Press Release: Community Groups Challenges Bank of America's CRA Score

***FOR IMMEDIATE RELEASE***

Contact:
Don Carlson, Illinois People’s Action Jack Porter, Illinois People’s Action
Cell: 309-826-9627 Phone: 309-829-2144

Monica Trevino, National People’s Action Chris Neubert, Iowa CCI
Cell: 312-286-4430 Phone: 515-255-0800

COMMUNITY GROUP CHALLENGES BANK OF AMERICA’S CRA SCORE

Group takes action to stop federal regulators from rewarding big banks “Outstanding” CRA ratings for their fraudulent practices

Today, Illinois People’s Action and Iowa Citizens for Community Improvement along with 15 community organizations from across the country filed an official protest against the actions of the Treasury, acting through the Comptroller of the Currency, for betraying its legal obligations to hold banks accountable by awarding Bank of America and Wells Fargo “Outstanding” ratings for their banking practices under the provisions of the Community Reinvestment Act.

The Community Reinvestment Act (CRA) was created in 1977 as the result of a campaign from communities of hard working economically and racially diverse people that rose up against the abusive and discriminatory practices of the banking industry. Under the Community Reinvestment Act, banks have a legal and “affirmative obligation” to serve the convenience and needs of the communities in which they do business with safe and sound lending and investments. Under the Act, the failure to provide lending and investment services fairly and in a safe and sound manner should result in an unsatisfactory rating, which would limit the ability of the banks to expand by denying their applications for branches, mergers, acquisitions, and additional charters.

“Bank of America and Wells Fargo are two of the four largest banks in America that played commanding roles in originating and investing in the subprime mortgage markets that precipitated this Great Recession and the meltdown of the global financial markets, said Jack Porter, spokesperson of Illinois People’s Action. “Their unsafe practices put millions out of work, tore apart the economic fabric of local communities, and destroyed the personal finances of millions of American families, he added.”

“Clearly, such practices should result in failing community service ratings, said Porter.”

“These outstanding ratings are a reward for their fraudulent behavior and guarantee that they will be granted all future applications for branches, mergers, acquisitions, and additional holding company charters expanding their markets, “ said Don Carlson, Executive Director of Illinois People’s Action.

Both Illinois People’s Action and Iowa citizens for Community Improvement demand that the Treasury and the Comptroller re-open the examination of these banks and hold public hearings in our communities to explain why they have ignored their obligation to protect the public from unsafe and unsound lending and investment practices.

Additionally, we further file a continuing challenge to any and all applications to the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve Board for branches, mergers, acquisitions, and new charters by these banks and their holding companies and demand that each and every such application be subject to public hearings in all communities that join in this challenge.