Bankers Get Out Pens, Blister Sunshine Provisions
American Banker (07/31/00) Vol. 28, No. 15 p.5; Heller, Michelle

Bankers and Senate Banking Committee Chairman Phil Gramm (R-Texas), a longtime ally of bankers, are currently in disagreement over some finer points in the disclosure of Community Reinvestment Act (CRA) oaths. Banking industry representatives have sounded off in comment letters to federal banking regulators with complaints that a proposal to enforce the Gramm-Leach-Bliley Act's CRA sunshine provisions has gone too far with a reading of the provisions that is too strict. The provisions were established as part of a compromise to get Sen. Gramm to go along with the act, and it requires banks and community groups to disclose terms of any CRA-related agreement for loans over $50,000 or grants for more than $10,000. Annual reports must be filed by banks when these agreements are made, and community groups must provide a detailed account on how the money was spent. Gramm wants full disclosures any time a contact is made, even without a signed contract, but some bankers think this covers too many situations. The two sides are also in disagreement over filing requirement limitations over signed contracts between banks and community groups.

Back   | Home   |  News Archive