The nonprofit organization, which publishes Consumer Reports magazine, also urged the federal regulatory agency to require banks to answer select questions publicly as part of their application for approval. Consumers Union outlined these commitments for pending and future bank mergers in a letter sent today to the Fed. When considering these massive deals, the Federal Reserve Board must require banks to make clear and specific commitments, rather than vague promises, to consumers and communities. During past mergers, banks have touted cost-savings, yet bank fees are still high.
Studies show that bigger banks mean higher fees.
The consumer group's letter urges the Fed to require specific guarantees in all proposed mega-bank mergers. This would include the recently announced mergers between NationsBank and BankAmerica and Banc One and First Chicago. Community Reinvestment Act advocates in every affected state and local region on future CRA commitments before filing for regulatory approval of the merger. These agreements should be for specific programs and specific dollar goals for CRA activity in each area. Commit to specific consumer safeguards in the retail sale of products, particularly the sale of uninsured products.