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.

December 2, 2013

IMF in Sri Lanka Ignoring CHOGM Issues Unanswered, Sudan Ignored

Dear Mr. Lee, On your Sri Lanka question: The CHOGM discussed a broad range of issues, as is typical for these meetings. The IMF did not participate or take positions on the issues discussed or outcomes.

Mr. Shinohara’s visit focused on areas specific to the IMF’s mandate – including recent economic outturns, fiscal and monetary policies, structural reforms, and measures that might help to facilitate sustained growth and low inflation.

November 18, 2013

JP Morgan Chase Gets Asked of Predatory Lending & Even Tony Blair, Cancels Q&A

November 11, 2013

IMF Stresses Lagarde NOT Call for Wealth Tax, Ignores Africa

October 21, 2013

IMF Says Nothing Is Its Fault in Greece or Pakistan, Ignores Sudan, Defers on Iran

September 23, 2013

On Syria, ICP Asks & IMF Says No Mission Since Early 2011, Spillover

September 9, 2013

Inner City Press / Fair Finance Watch has told the OCC, on the Applications of Republic Bank, NA to acquire assets and liabilities of H&R Block Bank: both institutions have a history of high cost lending to consumers, through tax refund anticipation loans and otherwise.

See, for the record, "Steve Trager: Pending H&R Block bank deal could return Republic Bank to being mega tax refund provider," Insider Louisville, July 11, 2013 http://insiderlouisville.com/news/2013/07/11/republic-bank-buys-h-r-block-after-fdic-makes-it-exit-tax-refund-lending-it-buys-h-r-block-biggest/

Even if Republic denies that headline from its headquarters city, public hearings should be held on what Republic would do with H&R Block's "Emerald Card" program, particularly given its subsidiaries and plans, Republic Prepaid Systems, "an issuing bank to offer general purpose reloadable prepaid debit, payroll, gift and incentive cards through third party program managers" and Republic Credit Solutions, "preparing to pilot short-term consumer credit products through multiple channels.”

Reviewing 2011 HMDA data, the most recent data available (and largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP has examined Republic Bank & Trust Co's refinance and home improvement lending in the Louisville, Kentucky and Cincinnati MSAs and finds them outrageous.

In the Louisville MSA in 2011 for refinance loans, Republic 40.4% of applications from African Americans, versus on 20% of applications from whites. Its denial rate for Latinos was even higher: 45.5%

For home improvement loans, Republic denied 50% of application from African Americans versus 24.8% of applications from whites. Its denial rate for Latinos was 100%.

In the Cincinnati MSA in 2011, Republic made 27 refinance loans to whites and NONE to African Americans, nor Latinos. It made seven home improvement loans to whites, none to African Americans (denial rate 100%) nor Latinos.

On the current record, the applications / notices should not be approved.

The OCC has responded that the public comment period has been extended to September 11. How appropriate. Watch this site.

We've said Capital One wants to be Number 5 with the monopolist quartet - and now it's in multi-family. "Capital One has a USD296.5 billion portfolio as of year to date. The company is pleased with the acquisition and its influence to the company's market position. Michael Slocum, current President of the lender's Commercial Banking Group, said, "The combination of Capital One's multifamily business and Beech Street will make us a top 5 national multifamily originator." We'll have more on this.

August 12, 2013

IMF's Spain Report Thrice Mentions Bankia, Lagarde Question UNanswered

July 29, 2013

So for $2.3 billion, Pacific Western Bank plans to acquire CapitalSource Bank, eh?

Update: After embargo, this arrived from an IMF spokesperson on Burundi - and on a previously asked Zimbabwe question:

· “The IMF continues to be engaged with Burundi through a three-year financing arrangement aimed at mobilizing domestic revenues, catalyzing donor support and strengthening public financial management.

· In order to keep the program on track in light of recent revenue slippages, the authorities submitted a revised budget to parliament this week. This will provide a framework for continued donor engagement through a series of sectoral conferences related to the implementation of projects in the priority sectors outlined within the authorities’ Poverty Reduction Strategy.

On Zimbabwe, the World Bank's country manager has said that "arrears clearance is the main thing." Does the IMF agree? What is the IMF look for from Zimbabwe?

· Zimbabwe is currently making payments to the Fund (and to the World bank and African Development Bank as well), but the country remains in arrears to the IMF and other multilateral and bilateral creditors

· We agree with the authorities that a comprehensive arrears clearance strategy supported by development partners will be essential for Zimbabwe going forward.

· The IMF supports the Zimbabwean authorities’ efforts to work towards arrears clearance.

July 22, 2013

Republic Bank & Trust Co. is acquiring most of H&R Block Bank -- that is, a bank known for tax refund loans buying the Emerald Card program. For now: “The agreement, which is subject to regulatory approvals, calls for Republic to acquire $3 million in assets and $470 million in deposits from H&R Block. As a result, Republic would receive an estimated $467 million in cash from H&R Block at closing.” We'll have more on this.

July 8, 2013

Hedge funds that profited on the way down from the collapses, for example Paulson & Company, the Carlyle Group's Claren Road Asset Management and Perry Capital, are now buying up the preferred shares of Fannie Mae with a eye to taking it private.

  Here's portions of a filing:

As an initial matter, and for the record on this application, ICP submitted a Freedom of Information Act request to the FDIC for the whole application and for any and all records reflecting FDIC communications with the applicant about the proposal for the past six months, and asks for an expedited ruling and documents, on which the FDIC has unilaterally extended its time to response until after May 2. The comment period should and must be extended.

Reviewing 2011 HMDA data, the most recent data available (and largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP has examined Renasant's home purchase and refinance lending in the Memphis and Atlanta MSAs and finds both outrageous.

In the Memphis MSA in 2011 for conventional home purchase loans, Renasant made 60 such loans to whites, and only TWO such loans to African Americans, and only ONE to a Hispanic.

For Table 4-1, Renasant made 46 such loans to whites, and only FOUR such loans to African Americans, and only THREE to Hispanics.

Cumulated home purchase lending in this MSA: Renasant made 104 home purchase loans to whites, and only SIX such loans to African Americans, and only FOUR to Hispanics. This is inconsistent with other lenders' demographics of lending in this MSA.

