Banks Poised to Add State As Depositor

NJBIZOctober 07, 2009

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Bankers have been lobbying for the state to invest a portion of its cash management fund in New Jersey banks since the early 1990s, [John E. McWeeney Jr.] said. While it's been eight months since [Jon S. Corzine] announced the plan, McWeeney said it wasn't too long of a wait. "Waiting a couple of months was not a longtime for us, because we've been waiting for years," McWeeney said.

Currently, no state fund money is invested through state- chartered banks, according to state Treasury spokesman Tom Bell. [...] any bank with a principal or branch office in the state is eligible, although the state's investment director can give preference to banks that participate in state Economic Development Authority programs, including preferred lenders.

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Banks Poised to Add State As Depositor

IN THEIR STRUGGLE to cope with the economic downturn, some Garden State community banks may receive deposits soon from a major customer: the State of New Jersey.

A state Assembly committee has approved a bill th...

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