Banks face tougher anti-discrimination rule, setting up possible court fight

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Bank regulators on Tuesday unveiled a sweeping new rule to combat lending discrimination, the culmination of a five-year effort to overhaul a landmark 1977 anti-redlining law.

The new rule — which would require banks to increase their lending to low- and moderate-income communities — marks the most significant revision to the Community Reinvestment Act in nearly three decades.

The adoption of the rule sets up a potential clash with the nation’s lenders, who have already threatened a court challenge, and drew criticism from at least one Federal Reserve Board member, who blasted it as overly complex and unnecessary.

CRA was passed nearly 50 years ago to redress the historical practice of redlining, when the government discouraged lenders from extending mortgage loans to Black borrowers — drawing a red line around neighborhoods that were to be avoided.

The flaws in the law’s current application are underscored by the fact that the racial homeownership gap is actually wider now than it was in 1968, when redlining was legal.

The new framework, which will go into effect starting in January 2026, requires banks to lend to lower-income communities in areas where they have a concentration of mortgage and small-business loans, rather than just where they have physical branches — a change meant to bring the CRA into the modern era of online banking. It assesses banks’ retail lending and community development financing with equal weight, using benchmarks based on peer and demographic data.

Banks oppose the new loan-threshold test, which the Fed, the FDIC and the Office of the Comptroller of the Currency first proposed last year. Banking industry groups argue that the requirement could result in lenders shuttering operations or restricting loans in more sparsely populated areas to avoid triggering CRA obligations for the broader region.

Fed Chair Jerome Powell defended the rule.

It “will better achieve the purposes of the law by encouraging banks to expand access to credit, investment, and banking services in low- and moderate-income communities,” Powell said in a statement. He said it is adapted to “changes in the banking industry, such as mobile and online banking; providing greater clarity and consistency in the application of the CRA regulations; and tailoring to bank size and type.”

For large banks, the new retail-lending assessment areas would apply to areas where they originated more than 150 closed-end home mortgage loans or 400 small business loans in both of the previous two years — an increase from the proposed rule’s 100-mortgage and 250-small-business-loan thresholds.

Any bank with over $2 billion in assets is considered a “large bank” under the rule, with smaller banks exempt from new data requirements. For banks with more than $10 billion in assets, the evaluation of retail services and products would include online banking.

Still, community banks with over $600 million in assets would also have to comply with a new retail-lending test, expanded assessment areas and increased reporting requirements.

Under the new retail-lending test, nearly 10 percent of banks would score a “needs to improve” rating, according to an agency analysis of data from 2018 to 2020, compared with about 1 percent of banks getting that rating today.

Such a score on the retail lending test would preclude those banks from getting an overall “satisfactory” CRA rating under the final rule — below which banks are generally prohibited from merger and acquisition activity.

Fed Governor Michelle Bowman voiced opposition to the rule, saying the regulators “have arguably exceeded the authority granted by the CRA statute” by evaluating banks outside of their “deposit-taking footprint.”

“The final rule is unnecessarily complex, overly prescriptive, and contains disproportionately greater costs than benefits, adding significantly greater regulatory burden for all banks, but especially for community banks,” she said in a prepared statement.

Bowman also questioned why the agencies needed to update the rule in the first place.

“The premise of the changes being made in this rule is that banks are not doing enough to meet the credit needs of their communities,” she said. “Yet, there is no evidence provided to support this premise.”

Fair-lending and civil rights advocates say the current rules clearly aren’t working, noting the racial homeownership gap — 75 percent of white Americans own their homes, compared with 46 percent of Black Americans.

Michael Cohen, Trump’s longtime fixer, prepares to testify against Trump in fraud trial

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NEW YORK — It has been five years since Michael Cohen stood in a courtroom and first implicated Donald Trump in federal crimes, marking Cohen’s dramatic split from his former boss.

