Los Angeles City Councilman Richard has directed the legislative analyst to create a points system for grading the social responsibility of financial institutions that want to handle the city’s investments, and suggested the possibility of divesting from those that score low. Alarcón proposed that the city create a “report card” to evaluate the number of small business loans provided, evidence of working with homeowners facing foreclosure, the number and location of branches and ATMs and the use of federal TARP funds. “During these times of the financial meltdown and the federal bailout of big banks, it is more important than ever that we ensure that our money is being invested in institutions that are investing back in our community—not those that are taking advantage of our residents and ripping off their clients,” said Alarcón, whose district is in the northern part of the San Fernando Valley. “Creating investment criteria will help us ensure the city is investing taxpayer money responsibly and making the most out of our multi-billion dollar portfolio.” After a hearing on the city’s investment practices, Alarcón, who is chairman of the Jobs and Business Development Committee, led a contingent of union members, staff, members of the public, and media to the downtown offices of Chase Bank. Inside the bank’s lobby, the group delivered a letter demanding the bank act more responsively to the needs of the community. Thom Senzee
Councilman Recommends Change in City Investment Strategy
