LA urged to consider ending ties with JP Morgan
LOS ANGELES (AP) -- A Los Angeles councilman wants the city to consider severing millions of dollars of business and investments with troubled JP Morgan Chase & Co.
A motion introduced Wednesday by Democrat Gil Cedillo seeks a review of city ties to the bank, as well as an analysis of legal options to end those contracts.
It's expected to take at least several weeks before the City Council considers the proposal.
JPMorgan was among major banks that sold securities that plunged in value when the housing market collapsed in 2006 and 2007. Those losses triggered a financial crisis that pushed the economy into the worst recession since the 1930s.
In November the bank agreed to pay $13 billion over risky mortgage securities it sold before the financial crisis.