On Tuesday, Cohen is scheduled to once again come to court, where this time he will sit face to face with Trump to testify against him in a $250 million civil fraud trial. The moment will mark a new chapter in Cohen’s crusade to hold Trump accountable for what Cohen, Trump’s former fixer and lawyer, has described as years of unlawful conduct by the former president.

Asked how he felt about testifying against Trump, whom Cohen fiercely defended for decades before turning on him, Cohen replied in a text message that he was “confident,” adding: “I’m not the one sitting in the defendant’s seat this time.”

It is likely to be a tense, emotional moment for both. In the period since Cohen pleaded guilty to federal campaign finance crimes that he and federal prosecutors said Trump directed him to commit, he has called Trump a coward and a “con man.” Trump, in turn, has hardly held his venom when it comes to Cohen, calling him a liar and a “rat.”

Trump also sued Cohen, seeking $500 million, but abruptly dropped the lawsuit just after the start of the civil fraud trial after twice delaying a deposition. Trump claimed he was merely pausing the litigation, while Cohen said Trump feared answering questions under oath.

On Tuesday, Cohen is expected to testify as one of the central witnesses in New York Attorney General Tish James’ case against Trump, which accuses him, his adult sons and his business associates of inflating his net worth in order to obtain favorable terms from banks and insurers.

In a videotaped deposition, Cohen said Trump would pick a number for his net worth that would boost his spot on the Forbes “richest people” list. Then, Cohen said, he and former Trump Organization chief financial officer Allen Weisselberg, another one of the defendants, would value Trump’s properties in a way that would add up to Trump’s desired total.

Cohen’s testimony is likely to be some of the most contentious of the trial, not only because his account is critical to the case but also because he is a convicted felon who served a prison sentence after pleading guilty in 2018 to federal tax evasion and campaign finance violations tied to his role in paying hush money during the 2016 presidential election to a porn star who claimed she had an affair with Trump. Cohen told a federal judge that it was Trump who ordered him to pay the porn star, Stormy Daniels. Cohen also subsequently pleaded guilty to lying to Congress about his efforts to help build a Trump Tower in Russia.

As a result, Trump and his lawyers have rarely passed up an opportunity to brand Cohen as a fabulist.

“He’s lied to courts, he’s lied to Congress, he’s lied to everyone and anyone he’s come into contact with,” Trump attorney Chris Kise said of Cohen in his opening statement.

Trump’s lawyers are likely to drive that point home in their cross-examination of Cohen, in part because Cohen’s testimony Tuesday marks merely the start of his time on the witness stand against Trump.

In addition to the civil fraud trial, Cohen is expected to serve as a witness in Manhattan District Attorney Alvin Bragg’s criminal case against the former president over his alleged role in hush money payments to Daniels.

That trial is scheduled to begin in March 2024.

How QB Tyson Bagent rose from zero-star recruit to Division II record-breaker to Chicago Bears rookie starter

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Tyson Bagent prides himself on his preparation.

It is, he says, a big part of what has propelled him from being a zero-star high school recruit in West Virginia to the verge of his first NFL start Sunday at Soldier Field.

So when the question came to Bagent on Wednesday during his first news conference as the Chicago Bears Week 7 starting quarterback, he responded as if he had prepared for this too.

What was his backup plan if this dream to play in the NFL didn’t materialize out of his unusual path through Division II football?

“I was going to basically just CrossFit my life away, get as ripped and jacked as I possibly could,” Bagent said without missing a beat. “And be a teacher at Martinsburg High School.”

Martinsburg High, located in eastern West Virginia about 80 miles from Washington, D.C., will have to wait to hire its ripped alumnus.

Bagent, 23, has more odds to defy.

Five years ago, Bagent was beginning his collegiate career at Division II Shepherd, in Shepherdstown, W.Va., his local university and the alma mater of his parents. He had received just two Division I FCS offers — and no FBS offers — despite leading his high school team to two state championships. Less than six months ago, he went unselected in the NFL draft despite a record-breaking collegiate career and solid performance at the Senior Bowl. Seven weeks ago, after a strong training camp and preseason, he beat out veteran PJ Walker to make the Bears roster despite entering camp as the fourth quarterback.

