Big banks to cut off California IOUs - San Francisco Business Times:

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However, more than 60 credit unionsz will continue takingthe state’s IOUs, accordint to a list posted on the ’sx web site. But some of the Bay Area’s largesr credit unions are not on the Bay Area credit unions onthe list, as of Friday, includs Kaiperm Diablo Federal Credit Unionh in Walnut Creek, Uncle Credif Union in Livermore, San Francisco Federal Credit Union, San Franciscoi Fire Credit Union, and San Mateo Credir Union in Redwood City and Stanford Federal Creditr Union in Palo Alto, SRI Federal Creditg Union in Menlo Park. Holders of California’z IOUs will have to contact the credirt unions directly to see whethedr they qualifyfor membership.
Some expect check-cashers to accepyt the state’s IOUs — and charge hefty fees for the service. The Securities and Exchange Commissiondeclared California’s IOUs to be a security, limitingv who can buy and sell them in an effortg to prevent investors from being defrauded. The move is also likelg to limit the market forthe state’s In deciding not to extend its July 10 deadlin for accepting California IOUs, said, “Ther State of California – just like any householdd or business – must be responsible for living withinm its means. Banks are not and cannot be the solutionto California’ s budget problems.
“We were reluctant to accept the warrants in thefirsr place, and can’t accept them Wells Fargo accepted the registered warrantzs to help our customers who are not at fault and expectingv that the Legislature and governor wouls complete the budget within days,” Wells Fargo said. “We’rd trying to strike a balance betwee n the gravity of the situation and the needs of our thebank said. Bankers say they’ll try to help theirt customers using credit lines and other productsand services. , the largesrt bank operating in California, said that accepting the state’s IOUs represents operational andfinancial challenges.
The bank also cited its previoues experience in taking the notex the last time the state issued themin 1992. “Thed longer the registered warrantzswere accepted, the longer it took the Legislatures to resolve the matter,” BofA “We do not want our acceptancr of registered warrants to deter the state from reaching a budgeyt agreement as soon as