Martin Mayer, Redlining, and 'The FEDS'

Part II

Some books are worthy of mention and one of the books which deals with the ongoing issue on Redlining and how the Banks implicated the process is titled 'The Feds' written by Martin Mayer. The book concerns the evolution of the history of the FEDS organization in US and why the history is of great importance in redeeming the future of America through the success of the institution and the Banks. But my inspiration to extend any useful replay on the book comes from the nature by which he treated the issue of Redlining. I mean the whole inspiration to treat Redlining come from a book by Martin Mayer titled the 'Feds', published in 2001 by the Free Press of Simon and Shuster Inc New York. The author made serious arguments about the 'monstrous' acts of denial perpetrated by Banks which if Americans should per chance the record, it could lead to distrust of Banks. But this is just the 'if'. This Book called the 'Feds' deserves a longer review because it details out the whole measure of what the US House of Reps have been doing for some time especially the position of CRA - Congress for the Community Re-investment Act (CRA), where at least in "1991 Congress included the FDIC improvement Act a requirement that when 'CRA' find violations of equal credit opportunities Act, they must refer to the Department of Justice.

In the 'FEDS', the author who is not African American exposed what he called ''monstrous'' practice of this redlining which he argued was much more about Civil Justice, than anything else, and that it was instrumental in bedeviling African American business and businesses with some of them getting the same message of the so-called inadequacy of credit. Then those who could some Loans and financed Venture Funding, get serious punitive requirement owing to the history of the neighborhoods involved.

Martin Mayer in my view should be congratulated for necessarily highlighting the problems from a banker position, and relevant architects of monetary policy of the world, both of the Executive arm and the Legislative should do the same. Martin Mayer is credited with up to 30 books on Banking and in the 'The Feds' he challenged the State and US Feds to do more in terms of investigating the normalized bad manners of the Banks towards lending.

In short view, many blacks and in fact Africans and especially Nigerians looking for loans to do business will not likely get it in New York, except for Mortgage loans in slums where half of the buildings are likely to lose their value with time, and then the 're-possession' due to payment strangled by loss of Job.

But who are we kidding, it is seriously encouraging to make such inquiries into Banking since it mirrors the challenges of the US Feds in Today's market, and not only that, it allows us to have a Firsthand look at what is happening to our financial institutions, and its central question of survival. If the Sovereign Wealth on Euro is misplaced in business among the Africans, there is something

Yet, the attention of many people is not so much what the banks do in Mortgage industry, or the issue of Mortgage Obligation, but what is happening to small American businesses that are owned and managed by certain range of minorities. The language of open source committee does not infect with action on what happens in a trade situated condition when the world of that finance is like the very monetary 'machine that can go on itself', nor do we expect Composites that run other finance materials to explain it all since it goes beyond the reach of many average time investors.

Much more worrying is what happens in derivative market where international markets join heads with American company and groups, in a place where the gap is further widened by different levels of repos. Thus in doing this, the competition that take place during ins and outs of what now happens in our daily business where people who receive enough company incentive will literally deny such incentive to certain people to permit indulgence, will not allow a careful review of this serious problem of lending malpractice.

The attempt by the Federal Open Market Committee to investigate certain claims may do more harm than good while the authors who write about African American business and the role of Banks in America might choose to avoid this part of their service to enable a survival rope to continue in their career.


The malpractice of feeding only a particular group of Americans loans and offering credit expansion should however be investigated by Federal Bank Supervision and Federal Bank Agency (FBA) on day by day accounting and they should look into what actually cripple African American business, and why they are not seriously represented at any level of business practice available anywhere in the world.

The same should also be said of the 'Truth-in-Lending Act' enacted in 1969 which left the FEDS with some powers to essentially legislate through the three banking regulators among the Home loan Bank Board, the Bureau Credit Unions, the Interstate Commerce Commission, the Federal Trade Commission, the Civil aeronautics Board, the Agriculture Department, where power structures have the power to probe the activities of Banks and Financial institutions under their canopy.

It will be very difficult to make such thing happen given the extra ordinary impact of mid-income Americans in today's world. But Martin Mayer’s position is only worthy of re-investigation since it helps to widen the gap in knowing what happens in a society where Banks profile others according to their wish.


On the political side of the very state, Obama would not have learned that as much Spanish is almost an official language of lower houses of the State, the domination of New York by many other forces has carved a landscape between African Americans and the rest of the society. That It is up to Nigeria to

The more confounding problem in New York is that many Black neighborhoods have suffered seriously and very long.

There are at least 5000 banks and financial institutions in New York with long roots in the continent of US and barely a handful of these banks are majority owned by Blacks. I mean, we can count very less than nameless ten in number including Insurance companies and old foundations owned by African Americans. In many ways the problem will continue long after now, even as we hope against the facts that some studies should be done in this world of inquiry.

