Los Angeles activists attempt to strike compromise with banks

12/6/2011

The Los Angeles City Council's Budget and Finance Committee is close to deciding whether a proposal to hold banks more responsible for their small business lending practices will pass, The Associated Press reports.

According to the city's chief administrative officer Miguel Santana, the proposal would "expose their lending records to public scrutiny" if they intend to do business with the city, the Los Angeles Times notes. The move was part of Occupy L.A. protesters' agendas, as councilman Richard Alarcon explained that "this loud voice … has come from the people."

Banks that would be affected include Wells Fargo, commercial banks that lend to the city and other financial institutions that intend to conduct business with Los Angeles in the future.

However, the proposal has lost some steam because, under the rule, lending information would not be available to rate banks when awarding city contract for financial services. This hinders the benefits to distressed homeowners.

"Under a rating system, I believe we would create a race to the top," Alarcon told the media outlet, referring to the missing proposal piece.

The budget committee plans to continue the debate on the ruling in January.