Sunday, March 13, 2011

Introducing the Responsible Banking Act

From Crains:

The City Council held a hearing Monday morning before an overflow crowd on the recently introduced “Responsible Banking Act,” which would create a ranking system of banks based on how responsive they are to the credit needs of the city’s neighborhoods. The hearing was followed by a gathering of Council members, advocates and community residents on the steps of City Hall.

The bill, which is called Intro 485, would require the Commissioner of Finance to establish a classification system that would rank city deposit-taking banks based on their community involvement. Some of the practices that the bill is trying to avoid include predatory lending and a failure to locate branches in working-class neighborhoods. In classifying banks, the Commissioner of Finance would also look at whether local banks work with borrowers to restructure delinquent home mortgages and whether they provide sufficient funding, including construction loans, for affordable housing and economic development projects in low- and moderate-income communities.

At least one city official, however, noted a key weakness of the bill—the fact that it fails to require the City Council to move deposits from low-ranked banks to higher-ranked banks.


Anonymous said...

was barney franks there, qnd the local community organizer poverty pimps?

is it subprime time again?

they still have not learned the lessons of unsustainable freddie mac and fannie mae......taxpayers get screwed again.

Anonymous said...

Senility on Parade said:

"they still have not learned the lessons of unsustainable freddie mac and fannie mae......taxpayers get screwed again."

Well, let's see, Fannie Mae was founded in 1938 and Freddie Mac in 1970 -that would be Nixon adm.

Both were founded to help gimps like you buy your little wooden humping boxes. Both functioned as intended...until the gop aided by Clinton killed the laws that protected us from greedy speculators.

Then the gop deliberately prohibited Government oversight of all those new financial instruments...and it was off to the races.

But, don't let the truth ruin your day.

Anonymous said...

ho hngs them when they coach you to lie to the loan software makig the decision?

Anonymous said...

Anonymous said...

"ho hngs them when they coach you to lie to the loan software makig the decision?"

Would you like to try a less Ebonic form?

Anonymous said...

In 1938 Fannie was established as private company with government sponsorship, so investors were fooled into thinking the securities were backed by the taxpayers. In 1970, Freddie was also established as a private company sponsored by the government to compete with the other government lender. The government doubled down.

The Carter-era "community reinvestment act interfered with the bank's policies and forced them to lend to NINJA's - no income, no job, no assets - and that was the start of the financial crisis. This "Responsible Banking Act" is more of the same.

Anonymous said...

"The Carter-era "community reinvestment act interfered with the bank's policies"

This is the hollow-head conservative argument that seeks to deflect blame for the mess that their repeal of Glass-Steagall and that sneaky exemption that banned the Government from overseeing those new financial instruments.

So, it comes down to trying to blame a 1977 law, for what Republican greed and perfidy did thirty years later. Pathetic.

Go back to Fox "news" that's your league.

Anonymous said...

who is to blame for your illegal alien,bike delivery jockeys not having accident insurance ?

Anonymous said...

Is not bike delivery jockey dictatorship grand?

Seriously, what are you talking about?

Anonymous said...

do you travel to Manhattan ever? have you observed the many bicycles tied to poles and trees in front of the restaurants? this is how one of your "slightly liberal" commenters affords living on the U.E.S. in a high priced condo.
the taxpayer pays for these illegal alien's, medical at hospital E/R's,their anchor babies public school cost($20,000 per year),and food stamp cost.

they are all probably working off the books and pay no taxes.

Anonymous said...

Time to loan to people who pay the money back. What do these people have, Alzheimers?