Saturday, October 15, 2005
HOW BLACKS and OTHER MINORITIES CAN REACH ECONOMIC PARITY UTILIZING “CRA’
My first knowledge of the COMMUNITY RE-INVESTMENT ACT of 1977 CRA, occurred in 1982. During that period Church Leaders and Community Leaders began a protest regarding the discriminatory practices of banks in Atlanta Georgia. An effort was made for African Americans to withdraw funds from the predominantly White Banks, and deposit in Black owned banks. The Churches along with Community Organizations began asking all African Americans to deposit their monies in Black owned banks.
Realizing the effect this move would cause the White owned banks, a proposal was presented to these Community Leaders, now making them aware of the CRA and its purpose and benefits to the Minority Community. This protest ended when the Bankers promised and began to make low interest loans to the low, moderate income, and began a process to include African Americans. Banks up to this period was fulfilling their CRA obligations according to the Act by making loans to White females, the Girl Scouts and other individuals and organizations who were predominantly White. Once the Atlanta protest was squashed by the Bankers in Atlanta and few Community Organizations knowing or realizing the protections afforded minorities under the CRA Act, bankers went back to business as usual. Later in the early nineties a few Community Organizations entered into agreements with banks, some with little, most with no success. Most agreements entered into did not address the needs of African Americans and other minorities, who are most in need of this legislation and its intent. One example was an agreement Bank of America entered into with a group in the Bay area of California, where approximately 5 billion dollars was committed to several community projects in the city of San Francisco, California. Oakland the most poverty ridden city in California, received no committed funds.
As stated by Hugh B. Price then President of the National Urban League, “most people who live outside of Washington DC have probably never heard of the Community Reinvestment Act. Yet though unsung, the CRA is one of the most important pieces of civil rights legislation Congress has ever passed. He went on to say “Congress passed the Community reinvestment Act in 1977 in response to clear evidence of the noxious effects of “redlining” – the systematic refusal of lenders to provide loans to businesses, homeowners and prospective home buyers in particular neighborhoods, especially those which were predominantly Black or Hispanic.”
My first knowledge of the COMMUNITY RE-INVESTMENT ACT of 1977 CRA, occurred in 1982. During that period Church Leaders and Community Leaders began a protest regarding the discriminatory practices of banks in Atlanta Georgia. An effort was made for African Americans to withdraw funds from the predominantly White Banks, and deposit in Black owned banks. The Churches along with Community Organizations began asking all African Americans to deposit their monies in Black owned banks.
Realizing the effect this move would cause the White owned banks, a proposal was presented to these Community Leaders, now making them aware of the CRA and its purpose and benefits to the Minority Community. This protest ended when the Bankers promised and began to make low interest loans to the low, moderate income, and began a process to include African Americans. Banks up to this period was fulfilling their CRA obligations according to the Act by making loans to White females, the Girl Scouts and other individuals and organizations who were predominantly White. Once the Atlanta protest was squashed by the Bankers in Atlanta and few Community Organizations knowing or realizing the protections afforded minorities under the CRA Act, bankers went back to business as usual. Later in the early nineties a few Community Organizations entered into agreements with banks, some with little, most with no success. Most agreements entered into did not address the needs of African Americans and other minorities, who are most in need of this legislation and its intent. One example was an agreement Bank of America entered into with a group in the Bay area of California, where approximately 5 billion dollars was committed to several community projects in the city of San Francisco, California. Oakland the most poverty ridden city in California, received no committed funds.
As stated by Hugh B. Price then President of the National Urban League, “most people who live outside of Washington DC have probably never heard of the Community Reinvestment Act. Yet though unsung, the CRA is one of the most important pieces of civil rights legislation Congress has ever passed. He went on to say “Congress passed the Community reinvestment Act in 1977 in response to clear evidence of the noxious effects of “redlining” – the systematic refusal of lenders to provide loans to businesses, homeowners and prospective home buyers in particular neighborhoods, especially those which were predominantly Black or Hispanic.”
# posted by walter @ 2:45 PM 
