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.
August 14, 2017
Two more proposed mergers we are looking at:
August 7, 2017
Proposed mergers we are looking at:
July 31, 2017
Wells Fargo Stole 25,000
Cars By Imposing Unneeded Insurance, CRA Downgrade Should Continue
By Matthew R. Lee
NEW YORK, July 28– Four months after Wells Fargo Bank's Community Reinvestment Act rating was dropped to "Needs to Improve," barring it from acquisitions, it has emerged that over 800,000 people who took car loans from Wells were charged for needless auto insurance, pushing 274,000 Wells Fargo customers into delinquency and triggering nearly 25,000 wrongful vehicle repossessions. So much for the industry having cleaned itself up after the predatory lending meltdown. New York City announced it will not enter any new relationships with the bank, also suspending Wells Fargo's role as a senior book-running manager for NYC General Obligation and Transactional Finance Authority bond sales. A statement by Mayor Bill de Blasio and Controller Scott Stringer noted that "Currently, Wells Fargo holds contracts with the City to provide banking services, including to operate 'Lock Box' services that hold taxes and fees collected by the City. There is approximately $227 million of City dollars held in Wells Fargo accounts." Bu will they get involved in opposing Sterling National Bank, which Inner City Press and Fair Finance Watch have exposed as having "unreliable" CRA data, notwithstanding the OCC's scam "Satisfactory" rating on May 30? Click here. We'll have more on this. Back in late March, the bank settled for $110 million a class action lawsuit for having opened fake accounts without customers' knowledge or approval. But will Wells Fargo, which Inner City Press has covered through its acquisition of First Union and even before, from Washington to Alaska, still be allowed to go forward with its reported plan to close 400 bank branches, including in low and moderate income areas?July 24, 2017
We're looking at Associated Bank's July 20 proposal to buy Bank Mutual, having noticed "There are a lot of duplicative branches, clearly.”
July 17, 2017
So Royal Bank of Scotland settled on the cheap with FHFA for $5.5 billion on its predatory lending and MBS sales - but look for more from the DOJ...
UN Sends to Greece
Nimetz, Adviser to Firm Invested in
Greek Bank Saxo, Conflict, No
Breakthrough
By Matthew Russell Lee
UNITED NATIONS, July 14 – Amid the UN bribery case against Macau-based businessman Ng Lap Seng began, and following a UN Security Council visit to Haiti in which victims of the UN's cholera criticized the failure to follow though on individual reparations, Secretary General Antonio Guterres on June 28 announced that his Personal Envoy for the talks between Greece and the former Yugoslav Republic of Macedonia (FYROM) Matthew Nimetz would travel to Skopje from July 1-4 and then to Greece. UNsaid was that Nimetz is an advisory director of General Atlantic, which has a stake in a Danish bank, Saxo Bank, with a Greek subsidiary. Isn't this a conflict of interest?July 10, 2017
ICC Slams South Africa For Not Arresting Bashir, IMF Cites “Weakening Governance,” Corruption
By Matthew Russell Lee
UNITED NATIONS, July 6 – On South Africa, the International Monetary Fund on July 6 noted that "perceptions of weakening governance and uncertainties regarding the direction of future economic policies, partly related to the electoral calendar, have adversely affected consumer and investor confidence... Strengthening governance and fighting corruption will also be critical." Meanwhile the International Criminal Court in The Hague, also on July 6, ruled that "by not arresting Omar Al-Bashir while he was on its territory between 13 and 15 June 2015, South Africa failed to comply with the Court's request for the arrest and surrender of Omar Al-Bashir contrary to the provisions of the Statute, thereby preventing the Court from exercising its functions and powers under the Statute in connection with the criminal proceedings instituted against Omar Al-Bashir. Nevertheless, the Chamber considered, bearing in mind its discretional power, that a referral of South Africa's non-compliance to the ASP and/or the UNSC was not warranted." We'll have more on this.July 3, 2017
Like
UN's Haiti Impunity, ICP Asks
of New Srebrenica Decision,
BNP on Rwanda, Shell on Ogoni
9
By Matthew
Russell Lee, Video
UNITED NATIONS,
June 29 – Days
after UN
cholera
victims told
Inner City
Press in Haiti that
the "community
projects" UN
Secretary
General
Antonio Guterres described
to the
Press would be
useless to
them, Inner
City Press
asked Guterres'
spokesman
Stephane
Dujarric about
a court
decision that
UN
Peacekeepers
bore
responsibility
for deaths in
Srebrenica
as well, and
about human
rights cases
against UN
Global Compact
members BNP
Paribas and
Shell. From
the UN transcript:
Inner City
Press: the
decision in
The Hague by
Netherlands
appeals court
confirming
that the
partial
responsibility
of the Dutch
battalion of
UN
peacekeeping
in the deaths
in
Srebrenica.
And people are
angry because
it’s reduced
the damages to
30 per cent;
it’s basically
saying they
might have
been killed
otherwise.
But what is
the UN’s
response,
given that the
Dutch
battalion was,
in fact, a UN
peacekeeping
battalion.
What’s been
learned to it,
and what do
you have any
to say about
that?
Spokesman:
Obviously,
we’re aware… I
think, first
of all, our
thoughts need
to be with the
victims of the
massacres that
took place in
Srebrenica and
with the
relatives of
the victims
and the
survivors and
all of those
who perished
in the
atrocities
committed
throughout the
Former
Yugoslavia.
As you know,
the UN was not
a party to
this court
case, which
was in a
national court
in the
Netherlands.
We will study
the judgment
carefully,
but, at this
point, we’re
not going to
make any
further
comment,
because our…
my
understanding,
at least, is
that it will
be appealed to
a higher
court.
And as you
know, the UN
issued years
ago a rather
exhaustive
report on its
failings, the
Organization’s
failings in
Srebrenica.
Inner City
Press:
But
isn’t it not a
party because
it cited
immunity early
in the
case? I
mean, I’ve
seen the
lawyer even of
this current
case saying
that that’s
why the UN’s
not…
Spokesman:
Well, the fact
is we’re not a
party.
Inner City
Press:
Two
related.
One, there’s a
case also in
The Hague
against Royal
Dutch Shell by, it’s
called the
Ogoni nine,
but it’s a
case basically
tying
corporate
responsibility
to a military
crackdown.
Separately,
there’s a case
now just begun
against the
Banc Nationale
de Paribas
[BNP Paribas]
about the
Rwanda
genocide.
I don’t
expect… you
can say
obviously
these are not
UN related,
but since both
seem to be
members of the
UN Global
Compact, I
wanted to
know, does the
UN track such
high-profile
human rights
corporate
cases? And, if
so, what… are…
are the
institutions
expected to
respond?
Spokesman:
My
understanding
is that these
cases are all
ongoing, and
the Global
Compact, as
you know, has
a mechanism to
deal with its
own
members.
So I will
leave it at
that...
Inner City
Press:
On the Burundi
thing, have
you run the
names through?
Spokesman:
As soon as I
have something
on it, I will
share it.
Nothing. Dujarric
dodged
questions
about what
the victims
said, from
Inner City Press. This
while Guterres
is recruiting
a "victims'
advocate" - on
every issue
except those
the UN killed?
Video here.
So on June 28
Inner City
Press asked Dujarric
if Guterres'
supposedly
"new" approach to the
cholera the UN
brought to
Haiti meant he
will continue
to seek
impunity. From
the UN transcript:
at
least two
federal court
cases about
the UN having
introduced
cholera to
Haiti.
In this case
that's in
Brooklyn,
where they're
arguing that…
that the UN
essentially
waived the
immunities
that it's
claiming by
having a
mechanism to
deal with
negligence,
which I think
most people
would say this
was, as
opposed to
intentional,
is there
anything in
the new
Secretary-General's
new approach
to cholera
that will be
reflected in a
response, or
is it the UN's
continuing
response that
it bears no
legal
responsibility
at all?
Spokesman:
Our legal
position is
unchanged.
The UN's
effort as
outlined by
the
Secretary-General
is focusing on
preventing the
spread or
resurgence of
cholera in
Haiti and
helping
communities in
a first
instance.
Inner
City Press:
And what's the
status of his
discussions
with countries
about the $40
million that…?
Spokesman:
I've nothing
more to say
than what the
Secretary-General
himself
announced.
June 26, 2017
ICP Asks IMF About Zambia, August Answer, Nothing Yet on Haiti From Which ICP Questioned
By Matthew Russell Lee
HAITI, June 24 – When the International Monetary Fund held its biweekly embargoed press briefing on June 22 Inner City Press submitted questions about Zambia, Cameroon and Haiti, where it was. During the embargoed briefing, IMF Spokesperson Gerry Rice read out Inner City Press' Zambia question and said, "implementation of the remaining actions in the next few weeks will enable us to present the authority's request for an Extended Credit Facility arrangement to the Board, and we expect that to be in August of this year." But this Haiti question has yet to be answered: "Chris Walker said reconstruction from the effects of Hurricane Matthew, and investments in health, education, and social services... will be achieved in part through the elimination of excessive subsidies, including subsidies for retail fuel sales. Please specify the IMF's thinking on time timing and range of subsidy elimination and ideas for EDH utility." On this and Cameroon (see below), we'll have more. On Cameroon, Inner City Press has repeatedly asked for the IMF's "updated view about the Internet cut off (lifted only after 94 days) and other restrictions in the Anglophone regions of Cameroon injuring 'Silicon Mountain.'" Watch this site: we'll stay on this. The next IMF briefing is July 13.June 19, 2017
Wells Fargo Quoted UN
IFAD Official In Its Press Release, IFAD Tells ICP No Partnership
By Matthew Russell Lee
UNITED NATIONS,
June 17 – On the important
issue of remittances, the UN
agency IFAD (the International
Fund for Agricultural
Development) has partnered
with none other than Wells
Fargo, fresh off its exposure
for setting up dummy accounts
without customers' consent,
which had led for example New
York City to stop doing new
business with Wells. Not the
UN - IFAD's Adolfo Brizzi
appears in Wells Fargo's press
release. Inner City
Press asked IFAD President
Gilbert Houngbo, himself a
long time UN system official,
about the lack of due
diligence. He promised to look
into it, while saying
something about the UN having
to respect the sovereignty of
governments. Periscope video here.
