Two judges in New York - one state and one federal - have set a precedent that could mean big headaches for banks involved in mergers, branch sales, and other transactions.

In a hearing scheduled for Wednesday in New York County Supreme Court, Judge Carol Arber will consider a community activist group's protest that state bank regulators failed to enforce the state Community Reinvestment Act when they approved the sale of Home Savings of America's New York branches to GreenPoint Financial Corp.

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