How Chicago Aldermen Want to Control Investment Decisions of Banks Operating In Chicago. Aldermen want city deposits used to leverage investment in Chicago neighborhoods.

The Chicago Sun-Times reports:

Eight aldermen on Wednesday joined forces with National Black Wall Street, a group dedicated to promoting black businesses and their access to capital, to demand City Council approval of a plan to use up to $1 billion in city assets as leverage to spur investment in Chicago neighborhoods.

The so-called Municipal Depository Ordinance would require the list of banks authorized to hold city deposits to file periodic reports on their investments in surrounding Chicago neighborhoods.

Those that fall short on the community investment front could lose city deposits that range from $500 million to $1 billion on any given day.

The ordinance was introduced in June but is still languishing in the City Council’s Finance Committee.

Finance Committee Chairman Edward Burke (14th) has a lucrative law practice specializing in property tax appeals that represents several major banks that either would like to avoid the reporting requirements or stand to lose city deposits at the expense of neighborhood banks, if the ordinance was approved.

According to his 2014 aldermanic ethics statement, Burke’s banking clients include Bank of America, BMO Harris Bank, Fifth Third Bank, Cole Taylor Bank, Northern Trust, JP Morgan Chase Bank, U.S. Bank and Seaway Bank & Trust.

Ald. Scott Waguespack (32nd) said he has no idea whether Burke’s roster of banking clients has anything to do with the fact that the municipal depository ordinance is still bottled up in committee.

Earlier today we wrote about the man "quietly" running Chicago behind the scenes.