PRESS RELEASE: Councilwoman Martinez’s statement on proposed changes to the Responsible Banking Investment Monitoring Ordinance

On December 13, Los Angeles City Councilwoman Nury Martinez (Sixth District) issued a statement on proposed changes to the City of Los Angeles’ Responsible Banking Investment Monitoring Ordinance.

 

FOR IMMEDIATE RELEASE

WEDNESDAY, DECEMBER 13, 2017

CONTACT: SAMINA ENGEL                

O: (213) 473-7006; C: (818) 858-4025 

SAMINA.ENGEL@LACITY.ORG 

Los Angeles— Los Angeles City Councilwoman Nury Martinez (Sixth District) issued the following statement on proposed changes to the City of Los Angeles’ Responsible Banking Investment Monitoring Ordinance:

“As City leaders, we must expect the highest level of financial and social responsibility from our banking and service providers. While the City is not a regulatory agency, our taxpayers deserve to know that their money is being handled the right way, by the right banks.

Today in Council, I introduced an amendment calling for tougher rules on banks that want to do business with the City. My amendment would require those banks to disclose whether or not they:

·         set or allow individual or branch-level goals or requirements for the sale of a consumer financial service;

·         consider the quantity of an employee’s sales of consumer financial products and services as a basis for employee advancement, discipline, termination or compensation;

·         have policies, protocols, and trainings in place at both the employee and management level to help prevent the abuse of sales of consumer financial services and products.

Predatory banking practices, which include sales goals and quotas, have historically and disproportionately targeted and trapped low-income, immigrant and other vulnerable communities -- unconscionable abuses that were at the heart of the Wells Fargo scandal and that triggered the foreclosure crisis.

We, as leaders, have a responsibility to the hardworking people of our City. Working with banks that treat them like commodities is simply unacceptable.

I am pleased that City Council voted today to commit to stricter rules for the City's banking providers, including the disclosure requirements in my amendment.

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Councilwoman Nury Martinez is the Assistant President Pro-Tem of the Los Angeles City Council.  She represents the 6th Council District, which includes all or parts of the neighborhoods of Van Nuys, Lake Balboa, Sun Valley, Panorama City, Arleta, North Hollywood, and North Hills East.