Press Release Contact: Paul Michael Neuman
March 5, 2010 (213) 473-7005
Koretz speaks out strongly in favor of “Responsible Lending” motion
Los Angeles City Councilmember Paul Koretz today voted in favor of Richard Alarcon’s motion to promote socially responsible, community-friendly banking practices.
Councilmember Koretz said, “This a tremendous effort that can help protect people and neighborhoods. We need banking in our society, but we need banks that are responsive to community needs and fair and just in how they treat their customers. It will be greatly beneficial to have our city encourage responsible banking practices, including by favoring banks that invest back in the communities of Los Angeles.”
The motion by Alarcon will lead to the creation of a “report card” to evaluate the track record of banks that want to do business with the City. The report will include date on such things as the number of small business loans, evidence of working with homeowners facing disclosure, the numbers and locations of branches and ATMs, and the use of federal TARP funds.
Councilmember Koretz added, “I’m especially pleased that the City will now be able to use its authority and influence to guide banks towards helping people keep their homes – the last thing we should want is to have more people, who are already desperately struggling to stay afloat, lose their homes to foreclosure. We want banks that truly help families, small businesses and neighborhoods. In these tough economic times – which were caused, in large part, by irresponsible and predatory banking practices – we need banks to do their fair share serving the communities and helping the people of this City. Today our City Council took an important step for that very cause.”