Calling all banks honoring California IOUs

July 7, 2009

So far, I have Bank of America, Wells Fargo and Chase saying they will honor the California IOUs until Friday.

WSJ also puts Citi in the mix.

Here press releases from some others:

http://www.tcbk.com/documents/State-Issued-IOUs-Tri-Counties-Bank.pdf

https://www.cathaybank.com/a_SpecialNotice.asp

http://www.heritageoaksbank.com/

https://www.americanriverbank.com/policy_CA_registered_warrants

https://www.bankofthesierra.com/custom/bankofthesierra/pdf/CA-State_RegWarrants-070609.pdf

The conditions of acceptance also vary:

Heritage Oaks Bank will only accept warrants from customers that have been with the bank for one year.

Tri Counties gives a July 10 cutoff, and says it will only accept warrants made payable directly to customers.

Cathay Bank also gives the July 10 deadline and will only accept IOUs from customers who had an account open as of July 1 – the day before the IOUs started going out.

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[...] is expected to be severely limited after Friday. Banks Tell California: No IOUs Right Pundits Calling all banks honoring California IOUs Reuters [...]

Could it be that acceptance of California “IOUs” by major banks is another way to channel Federal bailout money to the State of California? That is, IOU traded to bank for cash — bank forwards IOU to the Fed — Fed replaces bank’s cash. So much for not accepting a government bailout. – GML

Posted by George M Lucas | Report as abusive