Now, on Sunday when he takes the field against the Las Vegas Raiders, Bagent will become just the fourth undrafted rookie quarterback since 1990 to start within the first seven games of the season, the last Devlin Hodges in 2019, according to NFL Communications.

The duration of this opportunity is unclear. The Bears have said starter Justin Fields’ return from a thumb injury will depend on his grip strength, and coach Matt Eberflus offered an encouraging update Friday, saying Fields is not headed toward injured reserve or surgery as of now.

But regardless of how long Bagent has, he hopes to lead the Bears with a confidence that has impressed teammates and coaches — and that he says comes from being prepared for a moment he and his father, a world champion arm wrestler, always believed was going to arrive.

“Me and my dad really were the only ones who thought that this was going to happen,” Bagent said. “After that, it was just figuring out how I could outwork everybody that maybe had more things than I did, had better facilities and all that stuff. It was really just trying to get it out of the mud, putting a lot of work in the shadows, just so I’d be ready for this week.”

‘Working his tail off’

On the short break NFL rookies get between minicamp in June and the beginning of training camp in July, Bagent knew he needed to practice relaying play calls, so he enlisted the help of Michael McCook, a former Shepherd tight end, current assistant and the son of head coach Ernie McCook.

Bagent stood in the middle of the football field wearing an earpiece and took phone calls from his friend.

Michael McCook delivered the play call to Bagent, who then went through the presnap process, approaching the invisible huddle to give the call, putting his imaginary teammates in motion and making adjustments at the line of scrimmage.

“They did it in person, and then if one was on vacation or at the beach, they would do it by telephone,” Ernie McCook said. “And that’s who he is. I told every NFL scout that came in here, ‘You are never going to embarrass yourself by bringing him up, jumping on the table for him. I don’t know if he can make your team. But nobody is ever going to say, why did we bring this guy into camp?’ And I think that’s showing up.”

Ernie McCook watched Bagent grow up. He went to the same church as the Bagent family and taught Bagent’s father, Travis, at Shepherd. He observed the family’s oldest child from afar, noting the way he carried himself with poise as a high school student who was well known in the area because of his prep success.

And as soon as Bagent signed with Shepherd, McCook saw the work the quarterback was willing to put in. Bagent, still a high school senior, arrived at spring practices to stand behind the huddle and observe.

McCook likes to tell a story from July of Bagent’s sophomore year. The Friday before offensive coordinator Tye Hiatt left for a family vacation, Bagent called to see if he could go over to his house to review some things on offense. That night, Hiatt’s wife made dinner and packed the van so the pair could talk football. It was the middle of summer, but Bagent couldn’t wait a week to confer with his coordinator.

Bagent sees work like that as a fuel for his confidence, especially going up against competition that is far superior to what he has faced for most of his career.

“Going through college football, you start to see guys who are really good that don’t make it because they don’t know where they’re going,” Bagent said. “So if you’re not the fastest guy here and you’re not the best athlete on the field, as long as you know where you’re going … or know what everybody’s doing, you’re usually going to operate a little bit better than guys that might be a little bit better than you physically.

“Especially at this level, everybody’s really smart and really fast, so really understanding what’s going on around me has been the only real focal point since I’ve been here.”

When Bears offensive coordinator Luke Getsy first got to know Bagent while coaching at the Senior Bowl in January, Getsy thought the quarterback was a little nervous. But as he got to know Bagent better throughout the week, he realized Bagent was simply ultrafocused on his preparation.

“It was because he was working his tail off so much by the time we got to Wednesday, Thursday (of that week) I saw a guy ready to rock and roll,” Getsy said.

That work has carried over to preparing in his role with the Bears.

