Printer Friendly

LAS VEGAS COMMUNITY GROUPS TARGET REDLINING, DISCRIMINATION BY AREA BANKS; CITIBANK, FIRST INTERSTATE, PRIMERIT AND VALLEY BANK COMPARED

LAS VEGAS COMMUNITY GROUPS TARGET REDLINING, DISCRIMINATION BY AREA

BANKS; CITIBANK, FIRST INTERSTATE, PRIMERIT AND VALLEY BANK COMPARED
 LAS VEGAS, June 12 /PRNewswire/ -- Against a backdrop of protracted civil unrest on Las Vegas' westside, a coalition of community groups and elected officials released a report Thursday indicting local lending institutions for widening the gap between whites and minorities and between rich and poor.
 The report, entitled "Cashing Out," was prepared by the Las Vegas Alliance for Fair Banking. It uses federal home mortgage data to demonstrate how major Las Vegas banks channel hundreds of millions of dollars in loans to the area's predominately white, affluent communities, while making almost no loans in minority neighborhoods.
 The westside, for example, 85 percent of whose residents are African-American, received only 59 of the 10,658 home loans made in Las Vegas in 1990.
 "The report shows that Las Vegas banks have cordoned off the westside and imposed a financial curfew on its largely African-American residents," commented State Sen. Joseph M. Neal Jr., spokesperson for the Alliance. "What we see the sheriff and police doing in our streets today, the bankers have done for years behind closed doors," Neal said.
 "Cashing Out" presents evidence that Las Vegas lenders rejected loan applications from blacks 50 percent more often than from whites, even when applicants came from the same income category.
 First Interstate Bank denied home loan applications from middle- income blacks six times more often than from middle-income whites. (Highlights of the report are at the end of this release.)
 The Alliance, whose members include representatives of the NAACP, Culinary Local 226, community groups, churches and homeowners associations, as well as state and local elected officials, was formed about six months ago. Its purpose is to increase the flow of credit and banking services to minorities and low- and moderate-income residents of Las Vegas.
 "There's not a bank in Las Vegas that doesn't need to improve its lending to minorities and low-income borrowers," Hattie Canty, president of Culinary 226 and a member of the Alliance, said. "We're talking about aggressive measures to correct decades of redlining and isolation of our communities."
 Copies of the Alliance's report are being provided to local, state and federal elected officials and banking regulators.
 The Alliance says it wants regulators to investigate all patterns of apparent discrimination, and to impose a moratorium on mergers and acquisitions involving institutions with unsatisfactory lending records. It says it is also asking state and local officials to require banks to demonstrate a high standard of community reinvestment in order to qualify as depositories for public monies.
 Highlights of the Report
 In the report, entitled "Cashing Out," the Alliance looked at the record of the 60 lenders who made home purchase, refinance or home improvement loans in the Las Vegas area in 1990 as well as at the performance of the four leading banks in home mortgage lending -- Citibank, First Interstate Bank, Primerit Bank and Valley bank and Mortgage Co.
 -- The report found that only 59 of the 10,658 purchase, refinance and home improvement loans made in 1990 went to the westside, 85 percent of whose residents are African-American. With 60 lenders active in Las Vegas, that is less than one loan per bank, thrift or mortgage company;
 -- First Interstate Bank, Citibank and Primerit Bank each made only three loans to westside neighborhoods in 1990, while Valley Bank made 12 loans;
 -- African-Americans, who now make up about 9 percent of Clark County's population, received less than 3 percent of all loans. Among the four leading banks in home mortgage lending, First Interstate Bank made only 1.6 percent of its loans to African-Americans;
 -- At the same time, black applicants for loans were rejected 50 percent more often than white applicants. A black applicant with an income above $41,500 was as likely to be turned down for a home loan as a white applicant with an income below $27,700, according to aggregate data for all Las Vegas lenders;
 -- At Primerit Bank, low- and middle-income blacks were denied loans twice as often as whites in the same income category. At Citibank, middle income blacks were turned down twice as often as middle income whites; and
 -- At First Interstate Bank, middle-income blacks were rejected more than six times as often as middle-income whites, while upper-income blacks were denied loans almost three times as often as upper-income whites.
 -0- 6/12/92
 /CONTACT: Theresa McGuire of the Las Vegas Alliance for Fair Banking, 702-386-5118/ CO: Las Vegas Alliance for Fair Banking ST: Nevada IN: FIN SU:


JL-KJ -- LA006 -- 9543 06/12/92 09:02 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 12, 1992
Words:769
Previous Article:HARVARD CAPITAL CORP. ANNOUNCES APPOINTMENT OF NEW DIRECTORS AND OFFICERS
Next Article:LAIS ANNOUNCES PLANS TO REPURCHASE STOCK
Topics:


Related Articles
Utahns win in Sin City.
Cities and banking: to reinvest or disinvest?
SOUTHWEST GAS ANNOUNCES OTS TERMINATES SUBSIDIARY'S SUPERVISORY AGREEMENT
Neighborhoods and banking.
SOUTHWEST GAS CORPORATION ANNOUNCES SALE OF PRIMERIT BANK
DEFINITIVE AGREEMENT SIGNED FOR PRIMERIT BANK TO BE ACQUIRED BY NORWEST
Capitol Bancorp Ltd. Announces Intention to Enter Nevada Banking Market.
Business Bank of Nevada Announces Vice President and Manager Promotions in Credit Administration and Purchasing Departments.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters