The following draft of a resolution was added to the ones found in "Memos" below in this blogspace authored by Councilmember Richard Alarcon.
Responsible Banking Draft Ordinance
Summary of Intent
The City of Los Angeles has nearly $30 billion in cash and investments (including City pension funds) but does not have a system by which it can clearly review the financial activity in our communities with which we do business.
Solution: Responsible Banking
Transparent Reporting for Banking Partners: Financial institutions that contract for the City of Los Angeles will be required annually to submit data detailing their lending activity and provide a statement on Community Reinvestment Goals specific to Los Angeles (which the City of Philadelphia has required from the financial institutions their City has deposits with since 2002).
“Report Cards” Grading Local Investment: The City Treasurer will compile and publish an annual report ranking each financial institution that receives City dollars on a Community Reinvestment Scale as measured by the amount and type of investment in Los Angeles, or the lack thereof.
Contracting Preferences for the Highest Scores: Contracting preference will be given to the top performing financial institutions, and the lowest performers will face possible divestment. Examples of types of information that should be used to determine positive reinvestment in Los Angeles.
- ·The number and type of permanent loan modifications approved to prevent mortgage foreclosures in Los Angeles.
- ·Small business lending information, including number of loans to businesses with annual revenue of $1 million or less in Los Angeles.
- Number and location of branches and other service delivery locations in Los Angeles to ensure equitable distribution in ALL neighborhoods.
Those who support this measure encourage the public to attend the finance meeting on Monday, November 21 Room 1010 at 2:00 p.m. to help push this forward for a vote by the City Council.
There were several paid speakers who spoke out against the resolution. During public comment featured a Letter from the L.A. Chamber of Commerce stating that banks had invested 41 million dollars in city and community programs. several unpaid speakers who were in favor of the resolution.