Greenspan Supports CRA Reform but Warns of 'Credit Allocation.' (Federal Reserve Board Chairman Alan Greenspan; Community Reinvestment Act)

Cummins, Claudia, American Banker

WASHINGTON - Federal Reserve Board Chairman Alan Greenspan on Tuesday pledged his support for overhauling the Community Reinvestment Act, but said regulators must carefully consider whether their effort will "cross the line into credit allocation."

In his first address ever on community reinvestment, Mr. Greenspan told activists that if agencies become too involved in explicitly directing where loans are made, the banking industry and the communities they serve will suffer.

"I don't think you'll find any argument on this point from any of the agencies, but it will be important for all of us to remain vigilant to the risk of de facto credit allocation that is not …

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Publication information: Article title: Greenspan Supports CRA Reform but Warns of 'Credit Allocation.' (Federal Reserve Board Chairman Alan Greenspan; Community Reinvestment Act). Contributors: Cummins, Claudia - Author. Magazine title: American Banker. Volume: 159. Issue: 27 Publication date: February 9, 1994. Page number: 2. © 2009 SourceMedia, Inc. COPYRIGHT 1994 Gale Group.

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