Public Banking Bill Passes Assembly in Historic Victory Over Wall Street

FOR IMMEDIATE RELEASE

News from CA Public Banking Alliance

May 30, 2019

Contact: Matt Kovac, mkovac@lccrsf.org, (415) 510-9601

Public Banking Bill Passes Assembly in Historic Victory Over Wall Street

Major step forward for public banking movement as AB 857 heads to Senate

SACRAMENTO – Today the California State Assembly passed the Public Banking Act (D-Chiu, D-Santiago) in a historic challenge to Wall Street domination of municipal finances. The bill, AB 857, allows local governments to charter democratically-accountable banks rather than depositing taxpayer funds with Wall Street megabanks – a major victory for the public banking movement nationally.

“Today the California Assembly has responded to the demands of millions of Californians,” said Sushil Jacob, senior economic justice attorney at the Lawyers’ Committee for Civil Rights of the San Francisco Bay Area (LCCR), a founding member of the California Public Banking Alliance. “For decades Wall Street megabanks have invested public funds in predatory industries opposed by most Californians –including oil pipelines, gun-makers and private prisons – while loaning city governments their own money back at exorbitant interest rates. It’s time for democratic input into how our public dollars are invested back into our communities. With today’s passage through the Assembly, we’re building momentum toward breaking the Wall Street stranglehold on California’s public deposits.”

Eleven California cities and counties have endorsed AB 857, including Los Angeles, San Diego, San Francisco, Long Beach, Santa Clara County, Oakland, Santa Cruz County, Richmond, Berkeley, Huntington Park, and Eureka. The bill also amassed support from over 100 organizations across the state, including labor unions and prominent environmental, political, civic, and community organizations.

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The California Public Banking Alliance (CPBA) is a coalition of public banking activists in California working to create socially and environmentally responsible city and regional public banks