Bernero says No to Wall Street, Yes to a State-Owned Bank

Kathy Barks Hoffman
Associated Press

LANSING, Mich. — Democrat Virg Bernero said Thursday he’ll stop the state from doing business with banks that won’t lend in Michigan if he’s elected governor.

He specifically mentioned Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., PNC Financial Services Group Inc. and Wells Fargo & Co., criticizing them for refusing to participate in the state’s Helping Hardest Hit Homeowners Fund.

Democratic Gov. Jennifer Granholm has appealed to the same banks to join the federally funded program, which would provide financial assistance for homeowners struggling to keep up with their mortgage payments.
Bernero also said the banks should be helping more Michigan small businesses get access to the credit they need to expand and hire more workers.

“We are being robbed of our recovery as a result of the lack of capital,” Bernero told reporters after unveiling his plan to about a dozen Lansing residents during a campaign stop at a downtown coffee shop. “If Wall Street doesn’t want to do business with us, then we won’t do business with Wall Street.”

The Lansing mayor also repeated his proposal to have Michigan follow the lead of North Dakota and open a state-owned bank that could make low-interest loans to businesses and college students.

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