For refinance loans in the Memphis MSA in 2011, Renasant made 112 such loans to whites, and only SIX such loans to African Americans, and only ONE to a Hispanic. This is inconsistent with other lenders' demographics of lending in this MSA.

In the Atlanta MSA in 2011 for conventional home purchase loans, Renasant made 27 such loans to whites, and NONE to African Americans or Hispanic.

For Table 4-1, Renasant made 16 such loans to whites, and only ONE such loans to an African American, and only ONE to a Hispanic.

Cumulated home purchase lending in this MSA: Renasant made 43 such loans to whites, and only ONE such loans to an African American, and only ONE to a Hispanic. This is inconsistent with other lenders' demographics of lending in this MSA.

For refinance loans in the Atlanta MSA in 2011, Renasant made 204 such loans to whites, and only TWELVES such loans to African Americans, and NONE to Hispanics. This is inconsistent with other lenders' demographics of lending in this MSA.

Also for the record, is facing a class-action lawsuit filed by securities law firm Robbins Geller Rudman & Dowd. The case claims that the merger proposal underwent a "fundamentally flawed process," only benefits Renasant and is detrimental to shareholders of First M&F.

The management and board of First M&F were also alleged to have violated their fiduciary duty by relying on conflicted analysis from Keefe Bruyette & Woods, First M&F's financial adviser, and providing shareholders with inadequate information about the deal, the report added.

Moreover, the suit also claims that First M&F's management did not look for a higher bid than Renasant's and agreed to deal-protection devices preventing other banks from bidding an offer higher than Renasant's.

Renasant has previously closed offices without replacing them: it shuttered its Trussville, Ala., branch and did not plan to open any replacement office, the Birmingham (Ala.) Business Journal reported Nov. 3, 2011."

On the current record, Renasant's F&M application should not be approved....

April 29, 2013

Revolving door: OCC Chief Counsel Amy Friend is recusing herself for a year from discussions on the Dodd-Frank Act's Volcker rule in order for her to avoid conflicts of interest, according to SNL Financial. The conflict of interest stems from Friend's previous stint with consulting agency Promontory Financial Group LLC before she joined the OCC in February. While she worked with Promontory as a managing director, she advised a number of large institutions that are now being overseen by the OCC on matters related to the Volcker rule.

Friend handled former clients such as Citigroup Inc., Wells Fargo & Co., Morgan Stanley, American Express Co., Bank of New York Mellon Corp., Grosvenor Capital Management LP, LPL Financial Holdings Inc., MidCountry Financial Corp., National Australia Bank Ltd., Mitsubishi UFJ Financial Group Inc., and Fidelity Investments, a group of companies headed by FMR LLC, while she was in Promontory Financial. According to an OCC memorandum, Friend will recuse herself for a year from OCC business that involves her former employer as well as Morgan Stanley or five other former clients. She will not be recusing herself from OCC matters that involve former clients that she has not worked with for 12 months prior to her departure from Promontory.

Revolving door...

April 15, 2013

In March 2013 Inner City Press and Fair Finance Watch began a challenge to Investors Bancorp's application to acquire Roma. In the NYC MSA in 2011 for conventional home purchase loans, Investors Bank made 220 such loans to whites, and only TWO such loans to African Americans. Its denial rate for Latinos was FIVE TIMES higher than for whites.

 On April 5, Investors Bancorp announced it will try to also acquire $300 million Gateway Community Financial Corp - this also will be opposed, on the current record.

April 1, 2013

After not taking the question, afterward an IMF spokesperson replied to Inner City Press:

We welcome the recent security and oil-related agreements between the two countries, which could enable South Sudan’s oil production to resume and relieve the economic pressures that have been building up since oil was shutdown in January 2012. The Fund stands ready to continue supporting both countries going forward.

We are providing policy advice to the Sudanese authorities that would allow them to address the domestic and external imbalances, which resulted from the secession of South Sudan. The Fund is also providing well targeted technical assistance in key areas like tax policy and administration, public financial management, banking sector reforms and exchange rate reforms.

As you know, we have also launched a three-year capacity building program for South Sudan on key areas including foreign exchange issues, central banking, oil revenue legislation, non-oil taxation, expenditure management, and macroeconomic statistics.

And later at 1 pm, this came in on Tunisia, from an IMF spokesperson:

“The fuel price increases that came into effect earlier this month are part of the measures underlying the 2013 budget that was approved by Parliament last December. These increases would help ensure that spending on subsidies, particularly on energy products that benefit mostly the better-off, are contained. A better targeted social safety net, as part of a larger subsidy reform, should be put in place to mitigate the impact on poorer households.”

And then a link! Hi Matthew, Please find below the link to the subsidies reform paper that was drafted by the IMF and includes examples and statistics for countries across the region. It was launched yesterday http://www.imf.org/external/np/fad/subsidies/index.htm

March 25, 2013

So the Securities & Exchange Commission has allowed Citigroup, JPMorgan Chase and Bank of America to block shareholders' proposals that directors explore the break-up of these banks. Strange, after the financial meltdown and bailouts...

In Tunisia, IMF Asks of Ennahda Government's Mandate, of Sri Lanka Moody's

March 11, 2013

Sleazeball on the move? New York Community Bancorp is reportedly checking out Pasadena, Calif.-based OneWest Bank FSB, successor to IndyMac. The owners of OneWest, reported to include John Paulson and George Soros, first looked to U.S. Bancorp and UnionBanCal. NYCB? Bad news...

March 4, 2013

Regarding BankUnited, “BDO observed that for early certificates there was a weakness in the controls over the review process for single-family asset charge-offs. BDO identified one charge-off that was overstated by $501,272.” They're also involved in a brouhaha with Universal Health Care Group Inc. on Feb. 13 blasting Bank United as "irrational," "poorly conceived" and "unnecessary" the demand by BankUnited NA to liquidate the stock in several health insurers through a "foreclosure sale.” So why are they being allowed to expand in New York? Watch this site.

February 25, 2013

In Panana, HSBC aims to sell off its banking operations to Bancolombia SA for $2.1 billion in cash, saying it will close in the third quarter. We'll see. Antonio Losada, CEO of HSBC Latin America, said HSBC Bank (Panama) is being sold so the bank can focus on its core markets of Brazil, Mexico and Argentina. Yeah, right...

