The Los Angeles Public Bank will be governed by a board of qualified directors chosen for their reputation, financial knowledge, and commitment to the bank’s mission and financial stability. Unlike private banks, where board members are typically the largest investors and are often paid millions of dollars for their time, the public bank will be owned by the public, so elected representatives will play a role in selecting a board of qualified individuals with reasonable compensation who will be subject to higher levels of accountability and transparency in their management decisions.
The governance of the public bank will be informed by input from various stakeholders during the creation of the business plan and will be guided by the following principles:
– The bank will be run by an independent board of governors comprising community residents and experts in public finance, banking, affordable housing, and climate change mitigation.
– It will be strictly regulated by the state of California and the FDIC and will be required to safeguard and grow municipal assets.
– It will be accountable to policies requiring it to act in the best interests of the region and its people, rather than individual shareholders or executives.
Within these guidelines, it will be up to elected representatives, banking experts, and the community to provide input on the governance structure that will best promote financial stability and meet the needs of the bank’s local area while upholding the bank’s mandate for social and environmental responsibility.