Community Reinvestment Act Compliance

Y4.674/7: C 73/24

✓COMMUNITY REINVESTMENT ACT COMPLIANCE:

NEW YORK CITY BANKS

HEARING

BEFORE A

SUBCOMMITTEE OF THE
COMMITTEE ON /

GOVERNMENT OPERATIONS

HOUSE OF REPRESENTATIVES

NINETY-SEVENTH CONGRESS

SECOND SESSION

MARCH 29, 1982

Printed for the use of the Committee on Government Operations

COMMITTEE ON GOVERNMENT OPERATIONS

JACK BROOKS, Texas, Chairman

L. H. FOUNTAIN, North Carolina
DANTE B. FASCELL, Florida
BENJAMIN S. ROSENTHAL, New York
DON FUQUA, Florida
JOHN CONYERS, JR., Michigan
CARDISS COLLINS, Illinois
JOHN L. BURTON, California
GLENN ENGLISH, Oklahoma
ELLIOTT H. LEVITAS, Georgia
DAVID W. EVANS, Indiana
TOBY MOFFETT, Connecticut
HENRY A. WAXMAN, California
FLOYD J. FITHIAN, Indiana
TED WEISS, New York
MIKE SYNAR, Oklahoma

EUGENE V. ATKINSON, Pennsylvania
STEPHEN L. NEAL, North Carolina
DOUG BARNARD, JR., Georgia
PETER A. PEYSER, New York
BARNEY FRANK, Massachusetts

TOM LANTOS, California

FRANK HORTON, New York
JOHN N. ERLENBORN, Illinois
CLARENCE J. BROWN, Ohio
PAUL N. MCCLOSKEY, JR., California
THOMAS N. KINDNESS, Ohio
ROBERT S. WALKER, Pennsylvania
M. CALDWELL BUTLER, Virginia
LYLE WILLIAMS, Ohio

JOEL DECKARD, Indiana

WILLIAM F. CLINGER, JR., Pennsylvania RAYMOND J. MCGRATH, New York

HAL DAUB, Nebraska

JOHN HILER, Indiana

WENDELL BAILEY, Missouri

LAWRENCE J. DENARDIS, Connecticut JUDD GREGG, New Hampshire MICHAEL G. OXLEY, Ohio

HAROLD WASHINGTON, Illinois

CONTENTS

Hearing held on March 29, 1982.

Statement of-

Druger, Leonard N., vice president, credit policy, New York Banking

Division, Citibank, N.A., accompanied by Joseph Bowen, vice president,

community development; Peg Swezey, director, government and com-

munity affairs for Queens; and Janet Thompson, vice president, urban

and community affairs department.

Golden, Howard, president of the Borough of Brooklyn, accompanied by

Lindsay Newland Bowker, assistant to the president.

Hayes, Roger, New York City Coalition Against Redlining..

Hosey, George, vice president of Manufacturers Hanover Trust Co...........

Hummer, Harry, vice president and sector credit executive for consumer

credit for the Chase Manhattan Bank, accompanied by Arthur J. Hum-

phrey, Jr., vice president and director of community development, and

Terry Molloy, vice president and division executive for Queens, Nassau,

and Suffolk Counties..

Rosenthal, Hon. Benjamin S., a Representative in Congress from the
State of New York, and chairman, Commerce, Consumer, and Mone-
tary Affairs Subcommittee: Opening statement...

Schochat, Michael, vice president, Chemical Bank, urban services group ...

Letters, statements, etc., submitted for the record by-

104-115

Druger, Leonard N., vice president, credit policy, New York Banking

Division, Citibank, N.A.: Attachments to prepared statement.

Golden, Howard, president of the Borough of Brooklyn: Prepared

statement..

83-88

Hosey, George, vice president of Manufacturers Hanover Trust Co.: Ap-
pendixes to prepared statement..
Humphrey, Arthur J., Jr., vice president and director of community
development for the Chase Manhattan Bank: Prepared statement.. 68-78
Rosenthal, Hon. Benjamin S., a Representative in Congress from the
State of New York, and chairman, Commerce, Consumer, and Mone-
tary Affairs Subcommittee: Copy of shareholder resolution

Schochat, Michael, vice president, Chemical Bank, urban services group:

Prepared statement..........

60-61

120-132

APPENDIXES

Appendix 1.-Charts: Home mortgage loans, deposits, and summary of loans

for Citibank, Chase Manhattan Bank, Manufacturers Hanover Bank, and

Chemical Bank, 1978-81

139

Appendix 2.-Correspondence between subcommittee and banks

147

Appendix 3.-Community Reinvestment Act of 1977 and Home Mortgage