The Los Angeles City Council’s Budget and Finance Committee tabled action until Jan. 23 on a responsible banking ordinance until it can work out additional details.
The proposed ordinance discussed in committee Monday would rank banks based on community investment and how they handle foreclosures.
Originally introduced in 2009, the ordinance gained momentum in October when financial reform activists at Occupy Los Angeles supported the measure.
Councilman Richard Alarcon submitted a letter to committee members suggesting that a working group be created that would be comprised of three community advocates, three banking industry representatives and three community reinvestment experts.
Panel members would be appointed by Alarcon, city administrative officer Miguel Santana and Council President Herb Wesson.
At the Jan. 23 meeting, committee members will decide whether the ordinance should be informational or a scorecard of banks.
They will also decide if it should apply to all financial institutions or just to retail banks.
Councilman Bernard Parks, who represents South Los Angeles and chairs the committee, raised concerns when the issue reemerged about using the same rating system to rate retail banks and investment banks, which don’t handle home mortgages.