"Times of crisis are when change happens--to fuel California's economic recovery, we need a bank designed to stabilize the economy and invest back into our communities," said Trinity Tran, co-founder of the California Public Banking Alliance and Public Bank LA. (Photo: Trinity Tran/Twitter)
California Bill to Establish Nation's Second Public Bank Applauded as 'Historic Challenge to Wall Street Domination'
"If California is serious about addressing racial and income inequities, we must create a banking system that centers people not profits."
In a move advocacy groups celebrated as a "historic challenge to Wall Street domination of municipal finances," a pair of California state lawmakers on Thursday unveiled legislation that would establish the nation's second publicly-owned bank and empower the institution to lend to businesses and local governments fighting to stay afloat amid the Covid-19 pandemic.
The Bank on California Bill (AB 310)--introduced by Democratic Assemblymembers Miguel Santiago of Los Angeles and David Chiu of San Francisco--would transform the state's Infrastructure and Economic Development Bank (IBank) into a public financial institution capable of efficiently distributing desperately needed funding as schools and other crucial social services struggle to cope with the coronavirus crisis and the resulting economic fallout.
"We can structure a bank that actually is accountable to the people and does what the people want it to do."
--Assemblymember Miguel Santiago
The bill comes less than a year after California Gov. Gavin Newsom signed into law the Public Banking Act, a measure also authored by Santiago and Chiu that allowed the state's cities and counties to set up publicly-run banks. North Dakota is currently the only state in the U.S. with a public bank.
"We already have an IBank, and it already has the purpose to help the California economy--let's restructure it into a state bank and take 10% of the money California already holds in its checking account and let's help Main Street," Santiago said during a virtual press conference Thursday.
"We can structure a bank that actually is accountable to the people and does what the people want it to do," Santiago added. "We can help small businesses, we can reimagine what banking looks like and actually invest in affordable housing, we can look at local infrastructure like parks."
Chiu stressed that establishing a state-run bank would dramatically reduce California's reliance on "outside for-profit actors."
\u201cProud to support #AB310\u2014the CA State Public Bank Act\u2014by @SantiagoAD53 & @DavidChiu.\n\nA state bank will help facilitate our economic recovery & put our people first, establishing equity & providing critical tools for small businesses, local gov'ts, & our working class communities.\u201d— Buffy Wicks (@Buffy Wicks) 1594346507
Trinity Tran, co-founder of the California Public Banking Alliance and Public Bank LA, praised AB 310 as a necessary step to "mobilize state resources, extend credit to the underserved, and keep California's dollars at home where they are most urgently needed."
"Times of crisis are when change happens--to fuel California's economic recovery, we need a bank designed to stabilize the economy and invest back into our communities," said Tran.
"Times of crisis are when change happens--to fuel California's economic recovery, we need a bank designed to stabilize the economy and invest back into our communities."
--Trinity Tran, California Public Banking Alliance
The creation of public banking options has long been a goal of progressives seeking to limit the power of Wall Street institutions and create a more equitable, less predatory financial system.
On Wednesday, the Unity Task Forces appointed by presumptive Democratic nominee Joe Biden and Sen. Bernie Sanders (I-Vt.) voiced support for "efforts to guarantee affordable, transparent, trustworthy banking services for low-and middle-income families, including bank accounts and real-time payment systems through the Federal Reserve and easily accessible service locations, including postal banking."
Paulina Gonzalez-Brito, executive director of the California Reinvestment Coalition, called AB 310 a "game-changer" in the movement to usher in a more just economic system.
"If California is serious about addressing racial and income inequities," said Gonzalez-Brito, "we must create a banking system that centers people not profits."
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. The final deadline for our crucial Summer Campaign fundraising drive is just days away, and we’re falling short of our must-hit goal. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
In a move advocacy groups celebrated as a "historic challenge to Wall Street domination of municipal finances," a pair of California state lawmakers on Thursday unveiled legislation that would establish the nation's second publicly-owned bank and empower the institution to lend to businesses and local governments fighting to stay afloat amid the Covid-19 pandemic.
The Bank on California Bill (AB 310)--introduced by Democratic Assemblymembers Miguel Santiago of Los Angeles and David Chiu of San Francisco--would transform the state's Infrastructure and Economic Development Bank (IBank) into a public financial institution capable of efficiently distributing desperately needed funding as schools and other crucial social services struggle to cope with the coronavirus crisis and the resulting economic fallout.
"We can structure a bank that actually is accountable to the people and does what the people want it to do."
--Assemblymember Miguel Santiago
The bill comes less than a year after California Gov. Gavin Newsom signed into law the Public Banking Act, a measure also authored by Santiago and Chiu that allowed the state's cities and counties to set up publicly-run banks. North Dakota is currently the only state in the U.S. with a public bank.
"We already have an IBank, and it already has the purpose to help the California economy--let's restructure it into a state bank and take 10% of the money California already holds in its checking account and let's help Main Street," Santiago said during a virtual press conference Thursday.
