Crenshaw : Bank Lending Criticized

Councilwoman Ruth Galanter sharply criticized the minority community lending records of Bank of America and Security Pacific Corp., and urged that the merger of the two banking giants be used as an opportunity to change the way they do business.

Galanter issued the statement Tuesday at forum where Federal Reserve Board officials had gathered to review the proposed merger and determine whether the new bank will meet federal guidelines requiring banks to meet the credit needs of minority and low-income customers.

Galanter focused her comments on the Baldwin Hills-Crenshaw portion of her district, a predominantly middle-class, African-American community. The 70,000 residents represent thousands of loan opportunities, but Bank of America and Security Pacific have issued only 15 loans there, she said, citing 1990 figures from the Home Mortgage Disclosure Act.

“Concrete answers must be found to resolve the dearth of services in minority communities,” she said.