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Los Angeles attempting to launch a city-owned bank (again...)

ChargedUp
Valued Contributor

Los Angeles attempting to launch a city-owned bank (again...)

This was attempted back in 2017 and voted down by it's residents, but the idea seems to be gaining momentum again.

 

LA Takes Steps Towards Opening City Owned Bank 

 

https://publicbankla.com/ 

 

It also seems that they would co-op with other public bank hopefuls...

 

https://californiapublicbankingalliance.org/ 

 

Not certain what to make of this. Considering how LA has handled it's current plethora of issues, I don't think I'd trust my cash with them. Keeping things FSR, I'll leave it at that.

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Message 1 of 11
10 REPLIES 10
CH-7-Rebuilding
Valued Contributor

Re: Los Angeles attempting to launch a city-owned bank (again...)


@ChargedUp wrote:

This was attempted back in 2017 and voted down by it's residents, but the idea seems to be gaining momentum again.

 

LA Takes Steps Towards Opening City Owned Bank 

 

https://publicbankla.com/ 

 

It also seems that they would co-op with other public bank hopefuls...

 

https://californiapublicbankingalliance.org/ 

 

Not certain what to make of this. Considering how LA has handled it's current plethora of issues, I don't think I'd trust my cash with them. Keeping things FSR, I'll leave it at that.


I don't have any thoughts about Los Angeles per se, but I do know there is a huge need for banks for the "unbankable."   Look at all the people with Chex problems.    Even people who are not good at managing money need banking services, and there are ways for those banks to protect themselves.   Sometimes you see people lined up to pay their electric bill in cash, taking half a day to make one payment.   People need a place to cash their paychecks and not pay 30% annual interest.    I think the feds should offer this type of bank.   They already insure all deposits.   

Message 2 of 11
ChargedUp
Valued Contributor

Re: Los Angeles attempting to launch a city-owned bank (again...)


@CH-7-Rebuilding wrote:

@ChargedUp wrote:

This was attempted back in 2017 and voted down by it's residents, but the idea seems to be gaining momentum again.

 

LA Takes Steps Towards Opening City Owned Bank 

 

https://publicbankla.com/ 

 

It also seems that they would co-op with other public bank hopefuls...

 

https://californiapublicbankingalliance.org/ 

 

Not certain what to make of this. Considering how LA has handled it's current plethora of issues, I don't think I'd trust my cash with them. Keeping things FSR, I'll leave it at that.


I don't have any thoughts about Los Angeles per se, but I do know there is a huge need for banks for the "unbankable."   Look at all the people with Chex problems.    Even people who are not good at managing money need banking services, and there are ways for those banks to protect themselves.   Sometimes you see people lined up to pay their electric bill in cash, taking half a day to make one payment.   People need a place to cash their paychecks and not pay 30% annual interest.    I think the feds should offer this type of bank.   They already insure all deposits.   


IIRC there was a push at one time or another to offer banking services through the USPS. I have no idea what happened to that plan, but as far as reaching every corner of the country, this would likely be the easiest to way to actually create a useful public banking system.

AODFCU 3% Visa ($10K), Amex PRG (NPSL), Amex Blue Cash ($27K), Amex Simply Cash+ ($4K), Amex Business Cash ($22.5K), Discover ($29.7K), Cap 1 Union Plus MC ($2500), Chase FU Visa Sig ($12K), Chase F Visa Sig ($8.3K), Chase CSP Visa Sig($6.5K), FCB/Elan Rewards Visa Sig($15K), Buckle ($1.3K), BofA AAA Rewards ($84.5K), Paypal credit ($10K), BBVA Clearpoints ($7.5K), Cap 1 Savor ($13K), PenFed PCR ($3500), Bank of the West CB MC ($3K), PNC Cash Rewards ($14K), NASAFCU Rewards Visa ($20K), BOC/Elan Max Cash MC ($25K), BoA Business Customized Cash Rewards MC ($8k)
Message 3 of 11
Red1Blue
Super Contributor

Re: Los Angeles attempting to launch a city-owned bank (again...)

