October 19 2006
John Reich, Director of Office of Thrift Supervision, Visits Operation HOPE Center and Tours Underserved Communities
Visit to Support Reinvestment Opportunities in South Los Angeles
(Los Angeles) October 19, 2006--Director John M. Reich, U.S. Office of Thrift Supervision, and Robert Russell, his senior counselor, visited the Operation HOPE Center in South Los Angeles and joined Operation HOPE’s Founder and CEO John Hope Bryant and other financial executives including Mark Ernst, chairman and CEO of H&R Block, for a bus tour of the low-wealth communities of Los Angeles, a meeting with key community leaders, and a roundtable discussion with senior representatives of local financial institutions to explore the impact of the Community Reinvestment Act (CRA). The meeting was held on October 13, and was focused around what Operation HOPE is calling “CRA Plus.” Participants dialogued about opportunities to revitalize business areas and create stakeholders, and “silver rights” - making capitalism and the free enterprise system relevant to the poor, as a part of HOPE’s work to promote economic empowerment.
“Since the 1992 riots, South Los Angeles has experienced significant revitalization and growth, mostly through private-sector investments along with innovative public-private partnerships designed to improve the community - this includes activities from HOPE’s network of inner-city HOPE Centers, serving black and Latino communities, to the Los Angeles Urban League Toyota Motor USA partnership for an automotive training center in South Los Angeles. This said, there is still so much more that needs to be done and the responsibility is ours to do it,” said John Hope Bryant, founder and CEO of Operation HOPE. “We thank Director Reich for touring South Los Angeles with us. While then OTS Director Ellen Seidman was very supportive of our work, and in many ways helped to encourage the DC-Anacostia HOPE Center into existence, this marks the first time in more than a decade that HOPE has hosted an OTS director in South Los Angeles. We salute Director Reich for his leadership here. We facilitate these tours because we have learned that you don’t lend where you have never been, and we want to continue to directly encourage redevelopment and opportunities to invest in, and to lend to these underserved communities. This is done to better ensure equitable growth, access to financial services, affordable housing and stable neighborhoods. This is what Silver Rights is all about.” Director Reich also met with prominent community leaders including Robert Gnaizda, Esq., General Counsel and Policy Director of the Greenlining Institute, and Muhammad Nassardeen, founder and CEO of Recycling Black Dollars, amongst others, to speak about redevelopment opportunities in the area and to seek their feedback.
Representatives from several financial institutions including Citigroup, California National Bank, E*TRADE Financial, H&R Block, Washington Mutual Bank, Broadway Federal Bank, Cathay Bank, Fremont Investment and Loan, The First American Corporation, Wells Fargo, Chrisman & Company, Inc., Comerica Bank and the IndyMac Bank participated in the guided bus tour through South Central Los Angeles and round table discussion. HOPE periodically hosts Banker Bus Tours as a way to solicit new investors and financial institutions into low-wealth areas. A luncheon, which immediately followed, was sponsored by Chrisman & Company.
The Office of Thrift Supervision (OTS) is the primary federal regulator of federally-chartered and state-chartered savings associations, their subsidiaries, and their registered savings and loan holding companies. OTS was established as a bureau of the U.S. Department of the Treasury on August 9, 1989, and has four regional offices located in Jersey City, Atlanta, Dallas, and San Francisco. OTS is funded by assessments and fees levied on the industry it regulates. For more information about OTS visit its website at www.ots.treas.gov.