California legalizes public banking

Introversion · Oct 4, 2019

Supporters say the change allows for funding infrastructure demands or providing loans to public agencies at low rates

The Guardian said:
Cities and counties in California will be allowed to create their own public banks, making the state one of just two to legalize institutions of that kind.

The California governor Gavin Newsom on Wednesday signed the Public Banking Act, or AB 857, which will allow city and county governments to create, or sponsor, public banks. Those banks will in turn provide public agencies access to loans at interest rates much lower than they could find at private banks.

Supporters say the change sets the stage for funding infrastructure demands or providing loans to developers to help meet affordable housing needs.

Assemblyman David Chiu, who co-authored the legislation with assemblyman Miguel Santiago, said the bill’s “signing sends a strong message that California is putting people before Wall Street profits”.

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ElaineA · Oct 7, 2019

My state senator here in WA is a huge advocate for public banking, and he sold me. He re-introduced a bill in February, but unfortunately, it didn't get through. I assume he'll try again next session, with the CA bill as further proof that this isn't just some silly idea. Imagine keeping the interest in-house rather than Big Banking getting it! Yes, the taxpayers assume the risk, but municipal bonds are among the safest investments out there. I love the idea.

California legalizes public banking

Introversion

Pie aren't squared, pie are round!

ElaineA

All about that action, boss.