The California Senate has voted to enact AB 857, the Public Banking Act, which sets the standards and opens the door for municipal public banks throughout the state. – A second vote on the amended bill in the Assembly, which advanced it by a narrow margin last month, should follow tomorrow. If Governor Gavin Newsom signs the bill into law, California will be the first state since North Dakota in 1919 to enact a statewide public banking statute, and the first in history to define and regulate the formation of […]
– – The folks against a measure that would allow Los Angeles to explore a public bank that would cut out the Wall Street middleman are making some unfounded but nonetheless scary-sounding claims. – Jack Humphreville, a dogged local advocate and reporter who covers the DWP and city finances beat for the website CityWatch put out a brazen polemic against Charter Amendment B which contained some falsehoods and misrepresentations. I thought I’d retort some of the worst, for the record, and to engage in this important dialogue about the […]
– Los Angeles manages more than eight billion dollars in annual revenue collected from tax, fee and fine payers, more than the country of Iceland. The city maintains bank accounts with between $4B and $12B in cash, and manages up to $45B in investments for pensions and other funds. That money is currently held in accounts at commercial banks, where it earns next to zero interest. The city paid over $109 million in transactional and originations fees to these commercial banks in 2016. Some of these banks have been downgraded […]
– Most people still shrug when you ask them their opinion on public banking. – That used to be true about lawmakers, but recently, the concept of public ownership of a depository bank is on the lips of elected officials and policy analysts. There seems to be news about the movement for publicly-owned banks every single day. We may have arrived at the moment when city, state and national officials are ready to look at options outside the mainstream financial paradigm that serve the needs of the public directly. It could […]
Moving profit-seeking banks out of the public finance equation, and allowing the city to lend to itself, will save hundreds of millions of dollars annually in fees while lowering infrastructure spending by up to 50%.
– California and its cities and counties are purported to be ‘sanctuaries’ for immigrants, but they aren’t. – While many local police forces do refuse to check the status of their detainees or hold prisoners on ICE’s behalf, many cases have shown that local law enforcement, municipalities and the state prison system are more than willing to cooperate with Homeland Security and other federal agencies to remove parents, students and workers from their peaceful, everyday lives to throw them into jail and and legal limbo. Once detained, their families are destroyed, […]
– Delegates from the International Olympic Committee descend on Los Angeles today. – They will meet with Mayor Eric Garcetti and the leaders of the LA2024 committee seeking to bring Los Angeles its third Olympic Games. Los Angeles is one of just two cities still holding on to their bids for the games, and the IOC is pondering whether to award both the 2024 and 2028 games at once, to both Los Angeles its rival, Paris, France. Both cities are world capitals. Unlike past hosts like Rio de Janeiro and […]