UEDC/ CRA Proposal

This is a summary of complaints by UAAD pertaining to JPMorganChase Bank


While lobbying Congress and the Office of the Comptroller of the Currency (OCC) regarding JP Morgan/Chase Bank’s non-compliance of the Community Re-Investment Act of 1977 (CRA) a Civil Rights Legislation, the following is my report:

The purpose of lobbying was to present proposals that United Affirmative Action Development Corp (UAAD) a 501c3 non-profit community organization, wished to express of how funds in excess of $800 billion dollars Chase Bank have committed towards fulfilling it’s obligation under CRA can assist the Katrina victims.
It was discovered in talking to the Republican side of the House, that if proposals to strengthen this legislation were proposed, it is likely that they will kill the CRA legislation. Therefore they believe that it will do more good if it is left intact, with little or no enforcement power. Some Democrats take the same position. I was told also that UAAD’s complaint against Chase Bank would be better served if all banks that were not in compliance with CRA were a part of this complaint. I indicated that due to Chase Bank being the largest financial institution in the State of Louisiana, and had what we believe to be a very poor rating in serving the African American Community, our intent was to make Congress, the FDIC, OCC and the world aware of how “this” bank caused and manifested the poverty and lack of financial parity in the minority community “this” bank should have served. Had Bank One negotiated in good faith rather than bad faith in 1995 upon accruing Premier Bank of Louisiana, it is my and others' belief that the poverty that exists in Louisiana would have been diminished.(see FDIC/OCC complaint) Chase Bank in their lack of commitment to CRA has only plagiarized UAAD’s and other community organizations' CRA proposals and presenting them in their Community Partnership presentations as though they are attempting to comply to this important Civil Rights legislation. The purpose of CRA was to eliminate the red-lining and discrimination in the minority communities. Banks, Congress, and federal regulators after Katrina are allowing these victims to further suffer. Chase Bank states that they have provided in excess of $69 billion of the $800 billion they have committed of their CRA funds since April 2004 to the community they serve. After numerous complaints a Shreveport Louisiana Branch of Chase Bank reported that they created division called "Chase Home Finance" and staffed it with a Community Lending Officer. Before this officer was appointed by the bank, UAAD asked for information from Ms. Charlita Cloman VP Community Partnership Mgr. Community Development Group as to how this program worked and how it could assist African Americans under CRA. Ms. Cloman stated she did not have any written proposal she could give UAAD, but that I would have to write a proposal expressing what UAAD had accomplished in developing low income housing etc. Ms. Cloman stated that once UAAD submits a proposal the bank would consider funding. Two weeks ago I met with Ms. Daphne G. Childress the Community Lending Officer / Northern Louisiana who stated she had been in this position for approximately six months and had made in the range of $600-700,000.00 in loans during this period. I asked if she was aware that Chase Bank has committed and spent in other areas approximately $69 billion dollars. When asked if Community Organizations as advised under CRA could assist her and the bank in carrying out their commitment she agreed.
The sooner Chase Bank makes a commitment to African Americans as it has to others, the sooner economic parity will be obtained. Chase Bank should not meet the requirements of CRA mainly because of this legislation. They should feel obligated to serve the needs of the entire community no matter of color or gender. Mr. Mizell Scott who serves as Vice President of Chase Bank's CRA for the State of Louisiana expresses the views of Chase Bank when he has stated on more than one occasion that it is his and Chase Bank’s view that CRA was not meant for African Americans, and Chase Bank doesn't have to adhere to UAAD’s views. Mr. Scott and other Chase Bank CRA officials also express that they are proud of Chase Bank's CRA performance.
According to the latest CRA Performance Evaluation March 31, 2004 by OCC, in my opinion, the State of Louisiana must have the worst report of all the states in which Chase Bank operates. See: www.uedcinc.com/id18.html According to the same report it is recommended by the OCC that Chase Bank should involve community organizations in order to improve their performance. See: http://www.uaadcorp.com/ for more information regarding this complaint.


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