FDIC Federal Register Citations

From: higley@wiscub.org [mailto:higley@wiscub.org]
Sent: Wednesday, October 20, 2004 8:42 AM
To: Comments
Subject: RIN 3064-AC50

Re: Preserving the Community Reinvestment Act
Mr. Robert E. Feldman
Executive Secretary
Attention: Comments/Legal ESS
Federal Deposit Insurance Corporation
550 17th Street NW
Washington, DC 20429
Dear Mr. Feldman:
Just today I read an article by Ralph Nader criticizing the FDIC and other bank regulators for considering relaxing the standards for complying with the Community Reinvestment Act. Nader accuses the FDIC and other bank regulators of coddling the banks they regulate--you literally look for ways to keep the banks happy instead of doing your job, which is to protect the public interest. As a socially responsible investor, I am aware of the vital role played by CDFIs in revitalizing communities through affordable housing and small business startups. The Community Reinvestment Act has provided banks with an important incentive to work with CDFIs and provide vitally needed capital to struggling communities.
I urge you to withdraw the FDIC’s rule proposal that would allow midsize banks to pursue only one of the three important community development activities they are now required to undertake: lending, investment, and services. I believe that this misguided rule would mean a devastating reduction in support for the essential work of CDFIs, resulting in fewer jobs, fewer affordable homes, and fewer community services.
Yours Sincerely,
Charles Higley