February 13, 2003
Mr. Robert E. Feldman
Executive Secretary
Attention: Comments/ES
Federal Deposit Insurance Corporation
550 17th St., NW
Washington, DC 20429
Re: Proposed Rule Part 303
Dear Mr. Feldman:
I am writing to express concerns with the FDCI's proposal to waive
regulatory procedures on a case-by-case basis that are not required by
statute. Woodstock Institute, founded in 1973, is a
nationally-recognized resource on the credit and capital needs of
low-income and minority communities. The Institute engages in applied
research, policy development, and technical assistance to promote
community economic development.
If the FDIC waived regulations not required by statute, I believe
that it is likely that the agency will waive public comment, public
notice requirements, and other vital parts of the merger application
process. Consequently, the public's input into mergers that affect
access to credit and capital for minority and low- and
moderate-communities will be cut-off. In other words, the public would
have no recourse to a federal agency when a merger affects the wellbeing
of their community. Public comments have motivated banks and federal
agencies to address weaknesses in lender community reinvestment and fair
lending performance. Therefore, eliminating public comment eliminates
the chance to increase bank lending and investing after mergers.
In order for a regulatory process to be fair to all parties, the
federal agency cannot waive a process for some banks and not others.
Waivers on a case-by-case basis are arbitrary and result in uneven
regulatory enforcement. I urge the FDIC to withdraw this proposal. The
FDIC would be abdicating its fair lending and community reinvestment
enforcement obligations if it adopted the same non-statutory waiver
procedures as the OTS.
Sincerely,
Marva E. Williams
Senior Vice President
Woodstock Institute
407 South Dearborn Ave., Suite 550
Chicago, Il 60605
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