Council amends Link Banking findings and directs oversight board to review US Bancorp community reinvestment
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Summary
The council adopted an amendment instructing the Link Banking Community Oversight Board to review US Bancorp's community reinvestment activity and report back with recommendations on whether the bank should be permitted to compete for city contracts; the amended motion pauses removal of prior restrictions until oversight review is complete.
The Los Angeles City Council approved a substitute recommendation directing the newly constituted Link Banking Community Oversight Board to review U.S. Bancorp's community reinvestment and report to the Council Economic Development (CED) committee after its first meeting. The council deleted a prior recommendation that would have removed restrictions on the bank before the oversight board completed its review.
Council member Gloria Goldberg explained that U.S. Bancorp had acquired local banks and that committee review found investment levels had fallen after mergers. The CED committee had directed the bank to negotiate and make changes; the amendment requires the oversight board to submit recommendations on future contractual relationships with U.S. Bancorp following the board's April 11 meeting.
Why it matters: The Link Banking ordinance restricts city contracting with financial institutions that fail to meet community-reinvestment expectations; the council's action preserves leverage while ensuring the oversight board completes its review.
What happens next: The Link Banking oversight board will review the bank's commitments and practices and report to the CED committee; CED will consider the board's recommendations before the council acts on lifting or retaining any restrictions.