More than 24 hours later, IFAD in writing told Inner City Press: "Dear
Matthew, I am the communications officer with IFAD at yesterday's noon
briefing. I am writing with the follow up as promised. IFAD does not
have a partnership with Wells Fargo. As part of the Global Forum on
Remittances, Investment and Development, numerous companies as well as
civil society and policymakers recognize the importance of the
International Day of Family Remittances. One of our key objectives
remains to do everything we can to lower remittance transfer fees to a
maximum of 3% (SDG target 10.c) and to do that, we must be in dialogue
with all actors involved. I noticed you already published, so I would
hope that you would print the facts above in your next edition. Katie Taft
Senior Management Communications, Via Paolo di Dono 44 00142 Rome, Italy."
So IFAD didn't approve Wells Fargo putting its name, and official's quote, in Wells Fargo's press release? Companies can blue-wash themselves at will? Houngo also cited
"transparency" - Inner City
Press previously reported
that while at UNDP Houngbo
declined to make even basic
public financial disclosure.
Now the form showing his
refusal has itself been taken
off line. This is the
UN.
June 12, 2017
After FFW Protested on Cabela, Synovus Snail Mails & Withholds Response, Here, ICP FOIAs
By Matthew R. Lee
NEW YORK, June 10 – The Federal Reserve System asked Synovus more than a half dozen questions on May 22, on its (straw-man) application to acquire Cabela's World's Foremost Bank, which Inner City Press / Fair Finance Watch protested on May 6. Now Synovus, intent on gaming the System, snail mailed its rseponse, which we have put online here, and immediately filed a Freedom of Information Act request for the withheld portions. What's not withheld is full of empty jargon and buzzwords, for example: "Given the opportunistic nature of this Transaction, Synovus will ensure that it optimizes the value generated through a prioritization process and execution framework. In addition, the Transaction would provide Synovus with additional flexibility to extend its three distinct CRA and fair lending mortgage loan programs beyond the original $25 million commitment, if appropriate." It's inappropriate. Two months after Inner City Press reported Capital One failing in its proposal to acquire Cabela's "World's Foremost Bank," a way to try to avoid the regulators and Capital One's Community Reinvestment Act record emerged. The scam involves Synovus buying the bank then passing one the credit card receivables to Capital One, while keeping the deposits, so Capital One wouldn't be reviewed under CRA. The Fair Finance Watch opposed this, in a filing to the Federal Reserve...By Matthew Russell Lee
UNITED NATIONS, June 8 – When the International Monetary Fund held its biweekly embargoed press briefing on June 8 Inner City Press submitted questions about South Sudan, Egypt, Mozambique and Qatar, as well as Cameroon. Four of these five got answered. On South Sudan, Inner City Press asked again for an update, and later on June 8 an IMF spokesment told Inner City Press, "IMF staff continue to engage with the authorities in South Sudan by providing some technical assistance to the Ministry of Finance and the Bank of South Sudan. A budget / public financial management technical assistance mission is due in Nairobi, Kenya next week (June 12) to meet with officials from South Sudan. IMF staff will also continue to be engaged by providing advice on macro-economic policies, but a program will understandably require a clearer path towards peace in the country." During the embargoed briefing, IMF Spokesperson Gerry Rice noted that Inner City Press asked, "In Egypt it's said that starting July 1 for fiscal year 2017-2018 the country will see another sharp price rise as a result of the IMF loan requirements, including cutting fuel subsidies to 1.75% of gross domestic product this year and then to less than 0.5%. What is the IMF's response?" Rice said the IMF is following President Sisi's plan to cut fuel subsidies in three years; Rice said that the subsidies benefit those who are better off and cutting them will allow increased social spending on the most vulnerable. We'll see. On Mozambique, Inner City Press asked "the Kroll audit of secret debts was filed on May 12. When does the IMF expect it should be made public, and what is the status of IMF / Mozambique?" Rice said that the IMF expects first a summary then the whole report to be published, and that the technical talks on a new program depend on this audit report. On Qatar, Inner City Press asked "What is the IMF's assessment, going forward, of the cut-off of Qatar by Saudi Arabia, Egypt and others, in terms of credit rating and otherwise?" Rice said it is too soon to say how these tensions will be resolved." Or, Inner City Press would add, how. Inner City Press also asked the IMF, "If there is an updated view about the Internet cut off (lifted only after 94 days) and other restrictions in the Anglophone regions of Cameroon injuring 'Silicon Mountain;' Also if there are any updates on Burundi or Yemen or South Sudan. " Watch this site.June 5, 2017
Regulators Said Sterling's CRA Data Unreliable, Fed Expedites Now Delays ICPs FOIA, OCC Cover Up
By Matthew R. Lee, New Platform
NEW YORK, June 3 – Sterling Bank, which is applying for approvals to acquire Astoria Bank, is known by its regulators to have filed unreliable Community Reinvestment Act data from at least 2014 through 2016, a documentobtained by Inner City Press shows. The story, and outrage, has been picked up by the American Banker newspaper here, by Paul Davis and Allison Prang, crediting Inner City Press - and Sterling Bank had no comment. Instead, Sterling's outside counsel Wachtel Lipton chose to snail-mail its response to the wrong address, and not e-mail it to Fair Finance Watch. Via here, with envelope re-submitted to Fed and OCC. This while the Federal Reserve has granted Inner City Press' request for expedited treatment of its FOIA request for all records, promising the responsive documents by June 1. But now the Fed, in a June 1 letter, has unilaterally extended its time to June 22: "Dear Mr. Lee, This correspondence is to provide you with an update on the status of your FOIA request. The search for records is being completed and staff is beginning to review the search results for responsiveness and releasability. We will continue to process your request as quickly as possible. Accordingly, the Board hopes to be able to respond to your request, or provide a status update, on or before June 22, 2017. Very truly yours, Jeanne M. McLaughlin Manager, Freedom of Information Office." Why expedite and then extend? Why did the OCC rush a cover-up "Satisfactory" rating? We'll have more on this. First Fed letter on Scribd, here.
May 29, 2017
Merger proposals we are watching: Sandy Spring Bancorp proposal to pay $489 million to WashingtonFirst...
ICP Asks IMF About Saudi - Blackstone Deal, and Possible Extension for Ghana, Cameroon
By Matthew Russell Lee
UNITED NATIONS,
May 25 – When
the
International
Monetary Fund
resumed its
biweekly
embargoed
press
briefings on
May 25,
Inner City
Press asked
about Saudi
Arabia (and
Blackstone),
Ghana and
again
Cameroon.IMF
Spokesperson
Gerry Rice
read out
Inner City
Press'
question, "On
Saudi Arabia,
what is the
IMF's view of
the
interaction
between the
country's
sovereign
wealth fund's
deal with
Blackstone and
the warning
that rapid
cuts to the
government’s
budget deficit
could damage
the economy?"
Rice replied
that the IMF
views the
Blackstone
deal as an
attempt to
diversity
internationally,
and not related to
domestic
deficit
reduction
(transcript will be on
IMF's website. Inner
City Press
also asked, "amid
reports that
Ghana will
agree to
extend the IMF
program in
return for a
bigger credit
facility, what
is the IMF's
position on
the
government's
speed in
meeting the
objectives of
the program?"
Rice
acknowledged
that the IMF
and Ghana are
discussing
an extension
but said it
would require
a formal
request by the
country; he
said a key
objective is
to key
public debt on
a continuing
downward path.
On Cameroon
(and Yemen and
the UN's
"Financing for
Development"
outcome
documents), no
answers yet.
Watch this
site.
From
the IMF's May
11 transcript, of
its Deputy
Spokesperson
Willam Murray:
"I’ve got a
question from
Inner City
Press on Sri
Lanka. Do
recent
government
moves on the
Inland Revenue
Act make it
more likely
the IMF Board
will act on
the request
for completion
of the second
loan review in
June and make
a third
disbursement?
Again, it’s a
question about
Sri Lanka and
the Inland
Revenue Act
and the
likelihood of
completing the
second review. We
had a staff
level
agreement in
Sri Lanka on
May 3rd, last
week. We noted
in announcing
that agreement
that it’s
subject to
completion of
a prior action
by the
authorities,
which is
submission of
the Inland
Revenue Act to
Parliament.
And that was a
prior action
that was
agreed earlier
this year. Our
legal experts
are still
analyzing the
content of the
new draft
bill, and are
in discussions
with the Sri
Lankan
authorities.
That’s where
we stand at
the moment on
Sri Lanka."
May 22, 2017
From Steve Mnuchin's Senate Q&A, two things jumped out: he said Trump already has a permanent Comptroller of the Currency in mind. And he said the biggest banks may not be too big to fail, but too big to succeed...
