Several industry groups sued US regulators to block recent overhauls to the Community Reinvestment Act, arguing the new rules meant to tackle redlining and boost lending to lower-income areas will actually discourage banks from lending.
The American Bankers Association, U.S. Chamber of Commerce and the Texas Bankers Association were among the groups that filed the lawsuit in the Northern District of Texas against the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, according to a statement. They asked the court to vacate the final rules and will seek a preliminary injunction to pause them while the court decides.
