Tuesday, October 13, 2009

"Legalized extortion?"

Congress debates the Community Reinvestment Act which gives community organizers the ability to delay or block bank mergers by filing complaints against them. 
"In order to avoid these filings, financial institutions would either lower their lending requirements to meet the needs of ACORN associates or they would simply pay out funds to one of the many ACORN-affiliated organizations," Royce wrote in an article posted on his House Web site.
Archived ACORN testimony on the Federal Reserve Board Web site shows ACORN has spoken against bank mergers, contending that banks weren't living up to the CRA. In at least one case, however, ACORN supported a merger. The group acknowledged in the 1998 testimony that it was unusual for it do so, but said one of the banks involved, NationsBank, was a leader in community reinvestment, and that its partnership with ACORN Housing Corp. had produced at least $236 million in mortgages. 

1 comment:

  1. The other side of the coin is http://www.nytimes.com/2009/10/13/us/13bar.html?_r=1&scp=2&sq=scalia&st=cse