Banks draw line over accepting Calif. IOUs [View All]

[RamboLiberal]

Source: MSNBC/AP

NEW YORK - After taking multibillion-dollar bailouts from the federal government, some of the nation's biggest banks are declining to lend a hand with a different financial mess: the California budget stalemate.

The banks, including JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. and some regional banks, are trying to pressure lawmakers to end the impasse by warning that, after Friday, they won't accept IOUs issued by the state. The move would leave many businesses and families with pieces of paper and fewer options for getting their money immediately.

Government officials and consumer advocates say the banks should be more sympathetic, especially since they've been the direct beneficiaries of taxpayer dollars.

"If they hold to that stance, then there's potential for hardship being suffered by the recipients of IOUs," said Tom Dresslar, spokesman in the California Treasurer's office.

Read more: http://www.msnbc.msn.com/id/31804471/ns/business-us_business/