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May be the proposed Municipal Bank of l . a . a good notion?

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  • The other day, the Los Angeles City Council’s Economic Development and Jobs Committee approved a movement meant for the Municipal Bank of Los Angeles. It really is a poor idea.

    Supporters confuse lending with spending. The financial institution is supported by a number of unique interest groups – but there is however no transparency. No details about money for Public Bank Los Angeles – the organization advertising the basi concept — can be acquired.

    Work endorsements when it comes to Public Bank of l . a . are a definite red banner. Based on Public Bank Los Angeles, union support includes: the l . a . County Federation of Labor, the United Food and Commercial Workers (UFCW) Local 770 (which represents grocery and workers that are retail, and UNITE HERE neighborhood 11 (which represents employees in resorts, restaurants, and airports).

    One could just conclude that unions anticipate impact within the last financing directions – possibly borrowers will likely to be needed to spend union wages. This may preclude funds likely to little inner-city companies that many supporters for the bank imagine it helps also it could have the result of crowding low skilled employees away from jobs.

    In February, Public Bank Los Angeles held A town that is virtual hall rally supporters. Town Hall revealed that supporters are ill-informed of exactly what a bank that is public or would do.

    President of SEIU 721 Bob Schoonover expects the financial institution to invest in city that is critical, including clean normal water, and also to enhance health care and use of childcare when you look at the town.

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