Wide receiver Tyler Scott sat next to Bagent on a couple of plane rides home from games, and Bagent already was diving into film. When Bagent watched Fields take starters reps during practices earlier this season, Eberflus asked the backup two or three times per period to tell him about a play — and Bagent always was on it. And tight end Cole Kmet said Bagent didn’t mess up a play call in the huddle during the last week of practice.

“And these are long play calls,” Kmet said. “You’d have a tough time repeating these things.”

Bagent said when the Bears needed him to play when Fields was injured in the third quarter Sunday against the Minnesota Vikings, he reassured them he was ready.

“Whatever they want to put on that call sheet will be understood through and through by myself,” he said. “I put that on me going into the game last week. I just told them, ‘I know you guys have a lot of faith in me, but I want to let you know I know the whole call sheet so don’t be afraid to do your thing, call your plays. Don’t hinder the offense just because I’m going in there because I’ve prepared for this all week.’ So I take pride in doing that.”

Along with his preparation, Bagent has something else that gives him confidence — a whole lot of football under his belt, even if it was against lesser competition.

A record-breaking career

The throw Brian Walker calls “arguably the greatest pass in Division II history” came against Notre Dame in the final seconds of the second round of the 2021 playoffs. To be clear, that’s Notre Dame College of South Euclid, Ohio.

Notre Dame took a 34-31 lead with 28 seconds to play. But after a kickoff return and a 32-yard Bagent pass, Shepherd had the ball at the Falcons 23-yard line with 10 seconds to play. As the pocket collapsed, Bagent broke right and delivered a strike in the final second to Josh Gontarek, who made the leaping catch in the end zone, tumbled down and ran to the fence, where exuberant fans watching from a hill scrambled down to celebrate.

“The stadium goes crazy,” Walker said.

A few weeks later, Bagent won the Harlon Hill Trophy, given to the best player in D-II football.

That touchdown pass was one of an NCAA all-divisions record 159 Bagent threw during his career at Shepherd. Walker, a tight end, caught No. 149, which set the D-II record against East Stroudsburg, whose coach, Jimmy Terwilliger, held the previous record. And Walker also caught No. 158 against Indiana (Pa.), which broke the NCAA all-divisions record held by Monmouth’s Alex Tanney, now the Philadelphia Eagles quarterbacks coach.

“We knew a long time ago that Tyson was the real deal,” said Walker, who spent the offseason program with the Baltimore Ravens. “What he’s doing right now is nothing but excellent, but not surprising for guys that have seen him for so long.”

Out of high school, Bagent only received offers from FCS Albany and Robert Morris, an obvious “mistake” by other programs, McCook declared.

“Their decisions made me very lucky and our program very lucky,” he said.

Bagent seized Shepherd’s starting role as a freshman, throwing for 518 yards in his first game, and by the end of that season, McCook realized Bagent was his best player and leader on the field. His stats got better each season, getting to 5,000 yards and 53 touchdowns in his junior year.

“We never felt we were out of a game,” McCook said. “He has a way to will teams to win. He has great poise and composure. He has a tremendous competitiveness. And he’s one of these players I truly believe make people around them better.”

After that 2021 season, Bagent entered the transfer portal to weigh going to a Division I school and made official visits to West Virginia and Maryland. He strongly considered Maryland but eventually decided to stay at Shepherd because the path to graduation would have required significantly more credit hours if he transferred and he wanted stay near his sick grandfather.

“I didn’t think it would affect my ability to get (to the NFL). I thought it might affect the stock a little bit,” Bagent said of not transferring. “But I felt like I was already playing for the best coaching staff. I felt like I was already in a winning situation. In hindsight, I definitely made the right decision in staying and coming back.”

McCook had listened to Bagent throughout the whole process as a high school coach might advise his recruit, trying to remove his viewpoint from the situation, but when Bagent called to tell him he was staying at Shepherd it was a relief for both. Bagent was set to go to the compliance office to be removed from the portal the following Monday, but snow blanketed the Shepherd campus, shutting down the facilities and delaying the move.

