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Big banks to stop cashing California IOUs
CNN/Money.com ^ | 7/10/09 | Tami Luhby

Posted on 07/10/2009 12:49:14 PM PDT by Kartographer

NEW YORK (CNNMoney.com) -- Californians will have fewer places to redeem IOUs issued by the cash-strapped state after Friday.

At least three major banks, Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500), will stop accepting the IOUs, as they'd previously announced.

More than 60 credit unions, however, will continue to accept the paper.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: banking; ca2009; california; iou; ious
The NEW ballad of Jed Clampett
Come and listen to a story 'bout a man named Jed
Poor oil entrepreneur barely kept his family fed
Then one day he was working for some food,
And up through the crowd come a bumbling fool (Arnold that is, RINO gold, more taxes please)

Well the first thing you know old Jed's taxes are to much to bear,
Kin folk said Jed move away from there!
Said California is no place for you to be
So they loaded up the truck and they moved from Beverly (go’n back to the Hills they are, fish’n holes, country and western stars)

Well now it's time to say goodbye to Jed and all his kin
They would like to thank you folks for kindly dropping in
You're all invited back again to their new locality
To have a heaping helping of their hospitality
(Redneck Hillbillies, is what the press call 'em now, Clingers of bibles and guns and to Obama no bow! Nice folks Y'all come back now, ya hear?)

1 posted on 07/10/2009 12:49:14 PM PDT by Kartographer
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To: Kartographer

very cute! excellent


2 posted on 07/10/2009 12:51:35 PM PDT by joebellis (Only you can control your future)
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To: Kartographer

Why Credit Unions?


3 posted on 07/10/2009 12:53:42 PM PDT by norraad ("What light!">Blues Brothers)
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To: Kartographer
You mean to date there are some banks and credit unions that have actually been accepting these worthless fiats? Amazing.

Unless we make our voices heard loudly now, this is coming to the US as a whole under the Obama admin.


TELL BARACK HUSSEIN OBAMA THAT HE IS FULL OF IT!

4 posted on 07/10/2009 12:55:06 PM PDT by Jeff Head (Freedom is not free...never has been, never will be. (www.dragonsfuryseries.com))
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To: Kartographer

Related

http://market-ticker.org/


5 posted on 07/10/2009 12:56:06 PM PDT by FromLori (FromLori)
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To: Kartographer

The implications of this are so far reaching, it’s all at once scary, insane, ridiculous, hysterical, criminal, and as Stuart Smalley once said...


6 posted on 07/10/2009 12:58:00 PM PDT by Attention Surplus Disorder (What kind of organization answers the phone if you call a suicide hotline in Gaza City?)
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To: norraad

Spreading the ‘wealth’ (or should I say the grief)maybe?


7 posted on 07/10/2009 12:59:31 PM PDT by Kartographer (".. we mutually pledge to each other our lives, our fortunes, and our sacred honor.")
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To: Kartographer

I’m with the Navy Federal Credit Union, and hope it’s non-union common sense has them refusing to take the IOUs.


8 posted on 07/10/2009 1:01:43 PM PDT by OldNavyVet
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To: Kartographer

Can businesses pay their taxes with IOU’s? Might be a good way to save some cash.


9 posted on 07/10/2009 1:03:28 PM PDT by taxcontrol
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To: Kartographer

If we write a hot-check; don’t we face fine and possibly jail time?

California does the exact same thing, and they are mystified when banks refuse to honor checks that are drawn on insufficient funds. Why can the state write hot checks, without fines, fees and penalties?


10 posted on 07/10/2009 1:04:26 PM PDT by Hodar (Who needs laws .... when this "feels" so right?)
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To: norraad

My guess: Market share.
Credit unions have a very localized patronage. To not take IOUs is to lose out on the money those IOUs represent - a large fraction of their business. They don’t take the IOUs, they die.
The banks mentioned are big enough to refuse the IOUs with little ill effect. If anything, the IOUs are merely a pesky annoyance they’d rather not have to deal with, so it’s cheaper (and in the long run strategic) to refuse them.


11 posted on 07/10/2009 1:05:12 PM PDT by ctdonath2 (John Galt was exiled.)
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To: taxcontrol
Can businesses pay their taxes with IOU’s? Might be a good way to save some cash.


I like it.
12 posted on 07/10/2009 1:05:44 PM PDT by Honcho
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To: Hodar
Why can the state write hot checks, without fines, fees and penalties?

Thay have taxpayers to rape and pillage for thier debts.

/sarc?

13 posted on 07/10/2009 1:14:15 PM PDT by Sarajevo (You jealous because the voices only talk to me.)
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To: Kartographer
Zero should force all banks to accept IOU’s from the state and gov’t. He should also allow all citizen to pay there taxes in IOU’s. That way, everybody pays their taxes in IOU'S (raise them as high as you want, who cares) and the gov’t gets what they want because they can pay the bills and payoffs in IOU’s. It's a win win win and the people can use their cash to buy plasma tv’s, cars and houses, partially financed with IOU’s also. With such easy financing, the prices on real estate will again climb to lofty heights so people can refinance and buy bigger houses, more tv’s and windmills to power their houses and new cars. Everybody prospers in obamaland.
14 posted on 07/10/2009 1:18:46 PM PDT by paul51 (11 September 2001 - Never forget)
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To: joebellis

Matthew 18:23-35. The institutions mentioned all accepted TARP funds. Now who should they serve? How is this current situation different from the parable of the servant?


15 posted on 07/10/2009 1:28:07 PM PDT by All Blue State
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To: Kartographer

At least three major banks, Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500), will stop accepting the IOUs, as they’d previously announced.

____________________________________________________

They took Tarp money guess they will be directed to accept them by the Feds.


16 posted on 07/10/2009 1:36:38 PM PDT by ThisLittleLightofMine
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To: norraad
"Why Credit Unions?"

Lots of public employees are members of credit unions.

17 posted on 07/10/2009 1:47:59 PM PDT by telebob
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To: ctdonath2

What will happen to these credit unions if CA can’t pay off the IOUs?


18 posted on 07/10/2009 3:15:43 PM PDT by jacquej
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To: jacquej

Go under, of course.
Maybe later is preferable to surely now.


19 posted on 07/10/2009 7:33:13 PM PDT by ctdonath2 (John Galt was exiled.)
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To: Attention Surplus Disorder

Just got our 2008 refund as an IOU today... payable on 10/02/2009!


20 posted on 07/11/2009 1:29:10 AM PDT by Barney59 ("Amen")
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To: Barney59
"Just got our 2008 refund as an IOU today... payable on 10/02/2009!"

Before 10/02/2009, expect to get a letter that begins....Due to unexpected circumstances we are sorry to inform you that... (A new payout date.)

21 posted on 07/11/2009 9:08:52 PM PDT by blam
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To: blam

Why am I not surprised?


22 posted on 07/11/2009 10:12:56 PM PDT by Barney59 ("Amen")
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To: Kartographer

If these business vendors were stoopid enough to conduct business with an incompetent, corrupt, pro-illegal alien, anti-businesses state government, then they deserved what they get. In spades.

This should be a good lesson for them, and a warning to all.


23 posted on 07/11/2009 10:14:33 PM PDT by dragnet2
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