May 15, 2017
ICP
Asks IMF About Sri Lanka
Inland Revenue Act, Here, and
For Cameroon Silicon Mountain
Update
By Matthew Russell Lee
UNITED NATIONS,
May 11 – When
the
International
Monetary Fund
resumed its
biweekly
embargoed
press
briefings on
May 11, Inner
City Press
asked about
Sri Lanka and
Cameroon,
among others.
From the IMF's
transcript, of
its Deputy
Spokesperson
Willam Murray:
"I’ve got a
question from
Inner City
Press on Sri
Lanka. Do
recent
government
moves on the
Inland Revenue
Act make it
more likely
the IMF Board
will act on
the request
for completion
of the second
loan review in
June and make
a third
disbursement?
Again, it’s a
question about
Sri Lanka and
the Inland
Revenue Act
and the
likelihood of
completing the
second review. We
had a staff
level
agreement in
Sri Lanka on
May 3rd, last
week. We noted
in announcing
that agreement
that it’s
subject to
completion of
a prior action
by the
authorities,
which is
submission of
the Inland
Revenue Act to
Parliament.
And that was a
prior action
that was
agreed earlier
this year. Our
legal experts
are still
analyzing the
content of the
new draft
bill, and are
in discussions
with the Sri
Lankan
authorities.
That’s where
we stand at
the moment on
Sri Lanka."
May 8, 2017
Some mergers we are looking at, feel free to contact ICP or FFW:
May 4: Tenn. based First Horizon National Corp proposes to acquire Charlotte NC-based Capital Bank Financial Corp. in a $2.2 billion deal;
May 1, 2017
A merger we are looking at: Columbia, S.C.-based South State Corp. says it will acquire Charlotte, N.C.-based Park Sterling Corp for $690.8 million to create a new company with $14.5 billion in assets, $11.5 billion in deposits and $10.4 billion in loans. We'll see.
April 24, 2017
By Matthew Russell Lee
UNITED NATIONS,
April 21 – When at
the
International
Monetary
Fund's Spring
Meetings the
IMF held its
Middle East
and Central
Asia press
conference,
Inner City
Press submitted
this question:
"Please
describe the
IMF's view and
possible plans
on Yemen,
given the
crisis there,
including on
President
Hadi's
proposed
moving of the
Central Bank
out of the
capital to
Aden. What is
the IMF's view
of and any
assistance to
the Central
Bank's
performance?" After
the briefing,
the IMF
provided this
answer: "The
humanitarian
and economic
impact of the
conflict has
been
devastating;
it has caused
many deaths,
depressed
economic
activity, and
destroyed much
of Yemen’s
infrastructure. There
is now even a
tangible risk
that the
conflict could
lead to famine
in some parts
of Yemen. Yemenis
food supply
relies largely
on imported
staples, like
wheat and
rice. Yemen
needs urgently
foreign
exchange
grants from
donors to pay
for imported
food. But
Yemenis also
need to be
able to buy
the food that
is imported.
Resuming
paying public
salaries and
social
assistance
grants in all
of Yemen is
therefore also
urgently
needed. Given
these needs,
the Central
Bank of Yemen
(CBY) could be
the pivotal
player for
facilitating
food imports
and for
resuming
paying public
salaries and
social
assistance
grants in all
of Yemen. But
to play this
humanitarian
role, the
central banks
in Aden and
Sana’a need
urgently to
find a way to
cooperate in
the interest
of providing
sufficient
food to all
Yemenis.
Fund
engagement is
currently
limited. We
support the
Yemeni
authorities
and the
international
community to
the best of
our
abilities.The
Fund stands
ready to
re-engage more
fully as soon
as the
conflict is
resolved to
help rebuild
economic
institutions,
jumpstart
growth, and
stabilize the
economy."
April 17, 2017
Also looking at this merger, and Wells Fargo branch closings: New Jersey: Sussex Bancorp proposes to buy Community Bank;
April 10, 2017
Fair Finance Watch and others opposed Capital One buying the deposits and credit card business of Cabela's bank -- but now it's said Synovus of Columbus, Georgia might take the deposits and immediately transfer the credit card business to Capital One without any CRA review. Meanwhile the Federal Reserve quietly reduced the time of its review of mergers for financial stability, and denied a request for reconsideration. A deal that had stalled out has been revived: Canadian Imperial Bank of Commerce has "sweetened its bid" for PrivateBancorp - there are predictions of more Wall Street mergers, as well as a strange bipartisan move to limit the size of the largest banks... Some mergers we are looking at:
April 3, 2017
After
Capital One Failed on
Cabela, Synovus Scam
Emerges, To Evade CRA, FFW Opposes
By Matthew R. Lee
NEW YORK, March
30 – Two months after Inner
City Press reported
Capital One failing in its
proposal to acquire Cabela's
"World's Foremost Bank," now a
way to try to avoid the
regulators and Capital One's
Community Reinvestment Act
record has emerged. The scam
would involve Synovus buying
the bank then passing one the
credit card receivables to
Capital One, while keeping the
deposits, so Capital One
wouldn't be reviewed under CRA.
The Fair Finance Watch will
oppose this, trying to ensure
that another bank merger
challenged by Fair Finance
Watch fails. In December it
was Astoria's proposed take
over by NY Community Bancorp,
here.
Soon, Sterling.
In
January, disparate lender
Investor Bancorp, on which
Fair Finance Watch previously
got a condition imposed saw
its proposal with Bank of
Princeton fall apart.
And now
it's Capital One - Cabela, on
which Inner City Press
commented: "In the New York
City MSA in 2015, the most
recent year for which HMDA
data is available, for
conventional home purchase
loans Capital One denied the
applications of whites 23% of
the time, while denying
African Africans fully 45% of
the time, and Latinos even
more, 46% of the time. This is
unacceptable.
Meanwhile, Capital One
is “closing branches in
Laurel, Gaithersburg,
Frederick and Merrifield.”
March 27, 2017
ICP
Asks IMF About Belarus Letters
& Talks, Cameroon Silicon
Mountain Internet Cut
By Matthew Russell Lee
UNITED NATIONS,
March 23– When the International
Monetary Fund held its
biweekly embargoed press
briefing on March 23, Inner
City Press asked Spokesperson
Gerry Rice about Belarus,
Cameroon and other issues. On
Belarus, Inner City Press
asked: "requests have been
publicly made to write to head
IMF mission to Belarus Peter
Dolman and advisor of the IMF
mission in Minsk Julia Lysko
to NOT give loans to the
government. Has the IMF
received such letters? If so,
how many, and what weight does
it give them and the issues
raised in them?" Rice read out
the question, then said he's
not aware of any letters being
received, but is aware of a
petition from press reports.
He said the IMF met Belarus'
presidnet on March 16 and
talks about a program will
continue up to the IMF's
Spring Meetings in April.
March 20, 2017
After
FFW Protest, Fed Sends Community Bank System Lending Qs,
CEO Tryniski Trashed CRA
By Matthew R. Lee
NEW YORK, March
13 – At what point does bank
executives' spin to investors
and the media become more than
misleading? Take Community
Bank System (NYSE: CBU), which
has now received on March 13
consumer lending questions on
top of the nine
earlier
questions from
the Federal Reserve on its
proposal to acquire Merchants,
after its CEO
derided issues Fair
Finance Watch raised about the
proposal.
On March
13, the Fed asked CBU: "In
connection with the
application by Community Bank
System, Inc. (“Community”),
DeWitt, parent company of
Community Bank, National
Association (“Community
Bank”), Canton, both of New
York, to merge with Merchants
Bancshares (“Merchants”), and
thereby acquire Merchants
Bank, both of South
Burlington, Vermont, pursuant
to section 3(a)(5) of the Bank
Holding Company Act of 1956,
12 U.S.C. § 1842(a)(5),
Federal Reserve staff requests
the following additional
information:
1.
Provide an update on Community
Bank’s Community Reinvestment
Act (“CRA”) activities and
efforts since its July 27,
2016 CRA Performance
Evaluation. In your
response, address the
activities in the bank’s
assessment areas under each of
the lending, investment, and
service tests.
2.
Regarding consumer lending
products:
a. reconcile page iv of the Bank Merger Act (“BMA”) application, which states that Merchants Bank currently offers consumer loans, with page xiv of the BMA application, which states that Merchants Bank does not currently offer consumer lending products and services; and
b.
explain how the consumer
lending products and services
offered by Community Bank,
including overdraft lines of
credits, are enhanced compared
to Merchants Bank’s
offerings."
On its
last proposal, CBSI
bad-mouthed a Community
Reinvestment Act protest even
as it had to delay its Oneida
deal. First, CBSI's "Hal
Wentworth said
that Inner City Press is not a
local group and pointed out
that letter was the only one
filed on the Oneida deal.
'This activist does not do
business with either Oneida or
Community Bank, but
nonetheless made vague
allegations regarding
Community,' Wentworth said.
'These allegations were
entirely without merit and
will be fully addressed by
Community Bank and Oneida
Savings in the application
process.'" Then the deal was
significantly delayed, with
CBSI pushing the date back.
More
spin: CFO Scott Kingsley
told
the media that FFW's protest
"is not the sole reason. We
have other things that have to
sequentially happen to get to
the technological conversion
in July. When we did not have
a definitive answer from the
Fed or other parties last
week, that put the
technological conversion at
risk, so we opted not to go
ahead.”
