Wall Street to trade state IOUs

IOUs being issued by the US state of California are set to be traded on Wall Street, with interest already mounting from bodies like hedge funds and government bond traders. Teams are being set up to broker the IOUs, which Bank of America and Wells Fargo have agreed to accept as deposits after the government said they are “rock solid”. They are being issued as part of plans to fill a $24bn (£14.7bn) budget deficit.