The city of Los Angeles is putting banks it does business with on the spot. The unanimous directive coming from the city council is that banks need to help Los Angeles slow the pace of foreclosures ravaging its neighborhoods and battle a local unemployment rate that far exceeds the national average. If the banks don't comply, they risk getting replaced by banks that do. The price for getting tossed: Lost access to nearly $30 billion in city savings and pension funds.(source: associated press) Is right for the City of Los Angeles to get involved in this matter? Last time they have done it they had asked the banks to give loans to home owners with no money down and without sufficient income. So they had contributed to the housing bubble. So the question is: Should government get involved in this matter?