| WASHINGTON,
D.C. – U.S. Representative Jan Schakowsky (D-IL) today said that she would
continue to oppose all efforts to weaken the Community Reinvestment Act
(CRA). During a Financial Services Committee mark up of the Financial
Services Regulatory Relief Act, Schakowsky introduced an amendment that
would maintain current law that gives consumers fifteen days to seek a
judicial review of an approved merger between financial institutions, including
the impact on CRA. That amendment failed by three votes in
Committee. However, Schakowsky vowed to reintroduce it during debate
on the bill by the full House.
“During
bank mergers regulatory agencies consider a bank’s CRA performance and
fair lending practices. Banks who receive favorable CRA ratings have an
easier time gaining regulator approval of mergers. A weakening
of CRA will adversely effect low and moderate-income consumers,” Schakowsky
said.
She
added, “My amendment would maintain legal rights for those that are concerned
about the impact of a proposed bank merger. Under current law, consumers
and other concerned parties have a fifteen-day window to seek judicial
review of mergers that have been approved by federal regulators. Through
these proceedings, courts are able to consider the mergers potential impact
on consumers. There have been several cases when the courts have decided
that federal regulators did not adequately consider the impact on consumers.”
Schakowsky
is supported in her efforts by the National Community Reinvestment Coalition,
including 700 member organizations. Financial Institutions have committed
almost $400 billion to low and moderate income communities since enactment
of the CRA in 1977. |
