News, analysis and personal reflections on the markets & the financial sector

Friday, August 28, 2009

California borrows $1.5 billion from JPMorgan to repay IOUs

JPMorgan Chase loaned California $1.5 billion with a yearly interest rate of 3%. The loan will be used to pay IOUs the state issued during a cash crunch. The interest rate is considered high for such a loan and possibly reflects ongoing concerns about the state's solvency.

No comments: