I’ve given lots of interviews related to public banking over the last week. People are looking to North Dakota to gauge the likely outcomes in California. This is flawed for many reason but perhaps the biggest is that North Dakota does not have a law like California. North Dakota created THE Bank of North Dakota, not a law allowing various municipalities to create public owned banks. That is what the California legislation allows.
There are lots of reasons to question the wisdom of public banking, This is clearly an industry with many private sector participants already, so where is the market failure? I suspect public opinion right now pushes towards acceptance of public banking based on the circumstances of the Financial Crisis of 2008-9. Why?
The banking industry receivedRead More »