March 13, 2017
Mergers we are looking at (beyond Sterling - Astoria), followed by IMF on Cameroon:
March 1, Louisiana into Florida for $1 billion: IBERIABANK Corporation proposes to acquire Sabadell United Bank, N.A. from Banco de Sabadell, S.A. for $1.025 billion;
IMF
Tells Inner City Press Risks
In Cameroon in 2017 Include
"Events" in Anglophone Areas
By Matthew Russell Lee
UNITED NATIONS,
March 9– When the
International Monetary Fund's
spokesperson Gerry Rice took
questions at the IMF's
biweekly media briefing on
March 9, Inner City Press
asked about Cameroon,
specifically the crackdown in
the northwest and southwest of
the country. Inner City Press
asked, "On Cameroon, after the
mission led by Corinne
Delechat, what is the status
of talks for a program, and
since the IMF cited “civil
unrest in the neighbouring
Central African Republic,”
please state the IMF's
awareness of civil unrest and
arrests in Northwest and
Southwest Cameroon, also known
as the Anglophone areas, and
their impact." Rice read out
the question and then said,
among other things, that the
risk factors for 2017 include
a continuation of the "social
and political events" in the
"so-called Anglophone" areas
of Cameroon. Interim
video here. On
IMF site, here,
from 34:56. IMF
transcript:
"There is a
question of Cameroon, from
Matthew Lee, "After the
Mission what is the status of
talks for a program; and since
the IMF cited civil unrest in
the neighboring Central
African Republic, please state
the IMF's awareness of civil
unrest and arrests in
Northwest and Southwest
Cameroon? And also known as
the Anglophone areas, and
their impact?"
So, the background here is, I
think important the context.
So, the Fund's engagement here
in the CEMAC Region, CEMAC is
the six Central African
Economic nations that comprise
the Central African Economic
and monetary community. They
met in Yaoundé on December
23rd. The Managing Director
was there. And in that
meeting, heads of state
discussed the economic
situation, the severe shocks
that have hit that CEMAC
region in recent years,
including the sharp decline in
oil prices, and decided to act
collectively and in a
concerted manner. And the
heads of state requested the
assistance of the IMF to
design economic reforms needed
to reestablish macroeconomic
stability in each country and
in the region as a whole.
So, again, context: I can tell
you that the funders already
sent missions to Gabon,
Republic of Congo. And a
reminder to you, that we
already have programs with
Central African Republic and
Chad. Okay?
Now, we also have sent a
mission to Cameroon, which is
the question. And we did issue
a press statement, which the
question referred to, just on
Tuesday. That was the Corrine
Delechat reference.
So, the specific question, to
turn to that. We are indeed
aware of the events in the
so-called Anglophone regions
of Cameroon. The macroeconomic
impact of any event that could
affect production and/or
consumption, is typically felt
with a certain lag. So, these
events started in November
last year, and thus are likely
to have not had a significant
impact on production in 2016.
For 2017, the risks to our
growth outlook include a
combination of external and
domestic factors, including
continuation of the
sociopolitical events in the
northwest and southwest
regions of Cameroon. And as
our press release the other
day indicated, our view is
that the medium-term outlook
for the Cameroonian economy
remains positive, subject to
the implementation of
appropriate policies."
March 6, 2017
In Indiana, "Another Fort Wayne bank is being swallowed. Independent Alliance Banks Inc., the holding company of iAB Financial Bank, is being acquired by First Merchants Corp. of Muncie in a deal worth about $250 million...It’s unclear how many local jobs could be lost in the consolidation of back-office operations." We'll see.
February 27, 2017
IMF
Tells ICP No Talks with
Nigeria of Program, Day After
UN Sounded Alarm
By Matthew Russell Lee
UNITED NATIONS,
February 9– When the
International Monetary Fund's
spokesperson Gerry Rice took
questions at the IMF's
biweekly media briefing on
February 23, Inner City Press
asked about the alarm sounded
the day before by UN Secretary
General Antonio Guterres about
humanitarian crises in South
Sudan, Nigeria, Somalia and
Yemen. Rice answered Inner City
Press, specifically on South
Sudan and Nigeria.
Inner City
Press asked, "On February 22
the United Nations appealed
for $4.4 billion for
humanitarian crises in
Nigeria, South Sudan, Somalia
and Yemen. Please state what
the IMF is currently doing
with regard to these four
countries. In Nigeria, Finance
Minister Kemi Adeosun has said
the country will not apply for
an IMF program. What does this
say about Nigeria, the UN's
appeal, or the IMF?"
Rice
confirmed that there are no
negotiations with Nigeria for
a program - this while the UN
says there is a humanitarian
crisis there. He cited the
upcoming 2019 elections. Rice
said the UN is offering help
to the South Sudan authorities,
and that famine would exacerbate
suffering. From the IMF's
February 23 transcript:
February 20, 2017
Heartland Financial's Denver-based Centennial Bank is proposing to acquire Aurora's Citywide Banks ....
February 13, 2017
Fall-out: The buyer of Delaware County Bank says 58 jobs will be eliminated at the Lewis Center bank’s headquarters as the companies prepare to merge operations. Pennsylvania’s First Commonwealth Financial Corp., which last year agreed to a $106 million purchase of Delaware County Bank parent DCB Financial Corp. (OTC PINK: DCBF), is planning two rounds of job cuts at 110 Riverbend Ave., according to a required disclosure with the Ohio Department of Job and Family Services.
February 6, 2017
The branch closing are coming fast and furious. Scandal plagued Wells Fargo is set to close 400 by 2018; the Huntington closures are looming, starting with 39. FFW protested the latter and will the former - watch this site. Here are other mergers we are looking at:
February 1, Maryland: Old Line Bancshares announced a proposal to acquire DCB Bancshares and Damascus Community Bank;
January 30, 2017
After Fair Finance Watch got a CRA condition imposed on Investors Bancorp when it bought Roma, now Investors next proposal, to buy Bank of Princeton, has fallen apart.
January 23, 2017
Simmons First replies to Fair Finance Watch that it will consolidate HCIC branches, but doesn't say which ones..
January 16, 2017
Some proposed mergers we are looking at
January 9, 2017
Capital One's application to buy Cabela's grandiosely named "World's Foremost Bank," subject to comments and requests for extensions, is a strange one: Inner City Press is informed that Cabela's announced that Capital One said that they didn't think they could get OCC approval before early October 2017. We hope to have more on this.
January 2, 2017
So Bank of Hope operates 85 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, Georgia and Alabama - it's closing nine, it says...
December 26, 2016
We timely filed this:
On behalf of Inner City Press/Fair Finance Watch (ICP), this is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by CAPITAL ONE NA to acquire the “WORLD'S FOREMOST BANK”
This comment is timely.
In the New York City MSA in 2015, the most recent year for which HMDA data is available, for conventional home purchase loans Capital One denied the applications of whites 23% of the time, while denying African Africans fully 45% of the time, and Latinos even more, 46% of the time. This is unacceptable.
Meanwhile, Capital One is “closing branches in Laurel, Gaithersburg, Frederick and Merrifield.” See, for the record, http://www.bizjournals.com/washington/news/2016/05/04/heres-how-much-capital-one-is-spending-this-year.html
Fair Finance Watch joins in the comments on NCRC, and will submit further comments in the extended comment period. On the current record, Capital One's application(s) should be denied.
December 19, 2016
Some proposed mergers we are watching:
These are ones to watch:
Federal Reserve:
Chair: Janet L. Yellen, Term Expires February 3, 2018 (as Chair), January 31, 2024 (as Gov.)
Vice Chair: Stanley Fischer, Term Expires June 12, 2018 (as Vice Chair), January 31, 2020 (as Gov.)
Governor: Daniel K. Tarullo, Term Expires January 31, 2022
Governor: Jerome H. Powell, Term Expires January 31, 2028
Governor: Lael Brainard, Term Expires January 31, 2026
2 Governor Seats Currently Vacant
December 12, 2016
ICP
Asks IMF About
Guinea
Bissau's Bank
Bailouts, No
Deadline to
Unwind
By Matthew
Russell Lee
UNITED
NATIONS,
December 8 --
When the
International
Monetary Fund
held its
biweekly
briefing on
December 8,
Inner City
Press
submitted a
number of
questions,
including this
one about
Guinea Bissau:
"On
Guinea-Bissau,
by when does
the IMF expect
authorities to
entirely
unwind the
bailouts of
Banco da
Africa
Ocidental and
Banco da
União?"
Not at
the briefing,
but ten hours
later, an IMF
spokesperson
provided this
answer, which
we publish in
full:
"The question
of the
legality of
the bailout
contracts is
currently with
the courts in
Guinea-Bissau
and there is
no deadline by
which the
courts have to
pronounce
their verdict.
IMF staff are
monitoring
these
developments.
As such, at
this stage it
would be
speculative
for us to make
any statements
about the
estimated
timing for the
complete
unwinding of
the bailouts.
Overall, IMF
staff welcome
the
authorities’
resolute
stance in
unwinding the
bank bailouts.
Following
through on all
steps until
the bailouts
are
irreversibly
unwound will
be important
to safeguard
public
finance. To
strengthen the
banking
sector, it
will also be
necessary to
implement
remedial
actions that
are being
elaborated
through
regional
banking
supervision
and to enforce
existing
prudential
norms.’"
Inner
City Press
also asked
about Egypt:
"In Egypt, is
it the IMF's
understanding
that none of
the first
tranche will
be used to pay
off old loans?
Also, any
comment on the
arrest of Azza
Soliman, amid
the crackdown
on civil
society and
the media?"
IMF
Spokesman
Gerry Rice
lumped most of
the online
questions
together -
with the
exception of
Reuters, which
he named in
order to offer
a defense of
“Madame
Lagarde” - and
on Egypt's
recent tariff
increases said
these are NOT
part of the
IMF's program.
Rice
blamed the
tariff
increases,
rather, on the
World Trade
Organization.
