The Clinton administration's defense of the Community Reinvestment Act is based on the misguided belief that the act and a related law, the Home Mortgage Disclosure Act, actually benefit minority populations, according to a paper released by the Cato Institute this week.

"Repealing, rather than strengthening, the act would be the economically and socially responsible thing to do," argues George J. Benston, a professor at Emory University's Goizueta School of Business and a member of the Shadow Financial Regulatory Committee.

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