Connecticut House Bill HB05193

Connecticut 2010 Regular Session

• Introduced: 2/16/10
• Refer: 2/16/10

Caption

An Act Concerning The Purchase Of Trust-preferred Securities By The State Treasurer.

Impact

The implications of HB 05193 on state laws include a potential shift in how the State Treasurer manages investments and engages with local financial entities. By expanding the investment capabilities of the State Treasury, the bill could lead to a more proactive role in supporting Connecticut banks. The overall goal would be to improve the financial ecosystem in the state by ensuring that banks have access to necessary capital, which could facilitate more lending and investment in local communities.

Summary

House Bill 05193, known as the Act Concerning The Purchase Of Trust-preferred Securities By The State Treasurer, aims to amend the general statutes to permit the Connecticut State Treasurer to purchase trust-preferred securities specifically from Connecticut chartered banks. This initiative is designed to enhance the state's ability to invest in its local banking institutions, potentially increasing their capital and liquidity. By allowing such purchases, the bill seeks to fortify the financial foundation of banks operating within the state, promoting stability in the local financial sector.

Contention

While there are not overt points of contention apparent from the texts, the bill can raise discussions about the appropriateness of state investment in private entities, reflecting broader ideological perspectives on government involvement in financial markets. Potential concerns can include the risks associated with such investments and the efficacy of using state funds to support specific institutions. Stakeholders may debate whether this approach sufficiently addresses broader economic needs or merely benefits select banks during times of financial need.