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More States are Moving Toward State Owned Banks

States are examining how banks and financial institutions deal with them and their major source of revenue and job creators - business. State-owned banking is taking a front row position in a growing number of states.

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According to Ellen Brown, a financial and banking researcher and writer, more states are looking at the option and benefits of state owned banks to provide monetary flow for their citizens and businesses ...

Responding to an unfilled need for credit for local government, local businesses and consumers, three states in the last month -- Oregon, Washington and Maryland -- have introduced bills for state-owned banks, joining Illinois, Virginia, Massachusetts and Hawaii.

While Wall Street is reporting record profits, local banks are floundering, credit for small businesses and consumers remains tight, and local governments are teetering on bankruptcy. There is even talk of allowing state governments to file for bankruptcy, something current legislation forbids. The federal government and Federal Reserve have managed to find trillions of dollars to prop up the Wall Street banks that precipitated the credit crisis, but they have not extended this largesse to the taxpayers and local governments that have been forced to pick up the tab.

Read Ellen Brown's complete update.

Edited by Carolyn Allen
| banking | finance | governance |

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