Dem gov candidate wants to open Mich. state bank

LANSING, MI – Lansing Mayor Virg Bernero says Michigan should follow the lead of North Dakota and open a state bank that could make low-interest loans to businesses and college students.

The Democratic gubernatorial candidate said Tuesday the state bank also could ease the foreclosure crisis by buying down mortgage portfolios held by smaller banks in Michigan and partner with other private banks.

The Bank of North Dakota is the nation's only state-owned bank, but politicians in several states are starting to think of copying the idea.

Bernero is running against House Speaker Andy Dillon and state Rep. Alma Wheeler Smith for the Democratic gubernatorial nomination.