California Banks And Limitations On Distributions To Shareholders

Chapter 5 of the California Corporations Code imposes specific limitations on distributions to shareholders.  Because California chartered banks are formed under the California General Corporation Law, one would expect that Chapter 5 applies to...

How A Panic In Manhattan Caused A Bank Failure In Manhattan

In October 1907,  F. Augustus Heinze and Charles W. Morse tried, but failed, to corner the copper market, only to be out maneuvered by John Rockerfeller.  Mr. Heinze was president of the National Commercial Bank of New York and the depositors began...

Straight Talk On Public Banks

Over the last two years, I have written about California's nascent entry into public banking.  See Would You Bank On Los Angeles?Governor Signs Bill Authorizing Public Banks - What Could Possibly Go Wrong?, and When, If Ever, Will California...

When, If Ever, Will California Charter A Public Bank?

 A little over a year ago, California Governor Gavin Newsom signed  legislation, AB 857 (2019 Cal. Stats. ch. 442) local agencies to establish so-called "public banks", subject to approval by the Department of Financial Protection and Innovation and...

What Would Willie Sutton Say?

In August 2019, I never would have imagined that a banking regulator would be required customers to wear masks.  In today's changed world, banking regulators are doing just that.  The California Department of Business Oversight in its August monthly...

Will California License Virtual Currency Issuers?

The California Department of Business Oversight regulates the money transmission business pursuant to the Money Transmission Act, Cal. Fin. Code § 2000 et seq.  The Act currently defines "money transmission" as any of the following:

DBO Tables Financial Institutions' Central Locations For Service Of Legal Process

Six years ago, I wrote about the enactment of legislation, AB 2364 (Wagner) intended to make it easier to levy on bank accounts.  The law requires a bank or financial institution with more than nine branch offices within California to designate one...

I-Bank Bill Becomes A Study Bill

I have written several posts on SB 528 (Hueso), a bill that I considered a potential "sleeper". In my parlance, a "sleeper" is a bill that doesn't attract much attention but results in big changes.  SB 528 would have chartered the California...

The IBank May Someday Be California's Bank

Yesterday, I wrote about legislation that would authorize local governments to form their own local or regional public banks.  Senator Ben Hueso has a somewhat different idea.  He has introduced a bill, SB 528, that would establish the California...

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