A new article in 48 Hills shines light on the positive report issued in late November by the San Francisco Supervisors:
“'A public bank would be better equipped to meet the city’s business needs and public policy goals,' concludes the City's budget and legislative analyst.
The idea is both well-established and profoundly radical. Today, San Francisco’s short-term deposits are in Bank of America, which holds about $130 million that’s used for payroll and other expenses. That giant North Carolina-based operation charges the city $780,000 a year in fees, the budget analyst reports.
Most of the city’s money – some $8.3 billion — is in fairly liquid investments, primarily US Treasury notes.
There is, in other words, plenty of cash to capitalize a municipal bank."