Davis Polk partner Margaret Tahyar was quoted in Daily Journal discussing the proposal from San Francsico to become the first city in California to open a public bank, six years after a California law went into effect to allow cities to authorize such financial institutions. 

Margaret noted that this would be the first time the FDIC would evaluate whether to approve a public bank, assuming supervisors place the measure on the ballot, voters approve it, and the financial institution survives any legal challenges.

“The FDIC will look for a robust three-year business plan, high levels of capital, experienced and qualified management and strong risk management,” she said. “In particular, the FDIC would want to be sure that there was not unusual risk to the deposit insurance fund which implies strong credit underwriting standards.”

“San Francisco takes another shot at public banking,” Daily Journal (May 22, 2026) (subscription required)

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