He added that
the IMF's
staff report
and other
documents
should be
released very
soon, in the
next few days.
We'll have
more on that.
Rice and the
IMFdid not
answer, or
even take,
this Inner
City Press
questions:
At the UN the
Group of 77
and China has
said of the
IMF that “a
new quota
formula is
needed that
further shifts
quota shares
to developing
countries
while
protecting the
quota share of
the poorest
countries.”
Does MD
Lagarde agree?
We'll
have more on
this in the
near future.December 5, 2016
For once, looking (far) overseas: possible merger between Kazakhstan’s two largest lenders, Halyk Bank and Qazkom would control around 40 percent of the sector. Uh, antitrust? Monopoly?
November 28, 2016
Ah, slides: http://seekingalpha.com/article/4025589-independent-bank-group-ibtx-merger-carlile-m-call-slides
November 21, 2016
They're at it again: last week Trustmark Corp -- holding company for Trustmark National Bank, which has a presence in Alabama, Florida, Mississippi, Tennessee and Texas — announced a proposal to acquiere RB Bancorporation and Reliance Bank....
November 14, 2016
Mergers we are looking at:
November 7, 2016
This week, looking "non-bank" - China Oceanwide Holdings offering $3.8 billion to buy U.S. insurer Genworth Financial, which would require approvals including from "fegulators in Delaware, New York, North Carolina and Virginia, as well as in Australia, Canada, China, Mexico and officials at mortgage-finance companies Fannie Mae and Freddie Mac must sign off on the transaction for it to be completed. In addition, the transaction must be reviewed by the Committee on Foreign Investment in the U.S." -- we'd be there...
October 31, 2016
ICP
Asks IMF of
Hadi's Bid to
Move Yemen
Central Bank,
Spox Calls It
Complex
By Matthew
Russell Lee
UNITED
NATIONS,
October 27 --
When the
International
Monetary Fund
held its
biweekly
briefing on
October 27,
Inner City
Press asked
three
questions
including:
"On Yemen,
what is the
IMF's view and
monitoring of
President
Hadi's action
to move the
Central Bank
to Aden,
including
impact on the
humanitarian
situation?"
IMF
spokesperson
Gerry Rice
read out the
question and
then said
moving the
bank is
complicated,
that the bank
has done a
good job. Beyond the Vine video of
complete
answer here.
He did NOT say
that Hadi may
be on his way
out, even
under UN envoy
Ismail Ould
Cheikh Ahmed's
most recent
proposal. So
by what right
would Hadi
further help
starve
Yemenis? We'll
have more on
this.
October 24, 2016
Looking at: "First Bancshares of Hattiesburg said Friday that it would acquire Iberville Bank of Plaquemines, Louisiana, and Gulf Coast Community Bank of Pensacola, Florida. The moves will give the parent company of The First bank 48 offices and $1.6 billion in assets in Mississippi, Louisiana, Alabama and Florida."
October 17, 2016
Some mergers we are looking at:
October 10, 2016
After
ICP Challenges
Its Suffolk
Bid, People's
United 2015
Data Even
Worse
By
Matthew R. Lee
NEW
YORK, October
5 -- The lack
of seriousness
in US bank
regulation
grows from the
relatively
smaller to the
largest banks
like Goldman
Sachs - down
to People's
United Bank
now trying to
buy Suffolk
County
National Bank
while barely
lending to
people of
color in New
York.
Inner City
Press / Fair
Finance Watch
on August 13
challenged
this
application
and People's
United, as it
did Bancorp
South in 2014,
which led to
redlining
charges by the
Department of
Justice and
Consumer
Financial
Protection
Bureau.
This
is even more
true upon
review of the
just-released
2015 Home
Mortgage
Disclosure Act
data. Inner
City Press has
now commented
to the Federal
Reserve:
"in 2015 in the New York City MSA, People's United made 110 home purchase loans to whites and only ONE to an African American and only four to Latinos... In 2015, for refinance loans in the New York City MSA, People's United made 103 loans to whites, only five to African Americans and only two to Hispanics.
People's
United record
is scarcely
better on Long
Island, where
it snapped up
Bank of
Smithtown and
Citizen's Bank
as it now
proposes to do
to Suffolk
County
National Bank.
In 2015 for
home purchase
loans on Long
Island
People's
United made 49
home purchase
loans to
whites, only
four to
African
Americans and
only four to
Latinos. For
refinance
loans it mad
70 loans to
whties, only
one to an
African
American and
only four to
Latinos.
Again, this is
systematic
redlining;
this proposed
acquisition
could not
legitimately
be approved
and People's
United should
be referred
for
prosecution
for redlining
by the
Department of
Justice and
CFPB."
October 3, 2016
The September 29 hearing in the House made clear Wells Fargo's CEO should step down. As one example, first he said he couldn't remember if he's read the LA Times (Reckard) story in 2013 - then he said the board considered it. He's the chairman of the board....
September 26, 2016
Another proposal we're looking at: TIAA-Everbank...
September 19, 2016
September 12, 2016
A proposed merger we're watching: " United Bankshares has signed an agreement to acquire its rival Tysons Corner, Virginia-based Cardinal Financial in a deal worth $912 million... Cardinal offers banking services through its subsidiary bank, Cardinal Bank, which has a network of 30 branches throughout Virginia, Maryland and Washington, D.C."
September 5, 2016
ICP
Asks IMF of
Yemen Central
Bank, Zim
&
Mozambique,
IMF Staff
Moves In
By Matthew
Russell Lee
UNITED
NATIONS,
September 1 --
When the
International
Monetary Fund
held its
biweekly
briefing on
September 1,
Inner City
Press asked
five questions
including:
"On Yemen, IMF
Mission Chief
Albert Jaeger
has urged the
Central Bank
and the
government to
cooperate.
What is the
IMF's view of
President
Hadi's
proposal to
move the
Central Bank
to Aden, and
his complaints
against the
Central Bank
and its
Governor?" IMF
video here,
from Min
41:54.
IMF
Spokesperson
Gerry Rice
read out the
question --
without the
name of Albert
Jaeger or
Inner City
Press -- and
offered praise
of the Central
Bank governor,
citing the
Bank's public
letter. (Click
here for UN
envoy's
in-person
answer to
Inner City
Press on
August 31.)
Inner City
Press asked,
about
Mozambique:
"On
Mozambique,
outgoing IMF
Representative
Alex Segura
has been
quoted that
IMF insists on
international
audit of
Mozambique’s
public debt.
Please
confirm, and
describe the
goals of this
month's IMF
mission to
Mozambique."
Rice said
there will be
a mission in
Maputo on
September 22.
Inner City
Press also
asked, "On
Zimbabwe, what
is the status
of the
government's
moves to clear
its arrears to
the IMF?"
Rice said
there is NO
financial
program under
discussion and
can't be until
arrears are
cleared.
UNanswered
were these
two:
In Serbia,
Energy
Minister
Aleksandar
Antic said the
3.8 percent
electricity
price increase
to comply with
conditions set
by the IMF in
return for a
$1.34 billion
loan was the
“smallest
possible
increase, half
the amount the
IMF asked
for.” Is that
the case?
In South
Sudan, the
government has
adopted a
budget for the
2016/17 fiscal
year which
nearly tripled
spending at
$520 million;
Finance
Minister
Stephen Dau
said “it
contains
reform
measures that
were advised
by the IMF in
their
consultation
when they came
here last
May.” Is that
the case?
Please
describe the
IMF's work
with South
Sudan, as the
UN
Security
Council
prepares to
visit there."
At the
September 1
briefing, IMF
Spokesperson
Gerry Rice
said the IMF
board expects
to take up
Ukraine in the
second half of
September. He
confirmed that
an IMF staff
member was
just named the
governor of
the Central
Bank of
Mozambique --
shades of the
film "Our
Brand Is
Crisis" --
while saying
he'd look into
whether the
ex-IMF staffer
in Greece
worked for the
Fund in 2010
or after.
August 29, 2016
Chickens coming home to roost: "Astoria Financial Corporation (NYSE: AF) (“Astoria” or the “Company”), the holding company for Astoria Bank, today announced that its Board of Directors, at the August 24, 2016 Board Meeting, established December 21, 2016 as the date for the 2016 Annual Meeting of Shareholders (the “2016 Annual Meeting”), and set October 28, 2016 as the voting record date.
The 2016 Annual Meeting had been delayed due to the pending merger of Astoria with New York Community Bancorp, Inc. (the “Merger”). However, since the regulatory approvals required to complete the Merger have not yet been received, Astoria has decided to schedule its 2016 Annual Meeting to be held on December 21, 2016 in order to comply with New York Stock Exchange corporate governance requirements. If the closing of the Merger occurs prior to December 21, 2016, the 2016 Annual Meeting will not be held.
Because the date of the 2016 Annual Meeting has been changed by more than 30 days from the anniversary of the Company’s 2015 Annual Meeting of Shareholders, the Company has set a new deadline for the receipt of any shareholder proposals submitted pursuant to Rule 14a-8 under the Securities Exchange Act of 1934, as amended (“Rule 14a-8”), for inclusion in the Company’s proxy statement and proxy card relating to the 2016 Annual Meeting. Any such shareholder proposal must be submitted in writing and received by the Secretary of Astoria at One Astoria Bank Plaza, Lake Success, New York 11042 no later than 5:00pm on September 9, 2016."
