Magazine article American Banker

Group Acquiesces to Boatmen's Merger; Drops Opposition as Bank Agrees to Loan $50 Million for Low-Income Housing

Magazine article American Banker

Group Acquiesces to Boatmen's Merger; Drops Opposition as Bank Agrees to Loan $50 Million for Low-Income Housing

Article excerpt

ST. LOUIS -- The community group Acorn has dropped its challenge to the merger of Boatmen's Bancshares Inc. and the General Bancshares Corp. after getting a commitment from Boatmen's to make $50 million in housing loans in low-income neighborhoods here.

Most of the loans would carry market interest rates, but the first $500,000 would be made at two percentage points below the market rate. Acorn had asked Boatmen's to commit to $46 million in loans, all at below market rates.

Acorn had asked the Fed to reject the merger -- an interstate deal that would create an $8 billion holding company -- citing questions about Boatmen's record under the Community Reinvestment Act.

Acorn, which is an acronym for Association of Community Organizations for Reform Now, said Boatmen's also has agreed to apply more flexible underwriting standards when making loans in low-income areas.

Additionally, Boatmen's will give $100,000 a year to community groups that help loan applicants contact the bank.

The agreement capped two and a half weeks of negotiations between Acorn and Boatmen's. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.