FDIC: Bank in affluent Chicago suburbs keeping their loans in affluent Chicago suburbs
The FDIC claims that Community Bank of Oak Park River Forest is not keeping up its part of the bargain as a community bank. Steve Daniels of Crain’s Chicago Business reports that the Federal Deposit Insurance Corporation accuses the suburban Chicago bank of “substantial non-compliance” with the Community Reinvestment Act — the 1977 law that requires banks to lend and invest in low-and-moderate income communities.
Only 14 of more than 7,500 banks inspected by FDIC officials have sunk to the level of “substantial non-compliance.” Community Bank’s problems partly lie with not investing in Austin, the very poor Chicago neighborhood just east of Oak Park.