Monday, June 29, 2009
Government at Work - The Community Reinvestment Act
John Carney has changed his mind about the Community Reinvestment Act (CRA).
He explains his reasons via an article in Q&A format.
This one (among others) caught my eye...
He explains his reasons via an article in Q&A format.
This one (among others) caught my eye...
John Carney writes at BusinessInsider.com:
"If the CRA was forcing all this lax lending, why weren't bankers objecting?
Are you really in the dark about why the leaders of large public corporations wouldn't publicly object to a piece of civil rights legislation? Fine. I'll be totally open with you: this would have been career suicide and an open invitation to bias litigation and increased scrutiny from regulators. In this case, silence is misleading.
What's more, no one said the bankers hated the lax lending the CRA was requiring. Sure, some did. But those people were quickly shown the door, while the enthusiasts were promoted. The regulations themselves selected for enthusiasts for the program of lax lending."