August 22, 2016
For BancorpSouth, which Inner City Press has challenged for some time, the other shoe has dropped. It announced: "As a result of the retroactive downgrade of the bank’s CRA rating, the company and the bank likely will be unable to obtain the necessary Federal Reserve or FDIC regulatory approvals to complete the two pending mergers with Ouachita Bancshares Corp. and Central Community Corporation and their respective affiliated banks until such time as the bank’s CRA rating is improved to “satisfactory.” The company presently understands that the FDIC expects to begin its next CRA evaluation of the bank later this year and to complete that evaluation during the first quarter of 2017; however, the company cannot make any assurances as to the timing or outcome of its next CRA evaluation."
August 15, 2016
Hidden impacts: from NC it is reported, "Three High Point Bank locations are slated to close this fall as its acquisition by Bank of North Carolina is finalized. Branches at 3015 East River Way in High Point, 515 Pineview Drive in Kernersville and 536 S. Stratford Road in Winston-Salem will close Nov. 4." We'll see.
August 8, 2016
So Texas-based Strategic Growth Bancorp proposes to merge with Kansas-based Sunflower Financial Inc., and create "a super-community bank" that would have more than 60 offices in New Mexico, Colorado, Kansas, Missouri and Texas...
August 1, 2016
On
Zimbabwe, ICP
Asks IMF of
Arrears, If
Any Program,
UN of UNrest,
#ThisFlag
By Matthew
Russell Lee
WASHINGTON,
July 28 --
When the
International
Monetary Fund
held its
biweekly
briefing on
July 28, Inner
City Press
asked
questions
including on
Zimbabwe, to
Deputy
Spokesperson
William
Murray, as
transcribed by
the IMF:
"This is from
Matthew Lee.
It’s a
question on
Zimbabwe.
Matthew Lee
from Inner
City Press.
'On Zimbabwe
with the U.K.
saying it
would veto any
IMF program,
what is the
status of the
IMF’s program
and
discussions
with
Zimbabwe?'
Thanks,
Matthew, for
that question.
I think some
of this will
sound familiar
to many of
you, but let
me comment.
"There is no
financing
program under
discussion
with Zimbabwe
at this point;
however, the
authorities
have announced
a plan to
clear their
arrears with
the IMF and
other
international
financial
institutions
as part of
their
re-engagement
with the
international
community.
Once the
arrears are
cleared and
the IMF
Executive
Board approves
the
normalization
of relations
with Zimbabwe,
the
authorities
request for a
financing
program could
then be
considered.
Beyond that, I
don’t really
have any
guidance in
terms of
timing or when
a program
would be
possible or
likely."
At the UN on
July 27, Inner
City Press
asked
Secretary
General Ban
Ki-moon's
spokesman
Farhan Haq, Vine here, UN
transcript
here:
Inner City
Press: there
is quite a bit
of turmoil in
Zimbabwe and
many people
have written
open letters,
and I don't
know if they
have written
direct letters
to the UN, I
wanted to
know, DPA
[Department of
Political
Affairs] or
any portion of
the UN, have
they… are they
aware of this
increasing…
well, This
Flag, unrest
and does the
UN see any
role for
itself through
DPA or its
country team
in trying to
maintain peace
and security
and democracy
in the
country?
Deputy
Spokesman:
We are aware
of the recent
reports in
Zimbabwe.
We are
monitoring the
situation.
This is not
something in
which the UN
has been
directly
involved.July 25, 2016
So Yadkin tries to sell itself to F.N.B. even before swallowing - and closing a dozen of - the NewBridge branches. What sense would this make?
July 18, 2016
ICP
Asks IMF of
Jordan &
Lebanon, Reply
Here, S Sudan
& Yemen
Not Yet
By Matthew
Russell Lee
WASHINGTON,
July 14 --
When the
International
Monetary Fund
held its
biweekly
briefing on
July 14, Inner
City Press
asked four
questions
including this
one:
Inner City
Press: On
Lebanon,
Jordan and
other formally
“middle
income”
countries with
refugee
issues, the
World Bank has
reportedly
shown
flexibility.
Is the IMF
still banning
them from
concessionary
financing?
Spokesperson
Gerry Rice
read out the
question and
said the IMF
has shown
flexibility in
Jordan to
provide fiscal
space on the
refugee issue
and
encouraging
donors to
provide
concessionary
financing.
Inner City
Press has
asked the UN's
Sigrid Kaag
about Lebanon,
as previously
reported. Two
other
questions
Inner City
Press has
asked the IMF:
On South
Sudan, amid
the fighting
on July 9
President
Salva Kiir
said his gov
is working
with IMF to
resolve the
economic
crisis. Please
describe that
work, and
state whether
IMF is
evacuating or
trying to
evacuate its
staff from
Juba;
In Yemen,
there has been
a significant
decline in
foreign
currency
reserves,
causing a
significant
devaluation in
the Yemeni
Rial. What if
anything is
the IMF doing
on this?July 11, 2016
Some merger proposal we are watching:
July 4, 2016
So Chemical is gunning for U.S. Bank funds to buy Talmer, while trying to withheld the specifics. They sent to Inner City Press / Fair Finance Watch: "A copy of the financing proposal from US Bank dated June 22, 2016, which has been accepted by Chemical Financial Corporation, is attached in Volume 2 of this Supplemental Response as Confidential Exhibit E. "
June 27, 2016
On Talmer, the Fed has asked Chemical to "[p]rovide a copy of the loan commitment for up to $60 million which will be used to assist Chemical in financing a portion of the transaction purchase price. Any debt used to finance the acquisition should have a term commensurate with the long term nature of the investment."
June 20, 2016
ICP
Asked IMF of
Sri Lanka
Airlines
Resolution,
Iraq &
Mozambique
By Matthew
Russell Lee
WASHINGTON,
June 16 --
When the
International
Monetary Fund
held its
biweekly
briefing on
June 16, Inner
City Press
asked five
questions
including this
one on Sri
Lanka:
Inner City
Press: On Sri
Lanka, what is
the IMF's view
of the
reported
adoption of a
capital gains
tax, and what
did Mission
chief Todd
Schneider mean
by expeditious
resolution of
Srilankan
Airlines'
financial
issues: how
soon, and
resolved how?
After the
briefing, an
IMF
Spokesperson
replied to
Inner City
Press: "We see
the
introduction
of a capital
gains tax as a
positive
development
and in line
with
recommendations
to broaden the
tax base and
raise tax
revenue from
its current
low level.
"Regarding
the issue of
Sri Lankan
Airlines, the
three-year
Extended Fund
Facility (EFF)
program
recently
agreed with
the government
and approved
by the
Executive
Board of the
IMF contains a
structural
benchmark for
the Cabinet to
approve a
resolution
strategy for
Sri Lankan
Airlines by
September
2016."
Actually
answered
during the
June 16
briefing:
Inner City
Press: "In
Belarus,
finance
ministry
deputy Maxim
Ermolovich
this week said
that "All the
preliminary
conditions
that were
discussed by
the government
have been
implemented.
We expect an
appropriate
response from
the IMF and
the start of a
new program.”
Does the IMF
agree? What is
the timing?"
IMF
spokesperson
Gerry Rice
read out the
question -
without naming
minister
Ermolovich -
and said that
the IMF is
visiting the
country from
June 21-30
then will have
more to say.
Inner City
Press also
asked, on
Mozambique:
"In
Mozambique, as
the IMF
mission began
yesterday, the
metical fell
10% and a
coalition of
26 civil
society groups
say that
$1.86B of
loans were
corrupt and
should not be
paid; experts
cite anger
among donor
nations after
the government
ran up more
than $2
billion in
private debt
deals behind
their back.
What is the
IMF's thinking
on the $1.86B
in loans, and
the currency
decline?"
Rice answered
this one in
the DC
briefing room,
emphasizing
that all
undisclosed
loans,
whatever their
purpose,
should be
transparently
and publicly
disclosed.
ICP Iraq: In
Iraq, Abadi
financial
adviser Mudher
Salih said the
IMF has been
informed of
the approval
of required
measures. Is
this the case,
including the
settling by
the end of the
year all
arrears owed
to foreign oil
companies
operating in
Iraq?
Later in the
morning, on
Iraq, this was
received:
"The Iraqi
authorities
and IMF staff
are in close
contact about
the prior
actions for
the Stand-By
Arrangement,
two of which
(circulation
of revised
fiscal program
to Parliament,
circulation of
revised
spending plan
to line
ministries)
still need to
be met.
Payment of all
arrears to
international
companies by
end-2016 is
part of the
program."
This question,
along with
Inner City
Press requests
for updates on
Yemen and
Burundi, is
still pending:
ICP: On
Colombia, in
the IMF's
expansion this
week to a
Flexible
Credit Line of
$11.5 billion,
what
consideration
was given to
the
government's
near-peace
with the FARC,
and talks with
the ELN? What
are and would
be the
economic
impact of
these?
Watch
this site.June 13, 2016
Some more we're looking at:
June 6, 2016
ICP
Asked IMF of
Protests in
Suriname, IMF
Today Supports
Tariff Rise
By Matthew
Russell Lee
WASHINGTON,
June 2 -- When
the
International
Monetary Fund
held its
biweekly
briefing back
on May 19,
Inner City
Press asked
about protests
against the
IMF in
Suriname:
"On Suriname,
there have
been protests
of the rise in
electricity
prices. What
is the status
of the
discussed
two-year
US$478 million
stand-by
arrangement?
What is the
IMF's response
to the
protesters
linking the
price rises
hurting the
poor to
policies
demanded by
the IMF?"
Spokesperson
Gerry Rice
said that the
Fund does
support the
Surinamese
authorities'
moves to
eliminate to
subsidies, to
"open space."
