Pledges Broken to Development Bank

Re “3 Banks Fail to Meet Vows to L.A. Plan,” Feb. 6: So Wells Fargo, Union Bank and Bank of America find the Community Development Bank too risky? The prim, conservative excuses given by the quoted bank executives reek of racism, economic snobbery and indifference to a community they promised to serve. Why, they don’t sound anything like the banks I know that keep flooding me with credit cards, pre-approved loans, premium offers, etc.

Last time I looked, major banks were showing pretty good financial statements for 1997. And why not, with downsizing, consolidated branches, and fees and credit card interest either constant or rising, despite a lower cost of money to the banks? But now, when it is time to keep a promise made, high profits are not enough. Nor, apparently, is the opportunity to make a real contribution to the economic uplifting of a depressed, undercapitalized portion of our community. For these banking giants, the ante is modest, a total of $210 million, in partnership with the federal government--no solo risk here.

Apparently redlining has been lessened, though not eliminated. Some banks, savings and loans and insurance companies have improved their services to depressed communities. Most often, however, these changes have been the result of literally decades of pressure from activist organizations as well as government.

TONY BARNARD

San Pedro