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Banks & Affirmative Action Obligations

2011-10-26

On January 1, 2012, banks and credit unions, will no longer sell U.S. Savings Bonds.  To purchase bonds, you will have to go to the U.S. Treasury Department's website, http://treasurydirect.gov.

For this reason banks and credit unions should re-evaluate whether they continue to have affirmative action obligations.

The Executive Order 11246 and its implementing regulations, subject financial institutions to affirmative action requirements in one of the following ways:

  1. Issuing and paying agents for U.S. Savings Bonds or Notes in any amount (no longer apply);
  2. Serves as a depository of Government funds in any amount; or
  3. Holds a prime or subcontract with the federal government of at least $50,000.

The Office of Federal Contracts Compliance Programs (OFCCP) also takes the position that banks and credits unions must comply with the affirmative action requirements if they participate in Federal Insurance Corporation (FDIC) or National Credit Union Association (NCUA) programs.