City leaders have been studying the creation of a bank since July
How hard would it be for the city of Los Angeles to create its own bank? Very. That’s the upshot of a report released this week by the city’s chief legislative analyst, which identified a bevy of potential roadblocks, including the need for changes to state and city law and potentially “exorbitant” start-up costs. “Formation of [a public bank] under existing law and regulation would be a very difficult process, would be very costly, and would result in an institution that would not likely qualify to receive city business,” the report found. Los Angeles city leaders have been studying the creation of a bank since July, when Council President Herb Wesson unexpectedly included the idea in a speech laying out his priorities for his final term.