June 09, 2020

Warren urges bank regulator to scrap anti-redlining rule rewrite

Sen. Elizabeth Warren (D-Mass.) is urging a top federal bank regulator to scrap a controversial rewrite of anti-redlining regulations released by his predecessor last month and recuse himself from any attempt to issue new rules.

In a letter to acting Comptroller of the Currency Brian Brooks released Tuesday, the senator called on the agency to withdraw new rules for banks to follow under the Community Reinvestment Act (CRA), a 1977 law intended to ensure that banks lend to and serve low-income and majority-minority areas.

The Office of the Comptroller of the Currency (OCC) released its long awaited CRA overhaul on May 20, less than five months after first proposing the changes. The quick release of the new regulations came just a day before former Comptroller of the Currency Joseph Otting abruptly resigned, and without buy-in from the Federal Reserve Board and the Federal Deposit Insurance Corp. (FDIC) — the other two federal bank regulators that enforce the CRA.

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Read the full article on The Hill website here. 


By:  Sylvan Lane
Source: The Hill