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Federal Register Publications

FDIC Federal Register Citations



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FDIC Federal Register Citations

From: Judith Turnock [mailto:JTurnock@liscnet.org]
Sent: Thursday, September 16, 2004 3:19 PM
To: Comments
Subject: Community Reinvestment -- RIN 3064-AC50

I'm writing to oppose the FDIC's proposal to allow banks with assets between $250 million and $1 billion to be included with small banks for purposes of the Community Reinvestment Act's exam requirements. Since only 6% of FDIC-regulated banks exceed the $1 billion mark and are thus subject to full exams of lending, investments and services, affordable housing across the nation will suffer immediately and far into the future.

Working with the Center for Community Change in Washington in 1977, I was on the team of original drafters of CRA (although not the later act with the enforcement provisions). Later (in 1987) I founded a community development corporation in the South Bronx. CRA was a truly grassroots strategy — and quite a brilliant one — for reversing the bank, insurance and appraiser practices of redlining, practices born largely out of ignorance and fear rather than solid economics. It has changed the face of America — allowing for the reclamation of vast areas of formerly dilapidated and/or abandoned areas — and the quality of life for millions of American families. It is an example of democracy at its best.

Over the years I have worked with many bankers. They all honestly and openly — without any prompting — state that CRA is the only reason their banks are involved in community development. It is not hard to predict their response to exemption from the FDIC's full exam provisions: the investments will stop. Some states will have NO banks subject to the full exams and therefore will be without investment in their low and moderate income communities. Because the Office of Thrift Supervision already has such a rule, it is also not hard to predict that every other agency regulating financial institutions will follow suit.

This FDIC proposal would immediately and permanently reduce lending, investments and services in low- and moderate-income communities. That result is not in America's short term or long term interest. We need to continue as we always have, building an even greater middle class by improving the quality of life for the greatest number of people. That is what has made America stable and will keep it stable, the role model for the rest of the world. This proposal is a step in the wrong direction, immediately for low-and moderate-income communities but ultimately for all of America.

Judith L. Turnock
New York, NY

Last Updated 09/28/2004 regs@fdic.gov

Last Updated: August 4, 2024