From: Sharon Bancroft [mailto:SBancroft@liscnet.org]
Sent: Thursday, September 16, 2004 4:16 PM
To: Comments
Subject: Community Reinvestment -- RIN 3064-AC50
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.