February 18, 2013

A deal we will be looking at is Renasant Corp's proposal to acquire Kosciusko, Miss.-based First M&F Corp - they say they'd close at least seven branches, we'll start on that issue. Watch this site.

February 11, 2013

Customers Bancorp, trying to buy Acacia, is getting grilled over several rounds by the Federal Reserve, following ICP/Fair Finance Watch's comments. The answers don't seem to be convincing the regulators. Yet Customers wants to buy more and more.

Miami-based Pacific National Bank, $355.0 million, controlled by the government of Ecuador, is up for sale, according to SNL Financial. We may have more on this one – and definitely on Customers.

Feburary 4, 2013

So at Capital One, is Richard Fairbank ready to hit the road? The hiring, from outside, of new CFO Stephen Crawford has set off that theory. Critics of Capital One's subprime lending practices (and add-ons through venders) should know: it was Crawford who advised Fairbank on buying HSBC's subprime card operations....

As IMF Stops $240M DRC Loan for Opacity, UN Stonewalls, Waits for Drones

By Matthew Russell Lee

UNITED NATIONS, January 31 -- The UN has been in the Democratic Republic of Congo for well over a decade, back to Dag Hammarskjold, in fact. And what has come of it?

   On Thursday Inner City Press posed Congo questions to the UN in New York, after the International Monetary Fund in Washington.

   During the IMF's embargoed morning briefing, Inner City Press asked about the IMF's freezing of $240 million in loans to the lack of transparency in the mining industry, which involves ENRC, Glencore and, of course, Freeport-McMoRan.

   An IMF spokesperson responded, before 11 am, "Hi Matthew, On your DRC question, the ECF arrangement expired on December 10, 2012... it was not extended as requested by the authorities because published information related to the transfer of mineral assets by a state-owned enterprise, which was considered necessary to complete the review, was deemed insufficient by the IMF."

   Then at the UN's noon briefing, Inner City Press asked about the UN's and now the DRC's delayed investigation into 126 rapes in Minova by the Congolese Army in November. UN deputy spokesperson Eduardo Del Buey would not explain by UN Peacekeeping chief Ladsous' statement that the probe would be finished in January is not being abided with. Video here, from Minute 6:54.

   But from what spokesman Del Buey said, it's again clear the UN is relying on and supporting Congo's government, no matter what. Inner City Press asked about two new leaked e-mails from inside MONUSCO, about its patrols on the Rwanda border.

   Del Buey said the UN would not comment on documents "that may or may not have been leaked" to Inner City Press -- despite the UN's MONUSCO mission just the day previous saying that the Press should check with the UN about such documents.  Video here at Minute 13:34. Transparency, anyone?

  Would the IMF lend to its UN family (dysfunctional) sibling UN Secretariat and Department of Peacekeeping Operations?

  Nor, five hours after the briefing, has Del Buey explained why Ladsous' supposedly urgent drone request will not be opened until the second part of March.

   Inner City Press put the same drone question, and one about the failure in Addis Ababa of Secretary General Ban Ki-moon's DRC framework, to outgoing Security Council president Masood Khan on Thursday afternoon.  Video here, from Minute 7:27.

  He called the differences in Addis "procedural," and deferred on the drone question. But at least he answered, all month, unlike Ladsous.  For the six minute beta #LADSOUS2013 video, click here. Watch this site.

January 28, 2013

After Capital One CFO Gary Perlin said "suppression in the third quarter benefited meaningfully from the effect of the remaining [Statement of Position] 03-3 mark on delinquent loans acquired from HSBC," Capital One announced it will return to the ABS market for the first time since 2009. So how good were those HSBC subprime and ING DIRECT acquisitions? Watch this site.

January 21, 2013

In Greece, IMF Presses For NBG-Eurobank Merger, to 40% Market Share

By Matthew Russell Lee

UNITED NATIONS, January 18 -- The International Monetary Fund has been known to press for the privatization of banks. But in Greece, as reflected in the IMF Staff Report released at 10:30 am today, the Fund is actively cheering on anti-competitive mergers, including to create a bank with a 40% market share of deposits.

Whatever happened to antitrust, and consumer protection?

The IMF's Staff Report breathlessly reports that "the system is also consolidating to lower costs. Two smaller banks were acquired by two core banks, and merger steps between two large banks, NBG and EFG, are now underway."

Bank mergers are not automatic - regulators are required to review them, including for antitrust. But the IMF goes on to state that "the authorities will allow the NBG-Eurobank merger to proceed. This could have significant business and funding advantages."

After some brief cautionary language, the IMF relies on the "EC’s DGCompetition [to] review the anti-trust aspects of the deal."

So does the IMF, which pushes for and praises this making of monopolies, have no antitrust or consumer protection duty at all? Watch this site.

January 14, 2013

Profile of HSBC, in its US headquarters city, from Reuters:

"When the housing market crashed, so did Volker's contractor business, and he was unable to keep up with payments on his barn-like two-story house in Buffalo, New York. His mortgage servicer, HSBC, foreclosed on the home in 2009. A few months later, while he was staying with his girlfriend, he stopped by the house to find an HSBC padlock on the doorknob and bank stickers plastered across the door. Shattered glass covered his front steps. When he crawled through a broken window, he found the place trashed - by whom, he doesn't know. Even the toilets were gone. Hearing nothing more from the bank, he figured the house was no longer his. The place continued to decay. Gutters tore loose from the eaves. The yard turned into a dump for balding tires. Volker's neighbors started complaining to the Buffalo Housing Court, which eventually tracked down Volker at the rental where the 49-year-old was living and ordered him to appear in court. That's when Judge Carney told him that he was still the owner. "I was stunned," Volker says. "I never for a moment thought I still owned this house."

"Volker worked with a realtor to try to get HSBC to take several short-sale offers - deals under which the bank would allow Volker to sell the house for less than the amount owed on it - but he says HSBC turned them down. Since then, he's been asking the bank to agree to a deed in lieu, whereby he would give the house back to the bank. So far, he hasn't been able to make that happen. He has $1,000 in water and trash bills and faces up to $30,000 in demolition fees if the city decides his house is a safety hazard and must be torn down. HSBC declined to comment on Volker's case."

