WASHINGTON -- Bank regulators dropped a plan -- vehemently opposed by bankers -- to use a range of enforcement powers to compel compliance with the Community Reinvestment Act after a Justice Department finding that the agencies lack the legal authority.

"I think it is great," said James McLaughlin, the American Bankers Association's director of agency relations. "It confirms what we have been saying all along. It basically saves the banking industry a lawsuit."

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