Welcome to Inner City Press’ Bank Beat. We aim to scrutinize the industry, from high to low. Our other Reporters cover Community Reinvestment, the Federal Reserve, and other beats. ICP has published a (double) book about the Bank Beat-relevant topic of predatory lending - click here for sample chapters, an interactive map, and ordering information. The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters." See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," by Matt Pacenza, City Limits, Sept.-Oct. 2004. The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site. Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere, which include bank-related topics.
Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere. Click here for a recent BBC piece on Inner City Press' reporting from the United Nations. New: Follow us on TWITTER BloggingHeads.tv Click for March 1, 2011 BloggingHeads.tv re Libya, Sri Lanka, UN Corruption by Inner City Press. Until next time, for or with more information, contact us.
July
22, 2019
Bank of China Accused Of Terrorism Finance With Iran and Hamas After PRC Government Was Told
By Matthew Russell Lee, Patreon
FEDERAL
COURTHOUSE, July 19 – Bank of China is being
sued for cooperating with and wiring money for
Hamas and Iran, resulting in terrorist attack
and death. The complaint states that the Chinese
government was informed but the wiring
continued. Now Bank of China has hired the
Dorsey lawfirm which argued on July 19 that it
is all OK, to US District Court
for the Southern District of
New York Judge Katherine Polk
Failla.
In a
July 19 oral argument at which
Inner City Press was the only
media, Bank of China through
counsel argued that there is
no way they can control or be
responsible for whom they move
money for. Then they argued
that the most they could do is
file a Suspicious Activity
Report or SAR. But did they do
so, for the wiring of money by
S.Z.R. Al-Shurafa through two
accounts at its branch in
Guangzhou? This was not
answered.
July
15, 2019
The OCC under Joe Otting is lawless. On Fifth Third they said, no public comments on conversions - which is against the law. Now they are taking comments on another conversion, but not big 5/3 one, and not on changes in bank control. Lawless...
Details
RECEIPT
6/27/2019
BRANCH
ESTABLISHMENT
2019-SOBRANCHNEW309710
CADENCE BANK,
NA PRESTON
CENTER BRANCH
5950 SHERRY
LANE DALLAS TX
DALLAS
7/19/2019
Details
RECEIPT
6/28/2019
BUSINESS
COMBINATIONS
2019-CECOMBINATION309756
TIME FSB RIVER
CITIES BANK
1601 LINCOLN
ST. WISCONSIN
RAPIDS WI WOOD
7/26/2019 17
ACTION DATE
TYPE
APPLICATION
NUMBER BANK
NAME BRANCH
NAME TARGET
BANK LOCATION
CITY STATE
COUNTY CMT PD
END Details
RECEIPT
6/24/2019
CHANGE IN BANK
CONTROL
2019-SO-CBCA309665
INTERCREDIT
BANK NA N/A
4725 SOUTHWEST
8TH ST. MIAMI
FL DADE
7/14/2019
Details
RECEIPT
6/28/2019
CONVERSIONS
2019-CECONVERSION309714
WINTRUST BK
WINTRUST BANK,
N.A. 231 SOUTH
LASALLE ST.
CHICAGO IL
COOK Details
RECEIPT
6/28/2019
CONVERSIONS
2019-CECONVERSION309724
WINTRUST BK
WINTRUST BANK,
N.A. 231 SOUTH
LASALLE ST.
CHICAGO IL
COOK
July
8, 2019
On
Argentina IMF
Lipton Says
Deal To Access
$5.4B After
Inner City
Press Asked of
Corruption
By
Matthew Russell Lee, CJR PFT NY
Post
NEW
YORK CITY, July 5 – When
the
International
Monetary Fund
held its
biweekly
embargoed
media briefing
on June 27,
Inner City
Press
submitted six
questions including
on
Zimbabwe and
Moldova which the
IMF answered, see
below. On July 5
on Argentina
the
IMF issued
this: "Mr.
