Bank Of America Decides To Accept California IOUs

The Bank of America decides to make a firm commitment to accept Schwarzies! or, at least for one week...

In a pound the table "we support you California" moment, B of A had this to say about Schwarzie acceptance:

“To support our customers, while giving the government additional time to pass a budget, we will accept California state-registered warrants - or IOUs -from existing customers and clients,” the bank said. “Based on state disbursement estimates, we will accept the registered warrants through July 10.”

Richmond-based Mechanics Bank said late Wednesday that it, too, will accept California IOUs from the bank's "established customers."

Wells Fargo and Chase had not made a decision as of Wednesday evening on whether to take the IOUs. [emphasis added]

We will keep everyone up to date on when and how Schwarzies hit. Today is D-Day in California. We are so excited about this new fiat currency. If this "works", just wait for other states to do the same. It will be all the fun of the 19th century all over again.

I smell a Federal vs. State power battle brewing if this catches on. We will see how far and long The Administration lets this go on.

TARP-stuffed Lender Wells Fargo has the Gall to Oppose a Bid for BK'd Men's Clothier Hartmarx...

...a heavily unionized company that makes The President's suits, no less.

Wells believes a liquidation will recover maximum value. They seem to have forgotten that secured lenders have no rights.

Shockingly, politicians have decided to lean on their newly learned bankruptcy expertize as they opine on Wells Fargo's decision.

U.S. Rep. Phil Hare, a Democrat who represents the district that includes Rock Island, called Wells Fargo's statement "at best cynical and at worst deceitful." The bank misrepresented Emerisque's bid, Hare said.

Illinois Gov. Pat Quinn has said it is "only right and just" that Wells Fargo agree to a sale. Illinois Treasurer Alexi Giannoulias promised to cut off state business with the bank if it liquidates the company.

Right and just, indeed. How dare they decide how to pursue recovery from an asset they de facto control? Evil bastards.

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