Typical.

January 7, 2013

In the pending merger proposal of FirstMerit to buy Citizens Republic, FirstMerit tried to withhold nearly all of its submissions to the Fed. But through the Freedom of Information Act, Inner City Press has obtained some of the withheld material, including about the two banks' "small amount of cross-border activities."

December 31, 2012

From the land of dirty deals, Investors Bancorp is gunning to buy Roma Financial Corp in New Jersey. Investors is in New York as well, and its record is disparate. We'll have more on this.

December 24, 2012

Talk about sleaze: EZCORP Inc. on Dec. 20 announced the completion of several acquisitions, including its previously announced purchase of online lender Go Cash. The acquisition was part of a share placement by Cash Converters and preserves EZCORP's ownership percentage at about 33%, according to SNL Financial. The company also moved into the Arizona market through its acquisition of 12 USA Pawn & Jewelry stores in Tucson and Bullhead City.

Bottom feeders...

December 17, 2012

So HSBC settles for money laundering for drug dealers, but there's no criminal sentence, no jail time, nothing. Meanwhile, SNL Financial reports that "Synovus Financial Corp.'s bulk sale of distressed assets as a net positive that could boost interest in the company as an M&A target. On Dec. 13, Columbus, Ga.-based Synovus announced the completion of a bulk sale of distressed assets. Including this transaction, the company expects to sell distressed assets."

But Synovus is a rogue - who would buy it? Watch this site.

December 10, 2012

If Spain's Bankia tries to sell Miami-based City National Bank of Florida, well, "there will be blood," given that bank's disparities. Watch this site.

December 3, 2012

IMF Won't Answer on Rwanda, Sudan or Hungary, Does on Bosnia and Sri Lanka

By Matthew Russell Lee

UNITED NATIONS, November 29, updated -- The International Monetary Fund is much in the news, and not only on Greece and Egypt.

  But Press questions submitted to the IMF for its Thursday briefing questions on Rwanda, Bosnia, Hungary, Sudan and South Sudan, as well as a long IMF dodged question on Sri Lanka.And none, by deadline, were answered. Here were the questions:

On Rwanda, Mr. Shinohara's statement did not directly mention aid cuts offs amid the M23 controversy. What *is* the IMF's position on that?

On Sudan and South Sudan, how does Khartoum's announcement that no South Sudan oil can flow through for now impact the IMF's views and programs?

In Bosnia, will the opposition boycott of one of the regional governments impact the IMF's relationship and program, impacting public servants getting paid, as Bosniak-Croat federation prime minister Nermin Niksic has said? [Update: this was later answered

IMF Spokesperson: “During the mission earlier this month, staff had reached agreements with the authorities in Bosnia and Herzegovina on government budgets for 2013 that are consistent with the objectives of the Stand-By Arrangement. Once these budgets are adopted by the respective parliaments, we can proceed with presenting the first review under the arrangement to the IMF’s Executive Board.”]

On Hungary, what does the IMF think of the country's new foreign currency bond plan? Does it mean no IMF program any time soon?

On Egypt (obviously), what is the effect of Morsi's moves on the IMF program?

  Gerry Rice, spokesman, ran the briefing mostly "in the room," taking an online question on Argentina and the New York court ruling, on which he would not comment. But how about this?

The International Monetary Fund lent into Sri Lanka's military build-up, then when challenged tried to downplay it.

  Two weeks ago, Inner City Press asked the IMF to comment on the Rajapaksa government's new 2013 budget, which reportedly has $2.2 billion for defense / "urban development," a 26% increase over 2012. Inner City Press asked, "Given past IMF claims defense spending was not rising, what is IMF comment now?"

  The IMF did not give a substantive response, but a spokesperson replied, "On Sri Lanka, the 2013 budget is expected to be finalized and presented in early November (we understand November 8). We have not yet seen the 2013 budget, and thus would not be in a position to comment at this time."

  The spokesperson, asking to be identified as such, told Inner City Press "it would be the best if you could follow up on this later this month."

  And so at the IMF briefing two weeks ago and today, after the Sri Lanka budget was released, Inner City Press asked again: "On Sri Lanka, now that the budget is out: given past IMF claims defense spending was not rising, what is IMF comment now?"

In light of news all over the world this month, Inner City Press also asked, "in light of this week's UN report on its failures in Sri Lanka during the killings in 2009, does the IMF as a member of the UN system have any review of or comment on its performance with regard to the killings, accountability and defense spending in the country?"

  But during the IMF's embargoed briefing two weeks ago and this morning, alongside question after question on Greece, no answer was given. [Update: the Sri Lanka question was later answered, below]

   What about the fortnight old questions on Mali and Romania which Inner City Press submitted, and those above, through the IMF Media Center and by email?

   Inner City Press e-mailed again, asking for an explanation before deadline / embargo time. None was received. Then later, these, which we publish in full:

On Sri Lanka:

IMF spokesperson: "The 2013 budget envisages only a moderate increase in defense spending, less than the budgeted increase in total spending and below the projected growth of GDP. As a result, the share of defense spending in total spending and in GDP is declining. This is a welcome development, in line with the Fund recommendation to gradually reduce the defense spending and create room for increased capital spending."

Hurricane Sandy's impact: the New York Department of Finance Services went weeks without issuing a Weekly Bulletin of merger applications. So the Apple - Emigrant comment period must still be open, right? Especially since the Department only now acknowleged receipt of Inner City Press' Freedom of Information Law request for a copy of the application, and STILL hasn't provided it...

November 26, 2012

So Citizens Republic "would have to improve its operating metrics and be able to participate in FDIC-assisted deals. However, in the spring of 2012, concerns surfaced that due to "the uncertain economic recovery, a continued low interest rate environment, fewer opportunities for accretive FDIC-assisted transactions and increasing regulatory compliance costs," it would be more difficult than expected to achieve management's long-term goals. As such, Citizens decided to reevaluate its long-term plans in July 2012, hiring financial adviser J.P. Morgan Securities LLC to help with the process. J.P. Morgan initially provided a list of 15 potential strategic partners for the company. Citizens authorized J.P. Morgan to contact six of these companies on an anonymous basis to determine whether there was an interest in considering a potential strategic transaction," per SNL Financial.

