Los Angeles City Council approves study for municipal bank

The Los Angeles City Council voted 11-3 to allocate $460,000 for a feasibility study regarding the creation of a city-owned bank. The proposal aims to explore a government-run banking system that could direct funds toward affordable housing, small businesses, and local infrastructure rather than private profit.

The move has drawn criticism from opponents, including Councilmember Traci Park, who questioned the city's ability to manage a banking operation while facing a projected $100 million budget gap. Proponents of the plan, including Councilmembers Eunisses Hernandez, Ysabel Jurado, and Hugo Soto-Martinez, argue the bank would keep more capital within Los Angeles to serve community needs.