FDIC Federal Register Citations

I am opposed to the FDIC's proposal to allow banks with assets above $250 million to be examined as small banks under the Community Reinvestment Act. This change could be a huge setback for many neighborhoods that are already at an economic disadvantage. The community development corporations (CDCs) working to rebuild low-income urban neighborhoods after many years of disinvestment are often financed by institutions seeking CRA credits. Bank mergers and acquisitions are already diminishing the financial sector support available for community development. If these medium-size banks no longer have an obligation to invest in "high-risk" areas, the vital task of neighborhood redevelopment may be seriously hindered in some cities, if not halted altogether. This would not only have a negative impact on the health of the country's cities, but also the families that must continue to endure the dilapidated ho! using, disappearing jobs and substandard public schools associated with redlining by lending institutions.

Sharon Bancroft
Richmond, Virginia