Redlining

* I am writing in response to City Controller Rick Tuttle's comments regarding the possible exemption of 80% of America's banks from the coverage of the Community Reinvestment Act (CRA) through proposed new legislation (letter, May 28). I am offended that he is implying that these banks (my institution included) will become guilty of "redlining" by omission from any new legislation. The 80% of the banks excluded would more than likely be those institutions with assets under $250 million. This includes most of the independent community banks in the country including Los Angeles that are working hard to serve the communities in which they do business. The intent is to relieve the smaller banks of the regulatory burden of the paperwork.

Tuttle is correct in his comments regarding the new streamlined examining process. It will cut the very expensive and time-consuming paperwork burden.

The mere thought of discrimination in any way, shape or form within our community area is reprehensible. We would be chasing away good business, and it would be self-defeating to the goals of our bank. While compliance regulations including the CRA are a fact of life that we as bankers have to live with, anything we can do to minimize the inordinate time and money spent dealing with the bureaucracy of compliance will afford more time and resources to assess and meet the credit needs of the communities we all serve.

PAUL G. DAVIS, Vice President

Senior Credit/Compliance Officer

Marina State Bank, Marina del Rey

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