Advice: Get your funds out of the U.SA. pronto!
Banks won't cash California's IOUs4:00AM Sunday Jul 12, 2009
Arnold Schwarzenegger. Photo / AP
Thousands of vendors who do billions of dollars of business with the state of California are scrambling as major banks say they will no longer honour the state's promissory notes.
Despite pressure from the state treasurer, JPMorgan, Bank of America, Wells Fargo and Citigroup and other major banks planned to stick to their plans and not honour California's warrants.
The bankers are trying to pressure legislators into closing the state's US$26.3 billion ($41.6 billion) budget shortfall, though there have been few signs of progress.
Some businesses say they may find it difficult to survive or hold on to their employees if they can't find a way to quickly redeem their promissory notes, known as IOUs....