Last edited by pbrauer; 02-28-11 at 11:36 AM.
"Seek first to understand, then be understood." - Stephen R. Covey
Banks in poor communities are closing. Why? Because they can't make a profit using the same unscruppolous tactics they were once able to use before new regulations came into affect that essentially outlawed such underhanded practises, ie., excessive ATM fees, overdraft fees, credit card fees, early withdrawal fees, etc., etc., the list goes on and on.
Notice the article says nothing about not having enough customers at these banks. Of course, some would say that's a given considering the banks are in "poor neighborhoods", but clearly there IS money in these neighborhoods. Otherwise, why would payday loan type businesses suddenly be cropping up in these areas becoming the primiary "financiers" within these neighborhoods? Think about it...
IMO, it's NOT a matter of banks not being able to make a profit; it's a matter of them not being able to make the BIG profits in these neighborhoods they once were able to make by charging excessive fees. So, they pull out only to be suplanted by the unregulated preditors.
It's sad really, but this is what happens when community develop takes a back seat to profiteers.
Drive thru the really poor communities and you will see houses for sale. Drive thru middle income communities, and upper income communities, and you will see the same thing, houses for sale.
Buying more house than you can afford is the issue, the banks are part of the blame, but only part.
I still haven't seen a link posted that PROVES banks are closing in poor areas....just the OP link where a writer claims it is happening.
Oracle of Utah
Truth rings hollow in empty heads.
If I tickle you with a mortgage that has you paying nothing but interest in the first 5 years of your loan, and you buy into that you can afford it without looking forward after 5 years … then you are just as much as fault as the bank …
It goes right back to personal responsibility, while I don't give any sympathy to banks losing on those loans, I don't give any sympathy to the people that were dumb enough to make them either.
As to the the CRA, not sure about what you are saying, as it takes very little research to find that banks were being pressured to make even more questionable loans.