Should Bank of America Share the Blame for California’s EDD Payment Scandal?

Graph showing California unemployment numbers from CalMatters

There’s been widespread reporting on the thousands of fraudulent unemployment claims filed with California’s Employment Development Department (EDD).  Less has been written about Bank of America’s (BofA) role in the scandal.  For years the State has contracted with BofA to handle payments via debit cards.  Now questions are being asked about whether the bank failed to implement adequate security measures. 

Unemployed Californians with legitimate claims are facing severe hardships because they haven’t been able to access unemployment payments.  In this story CalMatters asks what went wrong, and why wasn’t fraud detected sooner.

How Bank of America Helped Fuel California’s Unemployment Meltdown

Happy New Year?

Artists painting murals during the protests in Hollywood this year.

Seems like everyone agrees that 2020 was the year from hell. We had a deadly pandemic spreading like wildifre across the globe. In the US we had the incredibly weird and stressful presidential election.

And here in LA? Where do I start?

While the homeless population has been growing for years, the number of people experiencing homelessness in LA County shot up by 12% in 2020. The City of LA saw an even larger increase of 16%. There were months of protests in the streets against police violence. Though not many people seem to have noticed, it’s been an unusually dry year, which should be cause for alarm since our water resources are continuing to decline.

And then there were the numerous indictments filed by the Department of Justice against current and former LA City officials. The charges included bribery, extortion and money laundering. I count five guilty pleas so far, but it’s hard to keep track. Then there are former Councilmember Jose Huizar and former Deputy Mayor Ray Chan who claim innocence. They’ll go on trial later this year. The saddest aspect of all this is that these prosecutions come as no surprise to thousands of Angelenos who have been following local politics. The acts described in the indictments sound like business as usual at City Hall. And don’t get me started on what’s been happening at the City Attorney’s office under Mike Feuer.

All of us are hoping that 2021 will be better than 2020, and really that’s setting the bar pretty low. Yeah, it would be great if Covid-19 went away and we could get back to some kind of normal. But other than that, how much will change? Most of the problems I listed above have been with us a long time in one form or another. Will the new leadership in Washington bring about a new era of peace and equality? Don’t bet on it. Will our elected officials finally agree on a way to successfully address homelessness? Nothing they’ve done so far inspires much confidence. Will LA City Hall become more transparent, open and honest? Don’t make me laugh.

But in spite of my extreme cynicism, I’m not giving up, and neither should you. This year we’ve seen legions of healthcare workers and others make huge sacrifices to care for people infected with Covid-19. In LA we saw tens of thousands of people take to the streets to protest injustice. And even if the culture at LA City Hall is hopelessly corrupt, there are numerous community groups working hard to address homelessness, hunger and poverty.

LA will never be perfect, but it could be a lot better. We can make it better. We can give our time as volunteers. We can give our money to non-profits with a proven track record of helping people. Even just staying informed and staying engaged can make a difference. If you’re not registered to vote, then get registered. And then next time we have an election, take the time to vote. Find a news source you trust, and then subscribe to it, because supporting journalism, especially local journalism, is crucial.

The new year will not be any better than the old year unless we make it better. We can’t just sit back passively and hope everything will turn out all right. We have to get involved and stay involved.