January 21, 1994
TO: BOARD OF GOVERNORS NO. 9-94
RE: RECENT PRESS ARTICLES ON APPLYING CRA TO MUTUAL FUNDS
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As we previously informed you, certain bank trade associations and others
have publicly advocated imposing community reinvestment obligations on mutual
funds. (See, e.g., Memoranda to Board of Governors No. 53-93, dated June 9, 1993
and No. 65-93, dated July 27, 1993.) Attached are two recent press articles that
report on this debate.
Both articles quote representatives of bank trade associations and consumer
groups in favor of the idea of extending the Community Reinvestment Act to mutual
funds (although neither article contains much that is new). The articles also
quote the Institute, as well as others, who object to the idea.
We will continue to monitor developments in this area and keep you advised.
Matthew P. Fink
President
Attachment