Must have been hard to figure out which the "anonymous" target was. And there was FirstMerit. And now, here's the challenge. Watch this site.

November 19, 2012

Inner City Press / Fair Finance Watch filed timely comments on FirstMerit's application to acquire Citizens Republic:

Reviewing 2011 HMDA data, the more recent data available (and largely unaddressed in existing CRA performance evaluations and fair lending exams), in the Akron MSA that year for conventional home purchase loans FirstMerit Bank made 140 such loans to whites, and only 12 such loans to African Americans (and only two to Latinos). It denied African Americans 1.97 times more frequently than whites; it denied Latinos 2.63 times more frequently than whites.

Citizens Republic's Citizens Bank in Akron in 2011 made three such loans to whites, none to African Americans.

In the Cleveland MSA in 2011 for conventional home purchase loans FirstMerit Bank made 163 such loans to whites, and only THREE such loans to African Americans (and NONE to Latinos). It denied African Americans 2.02 times more frequently than whites; it denied Latinos 3.54 times more frequently than whites.

Citizens Republic's Citizens Bank in Cleveland in 2011 made eight such loans to whites, none to African Americans.

FirstMerit in the Toledo MSA in 2001 made 17 such loans to whites, none to African Americans.

For the record, and in support of ICP's request for a hearing, there are integration worries:

Standard & Poor's Ratings Services on Sept. 13 revised its outlook on Akron, Ohio-based FirstMerit Corp. to negative from stable, believing the company's deal to acquire Flint, Mich.-based Citizens Republic Bancorp Inc. could pose integration and risk-management difficulties...The transaction is the largest acquisition in FirstMerit's history. The rating agency further noted that though Michigan and Wisconsin are to a large extent similar to FirstMerit's traditional market of Ohio, they present new challenges and potentially different competitive dynamics.

If the integration is unsuccessful, unexpected asset quality problems exceeding the marks taken at the time of the acquisition rise, or risk-adjusted capital falls below 7%, the ratings could be cut. On the other hand, in the long term, if FirstMerit effectively grows in these new markets, S&P could revise the outlook back to stable.The agency does not expect to upgrade the ratings in the near to immediate term.

Moody's shared a similar perspective of the deal Sept. 13.

Despite this, FirsMerit is already talking about further acquisitions, with Executive Vice President and Chief Credit Officer William Richgels telling analysts that "We are going to be keeping in touch with those that we have been speaking with, and we're going to continue to evaluate other opportunities for growth."

There is also litigation. According to SNL Financial:

Flint, Mich.-based Citizens Republic Bancorp Inc. ($9.67 billion); its board; and Akron, Ohio-based FirstMerit Corp. ($14.62 billion) are facing four class-action lawsuits for allegedly having breached their fiduciary obligations to shareholders in relation to their stock-for-stock merger agreement, mlive.com reported.

The approximate value of $22.50 per Citizens Republic share — which Citizens shareholders are to get when exchanged with 1.37 shares of FirstMerit under the agreement — has dwindled because of FirstMerit's receding share price, the lawsuits claim.

One lawsuit, by Cecily Hoogerhyde, said FirstMerit had been trading at more than $17 per share before the announcement, which then decreased to as low as $14.94, "causing the implied consideration to drop nearly 10[%], to less than $20.50 per share" as opposed to the original implied value of $22.50, which the lawsuit said was also "inadequate," according to the Oct. 10 report.

The other lawsuits were filed by Michael Decker, Peter Block and a fourth, unidentified plaintiff, the news outlet reported.

The cases have been lodged in the 7th Circuit Court in Genesee County, Mich., before Circuit Court Judge Richard Yuille

On the current record, FirstMerit's applications should not be approved.

November 12, 2012

  And now it can be said - this was filed:

November 2, 2012

Southern District Office
Director for District Licensing
500 North Akard Street, Suite 1600
Dallas, TX 75201

SO.Licensing@occ.treas.gov

RE: Timely Opposition to BankUnited's application to acquire Herald National Bank

Dear Director for District Licensing:

Inner City Press / Fair Finance Watch has serious concerns about BankUnited’s proposal to acquire Herald National Bank and its branches in affluent Manhattan and suburban Long Island, as well as to open four branches in New York -- three in the most affluent parts of Manhattan and one in suburban Suffolk County, totally excluding upper Manhattan, The Bronx, Brooklyn and Queens.

Our organization and several NCRC members in Florida have raised concerns in connection with BankUnited currently underway CRA exam -- these applications for branches in affluent parts of New York should be postponed until that exam is finished and public; right now, they should be denied.

As recently as August, it's reported that BankUnited is still entertaining offers to be bought -- all the while having put Herald National Bank "on ice" during non-compete litigation. Bank expansion applications subject to CRA shouldn't be allowed to be an enticement for wheeling and dealing, but to serve communities and public benefits. These do not.

It has been reported that BankUnited couldn't even make this proposed acquisition, and open these branches until February 1 -- we suggest that the applications be adjourned or withdrawn until then. For the record:

"Kanas settled a lawsuit from Capital One, which had accused him of violating a non-compete agreement in the New York market. By Feb. 1, BankUnited will be able to open branches in New York and more aggressively pursue clients and employees there.

And, now it’s clear exactly where those branches would be.

The applications received by the Office of the Comptroller of the Currency on Sept. 27 state that BankUnited wants to open branches at 299 Park Ave., 136 E. 57th St. and 960 Avenue of the Americas in New York City. It also wants a branch in Long Island at 445 Broadhollow Road in Melville.

Herald National Bank, which will be merged into BankUnited soon, already has branches at 623 Fifth Ave. in New York City and at 58 S. Service Road in Melville.

At the same time, BankUnited notified the OCC about three branch closures in Florida. It closed two branches in Port St. Lucie on Sept. 28 and plans to shutter a branch in Sun City Center in Hillsborough County in the coming months."http://www.bizjournals.com/southflorida/blog/2012/10/bankunited-files-plans-for-four-new.html

So the plan is to open branches in affluent parts of New York, and to close them in Florida. The OCC should deny this....

