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The Tax on Black and Brown Customers When Dealing With Community Banks

According to a new study from New America, African Americans and Latinx incur more bank account costs and fees than whites even when dealing with small financial institutions.
Customers leave a branch of California National Bank of Los Angeles, one day after the Federal Deposit Insurance Corporation closed CalNational and eight smaller related banks, in Los Angeles, Saturday, Oct. 31, 2009.
Customers leave a branch of California National Bank of Los Angeles, one day after the Federal Deposit Insurance Corporation closed CalNational and eight smaller related banks, in Los Angeles, Saturday, Oct. 31, 2009. Reed Saxon/AP

On May 24, a multi-racial gaggle of Congress members wriggled for prime positioning around Donald Trump as he prepared to sign the Economic Growth, Regulatory Relief, and Consumer Protection Act into law. The bill considerably scales back the Dodd-Frank Act reforms passed in 2010 in response to the financial crash and was passed with the votes of 33 Democrats in the House and 17 in the Senate. It essentially frees small community banks and credit unions from many of the Dodd-Frank regulations, including reporting requirements that would help identify racially discriminatory banking practices.

“By liberating small banks from excessive bureaucracy,” said Trump at the signing, “we are unleashing the economic potential of our people.”