Article: U.S., Chevy Chase FSB Discussing Bias Probe; Talks on Branch Sites Involve New View of Law

The Justice Department and Chevy Chase Federal Savings Bank, the region's largest thrift institution, are negotiating a settlement of possible lending discrimination allegations based on a new interpretation of federal law that could require banks to open more branches in minority neighborhoods, federal regulatory and banking industry sources said yesterday.

In the negotiations, the Justice Department's Civil Rights Division is arguing for the first time that failure to locate branches in predominantly black neighborhoods is by itself a violation of federal laws against lending discrimination, sources familiar with the matter said.

Chevy Chase officials have denied discriminating against ...

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