New America Foundation Commends Mayor Villaraigosa on Launch of "Bank on LA" Program

Los Angeles, CA - Today, Mayor Villaraigosa announced he would launch "Bank on LA," an initiative to help working Angelenos without bank accounts open starter accounts and take their first step into the financial mainstream.

"We applaud Mayor Villaraigosa for recognizing that un-banked Angelenos are stripped of their hard earned money by alternative financial outlets that charge exorbitant fees for something as simple as cashing their pay checks," said Olivia Calderon, California Legislative Director of the Asset Building Program at the New America Foundation. "Helping more Angelenos open a bank account is a good first step, but there's plenty of work ahead.  We look forward to continuing to collaborate with the Mayor and statewide elected officials so that all Californians have an opportunity to climb the economic ladder."

Far too many Californians are disconnected from the financial mainstream.  Currently, over 12 percent of California households are without a simple checking or savings account.  Without one, it is harder to save and build credit - the exact financial tools needed to climb the economic ladder.  

"People who use check cashing outlets, instead of banks or credit unions, can spend $800.00 a year on check cashing fees," said Barbara Jones, Senior Attorney at the AARP Foundation.  "Research shows that low-income older people and minorities are frequently targeted to pay exorbitant check cashing fees.  Now, more than ever, it is important for consumers to have access to mainstream credit."

Bank on LA and its partners are part of a larger statewide and national movement to ensure all Americans have opportunities to build savings and wealth. The New America Foundation has played a pivotal role in this movement, by advancing innovative polices to create lifelong savings accounts at birth, help California workers save for retirement through payroll deduction, and mobilize a cadre of financial volunteers to provide financial coaching to low-income households.

The following New America Foundation experts are available to discuss what individuals, the government and employers can do to help Californians save:
•    Olivia Calderon California Legislative Director, Asset Building Program
•    Anne Stuhldreher Fellow, Asset Building Program

For interviews please contact:

Liz Wu
510-295-9859 (m)
wu@newamerica.net


About New America
The New America Foundation is an independent, nonprofit, nonpartisan public policy institute whose purpose is to bring exceptionally promising new ideas and new voices to the fore of our nation's public discourse. New America is headquartered in Washington, D.C. and has offices in California.

Learn More About: Anne Stuhldreher, Olivia Calderon
Related Programs: New America in California, Asset Building Program, California Asset Building
Topics: Ownership & Assets