Los Angeles elected officials have been assiduously wooing the Occupy movement, which inspired protesters furious at Wall Street to take over the grassy area around City Hall downtown — and public spaces in cities across the nation.

Mayor Antonio Villaraigosa gave 100 ponchos to soggy demonstrators during the last big rain. Council President Eric Garcetti told campers in the tent community to “stay as long as you need to.” And officials have quietly allowed the urban camp-out to continue, despite a law prohibiting overnight stays at city parks.

But council members who cheered on Occupy Los Angeles’ larger themes are growing skittish about one of the demonstrators’ main demands: cracking down on wrongdoing by banks.

Last week, lawmakers asked city analysts to continue developing a plan to use the city’s financial heft to punish misbehaving financial institutions. On Tuesday, City Administrative Officer Miguel Santana issued a dire warning: Such a move could cost the city at least $58 million.

Severing agreements with major lenders could trigger sizable termination fees and lead to higher interest rates, Santana said. That could in turn complicate financing for an array of city initiatives, from replacing deteriorating sewers to rebuilding part of the Convention Center to make way for an NFL football stadium, he said.