STATEMENT: OCC Comptroller Otting’s Final Act Brings Chaos, not Certainty, to Anti-Redlining Law
FOR IMMEDIATE RELEASE: May 20, 2020
CHICAGO, IL – In a serious blow to what was meant to be his signature achievement, Joseph Otting, the head of one of the three federal banking regulators, the Office of the Comptroller of the Currency (OCC), finalized a revamp of the Community Reinvestment Act without the support of the other two banking regulators: the Federal Deposit Insurance Corporation or the Federal Reserve. Today’s action creates an unprecedented mish-mash of bank regulations at the least opportune time – a time when the financial sector seeks stability as it is called upon to fight COVID-19.
“Comptroller Otting’s brazen approach to unravel historic anti-redlining regulations failed to win support from other regulators, banking industry, and community partners,” said Jean Pogge, Interim Director of Woodstock Institute and former banker. “We look forward to the opportunity to push for new CRA rules that bring needed certainty for the industry while still fulfilling the spirit of the law: to meet local community needs. The fight against redlining continues.”
“While the rest of the nation is marshalling its resources to survive a pandemic, Joseph Otting insisted on putting the final touches on regulations that would gut a law that, for over 40 years, has steered critical support to lower income communities,” said Brent Adams, Senior Vice President of Policy and Communication at Woodstock Institute.
Woodstock Institute and its partners intend to issue a more substantive analysis of the rulemaking in the near future.
