Mass. may study state-owned bank

BOSTON (AP) - Massachusetts Senate President Therese Murray is floating the idea of a state-owned bank to spur job creation and free up lending to Massachusetts businesses.

Murray told the business group Associated Industries of Massachusetts on Friday that a state-owned bank has worked in North Dakota, helping insulate that state from the worst of the recession, while also keeping its foreclosure rate down.

Murray said the idea may not work in Massachusetts and shouldn't be allowed to interfere with the state's network of community banks, but said lawmakers have to look at all options for thawing the credit market.

A jobs bill sponsored by Murray calls for a study of a state-owned bank in Massachusetts.

She said the Senate would also take up a series of business-friendly tax measures this year.