In a recent LA Times article, David Dayen explains how creating a Public Bank for the cannabis industry in California would be a tremendous step forward, but also a tremendous missed opportunity:
“A public bank could do so much more than hold deposits for a handful of entrepreneurs. At a time when California has so many pressing needs, from transportation to water delivery, a public bank could help stretch scarce dollars and rebuild the state. …
A public bank could also be tasked with lending money to support critical public needs. Ethical developers have trouble financing affordable housing, and nonprofit entrepreneurs have trouble securing small business loans; a California public bank could operate as a lifeline.”
“The existing public bank in North Dakota makes loans for economic development, including infrastructure, agriculture and student loans. The loans are more affordable than the bond market, and the bank has earned record profits for 13 straight years, reaching $136 million in 2016. Over the last decade, hundreds of millions of dollars in Bank of North Dakota earnings have been transferred to the state.”
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