Business & Economy

LA adopts new rules for banks wanting to hold the city's money

A sign is posted in front of a Wells Fargo bank on October 11, 2013 in Oakland, California.
A sign is posted in front of a Wells Fargo bank on October 11, 2013 in Oakland, California.
Justin Sullivan/Getty Images

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On Monday, Los Angeles Mayor Eric Garcetti signed off on new rules for banks that want to hold the city's money. 

The new requirements come in the wake of scandals involving Wells Fargo, which currently handles most of the city's deposits. After Wells Fargo was caught opening millions of accounts without consent from consumers, in part due to aggressive employee sales goals, Los Angeles officials began looking for another bank.

Now, in order to get the city's business, banks will have to disclose information about their sales goals and whether those goals are tied to employee pay. They'll also have to adopt whistleblower protections and disclose any pending government investigations.