The African American business men and women are seriously suppressed except for proven talents, and so is their market. The major fulcrum in that whole engine is the banking sector of American finances, a fact that is so understated except for cases when Banks who 'wanna' look good will put a few black eagles in their teller services and in their front line. In many areas of New York, to be sure Queens, you don't have to show up if you are not like 'them'. So the condition that Nigerians have to deal in US is like a flash in the pan given the serious advantage of cheap Nigerian to Nigeria connection which black America do not really have and which if they venturesome, become protective and nearly anti each other. The Advent of Euro and the rise of Asia as a diorama giant

Yet nothing is done by the US congressional committee to micro-manage the problem, lout of option, and largely because they are to effectually conduct investigative study through FHA (Federal housing Authority) about such practices especially now that it has taken a very sophisticated form. That role of Bank in determining the first and last of what happens in our society may also lead away the stranger facts of determining the shocking lack of African Americans is senior management positions, not that the talent is not there but the Funds available and securities curve and other National and International Derivatives markets are only open to specialized units and fund managers with safety nets.


And speaking of safety nets, US trade Almanac allow us to view what happens to the so-called U.S Total Retirement Market where even rackets from Investment Company Institute, Federal Reserve Board, National Association of Government Defined Contribution Administration, American Council of Life Insurers, Internal Revenue Service provide a degree of funding for the general American, but such open tray of Funding never make it to the proper hands of African American Business who desperately need it.

It has in fact gotten much worse in the last decade following the rise of the Euro pretending as counterweight to common benchmarks and common markets and rise of immigrant populations of Asia. Obama's 700 Billion dollars spending and the spending done in hundreds of billions by Bush to the Americans may have been expected to filter through to the working ranks of American society, but in structure and in mocking jest, it will not reach the small business who needs it. For Blacks the only compensation is the very homeless shelters and Welfare systems that are quite their right. As more and more people appears from different parts of the world into US, more and more the issue for greater resolve in terms of the attitude of black businesses compound. The case is largely due to the fact that

This is likely the case and may well be, given the highly selective attitude of American banks towards lending, a selection that is entirely visible and hideaway the profiling status of these inner cities Americans which were once a haven for Americans. So the issue of LABOR REVOLUTION within the American society should include what the Africans and the Caribbean are willing to do in the US, in terms of Brokerages and in terms of Banks as Anchors for International Nigerian business society and so on. Without much foreign national foundation like Africa and Nigerian, there is not a whole lot Blacks can do. If they have no penetration what’s so ever, there will be a newer generation of bad business in the very US for African Americans and Africans as well. Nigerian Banking committee should drop the arrogance of the past and see how it can encourage Africans to participate in the very business of the society.

Need must be said of the problems of the civil rights era did not even highlight the role of Banks in creating financial inequality between Whites and Blacks in every part of United States and for lack oversight committee of the part of these African Americans, there is virtually no mention of this atrocity of profiled lending by Banks. Yet the bad lending acts of Banks in New York, the Bad lending acts of financial institutions associated with the world do not get a mention in several books of the world. Many people who have complained that this non-lending behavior of Banks is still evident are no longer with the banking industries, they got strategically isolated, and those who still complain make a case for themselves and may and may not point out the root of the problem, which is the Bank.


The advent of Obama's nomination for the Nobel Peace prize as conferred on him by a collage of peoples representing the institution in Norway, had given new tension on the merits of his accomplishment. But the price may not have been for peace that is to come but for his effort in encouraging diplomacy in line with the likes of Bishop Desmond Tutu, Nelson Mandela, and late Martin Luther. The aforementioned group represents the era of civil struggle and how they sought to put away the divisive issues of their day through diplomacy.

The nomination of Obama forces a new era of that civil struggle to begin, that the likes of Obama as with other men and women of international repute, are now recognized for their effort is forcing changes in better life programs and in advancement of women's movement. From that angle of fighting poverty and poverty prevention, there is required necessity to remind ourselves of those who have made significant efforts in changing the attitudes of Banks towards other Americans and other citizens and towards the Continent of Africa.

That effort must now be made to include what is truly wrong with Banks and other financial institutions having to only extend loans to people who look like them and to a large extent enjoin the same religion.

Not many people will overlook the monstrosity of Indian financial industry in India, where people are turned down on loans for being a certain kind of Caste. Not only in India but in Korea, in South Africa, in Russia, and in Japan where people who do not belong to the 'family' or not among the numbered are to be ignored and should not even try to ask for loans. The relationship between Commerce and National Laws should in many ways educate our minds about the incidents of poor voting practices in these areas and no voting rights. In India, the monstrosity of Redlining continuous

In many ways what we know of ourselves in a larger society like USA explain what we know about the world at large.

But they can all pretend to be good people in world markets. In India, there is the monstrosity of voting rights where half of the population is not required to vote, they are not illegible to vote and then there is the women right issue which all carry into the banking and housing industry where the shame is fully unleashed. In many ways, the idea of Redlining which seem to be original to America in the years past, is a mere drop in the bucket concerning what goes on and around the world in terms of profiling and in terms of prejudice. These practices are still very evident USA, very much alive in New York