Banks to Stop Taking IOUs :
Californians will have fewer places to cash in IOUs after large banks stop redeeming them Friday.
At least three major banks, Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500), will stop accepting the IOUs, as they'd previously announced. The state of california is the world's eighth largest economy, it has issued more than 90,000 IOUs worth nearly $355 million. Also called registered warrants, the IOUs pay an interest rate of 3.75% and can be redeemed on Oct. 2 or earlier if divided state officials reach a budget deal.
Recipients will include state contractors, social service agencies and those owed income tax refunds.