This page summarises the official settlement between Union Savings Bank and Guardian Savings Bank and the U.S. Department of Justice regarding alleged discrimination and redlining of African American neighbourhoods. The information here is drawn from public records and official announcements; readers should review the original documents for full details.
According to the Department of Justice, the banks were accused of excluding predominantly African American neighbourhoods in Ohio and Indiana from their mortgage lending business and will invest at least $9 million to remedy these allegations.
The settlement requires the banks to create a $7 million loan subsidy fund for residents of majority African American census tracts, spend $2 million on outreach, advertising, community partnerships and consumer financial education, and open new full service branches in Cincinnati, Columbus, Dayton and Indianapolis.
A news report described how federal officials said the banks redlined majority African American neighbourhoods and required them to expand services to historically excluded areas.