Carras added that because the bank is so large, any change in the First's investment policies would drastically affect communities throughout the state.

Policy Change

Even if MURAG cannot block the Haverhill purchases, its members are optimistic about their chances for changing the First's investment policies.

Andrew said, "Banks don't like the hassle of being hauled through the regulatory process and all the negative press they get."

MURAG Background

The eight-member group evolved a year ago from the Jamaica Plain Banking and Mortgage Committee, a community group that tried to pressure banks into investing MURAG's members include former Jamaica Plain community activists, three VISTA volunteers and a college intern.

MURAG has battled two other banks on community investments. In one, MURAG blocked the purchase of bank by the Provident Bank, but in March the group failed to stop the expansion of Freedom Federal Savings and Loan on Cape Cod. But the latter case was not a total loss for MURAG. Since the last hearings in March the bank has improved its community reinvestment and loan programs, Carras said.

Mutual Satisfaction

One indication of MURAG's effect on the banking community came in the spring. The Merchant Bank of Boston--which was hoping to buy a branch, asked MURAG to agree not to file a complaint with the banking board. In return, the bank would sign an agreement to improve its community investment policies.

The written agreement was the first of its kind in the nation, Jones said, adding, "It won't be our last."