See the IMF's
transcript,
below. On June
2, Inner City
Press has
asked:
"In Suriname,
opposition
leader
Chandrikapersad
Santokhi has
publicly
complained
that the IMF
did not have
discussions or
contacts with
the opposition
prior to the
recent loan.
Is that true?
How widely did
the IMF
consult in the
country?"
This has
not been
answered...
May 30, 2016
This we like to see: "Thousands of employees of five associate banks of the State Bank of India staged protests across the State on Friday against the proposed merger ..."
May 23, 2016
ICP
Asks IMF of
Protests in
Suriname, IMF
Supports Cut
of Subsidies
By Matthew
Russell Lee
WASHINGTON,
May 19 -- When
the
International
Monetary Fund
held its
biweekly
briefing on
May 19, Inner
City Press
asked about
protests
against the
IMF in
Suriname:
"On Suriname,
there have
been protests
of the rise in
electricity
prices. What
is the status
of the
discussed
two-year
US$478 million
stand-by
arrangement?
What is the
IMF's response
to the
protesters
linking the
price rises
hurting the
poor to
policies
demanded by
the IMF?"
Spokesperson
Gerry Rice
said that the
Fund does
support the
Surinamese
authorities'
moves to
eliminate to
subsidies, to
open space.
From the IMF's
transcript:
Gerry
Rice: Let me
take a few
things
online.. There
is a question
on Suriname
there have
been protests
about the IMF
backed
electricity
price
increases.
What is your
reaction, what
is the status
of the
program? And
what I can say
on Suriname is
the
authorities
have requested
our assistance
to support
their
comprehensive
program to
stabilize
Suriname's
economy and
set the stage
for its
recovery.
On the
electricity
issue on the
tariffs indeed
the Fund
supports the
governments
plan to
gradually
eliminate
electricity
subsidies
because that
will make
space for
better
targeted
social
spanning and
in addition
improve the
fiscal
situation. We
expect the
Board to
consider the
request from
the Surinamese
authorities in
the coming
weeks.
There is a
question on
Malawi. What
is the status
of the IMF's
programs
particularly
in light of
the previously
discovered
irregularities
referred to as
cash gate. So
on Malawi an
IMF team
visited
Lilongwe in
March. This is
in the context
of the seventh
and eighth
reviews under
an ECF, an
Extended
Credit
Facility and
on program
performance
Malawi has
demonstrated a
concerted
effort to get
the program
back on track.
Including on
domestic
financing and
domestic
assets on the
structural
side reforms
in the
financial
sector were
carried out as
planned and
improvements
in public
financial
management in
particular
bank
reconciliations
are gaining
momentum but
this needs to
be sustained.
There was a
press release
that was
issued at the
end of the
mission that
has a bit more
detail on that
for Matthew.
In addition I
can say at the
start of this
week the IMF's
Board approved
an extension
of Malawi's
arrangement
under that ECF
until June 30,
2016 to
provide
additional
time for
authorities to
implement
structural
measures under
the program.
There is a
statement on
this on our
website.
We'll have
more on this.
Inner City
Press also
asked for
updates on
Burundi, Sri
Lanka or
Yemen, and
these two
questions:
On Saudi
Arabia, I
didn't see it
in what was
released this
morning: what
does the IMF
think the
impact of the
Saudi-led
Coalition's
conflict in
Yemen on the
Saudi economy?
On Gambia,
please say if
the country
has requested
an $11 million
or any other
program, and
summarize the
relations /
discussions
between the
Fund and the
country.May 16, 2016
Something we're looking into, and will more closely: Franklin Financial Network, this $2.3 billion (assets) bank holding company is putting back the timeline for its proposed acquisition of $145 million Civic Bank & Trust...
May 9, 2016
Mergers we are looking at:
May 2, 2016
On Sri
Lanka, IMF
Reaches $1.5B
Program, ICP
Asked in Feb,
Accountability
By Matthew
Russell Lee
UNITED
NATIONS, April
28 -- Back on
March 17 when
the
International
Monetary Fund
held is
biweekly
briefing,
Inner City
Press arrived
in person with
questions on
Zimbabwe,
Jamaica and, as for
months, Sri
Lanka.
But it
was not a
normal
briefing: it
started with a
paper about
the
International
Monetary
System,
leaving the
ten
journalists
present to
fight for time
to ask their
questions.
Inner City
Press got in
two questions,
see below, but
not the one
about Sri
Lanka.
On the
morning of
April 28 Inner
City Press
asked ESCAP
researchers
about the IMF
and Sri Lanka,
video
here, last
question.
Now on
April 28 with
a 9 pm embargo
time the IMF
has put this
out:
IMF Reaches
Staff Level
Agreement with
Sri Lanka on
Three-Year
$1.5 Billion
EFF
Following
discussions
held between
IMF staff and
the Sri Lankan
authorities
during the
2016 Spring
Meetings in
Washington,
staff-level
agreement was
reached on a
three-year
progra to be
supported by
the IMF’s
Extended Fund
Facility
(EFF).
Note:
accountability
is NOT on the
program - and
the white vans
are back.
We'll have
more on this.
April 25, 2016
Keycorp's Mooney: "Nothing we know at this point suggests that our applications aren’t proceeding as planned." So, making predictions about the process?
April 18, 2016
The Goldman Sachs settlement is a joke - except it's not funny. Next time they apply...
April 11, 2016
Some we're looking at:
April 4, 2016
The Federal Reserve's "Semiannual Report on Banking Applications Activity" says the volume of approved M&A proposals increased in the second half of 2015 to 143, compared with 133 approved in the second half of 2014. For all of 2015, 279 M&As were approved, up from 248 in 2014. There were 190 approved in 2013 and 226 in 2012. FWIW, the number of withdrawn applications has been declining steadily. There were 21 withdrawals in 2015, compared to 43 in 2012. We'll have more on this.
March 28, 2016
Norht of the border, there's anger at bank branch closures, too: "Some seniors living in Rosemère, Que., are upset that their neighbourhood RBC branch located in the heart of their town will be closing to merge with a branch situated 3.5 kilometers away.
"It's a great convenience for everybody in the town to have a central bank, and there are a lot of seniors who will not be able to access the new branch," said Rosemère resident Kathleen Kidd, who has been going to the branch for years.
The branch that is closing is the Royal Bank's Jardins Rosemere Branch, located at 395 Grande-Côte Road. The bank said there are not enough customers to keep it open.
It will be merging with the Labelle & Hwy 640 branch located at 370 Labelle Blvd.
"That branch suits them. This branch suits the residents of Rosemère," Kidd said of RBC's decision."
March 21, 2016
ICP
Asks IMF of
Zimbabwe -
Loans Not Sure
- &
Vultures Dart
& Singer
By Matthew
Russell Lee
WASHINGTON,
March 17 --
When the
International
Monetary Fund
held is
biweekly
briefing on
March 17,
Inner City
Press arrived
with questions
on Zimbabwe,
Sri Lanka and
Jamaica.
But it
was not a
normal
briefing: it
started with a
paper about
the
International
Monetary
System,
leaving the
ten
journalists --
all male --
present to
fight for time
to ask their
questions.
An
excellent --
the best -
Greek
journalist
asked about
Greece;
Ukainian TV
asked about a
quote from
Victoria
Nuland then
fought for
question time
with TASS. A
Brazilian
journalists
asked if there
will be a
program.
Inner
City Press
jumped in with
the Zimbabwe
question,
since the head
of the Central
Bank has been
saying the
country will
get a loan up
to $984
million in the
third quarter.
Not so
fast, IMF
Deputy
Spokesperson
William Murray
said. He had a
long if-asked,
which we'll
insert here
later. The
upshot is that
Zimbabwe still
owes too much
money, and
despite
support from
(some) other
states as an
IMF meeting in
Lima, the rules
are the rules.
At least for
Zimbabwe.
Inner
City Press
also asked
Murray to
acknowledge
that the
windfall
profits made
off Argentina
by vultures
Singer and
Dart wont'
inevitably
incentivize more
predatory
behavior.
Murray said he
wasn't going
there. But the
market will
be: watch this
site.
asked
questions and
got responses
on Tunisia,
Jamaica and
Zimbabwe.
March 14, 2016
March 7, 2016
We note the conciliation agreement in Kansas City: http://portal.hud.gov/hudportal/documents/huddoc?id=16-1FEDEXECONCIL0224.PDF There will be more...
February 29, 2016
A case we are watching: "Deutsche Bank AG must face a U.S. lawsuit seeking to hold it liable for causing $3.1 billion of investor losses by failing to properly monitor 10 trusts backed by toxic residential mortgages, a federal judge ruled on Wednesday. U.S. District Judge Alison Nathan in Manhattan said Belgium's Royal Park Investments SA/NV may pursue claims that the trustee Deutsche Bank National Trust Co ignored "widespread" deficiencies in how the underlying loans were underwritten and serviced, and failed to require that bad loans be repurchased."
February 22, 2016
Bank merger blues:
"While F.N.B. Corporation says its merger with the Harrisburg-based Metro Bancorp has gone smoothly, their new customers are saying the opposite"
We'll have more on this.
.February 15, 2016
IMF
Tells ICP
Negotiating
Mission to Sri
Lanka Late
March, Burundi,
Romania Qs
By Matthew
Russell Lee
UNITED
NATIONS,
February 11 --
When the
International
Monetary Fund
held is
biweekly
briefing on
February 11,
Inner City
Press asked,
"On Sri Lanka,
please comment
on and provide
context for
the reported
request from
the government
for a new IMF
program."
