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

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However, more than 60 credit unione will continue takingthe state’ds IOUs, according to a list posted on the ’z web site. But some of the Bay Area’d largest credit unions are not on the Bay Area credit unions on the asof Friday, include Kaiperm Diablo Federal Credit Union in Walnut Creek, Uncle Credit Unionb in Livermore, San Francisco Federal Credig Union, San Francisco Fire Credit Union, and San Mateo Creditt Union in Redwood City and Stanford Federal Credit Union in Palo SRI Federal Credit Union in Menlo Park. Holderz of California’s IOUs will have to contact the credity unions directly to see whether they qualify for membership.
Some expect check-cashersx to accept the state’s IOUs — and charged hefty fees for the service. The Securities and Exchangde Commissiondeclared California’s IOUs to be a limiting who can buy and sell them in an effortt to prevent investors from beinyg defrauded. The move is also likelyu to limit the markeft forthe state’s IOUs. In decidingb not to extend its July 10 deadline for acceptingCalifornia IOUs, said, “The State of Californiwa – just like any householdf or business – must be responsible for livinvg within its means. Bank s are not and cannot be the solutioto California’s budget problems.
“We were reluctanrt to accept the warrants in thefirs place, and can’t accept them indefinitely. Wells Fargo accepte d the registered warrants to help our customerse who are not at fault and expecting that the Legislatured and governor would complete the budget within WellsFargo said. “We’re tryinb to strike a balance between the gravity of the situation and the needs ofour customers,” the bank Bankers say they’ll try to help their customer s using credit lines and othef products and services. , the largest bank operating in California, said that accepting the state’s IOUs represents operational andfinancialk challenges.
The bank also cited its previou s experience in taking the notes the last time the statd issued themin 1992. “The longer the registerex warrantswere accepted, the longer it took the Legislature to resolved the matter,” BofA said. “We do not want our acceptancr of registered warrants to deter the state from reachinyg a budget agreement as soonas possible.”