Ill. to deposit money only with institutions that reinvest in communities

May 4, 2009 4:48:53 PM PDT
Starting June 1, he will require all financial institutions to sign a community reinvestment pledge before they can receive or renew state deposits. They'll have to do more to help homeowners avoid foreclosure, provide loans to small businesses and offer banking services to underserved communities. "By reaching out and insuring that they serve their respective communities banks can build a ladder that makes it possible for people to climb up and get ahead," said Alexi Giannoulias Illinois state treasurer. Currently, the state has more than $1.4 billion deposited in banks, credit unions and savings and loans in Illinois.