by Matthew Russell Lee, Patreon Book Substack
SOUTH BRONX, Sept 8 – There are largely non-bank company which buy or charter a bank to serve them, but barely if at all comply with the Community Reinvestment Act.
On September 8, 2023, Fair Finance Watch called out Charles Schwab's two banks, to the Federal Reserve:
On behalf of Fair Finance Watch, this is a timely comment on the CRA performance and plans of Charles Schwab, including as impacted by the TD Ameritrade acquisition.
That acquisition raised a number of issues adverse for consumers, but there was not FRB comment period. However, this is a timely comment on the CRA PE of the two Charles Schwab banks, Charles Schwab Bank, SSB and Charles Schwab Premier Bank, SSB, which have in connection with the acquisition moved their headquarters to Texas, with an amorphous additional service area of "the desert Southwest."
Significantly, looking at the top 100 banks regulated by the Federal Reserve, Charles Schwab has the lowest ratio of CRA lending and investments as a % of total assets. It cannot pass its CRA exam, and its CRA plan cannot continue to be accepted or approved, on this basis.
The FRB should convene a public hearing, and should reach out to groups through Schwab's (actual) service area. Watch this site.
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