Strong steps taken by LA City Council toward a Public Bank for Los Angeles have drawn a good deal of media attention, including coverage by the local CBS affiliate. The Ad Hoc Committee on Comprehensive Job Creation Plan began to debate the issue last Wednesday, Oct 4.
Following the successful Sept 29 meeting that took place between interested Councilmembers, legislative directors and Public Banking experts, Ellen Brown was invited to attend the Ad Hoc Committee and explain how a Bank of Los Angeles can be feasible, profitable and beneficial for the city's residents.
The Ad Hoc Committee panel included the City’s Attorney Office, City Administrative Officer, Chief Legislative Officer, and PBI's Ellen Brown.
As a result of the discussion, Chairman Krekorian moved to instruct the City Attorney’s Office and the CLA to report back on:
- the legal requirements and constraints of forming a municipal bank
- legislative and legal barriers
- regulatory barriers at federal, state and local level, and
- the benefits and potential risks of public banking model in the US and international models including the German Sparkassen example
In addition, the Chairman also instructed the City Attorney and CLA to report back on the potential for investing in:
- affordable housing
- economic development purposes, including small business developments
- servicing the cannabis industry, and
- student loans
PBI and the Public Bank LA team are excited to see LA City Council moving forward strongly toward creating the first municipal bank in the United States. We are making history.