So-called "community groups" like ACORN benefit themselves from the CRA through a process that sounds like legalized extortion. The CRA is enforced by four federal government bureaucracies: the Fed, the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation. The law is set up so that any bank merger, branch expansion, or new branch creation can be postponed or prohibited by any of these four bureaucracies if a CRA "protest" is issued by a "community group." This can cost banks great sums of money, and the "community groups" understand this perfectly well. It is their leverage. They use this leverage to get the banks to give them millions of dollars as well as promising to make a certain amount of bad loans in their communities.
A man named Bruce Marks became quite notorious during the last decade for pressuring banks to earmark literally billions of dollars to his organization, the "Neighborhood Assistance Corporation of America." He once boasted to the New York Times that he had "won" loan commitments totaling $3.8 billion from Bank of America, First Union Corporation, and the Fleet Financial Group. And that is just one "community group" operating in one city – Boston.
Banks have been placed in a Catch 22 situation by the CRA: If they comply, they know they will have to suffer from more loan defaults. If they don’t comply, they face financial penalties and, worse yet, their business plans for mergers, branch expansions, etc. can be blocked by CRA protesters, which can cost a large corporation like Bank of America billions of dollars. Like most businesses, they have largely buckled under and have surrendered to their bureaucratic masters.
A reasonable level of civility is expected. While it is expected that controversial political and social issues may generate heated debate, there are common-sense limits of civility that will be enforced.
This blog is a family-friendly site. Therefore no cursing, profanity, vulgarity, obscenity, etc. will be allowed. This is a zero-tolerance rule and will result in automatic deletion of the offending post.
Anonymity has greatly coarsened discourse on the Internet, so pseudonyms are discouraged but not forbidden. That said, any direct criticism of a person by name cannot be done anonymously. If you criticize someone, you have to subject yourself to the same level of scrutiny or the comment will be deleted.
All moderation decisions are final. I may post an explanation or I may not, depending on the situation. If you have a question or a concern about a moderation decision, e-mail me privately rather than posting in the comments.