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Los Angeles And San Francisco Announce They Are Moving Forward With Plans To Start Public Banks

Above Photo: From Publicbankinginstitute.org

The new California Public Banking law is a tremendous advancement for the public banking issue in California and the nation. Public banking advocates celebrated their victory and are now moving forward to put into place public banks. The Public Banking Institute, which played a key role in California and other states, highlighted the comments of Los Angeles Assemblymember Miguel Santiago, co-author of AB 857, who emphasized the people power behind the win. Santiago said: “This is a bill where a people-powered movement took on a huge financial industry [that] extended their tentacles into every office [in Sacramento] and the people power prevailed. … The arguments prevailed. This bill [built] public confidence that we can beat back Wall Street, that we can beat back paid lobbyists. Los Angeles is going to lead. … [Wall Street’s] going to use all the same old tired arguments. … We’re going to take them on in Los Angeles.” Which states and cities will be next? Many have been close and we expect more victories in the near future. KZ

Close on the heels of the Public Banking Act being signed into law last week, LA City Council President Herb Wesson announced he will be introducing a motion within the week to hire a banking expert to draft a comprehensive plan for a public bank for the City. The San Francisco Chronicle reported that San Francisco was also pushing ahead with plans for a city-owned bank.

Wesson announced the motion in a press conference (Facebook link) celebrating the unprecedented success of AB 857 in front of Los Angeles City Hall on Monday Oct 7.

Assemblymember Miguel Santiago, co-author of AB 857, emphasized the people power behind the win:

“This is a bill where a people-powered movement took on a huge financial industry [that] extended their tentacles into every office [in Sacramento] and the people power prevailed. … The arguments prevailed. This bill [built] public confidence that we can beat back Wall Street, that we can beat back paid lobbyists. Los Angeles is going to lead. … [Wall Street’s] going to use all the same old tired arguments. … We’re going to take them on in Los Angeles.”

Watch the celebration at LA’s victory party! (Facebook link)

The press conference generated substantial press coverage:

Los Angeles Daily News, Eric Heinz: LA City Council president to propose city’s first public bank

LAist, David Wagner: LA Could Become The First City In The Country To Open Up Its Own Bank

Banking Dive, Anna Hrushka: LA plans to create California’s first public bank

California Globe, Evan Symon: Los Angeles Announces Plans for the First Public Bank In California

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