David Lipton,
the
International
Monetary
Fund’s Acting
Managing
Director
issued the
following
statement
today on
Argentina:
“I am pleased
to announce
that IMF staff
and the
Argentine
authorities
reached an
agreement on
the fourth
review of the
economic
program
supported by
the Stand-By
Arrangement.
Subject to the
approval of
the Executive
Board,
Argentina
would have
access to
about US$ 5.4
billion (SDR
3.9
billion).
“I commend the
Argentine
authorities on
their
continued
efforts and
steadfast
implementation
of their
economic
policy
program. The
authorities
completed all
their fiscal,
monetary and
the social
expenditure
targets under
the IMF-backed
program in the
context of
this
review.
“Argentina’s
economic
policies are
yielding
results.
Financial
markets
stabilized in
May and June.
Inflation –
while still at
high levels –
is expected to
continue to
fall in the
coming months.
The fiscal and
external
positions
continue to
improve. There
are also signs
that the
economy is
improving in
the second
quarter.
“I fully
support
Argentina’s
efforts to
bolster
confidence,
lay the
foundation for
sustainable
growth and
protect the
most
vulnerable.
Steadfast
implementation
of the
commitments
and policies
underlying the
authorities’
IMF-backed
program will
be critical
for continued
progress. I
look forward
to discussing
this review
with the IMF’s
Executive
Board on July
12."
We'll have
more on this.
July
1, 2019
Inner
City Press
Asks IMF About
Zimbabwe and
Moldova
Questions
Answered Here
By Camilla
Andersen
By
Matthew Russell Lee, CJR PFT NY
Post
NEW
YORK CITY, June 27 – When
the
International
Monetary Fund
held its
biweekly
embargoed
media briefing
on June 27,
Inner City
Press
submitted six
questions including
on
Zimbabwe and
Moldova which the
IMF answered.
On Pakistan
Inner City
Press
asked, "On
Zimbabwe, what
is the IMF's
response to
Finance
Minister
Mthuli Ncube
saying 'The
first order of
business is to
clear the
arrears and
then move on
to phase two,
which is the
bilateral
discussions
with the Paris
Club'
- asked if
Zimbabwe would
seek financing
from the IMF
next year,
Ncube said: 'Why
not? We can
only ask, they
can only say
no'?"
Camilla
Andersen,
Assistant
Director of the
IMF's
Communications
Department, read
out Inner City
Press'
question and
replied among
other things
that while Zimbabwe
has cleared
its arrears to
the IMF, other
debts
that would
have to be
cleared
remain. She
cited the
Staff Managed
Program running
into 2020
(transcript to
come).
OneCoin Defendant Ignatov Is Denied Bail And Private Jail By SDNY Judge Ramos
By
Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, June 28 – Detention was continued
for OneCoin defendant Konstantin Ignatov on June
28, after he offered to pay armed guards to keep
him in an apartment he would rent in Manhattan.
U.S. District
Court for the
Southern
District of
New York Judge
Edgardo
Ramos
questioned the
source of the bail
money that
Ignatov was
offering to put up,
as well as issued
raised about
the propriety of
"private
prisons"
of the
type now incarcerated
UN briber Ng
Lap Seng was
allowed to
live in during
the pendency
of his case.
Ignatov's
lawyer Jeffrey
Lichtman noted
that Bernie
Madoff got
bail, and that
the government
could not show
any contact
between
Ignavov and
his sister Ruja,
indisputedly
higher up in
the OneCoin scheme. But
Judge Ramos,
after more
than an hour
of argument,
was not
convinced. The case
is US v. Ignatov, 17-cr-630
(Ramos); more
on Patreon, here.
In other SDNY corporate crime news, the US
quietly filed a criminal
antitrust case against Banca
IMI trader Larry D. Meyers -
who quietly pled guilty and
agreed to cooperate on June 27
before Judge Paul A.
Engelmayer of the U.S.
District Court
for the
Southern
District of
New York,
Inner City
Press can
report.
