Michigan Democratic gubernatorial candidate and Lansing Mayor Virg Bernero said last week that he would stop doing business with Wall Street banks that won’t participate in the state’s foreclosure program.
The campaign pledge follows Bernero’s earlier proposal to set up a state-owned bank, similar to the Bank of North Dakota, to make small business loans.
“I do not see any good reason that we should do business in Wall Street banks that do not do business with us. When I’m governor, we won’t,” the mayor said in a statement. “The only message Wall Street understands is hitting them in their pocketbook.”
Bernero named JPMorgan Chase, PNC Bank, Wells Fargo and Bank of America as among the those that have denied loans unfairly or refused to participate in the state’s Helping Hardest Hit Homeowners fund, Michigan’s program to help homeowners facing foreclosure.
If elected, Bernero said he would halt all state business with those banks. That includes Michigan’s current contract with JPMorgan, which manages a “fund relating to the state’s cash flow,” according to Bernero’s website.