via email:
SF Board of Supervisors Passes Reinvest in San Francisco
Supes Vote 10-0 for a SF Public Bank!
The San Francisco Board of Supervisors took a giant step for public banking June 15 by voting 10-0, a veto-proof majority, to pass the Reinvest in San Francisco Ordinance, legislation introduced by Supervisor Dean Preston to rebuild the COVID-devastated economy with a public bank.
Reinvest In San Francisco builds on years of work by the San Francisco Public Bank Coalition, former Supervisors John Avalos, Malia Cohen and Sandra Lee Fewer, and many others who see the need for a municipal bank to counter the concentrated power of Wall Street banks. This legislation will result in San Francisco redirecting a portion of the city funds from “too big to fail” banks into the hands of community banks, credit unions and Community Development Financial Institutions (CDFIs) that invest to benefit SF communities.
The Process for Starting the Public Bank
Reinvest in SF sets up a Working Group which will develop the plan for establishing our bank. Last year, an extensive report by the Budget and Legislative Analyst on a Municipal Bank for San Francisco recommended a phased-in transformation of City banking by beginning with a non-depository municipal financial corporation (MFC). Lending by the MFC will finance loans for small businesses, affordable housing and sustainable infrastructure enabling a smooth transition into a public bank. The Working Group will produce a business plan for the Board of Supervisors that will be sent to State regulators for approval.
Once chartered, under the rules of The Public Bank Act (AB857) signed into law last year, SF will have its own municipal public bank. As a depository bank, it will be able to leverage its capital multiple times in loans, greatly expanding its lending capabilities.