American Banker: Credit unions’ tax-subsidized bank purchases harm consumers

American Banker, April 8, 2022, Credit unions’ tax-subsidized bank purchases harm consumers

While credit union lobbyists plead innocence due to branch closures—most of which, by the way, are occurring at the largest banks—credit unions are in fact exacerbating consolidation among locally based community banks. The ugly truth is that this phenomenon involves larger credit unions using their tax subsidy to make inflated purchase offers of smaller, healthy institutions.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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