MAJOR LENDERS REJECTCALIFORNIA 'I.O.U.' NOTES

STATE DEBT CRISIS LOOMS
WALL STREET JOURNAL: A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap. . . . After state leaders failed to agree on budget solutions last week, California began issuing IOUs -- or "individual registered warrants" -- to hundreds of thousands of creditors. State Controller John Chiang said that without IOUs, California would run out of cash by July's end. . . . READ MORE