Inner City Press / Fair Finance Watch is concerned about the following data about BankUnited, which has been collected by NCRC  and provided to members and partners at their request: In Miami-Dade County, BankUnited made just 9.8 % of its home loans to low- and moderate-income borrowers in 2010 and decreased it lending to 8.8% in 2011. By contrast, all lenders, as a group, issued 16.5% of their loans to LMI borrowers in 2010 and 17.6% in 2011.

The lending data is even more striking when you consider that 39.3% of households in Miami-Dade County are low- and moderate-income.

In Broward County BankUnited made 30% of its loans to low- and moderate-income borrowers in 2010 but significantly decreased its lending in 2011 making just 6.3% of its loans to these borrowers. In contrast, all lenders, as a group made 26.9% of their loans to LMI borrowers in 2010 and 23.3% in 2011.

The lending data is even more striking when you consider that 38.8% households in Broward are low- and moderate-income.

BankUnited’s lending to African Americans is a fair lending concern.

BankUnited record of meeting the needs of African American borrowers is poor.

In Miami-Dade County BankUnited made just one loan to an African-American borrower in 2010 and zero in 2011.

In Broward County BankUnited made three loans to African Americans in 2010 and zero in 2011.

BankUnited is not serving the needs of low- and moderate-income neighborhoods.

The bank had poor lending distribution not just to low- and moderate-income borrowers but also to low- and moderate-income census tracts. The most recent data shows that BankUnited made 6.7% of its home loans to LMI census tracts in Miami-Dade during 2010 and then decreased this lending in 2011 to just 1.8%. In contrast, all lenders, as a group, issued 12.2% of their loans to LMI census tracts in 2010 and 11.0% in 2011.

In Broward the pattern continues with the bank making 10% of its home loans in LMI census tracks in 2010 and then decreasing to 4.2% in 2011. In contrast, all lenders, as a group, issued 10.7% of their loans to LMI census tracts in both 2010 and 2011.

According to the latest data, the bank does an adequate job of providing bank branches in low-income neighborhoods in Broward County. However, data indicates that the bank is not doing an adequate job of branching in low- and moderate-income neighborhoods in Miami-Dade County. In Miami-Dade County, the bank has just 18.2% of its branches in low- and moderate-income communities. In contrast, all lenders, as a group, have 23.5% of their branches in LMI neighborhoods. Furthermore, BankUnited receives just 6.2% of its deposits from LMI communities in the county. In contrast, all lenders, as a group, receive 24.2% of their deposits from LMI neighborhoods during 2011. This may be an indication that the bank needs to better advertise its deposit products and services to LMI communities in Miami-Dade.

According to the most recent Call report data, BankUnited had approximately $4.8 billion in loans and $7.4 billion in deposits for a loan-to-deposit ratio of 64 percent, which is low for a bank with approximately $11.8 billion in assets. Also, it is a full 10 percent lower than the Florida Section 109 loan-to-deposit ratio of 74 percent for all banks headquartered in Florida (Section 109 is a federal regulatory assessment of how a bank’s loan-to-deposit ratio compares against the ratio of other banks on a state level).

The OTS’ previous exam gave BankUnited a Low Satisfactory rating on the lending test. The 2010 and 2011 data suggests that BankUnited merits a downgrade in its lending rating from Low Satisfactory to Needs to Improve because of low lending levels and a poor distribution of loans by income of borrower. The minimal lending levels to African Americans are a fair lending concern that must be rigorously evaluated on the fair lending review accompanying the CRA exam. In addition, the paltry lending volumes suggest that BankUnited’s overall rating should change from Satisfactory to Needs-to-Improve since its branches are collecting deposits but then not lending.

Collecting deposits and not lending on a level commensurate with deposits is one of the classic forms of redlining and neglect of the community’s credit needs.

These applications to acquire Herald National Bank, and for branches in affluent parts of New York should be postponed until that exam is finished and public; right now, they should be denied.

Thank you for providing us with an opportunity to comment on this important matter.

Sincerely,


Matthew Lee, Esq., Executive Director
Inner City Press / Fair Finance Watch

November 12, 2012

Fed Met M&T 10 Days Before Hudson Deal, FOIA Shows, Appeal & Protest

By Matthew R. Lee, Exclusive

SOUTH BRONX, November 9 -- When M&T on August 27 announced biggest bank merger deal of the year, a $3.81 billion proposal to buy Hudson City Savings Bank, it was not the first time the Federal Reserve had heard about.

  Inner City Press, which has challenged M&T's application under the Community Reinvestment Act, on November 9 got a belated Freedom of Information Act response from the Federal Reserve Board, less than two hours before the Fed said the extended comment period would close.

  The documents released to Inner City Press show that on August 17, a full ten days before the public announcement, Federal Reserve Bank of New York official John Ricketti wrote to five others within the Fed:

"Wilmers called me this afternoon to inform me that M&T is looking to acquire M&T. [sic] He will be talking to his board about the acquisition at next Tuesday's board meeting and asked to come in Wednesday to talk to us (we're setting something up for late Wednesday afternoon). I'll be up in Buffalo for the board meeting to discuss the [REDACTED] and expect to learn more from him Monday night (I have a one-on-one meeting with him)."

  After that, much is redacted. Click here to view.

   The Fed advised M&T that its application to buy Hudson would probably be protested -- accurately, given that Hudson City in 2011, for conventional home purchase loans in the New York City Metropolitan Statistical Area, to make 765 such loans to whites and only FIVE to African Americans.

  Of this, a Fed memo of August 24 said "this will require review of any issues that are raised and [REDACTED].

 To view, click on cover email, and talking points One and Two.

  After the August 17 contact but before the proposal was announced, the Fed met on August 22 from 4:30 to 5:30 with "Wilmers" and Rene Jones, Michael Pinto and outside council Rodgin Cohen.

  A slide presentation was made, much of which including on Due Diligence and Complexity has been withheld.

  After the meeting, the New York Fed's Ivan Hurwitz sent a memo to the Fed in Washington, most of which has been blacked out.

  On August 24, the Fed's John Ricketti wrote another memo, with talking points, about his meeting with Rodgin Cohen and Rene Jones, much of its redacted.

Then on August 27, Cohen [Rodge] called the Fed's Tom Baxter, and Wilmer called "Dudley," both summaries redacted.

