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State to Put Money Into Banks
Illinois State Treasurer Alexi Giannoulias will put $1 billion into the state's banking system, hoping to stabilize the Illinois economy.

Giannoulias says the most troubling part of the financial crisis is that banks are no longer lending to each other, or to local families and businesses. That's the problem that he's targeting. Giannoulias says with this billion injected into banks over the next six months, banks will keep lending to local businesses, which might have otherwise had to cut jobs.

"This initiative goes to the heart of the crisis," he said. "Free up money for Illinois families and businesses. We can't afford to sit back and watch further job losses and more families suffer. There are 31 counties that have unemployment of over 8 percent."

He says this is a safer loan plan than what the federal government is doing, because the state isn't buying into the banks or taking ownership. Giannoulias says the state money for this program was being used for more conservative investments, which weren’t bringing back much money to the state, so he decided to free it up for the more important purpose of helping banks.

(Source: Illinois Radio Network)
10 16 08 by Newsroom
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