As if Bank of America doesn't have enough problems, what with multimillion-dollar losses in uncollected loans and a recent hostile takeover attempt, it also has conceded defeat in a battle with the City of Glendale.
The bank last October quietly challenged the legality of a $2,000 special assessment levied against its Montrose branch by the city. Assessments against all merchants in Montrose were increased last year by the City Council in order to raise additional funds for promotions and other improvements to boost the area's stagnant economy.
Fees for most merchants jumped about 35%; the highest increase was imposed on banks, which had previously paid only $15 a year.
Bank of America, Security Pacific, Glendale Federal and American Savings all protested, claiming that the fee violates the California Constitution and the state Revenue and Tax Code, which exempt financial institutions from paying municipal business and license taxes.