Washington, DC – Today, in response to the Office of the Comptroller of the Currency’s (OCC) conditional approval of the merger between OneWest Bank and CIT Bank, the National Community Reinvestment Coalition’s (NCRC) President and CEO John Taylor made the following statement:
“It is a positive sign that the regulator held public hearings on this merger and is now imposing conditions on the approval, in particular on Community Reinvestment Act (CRA) responsibilities. These conditions, which are the most extensive we’ve seen, point to positive signs that regulators are carefully appraising merger evaluations. They have clearly taken seriously the concerns of the public regarding the community reinvestment activities and operational practices of the bank.”
“But the devil is in the details: much will hinge upon the quality of the CRA plan OneWest-CIT submits, and the level of scrutiny regulators bring to the plan. While they have agreed to ‘informal’ consultations with members of the community when drafting the plan, OneWest-CIT should regularly meet with those that have raised the concerns, and make sure their CRA plan addresses those concerns. They should also release annual progress reports on the development of the CRA plan rather than revealing it at the eleventh hour three years from now. Allowing public comment on the business plan would also improve transparency. The larger a financial institution is, the larger its responsibility, and communities must have the opportunity to ensure that the scope of the CRA and business plans match the size of the bank this merger will create.”
On February 26, 2015, NCRC joined CRC and other community groups to testify in Los Angeles before the Federal Reserve Board in protest of the proposed OneWest-CIT merger.
###
About the National Community Reinvestment Coalition (NCRC):
The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America’s working families.
