Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, September 9, 1995 TAG: 9509110088
SECTION: BUSINESS PAGE: A4 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Medium
The self-described ``banking terrorist'' said Friday that his Neighborhood Assistance Corp. of America plans to file a challenge with the Federal Reserve Board against First Union Corp.'s $5.4 billion merger with Lawrenceville, N.J.-based First Fidelity, one of the largest bank mergers announced this year.
Marks claims Charlotte, N.C.-based First Union has an unacceptable lending record in moderate- and low-income communities. He plans to announce a new campaign against First Union at a rally today in Jacksonville, Fla.
First Union spokesman Jeep Bryant said the bank's lending record in low- and moderate-income communities ``is a strong one,'' with more than $5 billion in loans in such neighborhoods.
Federal bank regulators can block or force revisions to bank mergers if they find that banks violated the Community Reinvestment Act, a key fair-lending law. While regulators rarely block mergers on these grounds, objections by community groups can result in costly delays.
Marks gained fame through an aggressive campaign against Fleet Financial Corp. of Providence, R.I., that involved disrupting annual meetings and confronting executives about the lending practices of a finance company unit. In 1994, Fleet announced an $8 billion community lending initiative and signed up Marks to help run a $140 million affordable-mortgage program.
Marks said his group's research shows that First Union's lending record is poor in the Washington, D.C., area. He said First Union approves 152 percent more loans in predominantly white neighborhoods than in minority neighborhoods in the Washington region.
Bryant said he hasn't seen Marks' research and declined to comment on the figures. He said First Union extended $13.8 million in loans for affordable housing in Washington, Maryland and Virginia.
by CNB