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In response to pressure from a Boston advocacy group, Massachusetts state Treasurer Timothy P. Cahill announced plans last month to pull more than $200 million in taxpayer money out of Bank of America and two other major banks that refused to comply with a state law limiting interest rates for loans at 18 percent.
But Cahill continues to keep hundreds of millions of dollars in state and municipal funds at other financial institutions that exceed the 18 percent cap. The deposits are made from a $7 billion money market fund that Cahill oversees on behalf of Massachusetts municipalities and state agencies.
For example, JPMorgan Chase, which held at least $17 million from the Massachusetts Municipal Depository Trust fund as of the end of March, charges as much as 30 percent interest to customers who fall behind on their credit card payments.
Read more from Boston.com
