Commercial banks that want to do business with the city of Los Angeles would be required to provide information on their participation in the city’s foreclose program and their home and small business loans under a proposal unanimously approved today by the Los Angeles City Council.
The proposal, known as the Responsible Banking Ordinance, was first introduced by Councilman Richard Alarcon three years ago. Support from the Occupy LA movement and a change in leadership on the Budget and Finance Committee pushed the ordinance through to the full council.
“I find it interesting that the business community … has made very negative comments about what we’re doing here when all we’re doing is due diligence in working with our vendors. It is our responsibility,” Alarcon said.
The negative comments came from groups that felt the proposal was an unnecessary use of city resources and duplicative of work done by federal regulating agencies. The original proposal included a provision to rate financial institutions. The city administrative officer advised against that idea.
“The scoring piece is something that, if I had to rely on just my vote and not a majority of city council votes, I’d do it in a minute. But, that is not going to happen today,” Alarcon said.
The city attorney is expected to report back with an ordinance in 30 days.