After the deal was announced, M&T had more meetings with the Fed on September 7. Only after they submitted an application did Inner City Press submitted a FOIA request on October 2, and an initial protest, on October 7.

Now Inner City Press has timely requested a further extension of the comment period, to review the documents so belatedly released, and to appeal what is being withheld.

Withheld is the substantive part of "Confidential" Exhibit O, what M&T will actually PAY to Merger Sub, and nearly all of the anti-money laundering program, material changes and due diligence findings. The Board Resolutions and Agreement and Plan of Merger are all blacked out, which is ridiculous.

  Since the announcement, Super Storm Sandy hit, and SNL Financial reported the Hudson City "said it was still too early to determine how many of its mortgage loans were located in tidal flood zones."

  Regulators had allowed Hudson City in 2011, for conventional home purchase loans in the New York City Metropolitan Statistical Area, to make 765 such loans to whites and only FIVE to African Americans (and only 44 to Latinos). Meanwhile, Hudson City denied the applications of African Americans 3.21 times more frequently then those of whites.

Picking up on the challenge, the Buffalo News contacted M&T for its comment. M&T spokesman C. Michael Zabel countered that "we support community-based organizations."

But reporting by Inner City Press find this questionable, throughout M&T's footprint down to Virginia. M&T's next move was to reach out to friendlier media and announce that its merger application is proceeding - without mentioning the protest or why it was reaching out.

Similarly, M&T hyped up after the protests it celebration of Hispanic Heritage Month at its Newburg, New York branch, and got it reported without any mention of its lending record, much less the challenge.

But at least on M&T, the word got out in New York and New Jersey, where Hudson is based. Watch this site.

November 5, 2012

Six purported shareholders of Citizens Republic Bancorp Inc. filed class-action lawsuits against FirstMerit Corp. in September and October alleging the proposed merger price and terms for the Flint, Mich.-based company are unfair, according to both companies' Form 10-Qs.

The lawsuits, filed in Circuit Court of Genesee County in Michigan, also allege Citizens' directors failed in their fiduciary duties by approving the transaction. They seek an injunction to or rescissory damages and other equitable relief.

By name, as reported by SNL Financial, the suits are: Hilary Coyne, individually and on behalf of all others similarly situated v. Citizens Republic Bancorp, Inc.; Vladimir Gusinsky Living Trust, individually and on behalf of all others similarly situated v. Citizens Republic Bancorp, Inc.; Cecily Hoogerhyde, individually and on behalf of all others similarly situated v. Citizens Republic Bancorp, Inc.; Michael Decker, individually and on behalf of all others similarly situated v. Citizens Republic Bancorp, Inc.; Robert Block, individually and on behalf of all others similarly situated v. Citizens Republic Bancorp, Inc.; and Blair Cole, individually and on behalf of all others similarly situated v. Citizens Republic Bancorp, Inc.
 
  We'll have more on this.

October 29, 2012

BankUnited in Florida has applied to open four branches in New York: three in the most affluent parts of Manhattan, and one in suburban Suffolk County. Not only is this redlining, it also jumps the gun: due to a non-compete clause and settlement, the branches couldn't even be opened until February of 2013. Inner City Press has commented - receipt confirmed - asking for the applications to be suspended or withdrawn pending among other things a review Florida NCRC members have requested. We'll have more on this.

October 22, 2012

In the UK, according to SNL Financial, "the Parliament's Treasury Select Committee on Oct. 19 released a report stressing the need for the new Prudential Regulation Authority to have the power to approve large bank mergers. The committee made the recommendation that the government explicitly legislate for the new agency to have that power in a report that concluded that the FSA 'should and could have intervened' in the disastrous acquisition by Royal Bank of Scotland Group Plc of ABN AMRO Group NV in 2007. RBS needed a £45 billion government bailout following the acquisition. The Prudential Regulation Authority is one of two successor agencies to the FSA due to begin operations in 2013."

And what changes should be made in the USA?

October 15, 2012

Predatory rewarded: the FDIC received 20 bids for failed Bloomington, Minn.-based First Commercial Bank, according to a bid summary last updated Oct. 9, reported by SNL Financial. State regulators closed First Commercial Bank on Sept 7. The FDIC-selected winner, Louisville, Ky.-based Republic Bank & Trust Co. ($3.17 billion), placed an all-deposit, whole-bank bid with an asset discount of approximately $79.4 million. And while, as per FDIC rules, the details of the second-place bid — also known as the cover bid — were omitted from the disclosure, the other nonwinning bids offered asset discounts ranging from $34.9 million to about $126.8 million.

Why would the FDIC, which purported to beat up on Republic for predatory / tax refund lending through Jackson Hewitt and Liberty Tax, now give it another bank without any application subject to public comment?

October 8, 2012

On Rwanda, IMF Tells ICP It Studies M23-Related Delay in Aid Until Next Week

By Matthew Russell Lee

UNITED NATIONS, October 4 -- For at least three weeks Inner City Press has asked the IMF "On Rwanda, does the cutting of aid based on alleged support of M23 rebels in DRC have any impact on IMF analysis of or programs in the country?"

   Finally as the last question at the IMF's October 4 media briefing spokesman Gerry Rice took the question. He replied, "An IMF mission is in Rwanda... Delays in aid disbursement is one of the issues the mission is looking into. We expect the mission to complete its work early next week and we will issue a press release at that time."

  After last week's closed-door mini summit on the topic at the UN, Inner City Press was told that the most vocal in pushing sanctions against Rwanda was Belgium, for the allegations of support to the M23 mutineers made in the UN report coordinated by Steve Hege, whose 2009 writings about the FDLR and Rwanda have yet to be explained (they were taken off the Internet after Inner City Press linked to them).

  On Tuesday Inner City Press asked income Security Council president Gert Rosenthal of Guatemala why DRC is not on the agenda, is it just on hold? Video here, from Minute 22:48.

  Rosenthal told Inner City Press that on "Eastern DRC, the Security Council has been waiting for some type of agreement among the Great Lake governments, so far it has not come forth."

  Referring to Inner City Press' question he said, "the way you put it, the topic being on hold, is an accurate reflection of where we are right now. The situation is not good, and that is the reason we are reminding ourselves in the footnote that the topic may come to us this month, though not specifically scheduled." Watch this site.

