Baker, Hensarling Urge Action on Streamlined CRA Exam

By Baker, Richard; Hensarling, Jeb | American Banker, October 22, 2004 | Go to article overview

Baker, Hensarling Urge Action on Streamlined CRA Exam


Baker, Richard, Hensarling, Jeb, American Banker


In 1977 the price of a first-class stamp was 13 cents, and CD was just a shorter name for certificate of deposit. Clearly, times have changed dramatically over the past three decades. In fact, it is difficult to think of an aspect of our lives that has not been improved through technological advancements and new innovation.

One area that every consumer has benefited from is the increase in access to a wide variety of financial products and banking services.

Improvements in research and marketing, the explosion of the Internet and online banking, and a huge increase in the number of companies offering access to low-cost credit have made it easier than ever for Americans of all income levels to open a bank account, take out a home loan, or borrow money for college tuition.

Unfortunately, while these advances have been transforming the banking industry, Congress and federal regulators have lagged behind, unwilling to adapt to a new and dynamic marketplace.

One of the most egregious examples of this foot-dragging is the regulations stemming from legislation dating back to 1977, the Community Reinvestment Act.

The CRA was enacted in response to allegations at the time that some financial institutions were deliberately ignoring the banking needs of specific sections of their communities. Activists argued that many banks did not view these particular areas as profitable lending opportunities, and thus did not extend their services to the residents of these neighborhoods.

Few would argue that such discriminatory behavior never took place. However, it is clear that the remedy to this problem has grown to be far worse than the disease.

The original intent of CRA was to direct the federal banking regulators to simply encourage financial institutions to "meet the credit needs of the local communities in which they are chartered."

While that is a noble goal, the regulations have been expanded and redefined far beyond the original statutory intention.

Like many federal regulations, CRA has morphed to the point where federal regulators are often the ones who determine how a financial institution should serve its community, ignoring the fact that the community lender will best know his or her community's banking needs. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Baker, Hensarling Urge Action on Streamlined CRA Exam
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.