Political Quotes

“why do we allow the holder of the largest segment of the financial assets of this country to be exempt from the Community Reinvestment Act? Obviously, the stock market, investment funds, and various other investment groups receive funds from these communities. However, unlike banks and saving and loan associations, they are free, with no restrictions, to invest their funds anywhere at home or abroad, because they are not regulated by the CRA. I ask my colleagues on the Banking Committee, and my fellow Senators, is that equitable? Is that what we are trying to achieve here--to exempt over one-half of the concentration of capital, from Community Reinvestment Act legislation? Let me get into the second point that is not equitable. I am presenting this from the point of view of a minority bank. I happen to have some knowledge of the banking business, as I was in commercial banking in Alaska for about 24 years. Large banks are regulated by the same set of Community Reinvestment Act requirements as are the small community banks. Large banks have branch offices in many different communities, however. They receive deposits from these communities, sometimes nationwide, but they may not necessarily invest back into these communities proportionately. Rather, because of their size and their access to global markets, they are able to invest selectively in any part of the country or abroad that commands the highest return and the least risk.”