Wednesday, March 18, 2009

Tell Us Again About the "Benevolent" CRA

LeftoWackies have insisted that the Community Redevelopment Act (CRA), a Carter-era invention put on steroids by Clinton & Co., is actually very benevolent, and certainly did NOT have anything to do with nuclear-waste mortgages.


A Massachusetts bank that has defied the odds and remained free of bad loans amid the economic crisis is now being criticized by the Federal Deposit Insurance Corp. for the cautious business practices that caused its rare success.

[The] East Bridgewater Savings Bank... stand[s] out among a flurry a failing banks, with no delinquent loans or foreclosures on its books, the Journal reported. East Bridgewater Savings didn’t even need to set aside in money in 2008 for anticipated loan losses.

But rather than reward Petrucelli's tactics, the FDIC recently criticized his bank for not lending enough, slapping it with a "needs to improve" rating under the Community Reinvestment Act, the Journal reported. . . . .

...meaning that the Bank MUST start losing money here and there.

HT: Lott

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