Senate Defeats Effort to Undo Reforms to 1977 Community Reinvestment Act

Senate Democrats tried unsuccessfully tonight to undo recent reforms made to the 1977 Community Reinvestment Act. CEI financial policy expert Matthew Adams explains why the reforms should be left in place.

“The Community Reinvestment Act reform proposal made by the Office of the Comptroller of the Currency is not perfect, but it is a step in the right direction, modernizing the law to account for new financial innovations and adjusting regulations to fit banks of varying sizes,” said Adams.

“Instead of trying to un-do reform, the Senate should support repeal of this law that contributed to the 2007-2008 financial collapse. Today, however, a majority in the Senate deserve credit for defeating this effort to undo reform.”

Related analysis: Fed’s Community Reinvestment Act Reform Proposal Is a Step in the Wrong Direction