Voters in Los Angeles will be the first in the United States to choose whether to set up their city’s own public bank to serve the people instead of private interests.
LA’s charter currently prohibits the creation of industrial or commercial enterprises by the city without voter approval. The City Council voted on June 29th to put a measure on the November ballot that would allow the city to form its own socially and environmentally responsible, state-chartered public bank.
Public Bank LA banner
The [Los Angeles] bank is expected to:
- save the city millions, if not billions, of dollarsin Wall Street fees and interest paid to bondholders,
- inject new money into the local economy,
- generate jobs
- expanding the tax base,
- reinvest in low-income housing,
- critical infrastructure projects
- and clean energy.
The City of Los Angeles paid over $109 million in fees and interests to commercial banks in 2016. With a city-owned bank, our revenues will stay within our city. By cutting out Wall Street as the middle man, banking profit will be reinvested back into our communities.
BANKING FOR THE 99%
Public Bank LA writes:
“Imagine a City Public Bank revolution where every major city has its own public bank with a social and environmental charter, explicitly designed to serve the needs of the local community” and ends:
“It’s time for our banking system to evolve into publicly-owned financial institutions prioritizing people and planet over profit”.