June
24, 2019
Banca IMI Trader Meyers Faces Genteel Prosecution For ADR Violations Of Antitrust Laws
By
Matthew Russell Lee, Exclusive, Patreon
SDNY
COURTHOUSE, June 19 – The US has quietly filed a
criminal antitrust case against Banca IMI trader
Larry D. Meyers, concealing the case number and
adjourning what was listed as a plea proceeding
on June 19 before Judge Paul A. Engelmayer of
the U.S.
District Court
for the
Southern
District of
New York,
Inner City
Press can
report.
The case
involves
violations
with the
Sherman Act
with respect
to American
Depository
Receipts. It
is a quiet
part of a larger
case.
Back on 9 May
2019 DOJ
Antitrust
Division
criminal chief
James J.
Fredricks
signed a
"Notice of
Intent to File
An
Information"
against
Meyers.
Through
so-called
"Wheel B" it
was assigned
to SDNY Judge
Engelmayer, by
Magistrate
Judge Ona T.
Wang.
On
June 5 - it is
not clear
where -
Meyers and his
attorney Dan
Portnov
"waive[d] in
open court
prosecution by
indictment and
consent[ed]
that the
proceeding may
be by
information
instead of by
indictment."
That way,
instead of
through the
more public
Magistrates
Court, Meyers'
presentment
was before
Judge
Engelmayer,
with a Docket
Number listed
as "19-CR-
[blank],"
quickly
released on
$100,000 bond,
travel
restricted to
the US and
Ireland unlike
most
defendants
confined to
two or three
US Districts.
This is the
VIP aisle of
indictments,
with the DOJ
helping to
avoid any
possible perp
walk.
And so it was
that while the
week's SDNY
"Civil and
Criminal
Proceedings
Calendar" for
the week of
06/17/19
listed on June
19 at 5 pm a
plea before
Judge
Engelmayer in
USA v. Meyers,
19-cr-[blank],
the courtroom
of Judge
Engelmayer
where Inner
City Press had
been earlier
in the day on
a Hobbs Act
robbery trial
was empty.
There was no
sign on the
door
explaining
why, as was
done for
example on the
door
of Judge
Deborah Batts
about Michael
Avenatti.
There are VIP
lines, and vip
lines.
Currently
the docket
does not show
where the next
proceeding
will take
place. But
Inner City
Press believes
it knows.
Watch this
site - and for
more, see its
Patreon, here.
June
17, 2019
Inner
City Press
Asks IMF About
Pakistan Haiti
and Kenya
Questions
Answered Here
By
Matthew Russell Lee, CJR PFT NY
Post
NEW
YORK CITY, June 13 – When
the
International
Monetary Fund
held its
biweekly
embargoed
media briefing
on June 13,
Inner City
Press
submitted a half
dozen
questions including
on
Pakistan,
Kenya and
Haiti which the
IMF answered.
On Pakistan
Inner City
Press
asked, "what
is the IMF's
response to JI
leader Sirajul
Haq criticism
of the "budget
of IMF purely
concentrating
only on
increasing
taxes and
prices of
essential
commodities,
and was just
read out by
its
slaves.
He said the
budget did not
care about
reducing the
problems of
common man and
price hike,
adding that it
was just a
jugglery of
figures and
words which
was
incomprehensible
even to the
economic
champions of
the
government."
IMF
Spokesperson
Gerry Rice in
the briefing
said, transcript and
video here: "There
is a question
on Pakistan,
from our
friend Matthew
Lee in New
York, asking
in summary
what is the
IMF's response
to the
criticism of
the Pakistani
budget which
was recently
announced that
the IMF is
purely
concentrating
on increasing
taxes and
prices and
doesn’t care
about reducing
the problems
of the common
man. Again,
stepping back,
Pakistan has
requested a
program from
the IMF. Last
month we
reached a
staff level
agreement on
that program
so that’s now
under
discussion.
So, I don’t
really have a
specific
comment on the
budget.
