Historic Breakthrough: Gov. Newsom Signs The Public Banking Act Into California Law

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Above photo by Ivana Cajina.

Note: Public Banking in California is a fantastic and historic breakthrough. This has been a longtime struggle of thousands of activists in California and throughout the country. Many cities and states have been making progress and this will the first breakthrough of many. Of course, we should expect Wall Street to respond aggressively, so let’s escalate our organizing and seize this opportunity. If we increase our efforts on this critical issue we can open the floodgates to democratized banking and take control of finance from Wall Street and give it to the people. KZ

California Moves to Democratize Banking

Victory in California! Gov. Gavin Newsom’s signature has made AB 857 — the grassroots-generated, people-powered Public Banking Act — the law in California. The California Public Banking Alliance has been tireless in educating legislators, drafting language, and generating massive statewide public support. The strong leadership of the bill’s co-authors, Assemblymembers Miguel Santiago and David Chiu, generated 19 co-sponsors and support from several committee chairs, clearly demonstrating the will of the people is behind banks that serve the public interest. Congratulations to everyone involved.

The time has come for public banks to offer a people-controlled alternative to the private, profit-driven Wall Street banks that have failed to serve the public. The Alliance posted on Facebook:

“WE JUST MADE HISTORY!!! Governor Gavin Newsom just signed #AB857 Public Banks into law, making it possible for California cities and counties to take control of our own future. AB 857 is a victory fueled 100% by people power … With no budget, no lobbyists, and no playbook, we made our case for public banking — and for the first law of its kind in the nation. … The future is here — and California is leading the way for the rest of the nation.”

  • Wahoooooooo!!! This is such GREAT news! Congratulations and Thank You for all of your hard work!

  • Kevin Brooks

    Monumental first step. A better world awaits.

  • RBluhm

    To understand the magnitude of this earthquake read “From Austerity to Prosperity: The Public Bank Solution” by Ellen Brown.

  • mwildfire

    But is it the first? What about North Dakota? I can imagine that California will draw much more fire from Wall Street than little North Dakota, though.

  • Steven Berge

    I wonder if he didn’t get any campaign support from the mega banks. He has vetoed a recent bill SB1 that would have made it possible for California to make environmental laws more stringent than the feds. And he campaigned on being a friend of the environment. Guess he got campaign help from the polluters.