The Los Angeles City Council has voted to fund the first phase of a public bank that would empower communities and support projects driven by public interest. A public bank would be more beneficial than private banks in serving Los Angeles’ Black and Latino communities, small businesses, green energy initiatives, and affordable housing projects. To tackle our housing crisis, the LA public bank could build or preserve over 17,000 affordable housing units within 10 years, assist with construction loans, convert housing into affordable stock, provide mortgage assistance, and prevent the conversion of affordable housing into upscale homes. Low-income communities of color stand to benefit greatly from a public bank, as it would offer lower-cost debt, free banking, alternative credit scoring methods, and help employees purchase small businesses. It’s a chance to create targeted wealth and job stability for neglected communities. The LA public bank would be funded by deposits from the city, pension funds, and green mutual funds, bypassing expensive Wall Street middlemen. This means more direct access to funds for local government projects. The LA Times interviews key figures, discussing the far-reaching impact of the public bank on communities across Los Angeles, including CPBA and PBLA co-founder Trinity Tran.
Read the coverage in the LA Times.