"We can structure a bank that actually is accountable to the people and does what the people want it to do," Santiago added. "We can help small businesses, we can reimagine what banking looks like and actually invest in affordable housing, we can look at local infrastructure like parks."
Chiu stressed that establishing a state-run bank would dramatically reduce California's reliance on "outside for-profit actors."
\u201cProud to support #AB310\u2014the CA State Public Bank Act\u2014by @SantiagoAD53 & @DavidChiu.\n\nA state bank will help facilitate our economic recovery & put our people first, establishing equity & providing critical tools for small businesses, local gov'ts, & our working class communities.\u201d— Buffy Wicks (@Buffy Wicks) 1594346507
Trinity Tran, co-founder of the California Public Banking Alliance and Public Bank LA, praised AB 310 as a necessary step to "mobilize state resources, extend credit to the underserved, and keep California's dollars at home where they are most urgently needed."
"Times of crisis are when change happens--to fuel California's economic recovery, we need a bank designed to stabilize the economy and invest back into our communities," said Tran.
"Times of crisis are when change happens--to fuel California's economic recovery, we need a bank designed to stabilize the economy and invest back into our communities."
--Trinity Tran, California Public Banking Alliance
The creation of public banking options has long been a goal of progressives seeking to limit the power of Wall Street institutions and create a more equitable, less predatory financial system.
On Wednesday, the Unity Task Forces appointed by presumptive Democratic nominee Joe Biden and Sen. Bernie Sanders (I-Vt.) voiced support for "efforts to guarantee affordable, transparent, trustworthy banking services for low-and middle-income families, including bank accounts and real-time payment systems through the Federal Reserve and easily accessible service locations, including postal banking."
Paulina Gonzalez-Brito, executive director of the California Reinvestment Coalition, called AB 310 a "game-changer" in the movement to usher in a more just economic system.
"If California is serious about addressing racial and income inequities," said Gonzalez-Brito, "we must create a banking system that centers people not profits."
In a move advocacy groups celebrated as a "historic challenge to Wall Street domination of municipal finances," a pair of California state lawmakers on Thursday unveiled legislation that would establish the nation's second publicly-owned bank and empower the institution to lend to businesses and local governments fighting to stay afloat amid the Covid-19 pandemic.
The Bank on California Bill (AB 310)--introduced by Democratic Assemblymembers Miguel Santiago of Los Angeles and David Chiu of San Francisco--would transform the state's Infrastructure and Economic Development Bank (IBank) into a public financial institution capable of efficiently distributing desperately needed funding as schools and other crucial social services struggle to cope with the coronavirus crisis and the resulting economic fallout.
"We can structure a bank that actually is accountable to the people and does what the people want it to do."
--Assemblymember Miguel Santiago
The bill comes less than a year after California Gov. Gavin Newsom signed into law the Public Banking Act, a measure also authored by Santiago and Chiu that allowed the state's cities and counties to set up publicly-run banks. North Dakota is currently the only state in the U.S. with a public bank.
"We already have an IBank, and it already has the purpose to help the California economy--let's restructure it into a state bank and take 10% of the money California already holds in its checking account and let's help Main Street," Santiago said during a virtual press conference Thursday.
"We can structure a bank that actually is accountable to the people and does what the people want it to do," Santiago added. "We can help small businesses, we can reimagine what banking looks like and actually invest in affordable housing, we can look at local infrastructure like parks."
Chiu stressed that establishing a state-run bank would dramatically reduce California's reliance on "outside for-profit actors."
\u201cProud to support #AB310\u2014the CA State Public Bank Act\u2014by @SantiagoAD53 & @DavidChiu.\n\nA state bank will help facilitate our economic recovery & put our people first, establishing equity & providing critical tools for small businesses, local gov'ts, & our working class communities.\u201d— Buffy Wicks (@Buffy Wicks) 1594346507
Trinity Tran, co-founder of the California Public Banking Alliance and Public Bank LA, praised AB 310 as a necessary step to "mobilize state resources, extend credit to the underserved, and keep California's dollars at home where they are most urgently needed."
"Times of crisis are when change happens--to fuel California's economic recovery, we need a bank designed to stabilize the economy and invest back into our communities," said Tran.
"Times of crisis are when change happens--to fuel California's economic recovery, we need a bank designed to stabilize the economy and invest back into our communities."
--Trinity Tran, California Public Banking Alliance
The creation of public banking options has long been a goal of progressives seeking to limit the power of Wall Street institutions and create a more equitable, less predatory financial system.
On Wednesday, the Unity Task Forces appointed by presumptive Democratic nominee Joe Biden and Sen. Bernie Sanders (I-Vt.) voiced support for "efforts to guarantee affordable, transparent, trustworthy banking services for low-and middle-income families, including bank accounts and real-time payment systems through the Federal Reserve and easily accessible service locations, including postal banking."
Paulina Gonzalez-Brito, executive director of the California Reinvestment Coalition, called AB 310 a "game-changer" in the movement to usher in a more just economic system.
"If California is serious about addressing racial and income inequities," said Gonzalez-Brito, "we must create a banking system that centers people not profits."