Two community groups are protesting an application by Lehman Brothers Holdings Inc. to buy an undercapitalized thrift. The Wall Street financial powerhouse is asking the Office of Thrift Supervision to expedite its application because the thrift, Delaware Savings Bank, is under an order to be acquired or raise new capital by June 30.
Matthew Lee, executive director of the New York-based Inner City Press/Community on the Move, and Rashmi Rangan, executive director of the Delaware Community Reinvestment Action Council, urged the OTS not to rush the application, saying the agency would need more time to examine Lehman's record of serving low-income people. The groups also charged that Lehman targets minority communities for high-interest, subprime loans.
Officials at Lehman declined to comment.