BUT
BUT TONIGHT WE FOCUS ON SOLUTIONS.
SOLUTIONS. REPORTER: THE ACORN STUD+@Y IS E
LARGEST IN THE NATION SO FAR.
IT INVOLVED DATA GATHERED FROM
MORE THAN 70 SAVINGS AND LOANS
AND BANKS IN THE DALLAS AREA ON
L+@ITERALLY THOUSANDS OF LOANS.
IT INDICATES THE PRACTICE OF
REDLINING IS WIDESPREAD AND
SIGNIFICANT IN THE DALLAS AREA.
REPORTER: BANKS DRAWING
BOUNDARIES AROUND MINORITY
NEIGHBORHOODS AND REFUSING TO
+@
+@ LEND
+@ LEND THR.
LEND THR.
LEND THR. IT IS CALLED REDLINING +@AND BY
1976 IT WAS ALREADY A
30-YEAR-OLD PROBLEM.
30-YEAR-OLD PROBLEM. >> THE REPORT SAYS THE
DIFFERENCES IN HOME LOAN
INVESTMEN+@TS ARE TREMENDOUS.
REPORTER: TO HELP CURE THE
+@
REPORTER: TO HELP CURE THE CANCER OF REDLINING, IN +@1977,
PRESIDENT JIMMY CARTER SIGNED
THE COMMUNITY REINVESTMENT ACT
REQUIRING BANKS TO MEET THE
+@
REQUIRING BANKS TO MEET THE CRE+@DIT NEEDS OF THE ENTIRE
COMMUNITY NOT JUST THE
WEALTHIER AND THE WHITER.
BUT IT'S 45 YEARS LATER AND OUR
ONGOING INVESTIGATION SHOWS
STILL TODAY, 20% OF THE BANKS IN
DALLAS COUNTY DRAW MAPS THAT
REDLINE ALL OR PARTS OF THE
LARGELY MINORITY COMMUNITY THAT
L+@IVES BELOW I-30.
BANKS IN GENERAL LEND RELATIVELY
LITTLE MONEY BELO+@W I-30.
LITTLE MONEY BELO+@W I-30.+@ AND FEDERAL REGULATORS ALLOW ALL
THIS TO GO ON.
SO NOW IT IS TIME TO TALK ABOUT
A SOLUTION.
A SOLUTION. >> WE HAVE BIG HEADLINES FROM
BIG BANKS THAT FORCE INVESTMENTS
INTO THE COMMUNITY, BUT ARE THEY
+@
INTO THE COMMUNITY, BUT ARE THEY GOING TO GO TO THE+@ AREAS THAT
REALLY NEED IT?
REPORTER: JAMES MCGEE RUNS THE
NONPROFIT SOUTHERN DALLAS
PROGRESS.
PROGRESS.
PROGRESS. HE HAS A SOLUTION TO IMPROVE
LENDING BELOW I-30.
IT IS CALLED THE RESPONSIBLE
BANKING ORDINANCE.
BANKING ORDINANCE. YOU MIGHT NOT REALIZE IT ABOUT
LOCAL GOVERNMENTS KEEP YOUR TAX
DOLLARS IN BANKS, THE SAME BANKS
YOU AND I USE.
+@
YOU AND I USE. AN ORDINANCE LIKE THIS WOULD
REQUIRE LOCAL GOVERNMENT TO
+@
REQUIRE LOCAL GOVERNMENT TO EVALUATE HOW WELL A BANK SERVES
ALL OF ITS CITIZENS, FROM HIGH
TO LOW INCOME.
WHAT DO YOU THINK COULD COME+@ T
OF SOMETHING LIKE THAT?
>> I THINK IT WOULD BE VERY
POWERFUL, VERY EFFECTIVE.
YOU HAVE SOMEBODY LOCAL, ALSO
THE COMMUNITY, HOLDING THEM
ACCOUN+@TABLE FOR WHAT THEY ARE
DOING HERE.
DOING HERE. DAVID: LOCAL GOVERNMENTS IN
NORTH TEXAS HAVE A POLICY LIKE
THIS BUT 13 CITIES AROUND THE
COUNTRY DO HAVE SOME FORM OF
+@
COUNTRY DO HAVE SOME FORM OF RESPONSIBLE MAKING ORDINANCE.
IN THEORY THE IDEA WORKS BECAUSE
LOCAL GOVERNMENTS ARE GOOD BANK
CUSTOMERS.
CUSTOMERS. THAT GIVES THEM LEVERAGE.
DALLAS USES BANK OF AMERICA
WHERE IT HAS $257 MILLION ON
DEPOSIT.
DEPOSIT.
DEPOSIT. BANK OF AMERICA ALSO WORKS --
AND
AND PARKLAND HOSPITAL DISTRICT HAS $6.7 MILLI+@ON WITH CHASE AD
$371 MILLION WITH BANK OF NEW
YORK MELL+@ON.
YORK MELL+@ON. THAT IS $917 MILLION OF TAXPAYER
MONEY.
MONEY.
MONEY. JAMES SAYS HE IS NOT SINGLING
OUT THESE INSTITUTIONS WERE
DOING ANYTHING WRONG BUT IF
BANKS WANT TO KEEP THE
TAXPAYER'S DEPOSITS,+@ HE BELIES
LOCAL GOVERNMENTS CAN
INCENTIVIZE THEM TO DO BETTER.
WH+@AT KIND OF ETHICAL OBLIGATIN
DOES A CITY OR COUNTY HAVE TO
MAKE SURE THAT THE BANK THEY USE
IS LENDING MONEY TO MINORITIES
AND LOW INCOME PEOPLE?
