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Response to nolens volens (Reply #4)

Thu Dec 6, 2018, 02:07 PM

6. I don't believe there is any practical way to avenge the sins of the past. Banks now have to comply

...with the Community Reinvestment Act (CRA) which requires banks to actively work to ensure that the credit needs of low and moderate income communities are met. A medium-sized bank typically has several full-time people doing nothing but CRA compliance work, which includes documenting and publishing how the bank complies, plus every bank employee has to get annual CRA training regardless of their job function.

The regulators (e.g. Office of the Comptroller of the Currency) plus internal and external auditors spend a lot of bandwidth scrutinizing lending policies, procedures, and CRA compliance. A bank can be shut down very quickly for repeated violations.

CRA compliance compels financial institutions to provide services to communities that they would likely stay out of, if they had a choice, and it is not without controversy. Some people put some of the blame for the 2008 financial crisis on actions that banks took to ensure CRA compliance.

https://www.investopedia.com/terms/c/community_reinvestment_act.asp

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Dumper Dec 2018 OP
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nolens volens Dec 2018 #4
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