But in terms
of our
discussions, I
can say that
we are talking
about broadly
how to restore
stronger, more
balanced
growth by
reducing
domestic and
external
imbalances,
improving the
business
environment,
strengthening
institutions,
increasing
transparency
and
importantly
protecting
social
spending. So
that last part
does indeed
speak broadly
to the point
that Matthew
is raising,
that social
spending is
and protecting
social
spending is in
fact an
important part
of the
discussion
that we are
having on a
program with
Pakistan."
Inner
City Press asked
asked, "On
Kenya, please
state the
status with
the IMF given
reports that
the country is
"on course to
renewing its
$1.5 billion
standby credit
facility with
the IMF
signing a deal
with selected
banks to
release close
to Ksh1
trillion ($10
billion) in
loans to the
private sector
despite the
prevailing
rate
caps."
On the
upcoming June
25-26 Bahrain
conference on
Palestine,
given that the
IMF has said
it "has been
invited to the
meeting and
expects to
attend, along
with other
international
financial
institutions,"
please state
if the IMF
understands
that the wider
United Nations
will attend,
and/or has
been invited."
Rice said,
"There
is a question
on Kenya.
“Please give
the status of
the IMF
program with
Kenya given
reports that
it's on course
to renew its
standby credit
facility.” And
on that about
all I can say
is that
negotiations
indeed are
ongoing on a
Fund supported
program. I
don't have a
timetable on
that but with
the
negotiations
are underway."
Inner City
Press asked asked,
again, for an
update on
Haiti.
Rice said, "There is a final question online that I want to take which is on Haiti and asking about developments there and the status of IMF discussions on a program. And again, this is a case where recently there have been protests on the streets and some violence I'm sad to say. So, on that front of course as always, we express our condolences for the loss of life there in Sunday's demonstrations in particular. And, what I can also say is that of course we hope that the dialogue can go forward there and, you know, eliminate the violence that’s taking place and that we can have some consensus around a reform agenda. On the program and discussions around the program, given the time that has now elapsed since the IMF team reached a staff level agreement, that was back in March. And given the changes in Haiti's' economic situation a reassessment of the economic framework and of the measures needed to stabilize and support the economy is going to be needed before we would be in the position to propose a program to our executive board. That said, we look forward to engaging with Haiti's new government as soon as feasible to find the best way forward and to protect the most vulnerable groups, improve governance and secure macroeconomic stability. So that’s where we are on Haiti."
It's appreciated.June
10, 2019
Kam Wong Gets 66 Months For Stealing $10M From Municipal Credit Union Opioids From Board Member
By
Matthew Russell Lee, Patreon
Alamy
photos
SDNY
COURTHOUSE, June 4 – When Kam Wong came to be
sentenced for stealing nearly $10 million from
New York City's Municipal Credit Union on June 4
before U.S. District
Court for the Southern
District of New York Judge
John G. Koeltl, the courtroom
was full, including Stella M.
Mendes, Administrator of the
MCU as it went into NCUA
conservatorship.
Judge
Koetlt repeatedly asked if the
conservatorship was based on
financial condition - that is,
the theft of funds by Wong -
or the management. At one
point Assistant U.S. Attorney
Eli J. Mark stood up to
answer, until his colleague
Daniel C. Richenthal stopped
him. Ultimately, no one from
the NCUA or New York State
Department of Financial
Services spoke at the
sentencing.
While the
Guidelines called for 97 to
121 months, Judge Koeltl
imposed a sentence of 66
months, still longer than
those bank executives
responsible for the subprime
financial meltdown. Judge
Koetlt also recommended Wong
for the Bureau of Prison's
drug problem, over the
government's objection.
Wong'
defense lawyer Jeffrey H.
Lichtman said he'd never seen
the government take such a
position in his 28 years as an
attorney. AUSA Richenthal
called it "offensive" to say
the government merely wanted
to avoid any shortening of
Wong's sentence.
