California Budget Deficit, Promissory Notes | featured news

California IOUs to be shunned by big banks after today

California IOUs to be shunned by big banks after today

Bank of America and other big institutions plan to enforce a cutoff, making it harder to cash vouchers. To protect IOU holders from third-party speculators, the SEC defines the vouchers as securities.

 

California misses budget deadline, readies "IOUs"

California misses budget deadline, readies

California's lawmakers failed to agree on a balanced budget by the start of its new fiscal year on Wednesday morning, clearing the way to suspend payments owed to the state's vendors and local agencies, who instead will get "IOU" notes promising payment.

 

Schwarzenegger, lawmakers duel over deficit

Schwarzenegger, lawmakers duel over deficit

California lawmakers and Gov. Arnold Schwarzenegger duel over ways to cut into a $24.3 billion budget deficit or face having to issue promissory notes to cover the state's bills.

 

Subscribe to this RSS topic: Syndicate content