Los Angeles demands more accountability from its banks

Last month , LA took on predatory and high-pressure sales goals at major banks by tightening its responsible banking ordinance. Now, if a bank wants the city’s $17 million taxpayer-funded contracts, it must be transparent about sales goal tactics and employee compensation, and it can’t retaliate against whistleblowers who report suspected illegal bank activity. Bank reform advocates say high-pressure sales goals led to the Wells Fargo fake accounts scandal of 2016. Advocates pushing for the new language say the bank’s aggressive sales quotas hurt lower income people of color in Los Angeles. The banking industry opposes the new language in the ordinance, saying sales goals are competitive and they shouldn’t have to disclose them.

 

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