How the CIT Group Merger with OneWest Took CRA A Step Backwards

Community Reinvestment Act

Editor’s note: Yesterday, Paulina Gonzalez, executive director of the California Reinvestment Coalition and John Taylor, chief executive of the National Community Reinvestment Coalition, wrote an OpEd in American Banker about the OneWest and CIT Group merger.  They explain that the merger represents several large steps backwards for the Community Reinvestment Act, the enforcement of it by the Office of the Comptroller of the Currency and the Federal Reserve, and the trust that communities have in these regulators to enforce the CRA.

If ever there were a poster child for the importance of regulators enforcing the Community Reinvestment Act, it was the merger of CIT Group and OneWest Bank. Both banks had troubled histories and their proposed merger was the first time a “systemically important financial institution” would be created by a bank merger. However, in reality, the role the regulators have played has been deeply disappointing.

You can read the whole post here: CRA Goals Are the Casualty of CIT-OneWest Merger

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