Speaking with American Banker the former Comptroller of the Currency, Eugene Ludwig, says that because non-bank lenders are considerably larger...
Making news this week was Stripe launching a new product to compete with Plaid, changes to the CRA have finally been proposed, Yuga Labs almost crashed Ethereum, Robinhood starts a stock lending program, Affirm teams up with Fiserv and more.
The Community Reinvestment Act is a law that was first enacted in 1977; The Trump Administration is going to unveil plans to change the law which has some community groups concerned since the act historically prevented banks from just serving wealthy customers; some banks say that the rules haven’t kept up with technological innovation. Source
Rewriting the Community Reinvestment Act is a welcomed sign by banks like Ally Bank who does not use branches and misses out on benefits awarded to banks with branch networks; focusing on where banks lend would be a better way to assess potential credit instead of where the bank is physically located. Source.
The head of the OCC, Joseph Otting, has been personally lobbying big bank CEOs to win support for his plans...
The Independent Community Bankers of America have expressed concern about Square’s plans for a bank charter; they believe it would set a precedent for other tech companies like Amazon; According to Jacqueline Reses, Amazon and Facebook haven’t expressed interest in a banking license and they would have to be evaluated on their own merits; Square also recently met with the National Community Reinvestment Coalition to address concerns with the Community Reinvestment Act. Source
An American Banker op-ed argues that the Community Reinvestment Act (CRA) does not need a complete overhaul; instead just some...
Regulators in the US are contemplating giving banks additional regulatory points for lending to mid and low income Americans who...
The OCC and FDIC issued a joint proposal for the overhaul of the Community Reinvestment Act last month while the...