California bill to create state-chartered public banks criticized by the industry as 'misguided'

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Two California lawmakers proposed legislation this week that would allow municipalities to create their own local or regional banks, calling it way 'to fight income inequality through public banking.'

LOS ANGELES — Two California lawmakers proposed legislation this week that would allow municipalities to create their own local or regional banks, calling it a way"to fight income inequality through public banking."

Chiu added,"Time and time again, we have seen big banks invest our money in institutions most Californians are opposed to — oil pipelines, gun manufacturers, private prisons, and companies with unfair labor practices. This legislation allows us to take a first step towards ensuring the public's money is used for public good.""We are opposed to the bill," said Beth Mills, a spokesperson for the California Banking Association.

Critics have suggested the new banks could expose California taxpayers to financial risk. However, the legislation mandates that the new banks would need to obtain and maintain deposit insurance from the Federal Deposit Insurance Corp. or others, such as private share insurance or self-insurance.As a candidate, Democratic Gov. Gavin Newsom showed support for the idea of the state taking a bigger role in banking.

 

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Why would the Big Banks care, only the legal, subprime lenders will be affected! Right now the best rates are still with the corner loan shark!

State takeover of everything is Dems goal. Communism!

Cant wait till california implodes

Indiana, went to to a BMOHarrisBank machine on Saturday, looking to make a $20 withdrawal. Normally I use a Credit Union, but this was closest machine. BMO wanted to charge $5 for a withdrawal. Consider this is 2hrs pay for restaurant waitstaff. Consumers need other options.

California Bill.

Misguided Democrats? That's surprising.

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