Better Rules for Community Reinvestment

Source: The American Prospect
by Robert Kuttner

“The Community Reinvestment Act of 1977 was one of the last pieces of progressive financial regulation to pass Congress before the political tide turned disastrously in favor of deregulation. CRA was the offspring of the anti-redlining movement. It not only prohibited redlining but required banks and thrift institutions to take affirmative steps to show that they were investing in communities they were chartered to serve. And the law had teeth. … Thanks to CRA, a whole subset of bankers internalized its values and specialized in community development lending, and the process caused more credit to flow to low-income and minority communities. I confess a certain fondness for CRA … because I wrote it.” (05/06/22)