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California to Hand Out IOUs

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A state board voted today to hand out IOUs that will be repaid on October 2nd at the earliest. Although Governor Arnold Schwarzenegger's staff wanted a repayment date to be set for as last as next year June with an 1.5% interest rate, staff with Controller John Chiang said people need their money and next year would be too late. Ultimately, the Pooled Money Investment Board sided with Chiang and put the interest rate at 3.75%. "In 1992, CA IOUs were at 5% interest," twittered John Myers from KQED, noting that it will be interesting to see if people buy and sell IOUs hoping to make a profit. Wells Fargo and Bank of America have said they're willing to accept IOUs before July 10th. $140 million in IOUs will be sent to people expecting income tax returns. A full list of where IOUs will be going is here.

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