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Date: Fri, 07 Nov 1997 12:40:06 -0500
To: Fran Fowler <urb03@msu.edu>, cd4urban@u.washington.edu,
civic-values@civic.net, commactionlist@listserv.acf.dhhs.gov,
comm-org@uac.rdp.utoledo.edu, cuacedp@msu.edu,
devfinance@lists.acs.ohio-state.edu, econ-dev@lists.csn.net,
EMPOWER@listserv.uic.edu, MICROENTERPRISE@LISTSERV.AOL.COM,
rdgrad@msu.edu, rdugrad@msu.edu, rdfac@msu.edu, urp@pilot.msu.edu,
ecojustice@aol.com
From: "Maryellen J. Lewis" <lewisma9@pilot.msu.edu>
Subject: more on U.S. "bank modernization" & the poor
X-Info: comm-org
--FORWARDED MESSAGE--
~~~~~~~~~~~~~~~~~~~~~~
>FYI - the Legislative Alert below is being used to organize Illinois
>community groups to act on financial legislation "reform".
>
>**************LEGISLATIVE ALERT***************
>
>November 6, 1997
>
>COMMUNITY REINVESTMENT ACT IN DANGER:
>IMMEDIATE ACTION NEEDED
>
>This brief letter is an appeal for immediate action. The Financial Services Act of 1997 (or H.R. 10) is a bill which drastically changes the financial services industry. The new law will allow banks to merge with other financial companies, like insurance or mortgage companies, and possibly commercial entities as well. >
>Unfortunately, the new bill severely weakens important safeguards provided by the Community Reinvestment Act (CRA). Over the past 20 years, CRA has been responsible for $213 billion of reinvestment in low- and moderate-income communities. As it exists today, CRA applies only to federally regulated financial institutions. By allowing banks to merge with other financial and commercial business without extending CRA to those institutions, the new legislation gives banks a large loophole through which they can avoid reinvesting in low- and moderate-income communities. >
>Please call, fax or email President Clinton, your Illinois representative, and Robert Rubin, Secretary of the Treasury today and let them know you support the following safeguards: (feel free to cut and paste these points into your own fax or email!) > >--Financial modernization legislation must not undermine the Community Reinvestment Act! >
>--Oppose the "safe harbor" provision which allows banks with CRA ratings of Satisfactory or Outstanding to avoid the application process (including public comment periods) when purchasing non-bank financial institutions. The application period is the most effective time for community groups to challenge a bank's reinvestment record. >
>--Extend CRA to all financial companies that affiliate with banks: mortgage companies, credit unions, securities firms, insurance companies, etc. As more financial assets are held by non-regulated financial institutions a smaller percent of resources are subject the to community reinvestment mandate. >
>--Prohibit banks with below satisfactory ratings on CRA exams to merge with other financial institutions until they can improve their community reinvestment performance. The new law allows banks with below satisfactory CRA ratings to merge with other financial companies. As only 3 percent of banks currently have below satisfactory ratings, this measure would insure that only banks with the very worst CRA record are affected. >
>Please feel free to call the Woodstock Institute, (312) 427-8070, if you have any questions and to let us know who you call so we can track our progress. >
>Thank you for your support in this critical time of bank structure change. We must seize the opportunity to protect and strengthen opportunities for community reinvestment. >
>Numbers to call:
>
-- President Bill Clinton T (202) 456-1414 F (202) 456-2883, email
<president@whitehouse.gov>
-- Secretary Robert Rubin, Office of the Treasury T (202) 622-5300 F (202)
622-0073
>-- Illinois representatives:
>
>Rod Blagojevich (D-5) T (202) 225-4061 F (202) 225-5063
>Jerry Costello (D-12) T (202) 225-5661 email jfcil12@hr.house.gov
>Philip Crane (R-8) T (202) 225-3711
>Danny Davis (D-7) T (202) 225-5006 F (202) 225-5641
>Lane Evans (D-17) T (202) 225-5905
>Thomas Ewing (R-15) T (202) 225-2371
>Harris Fawell (R-13) T (202) 225-3515 email hfawell@hr.house.gov
>Luis Gutierrez (D-4) T (202) 225-8203 email luisg@hr.house.gov
>Dennis Hastert (R-14) T (202) 225-2976 email dhastert@hr.house.gov
>Henry Hyde (R-6) T (202) 225-4561
>Jesse Jackson, Jr. (D-2) T (202) 225-0773
>Ray LaHood (R-18) T (202) 225-6201 F (202) 225-9249 email
>lahood18@hr.house.gov
>William Lipinski (D-3) T (202) 225-5701 F (202) 225-1012
>Donald Manzullo (R-16) T (202) 225-5676
>John Porter (R-10) T (202) 225-4835
>Glenn Poshard (D-19) T (202) 225-5201
>Bobby Rush (D-1) T (202) 225-4372 F (202) 226-0333 email
>brush@hr.house.gov
>John Shimkus (R-20) T (202) 225-5271
>Jerry Weller (R-11) T (202) 225-3635 email jweller@hr.house.gov
>Sidney Yates (D-9) T (202)225-2111
>
>
>-----------------------------------
>Woodstock Institute
>407 S. Dearborn St, Chicago, IL 60605
>(312) 427-8070 Fax 427-4007
>woodstck@wwa.com
>http://www.nonprofit.net/woodstock