Vermont towns asked to support public bank idea
MONTPELIER (AP) - At least 20 Vermont communities are being asked to support the creation of a public bank.
Vermont Public Radio reports that voters are being asked to approve resolutions at Town Meeting. Supporters argue that instead of keeping its money on large global banking institutions, the state could save money, create jobs and eventually generate revenue by creating a state bank.
Gary Flomenhoft of the University of Vermont suggests taking the Vermont Economic Development Authority, an existing non-profit agency that is already making loans, and turning it into a bank.
Opponents, including state Treasurer Beth Pearce, say if Vermont's relatively small cash assets were in a state bank, that money would be at greater risk if loans go bad. And she says it could jeopardize the state's bond rating.
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