Associated Press, January 29, 2020: Crucial Bank Law Softened Under Trump Proposal
The Trump Administration is proposing changes to a decades-old law designed to keep banks from discriminating against the poor and disadvantaged, but critics argue the changes could make it easier for banks to potentially ignore the under-served, particularly communities of color.
The Trump proposal aims to broaden the definition of what constitutes a bank’s community — taking into account that online banking now exists — while broadening the types of loans and services that would qualify under CRA.
The regulations would also give banks credit, under certain circumstances, for loans they make to build or improve facilities such as sports stadiums and hospitals.
“We all agree there needed to be a list. The problem is what the (Office of the Comptroller of the Currency) has put on that list,” said Jesse Van Tol, CEO of the National Community Reinvestment Coalition, an umbrella group for dozens of community groups trying to get banks to do more work in low-income neighborhoods.
Otting took heat from congressional Democrats during a scheduled appearance before the House Financial Services Committee. A significant number of the senior Democrats on the committee are Black, including Chairwoman Maxine Waters, and consider CRA to be a critical tool to help Black and minority communities.
