Axios, January 28, 2020: Tug-of-war over how banks should give back to poor communities
Why it matters:Â A lot of money is at stake, and neighborhoods across the country could suffer or prosper depending on how (or if) the regulations are changed.
Driving the news: A showdown over the Community Reinvestment Act (CRA) will take place Wednesday in a hearing hosted by the House Financial Services Committee. It’s led by Maxine Waters (D-Calif.), who opposes the overhaul.
On the hot seat will be the banking regulator who proposed the changes — Joseph Otting, the Trump-appointed head of the Office of the Comptroller of the Currency.
The big picture: Nearly everyone agrees that CRA needs updating. What’s dividing lawmakers, bank regulators and community groups is whether Otting’s proposals — which the OCC says will “clarify and expand the type of activities that qualify for CRA credit” — will funnel more or less money into projects that benefit poor communities.
