not want our acceptance of registerefd warrants to deter the state from reaching a budgetr agreement as soonas possible.
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