IMF
Spokesperson
Gerry Rice,
after noting
how Inner City
Press submits
its questions
(electronically),
replied that
Sri Lankan
authorities
have expressed
an interest in
a program to
deal with
balance of
payments. He
said there
would be a negotiating
mission in
late March or
early April.
The
embargoed
briefing began
with a
read-out of
the press
release that
there is no
competition to
Christine
Lagarde for a
second term --
similar to the
way at the UN,
there was no
competition to
Ban Ki-moon
for a second
term. Is this
any way to run
a
multilateral,
quasi
universal
international
organization?
Inner
City Press
also asked
about Romania
(“Romania on
Monday made
the last
interest
payment on the
13 billion
euro it took
from IMF in
2009” and
Dragos
Tudorache,
head of the
Chancellery of
the Prime
Minister, has
said "We don’t
plan to
conclude a new
deal with the
IMF” - please
provide an IMF
comment /
response)
and this, on
Burundi:
"On Burundi,
at the UN
Peacebuilding
meeting at the
UN yesterday
(Feb 10), the
IMF said any
new program
would depend
on relations
with the
international
community.
Please explain
this, how
relations with
the
international
community
impact an IMF
program."
February
8, 2016
We like this: Is there a global environmental justice movement? https://www.tni.org/en/publication/is-there-a-global-environmental-justice-movement We say... yes.
February 8, 2016Chemical - Talmer might *think* they'll escape scrutiny because they announced at the same time Huntington - FirstMerit did...
February 1, 2016The proposed mergers in Ohio and Michigan, we are looking at...
January 25, 2016
Mergers looking at:
January
18, 2016
IMF
Answers ICP on
Burundi, Had
Said
Peacekeeping
Income in
Budget, Off
Track
By Matthew
Russell Lee
UNITED
NATIONS,
January 14 --
When the
International
Monetary Fund
held is
biweekly
briefing on
January 14,
Inner City
Press
submitted a
number of
questions,
leading with
Burundi and
whether the
Nkurunziza
government's
"income" from
sending troops
to Somalia and
Central
African
Republic
should be
disclosed in
the budget.
IMF
spokesperson
Gerry Rice
read out Inner
City Press'
question then
referred to
the IMF's
March 2015
sixth review,
saying the
government had
committed to
include the
income from
peacekeeping
operations in
the budget.
Rice then said
due to
deterioration
in the
security
situation, the
seventh and
eight reviews
are not
possible and
the program is
"off track."
On
January 14 the
IMF's Rice
also noted the
US Congress
having
approved quota
reform
(answering
that he was
not aware of
any new
oversight this
might
trigger), and
said that
Managing
Director
Lagarde will
hold Greece
meetings in
Davos. Rice
declined to
answer ICP's
question on
Nigeria,
saying much
has been said
on the topic;
a Trinidad and
Tobago
question
remained
outstanding as
the embargo
time expired,
but Inner City
press was
later on
January 14
told on
Trinidad and
Tobago, the
IMF's
engagement
with the
country is one
of economic
policy advice
or what we
call
surveillance.
There is no
program nor
any talk of
that, Inner
City Press was
told.
January
11, 2016
Kentucky-based Republic is trying to
withhold basic information; Inner City
Press / Fair Finance Watch has requested
it under FOIA. And now the Fed has asked
Republic about CRA as well...
January 4, 2016
It is
said, on Seeking Alpha, "New York
Community Bancorp and Astoria Financial
are merging, and it's not a great match.
NYCB hurts its business with this deal,
and it is now large enough to be
designated a SIFI.
Behind the scenes activism could be a
reason for the transaction.
On October 28th of this year, New York
Community Bancorp (NYSE:NYCB) announced
an agreement to merge with Astoria
Financial (NYSE:AF) in a cash and stock
deal. The merger was unanimously
approved by management teams at both
companies under the premise of creating
operational synergies and adding
meaningful value to shareholders.
However, based on impending consequences
of the deal, as well as fundamental
differences between the two companies,
there is reason to believe that this
deal was not made with shareholder
interests in mind. "
And
that's not the half of it. Watch this
site.
December
28, 2015
So the
Federal Reserve has extended its comment
period on Key Corp's anticompetitive
proposal to acquire First Niagara. But
that is not enough...
December
21, 2015
On
ISIS Finance,
Talk of Oil
and Turkey,
Paris Pre-Paid
Cards, No
Bitcoin
By Matthew
Russell Lee
UNITED
NATIONS,
December 17 --
The day before
Syria talks
resume at the
New York
Palace Hotel
in Manhattan,
finance
ministers
spoke in the
UN Security
Council about
cutting off
financing for
ISIS. French
finance
minister
Michel Sapin
spoke darkly
of the use of
pre-paid cards
for the
November 13
Paris attacks;
Russia's
Ambassador
Churkin named
two Turkish
companies as
involved in
ISIS oil sale.
Inner
City Press
asked Syria's
Ambassador
Bashar
Ja'afari, who
came to take
questions at
the Council
stakeout,
about ISIS'
oil. He named
Turkey, then
want on to
name Qatar and
Saudi Arabia,
slamming its
“Sunni
coalition”
recently
announced.
When US
Treasury
Secretary
Jacob Lew,
along with
Sapin and the
UK's George
Osborne held a
short press
conference in
the UN
briefing room,
Inner City
Press hoped to
asked Sapin
about pre-paid
cards, and Lew
and Osborne
about Bitcoin.
But the
question, just
four, were
limited to
Reuters, the
Wall Street
Journal, the
New York and
Financial
Times. So it
goes.
December
14, 2015
IMF
Answers ICP on
Malawi
Retrenchment,
Global Fund
Steps In
By Matthew
Russell Lee
UNITED
NATIONS,
December 7 --
When the
International
Monetary Fund
held is
biweekly
briefing on
December 3,
Inner City
Press
submitted a
number of
questions,
including
about Malawi
but also on
Burundi and
how much the
IMF projects
the economy
will contract,
given the
crisis
triggered by
Pierre
Nkurunziza's
third term,
see below.
Inner City
Press asked,
"On Malawi, it
is reported
that the
IMF''s 'recent
decision to
withhold its
latest loan
money to the
Malawian
gov''t could
have dire
implications
for health
care. Malawi
has put on
hold the
hiring of 51
medical
graduates and
a host of
health
professionals.'
What is the
IMF''s
response?"
On
December 7, an
IMF
Spokesperson
returned with
this:
"Currently,
the high rate
of inflation
is eroding
living
standards of
the most
vulnerable
segments of
the Malawian
population,
and is also
dampening
private sector
confidence,
reducing
investment
demand, and
curtailing the
economic
growth needed
to reduce
poverty. IMF
staff policy
advice
therefore
recommends a
certain amount
of fiscal
retrenchment,
combined with
tight monetary
policy over
the short
term, as these
are necessary
to the
disinflation
process.
During this
period, IMF
staff
recommend that
Government
carefully
prioritizes
expenditure so
as to protect
both
vulnerable
groups and
social
spending. In
this respect,
IMF staff are
pleased to
note that
Government is
proceeding
with the
hiring of the
graduating
medical
students and
other health
care workers,
and has
arranged for
the Global
Fund to pay
the associated
costs up to
the end of the
2016/17 fiscal
year."
During the
December 3
briefing, IMF
spokesperson
Gerry Rice
read out Inner
City Press's
Burundi
question (and
its question
on Zambia,
below), then
said the
following as
to Burundi, audio
here
December
7, 2015
Federal
Reserve Asks BNC for CRA Info,
Withheld Like Goldman Sachs?
By Matthew
R. Lee
NEW YORK,
December 3 -- The lack of seriousness
in US bank regulation expends from the
relatively smaller of mid-sized to the
largest banks, with Goldman Sachs the
most recent example.
A
mid-sized bank Inner City Press / Fair
Finance Watch is scrutinizing, based
on its records, is BNC
Bancorp, currently seeking to
acquire Southcoast Financial in
South Carolina and, prospectively,
High Point Bank & Trust.
There's a problem with this
acquisitiveness: BNC is subject to to
Compliance Order with the FDIC, which
is rare, based on its fair lending
record. Fair Finance Watch has raised
to the Federal Reserve:
In the Charleston MSA in 2014 for conventional home purchase loans, BNC made 173 such loans to whites and only SIX to African Americans, and none to Latinos. For refinance loans, it made 68 loans to whites and only ONE to an African American, while denying the applications of African Americans 3.94 times more frequently than those of whites.
Southcoast in the Charleston MSA in 2014 for conventional home purchase loans made 136 such loans to whites and NONE to African Americans. For refinance loans, Southcase made 35 loans to whites and only TWO to African Americans. To combine these two banks would make them worse.
In
the Greenville MSA in 2013 for home
purchase loans, BNC made 117 such
loans to whites and only SIX to
African Americans, and only seven to
Latinos. For refinance loans, it
made 31 loans to whites and only one
to an African Americans and none to
Latinos.
BNC
admits, as it must, that it is
below-market in lending to African
Americans, but paradoxically tries to
use that the fact that it is subject
to a compliance order as its defense
to the Fed.
To
Fair Finance Watch, too. FFW asked to
see, in writing, what are BNC's CRA
plans going forward. BNC replied that
it is "unable to share this with you.
It is an internal document that is
only shared with our Board of
Directors and the FDIC (under the
Order)." FFW has requested a
copy of the High Point application.
Now
the Federal Reserve has asked BNC for,
among other things, for information
about its Community Reinvestment Act
compliance, and consumer compliance
more generally. Inner City Press is
putting the Fed's December 2
Additional Information letter
online, here.