Federal Deposit
Insurance Corporation

From: Kate Gordon [mailto:kgordon@cows.org]
Sent: Wednesday, October 20, 2004 10:47 AM
To: Comments
Cc: Kate Gordon
Subject: Community Reinvestment -- RIN 3064-AC50

To whom it may concern:

The CRA has been a crucial tool for low-income neighborhoods, breaking down some of the color lines that were built up over the first part of the century, and reducing redlining across the U.S. But we have not come far enough -- neighborhoods are still geographically segregated, and often only sub-prime lenders are willing to venture into them to loan crucial funds to minorities and low-income individuals hoping to buy a home or start a small business. It is so important that larger, more established banks continue to be responsible for reaching out to these communities, so that their residents are not left without viable options.

For this reason, I oppose the FDIC's proposal to allow banks with assets above $250 million to be examined as small banks under the Community Reinvestment Act. This policy would surely reduce lending, investments and services in low-income communities, and would simply open the door for more predatory lending by less reputable banks in these areas.

Thank you very much,

Kate Gordon (in my individual capacity)
 

Kate Gordon
Senior Associate -- Policy and Outreach
Center on Wisconsin Strategy
University of Wisconsin -- Madison
1180 Observatory Drive
Madison, WI 53706