The next day when Bagent went into the athletic offices, an anxious McCook offered to walk him down to the compliance office.

“It was one of those things I wanted to make sure it happened,” McCook said with a laugh. “It was something I’m glad he did because he got a chance to explore it. … I just wanted to make sure he had an opportunity to get into an NFL camp.”

McCook said they tried to “roll out the red carpet” for the scouts from every NFL team that traveled to Shepherdstown over the next year as Bagent threw for 4,580 yards, 41 touchdowns and eight interceptions as a senior. That Bagent wasn’t one of 14 quarterbacks drafted this year was a surprise to those at Shepherd who saw him throw for 17,034 career passing yards — the Athletic had given him a seventh-round grade — but it paved the way for the Bears to step in and sign him as an undrafted free agent.

Poise needed

During Bagent’s college career, Shepherd had a football fundraiser called “Pulling for the Rams,” at which players competed in tug of war in front of fans. At the end, Travis Bagent lined up all of the players and arm wrestled each one by one.

“He put us all down,” Walker said. “We’ve all had our taste of the arm wrestling, and none of us have been pursuing it since.”

In the few meetings with Chicago reporters so far, Tyson Bagent is quick to connect his family’s support to his success and motivation. Travis Bagent, whom Walker called “everything you’d want in a dad, everything you’d want in a sports agent, marketer,” is a loud, outgoing man who earned a name through his arm-wrestling prowess well before his son became known.

Bears wide receiver Darnell Mooney had seen a video of Travis arm wrestling NFL Network host Tom Pelissero at the scouting combine this year. When Mooney put it together that Travis was Tyson’s father, it made sense.

“I’m like, ‘Oh, I see where you get your confidence from,’ ” Mooney said.

As McCook sees it, Travis has been a driving force in his son’s competitive nature, while Tyson’s mother, Casey, is the more laid-back, calming presence. Tyson, he said, is a mix of both.

And Bagent certainly will need both this weekend.

Bagent didn’t brush off the questions this week about the differences between playing West Chester (Pa.) one year ago and the Raiders and Pro Bowl defensive end Maxx Crosby this week.

He was made aware of what he was facing three snaps into replacing Fields against the Vikings, when safety Josh Metellus knocked the ball from his hands and linebacker Jordan Hicks returned it for a touchdown.

Bagent bounced back to lead a touchdown drive but then threw an interception to Byron Murphy Jr. on an underthrown deep shot to DJ Moore as the Bears were trying to take the lead. It was one of many learning experiences he’s sure to face for as long as he’s starting for the Bears.

“He’s right in the middle of the pocket and he took three hitches,” Getsy said. “He really ran himself into the left guard. So, it’s one hitch, let it fly. … If you get the hesitation, then you’ve got to go get your checkdown, and he didn’t do that.”

Poise has been a common descriptor among those who know Bagent well and those still getting to know him. It’s sure to be tested Sunday, but Walker said he always passed the challenge at his previous stop.

“Cool as a cucumber,” Walker said. “That’s not coachable. That’s something you’re born with and you develop on your own. … He can throw an interception and he’s not going to come to the sideline and start screaming and yelling, throwing stuff around, nothing like that. He evaluates what happens, takes it, gets back out there and makes the correction.”

Bagent’s opportunity in the starting role might be short-lived. Eberflus said the swelling in Fields’ hand has gone down and Fields is getting some strength back in it. The Bears will give him the reins back when he’s healthy. So Bagent will have to take advantage of what he is given to make an impression.

Bagent said his family members checked in with him all week to make sure he wasn’t “freaking out behind the scenes” as he prepared.

He told them he was good.

“Coming from where I come from, I’ve pretty much beat every odd that there was for me,” Bagent said. “So I’ve got nothing to lose. I’m going to go out there and fight with these guys to the death and try to stack up as many wins as I can until we get Justin back.”

