Archive for December, 2011
Friday, December 23rd, 2011
Councilman Bill Peduto’s Responsible Banking Act passed in City Council by a 5-4 final vote this week. This legislation builds on the federal Community Reinvestment Act (CRA) which addressed discriminatory practices in mortgage and consumer lending that had led to large portions of, primarily, African American neighborhoods being redlined. The Responsible Banking Act goes a step further by encouraging investment in low-moderate income (LMI) communities and providing a quantitative process to evaluate their progress. It requires banks holding City of Pittsburgh deposits to provide documentation and reports to the City Controller outlining the ways in which they have reinvested public monies into our neighborhoods. The City Controller will then compile a “report card” for those banks so that the public and Council can evaluate which banks are putting our money back to work for our neighborhoods.
The Mayor has ten days from the bill’s passage (December 19th) to either veto (with a potential Council override), sign, or let the bill become law without signing. If the bill becomes law, Pittsburgh will become only the third city in the country to include Responsible Banking legislation as part of our city code. (Cleveland and Philadelphia have already enacted similar ordinances.)