Will CIT Group meet its promise to invest in underserved L.A. communities?

Nearly 40 years ago, Congress enacted the Community Reinvestment Act to encourage commercial banks to lend to low-income and minority customers, who historically had a difficult time getting loans and banking services despite their ability to pay for them. Today the law is still critical in pushing banks to engage with all segments of their community, and to offer capital that can build wealth and revitalize neighborhoods. But as New York-based CIT Group Inc. prepares to acquire Pasadena-based OneWest Bank, some advocates are concerned that federal regulators will approve a community reinvestment plan that falls short of what other banks have pledged to do under the law.

 

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