Bank of America to accept California IOUs

July 2, 2009

At least one bank has said it will honor California’s IOUs, which the state’s controller will start sending out today. Bank of America said it will accept the warrants from its customers, at least through July 10.

The press release though doesn’t say whether the bank will charge customers an additional fee for the favor.

Even if it doesn’t, the bank stands to gain from the interest paid on the IOUs when they mature. The state will set the interest rate later today.


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…Perhaps Bank of America executives now consider a State IOU more sound than the {fractional} cash they create and pump into commerce?..

Posted by T Cunningham | Report as abusive

As the oldest California bank owned, operated and serving the Latino communities of Los Angeles and Santa Ana, Pan American Bank decided yesterday to fully honor its customer’s presentation of warrants (IOUs). Pan American Bank for over 40 years has supported the working class Latino. We have a duty to meet the needs of our communities which have given us the opportunity to thrive for four decades.

Jesse Torres
President and CEO
Pan American Bank
3625 East First Street
Los Angeles, CA 90063
(323) 264-3310 los-angeles-bank-to-honor-california-iou s,880116.shtml

Will you take my warrant if i am NOT latino?

Posted by Liam | Report as abusive

If I were a CA bank, I’d take the IOU’s – at a 50% discount. Not too many, though. Couldn’t afford to lose too much.

Posted by Non-Californian | Report as abusive

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[...] creditors will get cash and which will get warrants. In a related story, Bank of America will accept the warrants as cash through July 10. At any rate, I have determined that LocationStore will no longer be seeking State of California [...]

Jct: There’s nothing wrong with small denomination California State IOUs if I or anyone else can pay their taxes with them. When Argentina’s government workers were faced with cuts, their unions talked 6 state governments into paying them with small-denomination state bonds which could be used to pay for state services and taxes and which everyone accepted as useful currency. Best of all, when the local currency is pegged to the Time Standard of Money (how many dollars per unskilled hour child labor) Hours earned locally can be intertraded with other timebanks globally! In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture. See my banking systems engineering analysis at
Too bad California State IOUs won’t be accepted in payment for state taxes and services like state bonds were in Argentina. Too bad California State IOUs will be denominated too big to use as local currency. Too bad Argentina people were smart enough to avoid the tent-cities catastrophe and California people are too stupid to follow their example.

Advise to the viewer to avoid additional charges by smart management of debts against credit card etc., and keeping their payments update. It would may be beneficial for both bank and customer.