Berkeley Approves Tax Funds for Public Bank Aimed at Local Investment
What happened
The Berkeley City Council approved tax funds for a proposed public bank, Measure Z, which is funded by a new parcel tax. This public bank aims to create long-term investments in affordable housing, green energy, and small businesses within the community. The bank is also seeking insurance from the Federal Deposit Insurance Corporation to serve the broader East Bay area.
From theepochtimes.com
Why it matters
The measure proposes recirculating public money locally to fund community projects, contrasting with corporate banks that invest outside the community. However, opponents worry that concentrating the initial capitalization burden on Berkeley while allowing the bank to serve the East Bay creates a 'free-rider incentive structure'.
From theepochtimes.com
Who's involved
- city councilThe legislative body that approved the new parcel tax funds for the bank.
- BerkeleyThe city where the public bank is being established and funded by the parcel tax.
- Federal Deposit Insurance CorporationThe government agency the proposed bank is seeking deposit insurance from.
- bankThe financial institution proposing to serve the broader East Bay area.
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The entities involved
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Berkeley
city in Alameda County, California, United States
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city council
legislative body that governs a city, municipality or local government area
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Federal Deposit Insurance Corporation
US government agency providing deposit insurance
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