Capital Briefs: Activists Opposing Glendale Merger

Glendale Federal Bank's proposed merger with TransWorld Bank is being opposed by the Greenlining Institute.

In its Jan. 7 protest under the Community Reinvestment Act, the coalition charged that the $16 billion-asset Glendale, Calif., thrift made only 11 mortgages to African-Americans with annual incomes under $35,000. The group also charged that Glendale's lending to minorities was below the industry average in 14 of 16 California census tracts recently studied by the Office of Thrift Supervision.

The coalition of 35 groups asked the OTS to hold a public hearing on the merger and investigate the institution's lending record. Greenlining also asked the agency to lower Glendale's CRA rating from "satisfactory" to "needs to improve."

Glendale officials defended their record Tuesday.

"We did receive a satisfactory CRA rating and we've had in place programs focused on low- and moderate-income borrowers," spokesman Maury Healy said.