State Legislature Proposes Creation of Public Banks

The state Legislature is considering a bill to allow the creation of public banks.

Under the plan, the New York Public Banking Act would authorize municipal and other local governments to form and control public banks through ownership interests such as capital stock.

Mike Sandmel with the New Economy Project says the hope is these banks will invest in community endeavors rather than interests in line with making the bank profit.

Previous versions of the bill were brought before the Legislature in the past two legislative sessions, but they never advanced beyond the Banking Committee.