Federal bank regulators’ efforts to modernize the 45-year-old law known as the Community Reinvestment Act to reflect the rise of digital banking are raising accusations of partisanship, a claim that those digging into the details say is likely unfounded.
The Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation are reviewing comments on a proposal this year to update the CRA rules for the first time in nearly 30 years. And just like a previous attempt under Republican President Donald Trump, this one is drawing complaints about a partisan process.
Some financial industry watchers say the divide is likely to unfairly cloud the rule-making.
