Federal Deposit
Insurance Corporation

From: Mcgals@earthlink.net [mailto:Mcgals@earthlink.net]
Sent: Wednesday, October 20, 2004 2:58 PM
To: Comments
Subject: Save the Community Reinvestment Act

Dear FDIC,

Mr. Feldman:

As a neigborhood association leader, I strongly oppose your rule proposal that would ease Community Reinvestment Act (CRA) requirements for most of the banks in my area. I see first hand how vital CRA is to increasing homeownership, promoting minority business ownership, meeting the community development needs of struggling communities and support the capital requirements of nonprofits.

I am very concerned that the proposed Federal Deposit Insurance Corporation (FDIC) rule would be harmful to the struggling neighborhood in which I live and hundreds of town, cities and rural areas across the United States. The only reason there is still a bank branch in my neighborhood is thanks to strong CRA requirements. Five years ago they threatened to close. It would have been devastating to the small businesses, elderly and disabled people in my community. Using CRA, we were able to stop them. The minute the rules are weakened bank branches across the country in neighborhoods like mine will be closed.

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. Your proposed test allows banks to choose only one of the three activities. The result will be less community development and economic activity were I live.

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. I urge you in the strongest possible terms to drop this hurtful rule proposal.

Louise McNeilly

Albany, NY