P.M. BRIEFING : Security Pacific Commits to $2.4-Billion Housing Program
Security Pacific Corp. said today that it will commit an extra $2.4 billion over the next decade to low- to moderate-income housing, small and minority-owned businesses and similar programs.
A coalition of community groups last month asked the Federal Reserve Board to deny Security Pacific’s purchase of 20% of Mitsui Manufacturers Bank on grounds that it had neglected community lending needs in violation of federal law.
Robert Gnaizda, a lawyer for one of the groups, said the commitment today “could revolutionize banking.”
Los Angeles-based Security Pacific Corp. is the nation’s fourth-largest bank holding company. Its chief subsidiary, Security Pacific Bank, is California’s second-largest bank.
Robert H. Smith, the president and chief executive of the holding company, said the company was looking forward to working with state and local governments and community groups as it develops the program.
Security Pacific said most of the programs that will benefit from the additional funds are already in place. The extra money represents an increase in community lending of at least 20% from 1989 levels, Smith said.
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