Tecchnically the bank will be insured under FDIC and deposits are safe; It does not matter who owns the bank as long as funds are insured and safe.

Message 4 of 11
spiritcraft1
Valued Contributor

Re: Los Angeles attempting to launch a city-owned bank (again...)

I am 100% for regulated public banks.  The banking lobby will fill the airwaves with BS however as it is a major threat to there fee structure. 


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Message 5 of 11
Phana24
Valued Member

Re: Los Angeles attempting to launch a city-owned bank (again...)


@ChargedUp wrote:

This was attempted back in 2017 and voted down by it's residents, but the idea seems to be gaining momentum again.

 

LA Takes Steps Towards Opening City Owned Bank 

 

https://publicbankla.com/ 

 

 

Not certain what to make of this. Considering how LA has handled it's current plethora of issues, I don't think I'd trust my cash with them. Keeping things FSR, I'll leave it at that.


The govt running a bank.  What could possibly go wrong?? 

Message 6 of 11
CreditCuriosity
Moderator

Re: Los Angeles attempting to launch a city-owned bank (again...)

Can easily lock this post as has alot of ways of going wrong.. Keep it within the guidelines.  Thanks

Message 7 of 11
coldfusion
Community Leader
Super Contributor

Re: Los Angeles attempting to launch a city-owned bank (again...)


@ChargedUp wrote:

@CH-7-Rebuilding wrote:

@ChargedUp wrote:

This was attempted back in 2017 and voted down by it's residents, but the idea seems to be gaining momentum again.

 

LA Takes Steps Towards Opening City Owned Bank 

 

https://publicbankla.com/ 

 

It also seems that they would co-op with other public bank hopefuls...

 

https://californiapublicbankingalliance.org/ 

 

Not certain what to make of this. Considering how LA has handled it's current plethora of issues, I don't think I'd trust my cash with them. Keeping things FSR, I'll leave it at that.


I don't have any thoughts about Los Angeles per se, but I do know there is a huge need for banks for the "unbankable."   Look at all the people with Chex problems.    Even people who are not good at managing money need banking services, and there are ways for those banks to protect themselves.   Sometimes you see people lined up to pay their electric bill in cash, taking half a day to make one payment.   People need a place to cash their paychecks and not pay 30% annual interest.    I think the feds should offer this type of bank.   They already insure all deposits.   


IIRC there was a push at one time or another to offer banking services through the USPS. I have no idea what happened to that plan, but as far as reaching every corner of the country, this would likely be the easiest to way to actually create a useful public banking system.


The idea of having the USPS offer some banking services has been ongoing.  I believe there is a small pilot program running right now to evaluate the practicality of converting payroll checks under a certain amount ($500?) into gift cards.  As I understand it though the rationale is largely tied to trying to ensure that even people in very rural areas have access to at least some mininal level of local in-person banking services, since every zip code in the US has a post office with regular hours of service even if it's a contracted service handled through the corner of a local general store.    There is no shortage of brick-and-mortar banks or credit unions in Los Angeles.

 

 



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Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 8 of 11
coldfusion
Community Leader
Super Contributor

Re: Los Angeles attempting to launch a city-owned bank (again...)


@Red1Blue wrote:

Tecchnically the bank will be insured under FDIC and deposits are safe; It does not matter who owns the bank as long as funds are insured and safe.


The bank would be insured under FDIC only if they apply and are approved for membership, which among other things means that they agree to and are able to positively demonstrate under audit their compliance with all of the regulations.    There is no absolute federal requirement for a bank or a credit union to be a FDIC or NCUA member institution. 

 

It might actually make it easier for Los Angeles to provide at least minimalist core banking services across their underserved population if FDIC membership were off the table.



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Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 9 of 11
coldfusion
Community Leader
Super Contributor

Re: Los Angeles attempting to launch a city-owned bank (again...)


@spiritcraft1 wrote:

I am 100% for regulated public banks.  The banking lobby will fill the airwaves with BS however as it is a major threat to there fee structure. 


I'm generally not in favor of self-regulating bodies as they can tend to also be self-serving.

 

 



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Message 10 of 11
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