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Article: Fed shot wild in attacking New York's CRA ideas. (Federal Reserve Board; Community Reinvestment Act)
- Article from:
- American Banker
- Article date:
- June 15, 1993
- Author:
CopyrightCOPYRIGHT 1993 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Discourse between regulators is usually genteel, but not in the case of New York Banking Superintendent Derrick Cephas' plan to revamp the state community reinvestment law.
In the April Federal Reserve Bulletin, the Fed's division of consumer and community affairs blasted portions of Mr. Cephas' plan for:
* Transferring of Community Reinvestment Act decision-making from banks to the government.
* Removing incentives for banks to be creative in designing qualifying investments.
* Leaving communities with unmet credit needs.
These criticisms deserve serious consideration if for no other reason than their source. Federal ...