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Discrimination in lending

Description: Hope Kelly reports on a legislative hearing in Boston on alleged redlining practices by Boston banks. Kelly reports that the Federal Reserve Bank released a study finding evidence of redlining practices. Kelly notes that the banking industry reacted strongly to the accusations. Kelly's report includes footage from the legislative hearings. Barney Frank (US Congressman) and Benjamin Hooks (Executive Director, NAACP) condemn redlining practices. Richard Pollard (Chairman, Massachusetts Banking Association) and Richard Syron (President, Federal Reserve Bank) say that they do not believe that the banks are engaged in redlining. Kelly reviews the findings of the study. She adds that the study does not conclude if the findings reflect redlining or discrimination on the part of lenders. Kelly quotes Ray Flynn (Mayor of Boston), Michael Dukakis (Governor of Massachusetts), and Joseph Kennedy (US Congressman) as saying the redlining practices cannot be tolerated. Kelly interviews Pollard. Pollard says that banks are not engaged in redlining. He adds that banks need to better serve the needs of minority communities. Kelly notes that the legislative hearing addressed solutions to the problem of redlining, but did not talk about the problem of racism. This tape includes additional footage of the legislative hearing, with various speakers both in agreement and disagreement with the study.
1:00:05: Visual: Footage of Barney Frank (US Congressman) at a congressional hearing in Boston. Franks says that people of color are being denied their rights because of their skin color. Hope Kelly reports that Frank and other officials said that there is irrefutable evidence showing that Boston banks are engaged in discriminatory lending practices. V: Footage of Benjamin Hooks (Executive Director, NAACP) saying that banks across the nation are engaged in discriminatory lending practices. Kelly reports that the banking industry reacted strongly to the comments. V: Footage of Richard Pollard (Chairman, Massachusetts Banking Association) saying that he does not think that Hooks read the study. Kelly reports that the Federal Reserve Bank issued a study on August 31, 1988. Kelly quotes the study as finding that "the number of mortgage loans. . .is 24% lower in black neighborhoods than in white, even after taking into account economic and other non-racial neighborhood characteristics that might contribute to such disparities." V: Shot of Hooks, Michael Dukakis (Governor of Massachusetts), Richard Syron (President, Federal Reserve Bank), and Ray Flynn (Mayor of Boston) at the congressional hearing. Shot of Syron speaking. On-screen text and visuals detail the study findings. Kelly notes that the study does not conclude whether the findings reflect redlining or discrimination on the part of lenders. V: Footage of Syron speaking at the hearing. Syron says that he does not believe that Boston banks are engaged in redlining or discriminatory practices. Footage of Hooks saying that the African American community often knows through experience what the white community must find out through studies. Kelly reports that city and state officials were sympathetic to Hooks's viewpoint. Kelly quotes Flynn as saying that the findings are disturbing; that discriminatory practices cannot be tolerated. Kelly quotes Joseph Kennedy (US Congressman) as saying that "there is a serious problem of racially discriminatory lending in this city." Kelly quotes Dukakis as saying that "racial bias in any form is contrary to the very principles upon which this nation and Commonwealth were founded." V: Shot of Flynn, Syron, and Dukakis at the hearing. Quotes by Flynn, Kennedy and Dukakis appear written in text on-screen. Kelly reports that the bankers disagreed with the officials. V: Footage of Pollard being interviewed by Kelly. Pollard says that the study contains no evidence showing that banks are involved in the practice of redlining. Pollard admits that people in disadvantaged neighborhoods are ill-served by the financial community. Pollard says that bankers are part of the larger financial community; that bankers will be part of the solution to the problem. Shots of the congressional hearing; of Kennedy at the congressional hearing. Shots of Kweisi Mfume (State Representative) at the hearing; of attendees at the hearing; of Bruce Bolling (Boston City Council) at the hearing. Kelly reports that speakers at the hearing focused on solutions to the problem; that few talked about the larger issue of racism at the heart of the problem. V: Shots of Flynn; of attendees at the hearing.
Collection: Ten O'Clock News
Date Created: 09/29/1989

Redlining

Description: Meg Vaillancourt reports that the Federal Reserve Bank has released a study finding that banks in Boston are guilty of redlining. Vaillancourt notes that three times as many mortgages are approved in Boston's white neighborhoods as in African American neighborhoods. Vaillancourt reviews the findings of the study. Vaillancourt interviews African Americans on the street. They talk about their experiences in applying for mortgages. Vaillancourt reports that African Americans earn less than whites on average. She adds that these economic factors do not explain the gap in mortgage lending practices. Vaillancourt interviews Joseph Kennedy (US Congressman). Kennedy condemns redlining practices. He adds that banks should not practice discrimination, noting that many banks receive federal funds. Vaillancourt reports that Boston banks have agreed to change their lending practices. She adds that meetings between community activists and banks are scheduled for next month. Vaillancourt's report is accompanied by footage of employees and customers in banks and shots of residential homes.
1:00:14: Visual: Shots of residential homes in suburban areas. Meg Vaillancourt reports that home prices are on the rise. Vaillancourt notes that race can also be obstacle to home ownership. V: Footage of an African American man being interviewed at Downtown Crossing in Boston. The man says that he is turned down every time he applies for a mortgage. Footage of an African American woman being interviewed at Downtown Crossing. The woman says that she has had to submit a great deal of paperwork when applying for a mortgage; that she has been examined more carefully than her income would merit. Footage of Joseph Kennedy (US Congressman) saying that redlining is practiced across the nation; that many officials try to deny it. Vaillancourt reports that the Federal Reserve Bank has released a study which finds that three times as many mortgages are approved in Boston's white neighborhoods as in Boston's African American neighborhoods. V: Shot of an African American woman looking out of the window of an apartment building. On-screen visuals and text detail the findings of the study. Footage of an African American man being interviewed at Downtown Crossing. The man says that banks seem to believe that African Americans do not have money. Footage of another man being interviewed. The man says that there should be no discrimination in lending practices. Shots of homes in a residential neighborhood; of two white women and a child standing in front of one of the homes. Vaillancourt reports that some blamed economic factors instead of race for redlining practices. Vaillancourt quotes statistics which show that African Americans earn less than whites on average; that homes in African American neighborhoods cost less; that there is less development in African American neighborhoods. V: Shots of residential homes in a variety of neighborhoods. Vaillancourt notes that economic factors do not explain the gap in mortgage lending practices. Vaillancourt quotes the study as finding that a 24% difference in mortgages between white and African American neighborhoods is found even when economic factors are taken into account. Vaillancourt reports that the study found that economic factors do not explain the gap in lending practices. V: On-screen text and visuals detail the study findings. Footage of Kennedy saying that poor people are receiving credit; that people of color are being denied access to credit. Vaillancourt reports that the banking industry is in crisis after the savings and loan scandal; that many banks have been forced to close. Vaillancourt notes that taxpayers are bailing out some banks; that banks are having a hard time collecting on bad loans. V: Shots of employees and customers in the lobby of a bank; of a client filling out a loan application; of bank employees sitting at their desks while helping customers. Shot of an African American bank employee helping a white customer with a loan application. Footage of Kennedy saying that banks have access to federal funds; that banks receiving federal funds should not practice discrimination. Shot of two triple-decker houses in a residential neighborhood. One of the houses is dilapidated. Vaillancourt reports that Boston banks have agreed to change their lending practices; that meetings between community activists and banks are scheduled for next month. V: Footage of the first African American man at Downtown Crossing. The man says that he has been forced to look elsewhere for loans; that the banks' lending practices will not stop him.
Collection: Ten O'Clock News
Date Created: 08/31/1989