The law allows a public bank to partner with local financial institutions, such as credit unions and local community banks. It may engage in local agency banking, infrastructure lending, wholesale lending and participation lending. It shall not compete with local financial institutions.
California Public Banking Act is about “putting people before Wall Street profits”
Assembly members Miguel Santiago and David Chiu co-sponsored the Public Banking Act. A numbers of cities, counties and grassroots organizations support the law.
Santiago noted that Californians have been concerned about the corporate banking system because it doesn’t work for them. He believes that the “Wall Street needs a people-powered competition and a public bank for public good is the right place to start.”
On the other hand, Chiu believes that the public money “should not line the pockets of Wall Street investors. It “should serve a public purpose.
On Wednesday, Chiu tweeted that Gov. Newsom’s approval of the Public Banking Act is a “victory” and it means California is “putting people before Wall Street profits.”
