victory in California ab857

Photo by Ivana Cajina.

Victory in California! Gov. Gavin Newsom’s signature has made AB 857 — the grassroots-generated, people-powered Public Banking Act — the law in California. The California Public Banking Alliance has been tireless in educating legislators, drafting language, and generating massive statewide public support. The strong leadership of the bill’s co-authors, Assemblymembers Miguel Santiago and David Chiu, generated 19 co-sponsors and support from several committee chairs, clearly demonstrating the will of the people is behind banks that serve the public interest. Congratulations to everyone involved.

The time has come for public banks to offer a people-controlled alternative to the private, profit-driven Wall Street banks that have failed to serve the public. The Alliance posted on Facebook:

“WE JUST MADE HISTORY!!! Governor Gavin Newsom just signed #AB857 Public Banks into law, making it possible for California cities and counties to take control of our own future. AB 857 is a victory fueled 100% by people power … With no budget, no lobbyists, and no playbook, we made our case for public banking — and for the first law of its kind in the nation. … The future is here — and California is leading the way for the rest of the nation.”

17 Thoughts on “Historic step forward: Gov. Gavin Newsom signs the Public Banking Act into California law!”

  • This is the best news in a long, long time!
    Now we can begin divesting from the Wall Street banks that are funding this Eco-Apocalypse, and begin the necessary rapid transition away from fossil fuels and toward more sustainable communities.

    • Than you for saying it so well, Michael. I could not agree more. It is about time.
      Fifty-three years ago I joined the Suncoast School Credit Union in Tampa, FL. Miserable Banks being their only competition. However over the years the services have eroded a bit. And they are morphing over to be more like the awful banks they compete with. Unfortunately. Florida will attempt to be last to get Public Banking.
      Much of the politics of the State is controlled by the Banks and their huge amounts of money.
      Germany thrives on Public Banking and the communities those banks serve thrive ,as well.
      Huge Congratulations to California!!! Kudos to all who helped it happen.

  • Believe me, California politicians will find a way to screw this up and use the public banks to enrich themselves and give money to illegal aliens. Given the political climate in the once-golden state, this whole adventure is doomed from the start.

  • This is a fantastic breakthrough. Many cities and states have been making progress and this will the first breakthrough of many. Of course, we should expect Wall Street to respond aggressively, so let’s escalate our organizing and seize this opportunity.

  • I’m glad to see the bank authorized. One specific project I’d like to see is the offering of very-low interest loans for the installation of solar panels on homes, businesses, and schools. Perhaps require that the panels and equipment be manufactured primarily in the USA to be eligible for the loan. Even a lower rate if the equipment is made mainly in California.

    On a larger scale, what about cutting out the massive, disloyal multinational banks who have grown so fat on our backs through mortgage loans? Make mortgage loans available, both refinance and new loans, to people with decent credit, at an interest rate of one percent. Imagine the cash freed up every month for the indebted home owners! Some of the money not wasted on interest paid to big banks, would be spent right here catching up on medical and dental needs, auto repair, and for some households on restaurants, entertainment, and other local shopping. This will boost employment and tax revenues (and at least slightly lowering welfare dependency).

    This bank can turn a profit and still help many millions of people and families slash their debt and achieve a better standard of living and less financial anxiety. Just keep it out of politics and don’t ever let it run a loss. Don’t risk the enormous potential it has.

  • If Californians want a green planet, then in addition to a GIB (Green Investment Bank) there should also be an effort to build modern, generation IV, molten salt, liquid fuel, carbon-free nuclear power plants burning thorium, not uranium and NOT any more of the ubiquitous pressurized light water reactors. Forget the Sierra Club and Ralph Nader. Either we go nuclear or we go extinct.

    • Great news! How long might his take to actually get the first Public Bank open in California?
      Can people who live in other states have an account in a Public Bank in California?
      How can people who live in States without any hope right nougat the movement started in their own state? Now that we have the California model, how can we leapfrog on the work California has already completed and implemented? Thanks so much to those who were brave and accomplished enough to get it done!

  • If this phenomena is happening in California it will happen eventually in many other places.
    Thanks to Public Banking Institute, and dedicated and committed individuals for making this possible.
    A positive news good for mankind!

  • Congratulations to all in the Public Banking Alliance for this historic victory over Wall Street financial institutions who are driven not by what is in the public interest but the profit motive.
    This is once again a resounding confirmation that there is no power on earth, regardless of the billions of dollars at their disposal that can defeat a united and determined people.
    The Cherokee expression that “only when the last tree has been cut, the last fish has been caught and the last river poisoned, will humanity realise that we cannot eat money.”
    Money must be used to advance that which is in the best interests of the people and not to line the pockets of the few represented by the financial institutions in Wall Street.
    Congratulations once again on your Historic Victory.

  • America has long been suffering from the stranglehold of private banking which benefits largely the already hugely rich. America’s economic dilemma is partly due to the concentration of money “at the top” which holds voracious political power over struggling lower and middle class citizens. By the way, mindlessly run television networks keep citizens distracted rather than educated about their eroding economic condition while they work more and more hours for less and less buying power. Interest rates need to come down for public facilities and services so citizens are not constantly beat-up by rising tax rates at all levels.

  • Congratulations, California! But more importantly, congratulations goes to Ellen Brown for her tireless efforts over many years. I’m so happy this has happened and can’t wait to get public banking in Colorado!!

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