June
3, 2019
Noah Bank CEO Edward Shin Puts Up $1M Bond and Must Undergoing Alcohol Testing
By
Matthew Russell Lee, Video, Alamy
photos
SDNY
COURTHOUSE, May 30 – Noah Bank's Edward Shin was
on arrested for defrauding the U.S. Small
Business Administration on May 29 and would, it
was said, be presented later on May 29 before Magistrate
Judge James L. Cott in the
U.S. District Court for the
Southern District of New York.
Inner
City Press after reporting the arrest
went the SDNY Magistrate's Courtroom 5A and
was told Shin would be
presented at
some undefined
later hours.
But with the door
to 5A locked at 4:30 pm,
Inner City Press was told
Shin "has not been
presented, there are no
terms. Tomorrow is
more likely." And later, as
Inner City Press waited
in front of the locked
door, staff
emerged with a more
specific
prediction: 2 pm
May 30.
In fact it happened slightly before then. Here are the terms of Shin's release: "Surrender travel documents and no new applications; travel restricted to SD/EDNY, DNJ, EDPA. $1 Million bond secured by $25,000 cash and signed by two co-signors (condition to be met within a week)." And, interestingly, "Alcohol testing / treatment." Inner City Press has been contacted by those covering Shin well before this, who said that Shin "threatened to kill a borrower [and] was sued for reneging on a board control deal." We'll have more on this.
So this is
a banker who
will spend the
night in custody,
unlike
bribing
banker Stephen
Calk. We'll
have more on
this.
to will
be there, as it was for last
week's presentment of bribing
banker Stephen Calk, see
below. In that case, the
government agreed to Calk
going free on $5 million bond
with nationwide travel without
notice, unlike for example
Michael Avenatti.
From the first statement: "the United States
Attorney for the Southern District of New York,
announced today the arrest of EDWARD SHIN, the
CEO of a Pennsylvania-based bank (the “Bank”),
for taking bribes in connection with the Bank’s
issuance of loans that were guaranteed by the
United States Small Business Administration
(“SBA”). SHIN was arrested pursuant to a
criminal complaint charging him with taking
bribes by siphoning off a portion of commissions
on SBA-guaranteed loans and causing the Bank to
issue SBA-guaranteed loans to companies in which
SHIN had a secret interest."
The bank is Noah Bank, and Shin has previously
tried to sue the media for reporting on his
misdeeds. And now?
More: " SHIN
secretly solicited and received bribe payments
in connection with SBA-guaranteed loans issued
by the Bank and caused the Bank to extend
SBA-guaranteed loans to companies in which SHIN
had secret ownership interests.
Specifically, when the Bank issued a business
loan involving a certain broker (the “Broker”),
SHIN secretly arranged to receive a portion of
the Broker’s fee. On other occasions, when
the Bank issued a business loan that did not
involve the use of an actual broker, SHIN
arranged to have the Broker inserted
unnecessarily into the transaction solely to
generate a broker fee that could be shared with
SHIN; in fact, the Broker did no actual work to
earn a commission on those transactions, but
split the “broker’s fee” with SHIN as an illegal
kickback.
May
27, 2019
IMF
Denies Congo B
Conflict of
DSK Role When
Inner City
Press Asks on
Barbados and
Canada Too
By
Matthew Russell Lee, CJR PFT NY
Post
NEW
YORK CITY, May 23 – When
the
International
Monetary Fund
held its
biweekly
embargoed
media briefing
on May 23,
Inner City
Press
submitted four
questions including
on
Republic of
Congo, Barbados
and Canada
which the
IMF answered.
On Congo-Brazzaville
Inner City
Press asked,
"what is the
IMF's response
to / comment
or explanation
on the
May 15 letter
addressed to
Congolese
Prime Minister
Clement
Mouamba that
"The advisers
to the
Republic wish
to make you
aware of the
major risk of
the
programme’s
rejection by
the IMF’s
board,” said
Congo hired
French
financial
advisers
Lazard and
more recently
Parnasse, a
firm employing
former IMF
Managing
Director
Dominique
Stauss-Kahn,
to assist it
in the
negotiations
with the Fund.
