FDIC Federal Register Citations

From: ebkane@mindspring.com [mailto:ebkane@mindspring.com]
Sent: Wednesday, October 20, 2004 3:35 PM
To: Comments
Subject: Save the Community Reinvestment Act

Dear FDIC,

Mr. Feldman:

I am a concerned citizen who opposes your rule proposal that would ease Community Reinvestment Act (CRA) requirements for 74% of the banks in my state. CRA is vital for increasing homeownership, promoting minority business ownership, meeting the community development needs of struggling communities and support the capital requirements of nonprofits. I have seen firsthand the positive results that CRA helps create since the affordable housing in my neighborhood would not have been possible without this requirement for banks to help the communities in which they do business.

I am very concerned that the proposed Federal Deposit Insurance Corporation (FDIC) rule would be harmful to the community in which I live and hundreds of town, cities and rural areas across the United States.

In the new watered-down process for mid-size banks, FDIC would allow these financial institutions to pick and choose which community development activities they will undertake. Right now, these banks must make community development loans, investments, and services. I think it is important for banks to serve their communities in all three ways. Your proposed test allows banks to choose only one of the three activities. The result will be less community development activity were I live. That will mean fewer jobs, fewer homes and fewer community services.

As I understand it, the Community Reinvestment Act was made law to require lenders to meet community needs. Your rule proposal flies directly in the face of this requirement. It would harm my community, the quality of my life and tens of thousands of Americans like me. Your proposal represents a setback in anti-poverty efforts here in the U.S. I urge you in the strongest possible terms to drop this hurtful rule proposal.

Sincerely,
Elyssa Kane
23 Simpson Road
Ardmore, PA 19003