California Banks Decline State IOU’s “Sell Them On Ebay”

The three banks that advertised they would accept California IOU’s from their customers for deposit have indicated that their offer expires on July 10, 2009. No California IOU’s or warrants will be accepted after July 10th.

This leaves hundreds of thousands of State employees and suppliers without a means to convert the IOU’s to cash. In response, California suggests that employees try to “…cash them through Check-Cashing stores or offer them for sale on eBay.”

State employees were stunned by the news. Without a means of cashing the IOU’s they have no method of paying their rent or mortgage, or other expenses. Clearly, the State is unconcerned about their employees and the consequences those employees face in the coming weeks and months.

The hardship on State employees is further compounded by the three unpaid days that they are required to take off work each month. Meanwhile, California’s budget deficit continues to grow and without a quick resolution the State will require employees to take further unpaid leave each month.

As many employees’ state, “….there are no other jobs or we would have resigned last month. How long can we last without income? And why should we work at all if they can’t pay us with real money?”
　
　
　

Sphere: Related Content