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NY Senator Introduces Bill to Turn Post Offices into Banks
New York democratic Senator Kirsten Gillibrand has introduced a bill that would allow 30,000 post offices to offer banking services. Those services could include small, low-fee loans, checking and savings accounts, and cash withdrawals. She says offering loan services will save people from taking out expensive payday loans which can charge 400% the loan’s value in annual interest. But some have pointed out that it will be tricky to make the government into a bank. Taxpayers will have to pick up the tab on defaulted loans and possibly subsidize low interest rates to keep them lower than the free market. There’s also the question of whether the government can effectively offer these services. The USPS, one of the few companies the federal government runs, is already struggling. Last year, it reported a $2.7 billion net loss.