A news report from Curtis Black’s Newtips Blog, Community Media Workshop
While Shorebank struggles to survive – with regulators hesitating to back recapitalization efforts, according to reports – community investment advocates say “Shorebank is worth saving” and suggest that policies that favor big banks don’t take community needs into account.
Meanwhile community groups will demand action on banking issues on two fronts tomorrow – picketing US Bank and Bank of America on LaSalle Street, and testifying at a Federal Reserve hearing on modernization of the Community Reinvestment Act.
Something is wrong with policies that bail out big banks after they’ve torpedoed the economy with high-risk investments in toxic subprime loans, while “community banks which have been meeting the needs of low-income neighborhoods for decades” are allowed to fail, said Karen Harris of the Shriver National Center on Poverty Law. (See her post at the Shriver Brief.)