Murphy signs executive order aimed at creating nation's second publicly run bank

Democratic Gov. Phil Murphy has signed an executive order aimed at making New Jersey the second state to establish a publicly run bank.

Murphy signed the order Wednesday alongside labor and other advocates in Newark. The first-term former Goldman Sachs executive called for the creation of a state bank during the 2017 campaign, but the effort has largely stalled since taking office.

The order creates a 14-member panel that must hold its first meeting within 30 days and issue a report in a year.

The administration says the bank could provide capital to worthwhile projects like financing low-income housing and student loans. The bank’s deposits would come in part from state funds already held by private banks.

North Dakota is the only other state with a public bank.


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