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Another Trump lawyer who pushed to overturn 2020 election pleads guilty

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Jenna Ellis, a Trump campaign attorney who worked with Rudy Giuliani to press state legislatures to overturn the 2020 election results, pleaded guilty Tuesday to a felony charge that she participated in an effort to make false statements to Georgia lawmakers about election fraud.

Ellis is the third Trump-aligned attorney in recent days to plead guilty to crimes stemming from the 2020 election, joining Sidney Powell and Kenneth Chesebro, who each accepted deals to admit to aspects of the charges brought by Fulton County District Attorney Fani Willis.

All three lawyers had been charged alongside Donald Trump and many of his other allies with a sprawling racketeering conspiracy. Their pleas may reshape the case against Trump, supplying prosecutors with testimony from some of his closest advisers, who are now admitting for the first time that some of their actions crossed the line into criminality.

“If I knew then what I know now, I would have declined to represent Donald Trump in these post-election challenges,” Ellis said through tears during a court appearance in Atlanta Tuesday morning.

Ellis acknowledged that she helped supply false information related to claims by Giuliani and another Trump lawyer that nearly 100,000 mail-in ballots were fraudulently cast, that 2,500 felons illegally voted, that more than 60,000 underage people illegally registered to vote, and that more than 10,000 dead people voted in the Nov. 3, 2020, presidential election in Georgia, among other assertions. She agreed to cooperate with prosecutors in future proceedings, serve five years of probation, pay $5,000 in restitution and write a letter of apology.

Ellis, 38, described herself as a relatively junior member of Trump’s legal team.

“I relied on others, including lawyers with many more years of experience than I to provide me with true and reliable information,” Ellis told the judge in the case, Scott McAfee. “What I did not do, but should have done, Your Honor, was to make sure that the facts the other lawyers alleged to be true were in fact true. In the frenetic pace of attempting to raise challenges to the election in several states, including Georgia. I failed to do my due diligence.”

After the election, Ellis traveled often with Giuliani to states won by Joe Biden and pushed Republican lawmakers to appoint alternate slates of presidential electors.

During her statement to the judge Tuesday, Ellis alluded to her previous admission to misrepresenting claims of election fraud in a deal she reached with Colorado authorities who discipline lawyers for misconduct.

Ellis’s lawyers agreed with prosecutors that the offense she admitted to Tuesday was not “a crime of moral turpitude.” That agreement, which is also a part of the guilty pleas by the other Trump-affiliated lawyers, could help them avoid disbarment or other serious action against their law licenses.

A lawyer for Trump said the prosecution’s willingness to drop the racketeering charge and agree to probation for Ellis undercuts the existing indictment.

“What that shows is this so-called RICO case is nothing more than a bargaining chip for Willis,” the lawyer, Steve Sadow, said in a statement, referring to the state’s Racketeer Influenced and Corrupt Organizations Act. Sadow also noted that the charge to which Ellis pleaded guilty “doesn’t even mention President Trump.”

Ellis was a prominent figure in Trump’s orbit in the chaotic weeks following the Nov. 3, 2020, presidential election. Though she didn’t appear in any Trump campaign litigation, she was a fixture alongside Giuliani as they pressed state lawmakers to credit the claims of election fraud that Ellis now says she no longer believes.

Ellis also played a role in efforts to press then-Vice President Mike Pence to refuse to count Biden’s presidential electors. She drafted memos that were circulated among Trump allies supporting Pence’s authority to sidestep existing laws and simply decline to open envelopes containing Biden’s electoral votes.

A prosecutor on the case said in court Tuesday that Ellis didn’t do what she needed to do to check the accuracy of the information presented at a Dec. 3, 2020, Georgia Senate hearing and similar proceedings elsewhere in the country.

“The false statements were made with reckless disregard of the truth and with conspicuous disregard of the truth and with conspicuous purpose to avoid learning the truth,” prosecutor Daysha Young said.