Los Angeles City Councilman
Cedillo introduced a motion last week asking city staff to determine how much business the city pension funds and various departments have with JPMorgan Chase — one of many banks under scrutiny for the toxic mortgage schemes that triggered the recent recession — and the time frame and procedures needed to sever ties with it.
In a statement, Cedillo declared, "Someone must hold them accountable." But someone already has. The
Is that punishment enough? Maybe. Maybe not. But what can the
Several years ago, then-Councilman Richard Alarcon proposed removing city deposits and pension fund investments from banks that weren't making enough loan modifications or other fixes to prevent foreclosures. He was backed by the Occupy L.A. activists camping outside City Hall. But City Administrative Officer Miguel Santana warned that severing ties with those banks would cost the city at least $58 million in termination fees and higher interest payments. Ultimately, the city scaled back the proposal, enacting a requirement that banks disclose information on local loans and foreclosure activity when they bid for city business.
Another question: Why single out JPMorgan Chase? The city attorney has sued