Regulations won't help banks

The editorial "`Test' Home Loans," June 2, suggests racist practices within the banking community. It incorrectly infers that increased federal involvement is needed to correct the problem.

The author has apparently forgotten about the savings-and-loan scandal. Flawed federal regulations imposed on these financial institutions ended up costing the American taxpayers tens of billions of dollars to correct.

The same result will occur if federal regulations are imposed on banks to correct alleged "racist" lending practices. Banks are under no obligation to loan money to individuals they consider credit risks. Emphasis should be placed on ensuring that borrowers meet lenders' criteria, rather than forcing lenders to lower their credit standards. Peter D. Konetchy, Byron, Mich.

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