How is this
not a conflict
of interest?"
IMF spokesperson
Gerry Rice to his
credit took
the question,
on camera,
emphasizing
that the
discussion have
been only
between IMF
staff and the
authorities,
no one else.
He said that
address the
conflict of
interest
question. He
also noted the
IMF's May 9
announcement
of a staff
level
agreement. But
when will it
go to the
Board?
On
Barbados, Inner
City Press
asked for
"
the IMF's
response to
Senator
Crystal Drakes
saying
that the Mia
Mottley
administration
may have hit
the benchmarks
set under the
IMF-sanctioned
Barbados
Economic
Recovery and
Transformation
programme but
is ignoring
it’s sustained
and impending
collateral
damage to the
society.
“All of this
has come at a
social cost.
Meeting those
targets have
been economic
winds but
socially we
have paid a
serious price
for meeting
those
targets.
“In reducing
our debt and
closing the
fiscal gap,
Barbadians had
to give up
their wealth,
particularly
the vulnerable
group of
pensioners.
“Their
disposable
income through
higher taxes
and user fees,
has resulted
in persons
falling below
the poverty
line.”
Rice
said the IMF's
discussions
had been with
social
partners
including the
unions and
that the floor
for social
spending had
been met, by
an ample
margin, in
December and
March.
May
20, 2019
FOIA
Fee Waiver
Sleaze By OCC
Otting Tells
Inner City
Press Public
Does Not Need
WSFS Bank
Merger Docs
By
Matthew R. Lee, Video,
FOIA
fee denial
SOUTH
BRONX, SDNY, May 18 – With Comptroller of the
Currency Joseph Otting moving to undermine the
US Community Reinvestment Act, his latest move
is to deny access to documents about the
application to the OCC for WSFS to acquire
Beneficial Bank and close 25 branches. Inner
City Press requested the records months ago,
along with a request for a waiver of fees as the
other Federal bank regulators grant it and as
the OCC has until now.
But Otting is different. First he denied a fee
waiver on Inner City Press' request for his
calendar. Then he relented on that, after Inner
City Press citing case law and precedent. But
seemingly in retaliation, he has denied access
to a merger application subject to public
comment. Denial here
on Scribd.
May
13, 2019
Mergers
we are looking
at:
May
6, 2019
On Belt
and Road Inner
City Press
Asks IMF Which
Cites Tajik
and Kyrgyz
Debt But Not
Money
Laundering
By
Matthew Russell Lee, CJR PFT NY
Post
NEW
YORK CITY, April 29 – As China
uses its Belt and
Road Initiative to
take over ports
in Sri Lanka and
prospectively
Kenya, its role
in Central
Asia was asked about
by Inner City
Press on April
29. The
International
Monetary Fund
held a press
conference
about the Caucasus
and Central
Asia and Inner
City Press asked,
"On the Belt
and Road, what
are the
specific debt
and possible
corruption
issues for BRI
in Central
Asia? What
can the IMF
say, and
what is it
doing, in
Central Asia
about water
scarcity and
disputes, and
separately
anti money
laundering
compliance?"
April
29, 2019
In SDNY
Sumitomo Sued
For
Discrimination
Responds With
Demand For
Attorneys Fees
For Proskauer
By
Matthew Russell Lee, Follow up to exclusive
FEDERAL
COURTHOUSE, April 22 – An on again off again
Wall Street employee who sued Sumitomo Mitsui
Banking Corporation for discrimination and
retaliation had a day in court on April 22, in
the U.S.
District Court
for the
Southern
District of
New York courtroom of
Judge J. Paul
Oetken.
Opposing her,
as for Qatari
royals in the
same courtroom,
was the
Proskauer Rose
law firm,
which has moved
for her to
have to pay
attorneys
fees. The pro se
plaintiff
Maureen
Ottoson said
her prior
lawyer sold
her out, only
wanted to
settle on the
cheap after
Proskauer
asked for
$160,000 in
fees before
now deceased Judge
Robert Sweet.