>> T+@HEY HAVE A HUGE+@ ETHICAL
RESPONSIBILITY.
RESPONSIBILITY. OUR RIGHT TO ASK WITH THE BANK
IS DOING IS ALSO THE CITY'S
RIGHT TO ASK.
WHERE ARE ISSUIN+@G LOANS?
DAVID: IT IS A SIMILAR PICTURE
IN TARRANT COUNTY.
TARRANT COUNTY IS WITH CHASE AT
$605 MILLION.
$605 MILLION. SO IS FORT WORTH ISD AT $22 MIL
LION.
LION.
LION. +@
LION. JPS
LION. JPS HOSPITAL JUST ARE TEST $57
MILLION WITH CHASE AND $21
MILLION IN SOUTH SIDE BACK.
COMBINED IT IS $822 BILLION OF
TAXPAYER MONEY.
TAXPAYER MONEY. >> WE CAN MAKE SURE THAT
COMMUNITY BANKING WORKS FOR ALL
PEOPLE.
PEOPLE.
PEOPLE. DAVID: TRE BLACK RUNS A
+@
DAVID: TRE BLACK RUNS A SECOND-GEN+@ERATION COMPANY WITH
MORE THAN 250 EMPLOYEES.
+@
MORE THAN 250 EMPLOYEES. HE SAYS HE HAS A GOOD
RELATIONSHIP WITH HIS CURRENT
BANK, BUT AT TIMES HE HAS BEEN
TREATED UNFAIRLY WHEN APPLYING
FOR LOANS.
FOR LOANS. >> LOOK, WE HAVE B+@EEN OFFERED
CREDIT TERRY RATES, BOTTOM LINE
-- OFFERED PREDATORY RATES,
BOTTOM LINE.
BOTTOM LINE. WE HAVE HAD ISSUES WITH
RID+@ICULOUS GUARANTEES.
RID+@ICULOUS GUARANTEES. SO THEY'LL -- OF THOSE THINGS +E
PUSH BACK AGAINST.
DAVID:+@ HE SUPPORTS THE IDEA OF
LOCAL GOVERNMENTS USING THEIR
LEVERAGE TO HOLD BANK'S
ACCOUNTABLE.
ACCOUNTABLE. >> I THINK THE RESPONSIBLE
BANKING ORDINANCE IS A MATTER OF
GOOD GOVERNANCE NOW.
SO THAT COMPANIES HERE LOCALLY
AND HAVE GREATER ACCESS TO
CAPITAL.
CAPITAL.
CAPITAL. DAVID: HO+@W DOES IT WORK?
BANKS ARE REQUIRED TO SUBMIT
+@LOAN DATA THAT SHOWS HOW MUCH
THEY LAND AND IN WHAT
NEIGHBORHOOD+@S THEY LEND IN.
AND THEY SUBMIT A REINVESTMENT
PLAN THAT SETS TARGETS FOR
FUTURE LENDING.
FUTURE LENDING. LOCAL GOVERNMENT CREATES AN
OVERSIGHT BODY TO EVALUATE
+@
OVERSIGHT BODY TO EVALUATE BANKS, PUBLISH FINDINGS, AND
HOLD COMMUNITY HEARINGS.
PHILADELPHIA IS ONE OF THE
+@CITIES THAT HAS A RESPONSIBLE
BANKING ORDINANCE.
BANKING ORDINANCE. WILSON GOODE JUNIOR IS A FORMER
COUNCILMAN THERE WHO HELPED GET
A PAST 20 YEARS AGO.
NOW+@ HE CONSULTS WITH CITIES ON
RESPONSIBLE BANKING ISSUES.
>> YOU CAN HAVE IMPACT IF YOU
ORGANIZE AROUND THE ISSUE WITH
THE DATA IN HAND.
AND BANKS ARE FORCED TO+@ RESPOD
BECAUSE THEY HAVE THE GOVERNMENT
AS A CUSTOMER, AND BECAU+@SE THY
HAVE INDIVIDUAL CITIZENS AS
CUSTOMERS.
CUSTOMERS. +@
CUSTOMERS. DAVID: PHILADELPHIA COMBINES A
NUMBER OF +@FACTORS TO RANK BANS
ON HOW WELL THEY DISTRIBUTE
MORTGAGE LOANS AND BUSINESS
LOANS IN LOW INCOME AREAS.
+@
+@ BETWEEN 2008 AND 2018, THE BANKS
PHILADELPHIA CHOSE TO MAKE
DEPOSITS WITH BECAME MORE ACTIVE
LENDERS, INCREASING THEIR SHARE
OF BUSINESS LOANS BY 18% IN LOW
INCOME CENSUS TRACTS.
>> THE ECO-WARRANT REPORT HOLDS
LENDING INSTITUTIONS RESPONSIBLE
FOR PART OF THE DECLINE OF THE
INNERCT.
INNERCT.
INNERCT. DAVID: A CRIPPLING LACK OF
ACCESS TO LOANS IN MINORITY
NEIGHBORHOODS.
NEIGHBORHOODS. WE HAVE BEEN TALKING ABOUT THI+S
PROBLEM FOR MORE THAN 45 YEARS.
JAMES MCGEE SAYS A RESPONSIBLE
BANKING ORDINANCE IS A CREATIVE
WAY FOR LOCAL GOVERNMENTS TO
IMPROVE THE LIVES OF ALL
TAXPAYERS, REGARDLESS OF THE
COLOR OF THEIR SKIN, OR THE
NEIGHBORHOOD THEY LIVE IN.