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uona1 t1_jaoli8q wrote

I assume that wells fargo et al provide the banking services for free and give interest.

If New York builds its own bank will it also be free?

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[deleted] t1_jaou7v9 wrote

[deleted]

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uona1 t1_jaov32f wrote

that sounds like a recipe for bankruptcy. I mean thats precisely what we wanted to avoid with the subprime mortgage crash right? Are we ok with doing that now again?

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Lilyo OP t1_japjmhz wrote

NY pays 8% of the $100B collected yearly revenue to make payments on debts the City owes to private lenders because it has no public bank.

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djdjddhdhdh t1_jat5pkd wrote

That’s not how that works. Nyc issues bonds which investment companies buy with their client funds in order to earn interest. Nyc wouldn’t be able to just loan itself money even if was a bank, commercial and investment lines must have clear separation of funds by law. Their bank can borrow from the fed but those are short term loans for operating capital, like a day or two

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