In the continuing downward spiral that is California’s financial condition, Bank of America, Wells Fargo, Citigroup, and JPMorgan Chase (collectively, the Third Bank of the United States) have now changed tack and stated that they will not accept the state’s 3.75% IOUs after all:
A group of the biggest U.S. banks said they would stop accepting California’s IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.
One has to wonder how closely this is related by yesterday’s Fitch downgrade of California’s debt to BBB with a negative outlook. (more…)
