Illinois state Treasurer Alexi Giannoulias plans to make a $1 billion deposit in the state's banks, giving them needed cash for borrowers in a bid to dismantle a credit jam and brace the state during the financial crisis.Giannoulias the banker!
Giannoulias told The Associated Press he will make the money available to interest-bearing bank accounts by shifting it from lower-yielding investments in one of the first sweeping moves by a state government to face down a menacingly volatile economy.
The first-term Democrat planned to announce the cash infusion later Thursday.
"The foundation of healthy local economy is a strong local lender," Giannoulias said. "We want them to know that the state's banker has confidence in our local lenders. As soon as we give them the resources and the capital to continue lending, we can keep businesses open and we can keep jobs here in Illinois."
BTW, the federal government is planning to own shares of the nation's banks in an attempt to calm the financial markets and prevent a recession.
Also read ReedBiz's take on the story about the banking industry.
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