Los Angeles Seeks Changes at Banks After Wells Fargo Scandal

Los Angeles Councilman Paul Koretz is introducing legislation that would require banks working with the second-largest U.S. city to adhere to responsible practices such as barring sales goals, which have been criticized for leading to the bogus account scandal at Wells Fargo & Co.

In the motion Tuesday, the city would add such consumer protections to its requirements when it solicits proposals from financial institutions for banking services.

The measure, which the council and mayor must approve, doesn’t go as far as other places, such as in Illinois and California, by suspending Wells Fargo from working with the city. But it characterizes the bank’s sales targets as harmful to the community as the firm seeks to repair its battered reputation.

Read more at Bloomberg News.