One year ago, Congress defunded public media. Now that we're 100% community funded, please become a sustaining member or increase your existing membership today.
A Public Bank In LA May Become A Reality
A public bank in L.A. could happen.
(
NanoStockk
/
iStockphoto
)
The idea of opening a public bank in L.A. is one step closer to reality.
The City Council has voted unanimously to hire consultants to figure out how to do this.
Councilmember Curren Price authored this motion. He says a city-owned bank could help more people build wealth, especially those without access to private banking services — such as credit or a savings account.
“We think a public bank can be an important tool in the toolbox to assisting individuals and their families achieve the kind of financial stability that's so important — if we're serious about providing greater opportunities and greater equity for all citizens.” Price says.
A public bank could also help small business owners recover economically from the COVID-19 pandemic. And it could finance infrastructure projects such as renewable energy and affordable housing.
There have been calls over the years for L.A. to open a public bank. Tuesday’s vote comes after former City Council President Herb Wesson introduced his own public banking proposal in 2019. His goal was to provide services to local the cannabis industry, which can't use commercial banks because of federal drug laws. Price said the city's consultants could explore how a public bank could help these and other enterprises. Gov. Newsom signed a state law that allows cities to form these financial institutions in 2019, too.
There is currently only one government-owned bank in the United States — that's the state-owned Bank of North Dakota.
Sponsored message
One year ago, Congress voted to defund public media, eliminating a critical $1.7 million from our budget every year going forward. But they couldn’t silence us, and we’re not going anywhere. LAist is now 100% community funded and that means we’re taking our future into our own hands and turning to you to keep local reporting strong.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Senior Vice President News, Editor in Chief
