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  • Costly Public Banks Approved in California Legislature

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    Van Nuys, Calif. – Despite the Valley Industry and Commerce Association’s (VICA) strong efforts to oppose Assembly Bill 857 (Chiu), the California Legislature approved this bill, which will allow municipalities to establish and operate risky and expensive publicly-owned banks.

    VICA President Stuart Waldman said:
    “Last year, Los Angeles voters overwhelmingly defeated a proposal to explore the feasibility of a municipal bank. The City analysis found that establishment of this bank would be enormously risky and expensive. In fact, the head of the Bank of North Dakota - cited by proponents as a successful model - even said that his bank should NOT be used as a model for other public banks.

    “Though touted as a means of financing affordable housing and infrastructure projects, public banking is not the solution to the problems facing our state. There are already nearly 200 private banks serving California, providing greater choice through market competition. California banks often partner with local organizations, benefitting the communities they serve.

    “We are disappointed that the Legislature chose to continue moving this proposal forward. We urge the Governor to veto AB 857.”
     
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    The mission of the Valley Industry & Commerce Association (VICA) is to enhance the economic vitality of the greater San Fernando Valley region by advocating for a better business climate and quality of life. 
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