SPRINGFIELD, Ill. – The state Treasurer announced a plan yesterday to pump $1 billion onto state chartered banks and credit unions to help ease the credit crunch.
State Treasurer Alexi Giannoulias said he will move the money from other state investments to deposits in needy financial institutions.
"We need to find ways to get money, get some liquidity, get some capital into these financial institutions, because without it, these local lenders are not going to be able to help families and small business owners keep their businesses up and running and maintain employment levels," said Giannoulias
Giannoulias said he hopes the cash infusion will help ease the credit crunch in Illinois, making it easier for banks to give out loans.
The state Treasurer predicted other states will follow with their own efforts to boost liquidity in local banks and credit unions.
Giannoulias said his family's bank, Broadway Bank in Chicago, will not participate in the program.
