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Article: What the Chevy Chase case means for your bank. (consent decree between Chevy Chase Federal Savings Bank and the U.S. Justice Department)
- Article from:
- ABA Banking Journal
- Article date:
- December 1, 1994
- Author:
CopyrightCOPYRIGHT 1994 Simmons-Boardman Publishing Corporation. 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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Since the August release of the fairlending consent decree between the Department of Justice (DOJ) and Chevy Chase Federal Savings Bank, bankers and lawyers have been working overtime to figure out what it means.
And well they should. The action broke new ground by seeming to suggest that banks risk violating the laws against credit discrimination by failing to place branches in minority areas.
With a settlement order that requires a total of $11 million in various lending subsidies by the bank and its mortgage company and includes a mandate to open several branches in particular areas, the case riveted bankers' attention with another glimpse of what ...