Victory: Responsible Banking Ordinance

On Feb. 27, the combined strength of SEIU 721 and our 99% allies won unanimous Los Angeles City Council approval of an LA City Responsible Banking Ordinance (RBO).  The new law uses the power of Los Angeles’ $30 billion financial portfolio and requires banks to disclose what they are doing to invest in job creation and work to prevent foreclosures.

RBO is a step toward letting the City of Los Angeles influence the behavior of commercial banks.  Any bank that wants city business will have to provide a full report on its community performance.  This would include small business loans, home mortgages, home improvement loans, community development loans, investments and other financial and charitable activities. This law increases transparency and sheds light on the way banks do business.

The Occupy LA Movement put this issue on the public agenda, SEIU 721 worked with other locals, ACCE, LA Voice and Good Jobs LA to demand passage by the council.  City Council Member Richard Alarcon championed the law in the City Council, with support from Budget and Finance Chair Paul Krekorian and Council President Herb Wesson. 

For more information: http://www.huffingtonpost.com/richard-alarcon/responsible-banking_b_1301026.html