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NCRC Testifies in Opposition to Banks in Real Estate
NCRC Press Release
For Immediate Release, July 24, 2002
Contact: John Taylor (202) 628-8866
Internet Address: *www.ncrc.org
NCRC Testifies Again in Opposition to Banks Engaging in Real Estate Brokerage
Concern Raised Over Corporate Greed and Consumer Protections
WASHINGTON, DC‹July 24, 2002‹The National Community Reinvestment Coalition today testified before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit in support of legislation that would prevent banks from entering real estate brokerage and property management. *Both the House and the Senate are considering measures, which ban banks from entering the real estate business.
"Banks affiliating with specific real estate firms set up the potential for a new wave of redlining as you see those firms absent in minority neighborhoods and inner-city communities, while proliferating in high income and suburban neighborhoods," said John Taylor, President and CEO of NCRC.
The financial services industry has maintained that "one-stop shops" will increase competition, ultimately benefiting the consumer by increasing product choice, providing greater convenience and lower costs. *In response, Taylor testified, "We have the most competitive and most successful financial services industry in the world. *We have the most comprehensive and efficient real estate industry in the world. *Both industries provide lots of jobs and are great contributors to our economy. *If there is ever a case for not fixing something that is not broken, this is it."
Mr. Taylor¹s testimony also cautioned against allowing banks into the real estate arena when corporate greed has penetrated many of our country¹s largest financial holding companies. *"When Congress repealed Glass-Steagall without instituting safeguards, it legitimized stealthy operations of financial conglomerates that are driven by purely by greed and profits at the expense of the everyday consumer, investor, and depositor. *Until we rebuild the firewalls demolished by Gramm-Leach-Bliley, it would be a tragedy to open the floodgates to yet another market."
The National Community Reinvestment Coalition is a national not-for-profit with over 700 membership organizations with constituents in every state in the country. *The Coalition has spearheaded a proactive community reinvestment movement with the goal of ending discriminatory banking practices and increasing the flow of private capital and credit into traditionally underserved communities.
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