Melvin Watt: “It surprises a number of my colleagues on the Committee on Banking and Financial Services that the gentleman from…”

“It surprises a number of my colleagues on the Committee on Banking and Financial Services that the gentleman from Louisiana (Mr. Baker) and I are quite often on the same side of financial services issues. But I have got to jump ship on him today when he starts trying to do away with CRA for small banks. Sixty-four percent of the banks in this country, in fact, would be exempted under this amendment. I cannot go there with him. The CRA requirements for small banks, those under $250 million in assets, were already streamlined in 1995. I am not sure what it is we are responding to with this proposed amendment, because in February of 1996, the American Banker headlines said, 'Small banks give thumbs up to streamlined CRA exams.' They are not complaining. Who is it that we are trying to protect? This is an amendment in search of a problem to solve. And I am not sure why we are trying to solve a problem in the midst of this bill that has a bunch of problems in it for people who do not even perceive that they have a problem. CRA has served a very important purpose in our communities. The gentleman from Utah (Mr. Cook) is absolutely wrong in his assessment that the purpose of CRA is for community people. It is not an affirmative action program. It is for small businesses, small farmers, people who live in the communities. It has got nothing to do with affirmative action. We ought to all be supporting CRA rather than trying to abolish it.”