From the IMF's October 4, 2012 transcript:

There is another question on Rwanda, "Does the cutting of aid based on alleged support of rebels in DRC have any impact on IMF analysis or of programs in the country?" I can say an IMF mission is in Rwanda to conduct a fifth review under the Policy Support Instrument and the discussions for the 2012 Article IV consultation. To answer Matthew directly, delays in aid disbursements is one of the issues the mission is looking into. We expect the mission to complete its work early next week and we'll issue a press release at that time.

IMF Tells ICP Welcomes Sudans Deals, Ready to Support Both - Debt Relief?

By Matthew Russell Lee

UNITED NATIONS, October 4 -- Just before Sudan spoke last Saturday at the UN General Debate, the IMF "encouraged the authorities to step up their dialogue with creditors and donors to garner support for debt relief." Sudan's arrears to the IMF itself are part of the problem.

  Sudanese foreign minister Ali Karti in his September 29 speech called for debt relief. At the IMF's next media briefing on October 4, Inner City Press asked two questions on Sudan:

"In the UN General Debate, Sudan's Foreign Minister Ali Karti said the country's debts should be forgiven. Any response? Do Sudan's and South Sudan's agreements last week in Addis Ababa have any impact on IMF analysis of or programs in either country? Any IMF comment on the agreements?"

  IMF spokesman Gerry Rice took these as the penultimate question during the embargoed briefing, replying that

"The Fund welcomes the agreement on oil related and other issues between the two countries. We look forward to its implementation and to the resolution of other bilateral issues. The Fund stands ready to continue supporting both countries going forward."

But what support does the IMF give to Sudan? What about Ali Karti's call for debt relief?

Thursday in the UN Security Council, one of the "unresolved bilateral issues," Abyei, was to be discussed. Watch this site.

From the IMF's October 4, 2012 transcript:

"In the U.N. general debate Sudan's foreign minister said the country's debt should be forgiven in response. Do Sudan's and South Sudan's agreements last week in Addis have any impact on IMF analysis or programs in either country? Can you comment on those agreements?" My comment would be that the Fund welcomes the agreement on oil related and other issues between the two countries and we look forward to its implementation and to the resolution of other pending bilateral issues, and the Fund stands ready to continue supporting both countries going forward.

October 1, 2012

On LIBOR, and only after a Freedom of Information Act appeal, we have received this:

From: Jose Alonso
To: jeremy c kress
Cc: stanley crisp; Mark Baker; David Goode
Date: 07/10/2012 06:08 PM
Subject: Fw: Mitsubishi UFJ Said to Suspend Two London Traders on Libor Probe

Jeremy

Here is the update on the Libor issue which you inquire about recently. The response is from Bob Hand, MUFG General Counsel in NYC.

I told Bob that BOG staff was interested in the status of the investigations as part of our application review process.

At the end of the email he expresses concerns as to the impact of this line of inquiry on the SBBT application an offers to meet with you and other interested parties. I will assume that you would invoke ex-parte concerns on such a meeting.

Yes, such a meeting would have, and perhaps did, violate the Fed's rule against ex-parte communication. No summary of the meeting was provided, at least along with Governor Jay Powell's September 25 FOIA appeal ruling...

September 24, 2012

Back in April, Inner City Press / Fair Finance Watch filed comments with the FDIC opposing GE - MetLife bank. Now there's this, from SNL Financial:

"GE Capital Retail Bank, a unit of General Electric Co., will acquire approximately $7 billion in deposits from MetLife Bank NA, rather than GE Capital Bank. According to a Form 8-K filed Sept. 21, most key terms of the 2011 agreement remain unchanged. However, the amended transaction will be subject to regulatory approval by the OCC, and approval by the FDIC will no longer be needed. Upon completion of the sale, MetLife Bank will terminate its deposit insurance and MetLife Inc. will deregister as a bank holding company."

This is a scam. We'd hope to hear about it from Tom Hoenig of the FDIC, for example.

September 17, 2012

FirstMerit's $1.3 billion bid for Citizens Republic might put FirstMerit into Michigan and Wisconsin, as well as closing branches in Ohio - but even the rating agencies are dubious about FirstMerit's abilities...

GE's proposed acquisition of the deposits of MetLife Bank, which ICP protested months ago, remains unapproved by the FDIC. Some are saying that, unlike other applications, it requires action by the FDIC board. We'll see.

September 10, 2012

The FERC has given Deutsche Bank Energy Trading 30 days to show cause as to why it should not be fined $1.5 million and required to disgorge $123,198 (plus interest) of unjust profits for allegedly manipulating California energy markets, SNL Financial reported. The agency on Sept. 5 alleged that employees of Deutsche Bank, including some at the senior level, developed a scheme under which the bank's traders asked the California ISO to schedule exports of power over the 17-MW Silver Peak intertie in order to eliminate import congestion. The bank would then profit from the move because it possessed congestion revenue rights for the intertie.

September 3, 2012

In a telling incipient deal, Société Générale SA said Aug. 30 that Qatar National Bank expressed interest in buying the 77.17% stake that the French bank controls in National Société Générale Bank in Egypt, SNL Financial noted. SocGen added that an application was filed with the Central Bank of Egypt for due diligence of the unit but added that the "discussions are preliminary and there can be no certainty as to whether an agreement will be reached." The Egyptian unit is based in Cairo and had 160 branches across the country as of year-end 2011, according to its full-year 2011 report. It booked a full-year 2011 net profit of 1.49 billion Egyptian pounds, up 11% year over year. Ah, Arab Spring..

August 27, 2012

As to Mitsubishi UJF, trying to buy Santa Barbara Bank & Trust, the Fed is trying to withhold whole paragraphs about LIBOR -- unacceptable. Watch this site.

August 20, 2012

  In the wake of the NYSDFS action against Standard Charter, Deutsche Bank is being looked at for similar money laundering for Iran and others.  In denial, Deutsche Bank spokeswoman Friederika Borgmann said the bank had decided by 2007 to stop engaging in new business with countries such as Iran, Syria, Sudan and North Korea and also exit existing businesses as far as legally possible. We'll see.

Meanwhile the New York State Department of Financial Services quickly filed and settled charges against Standard Chartered Bank for laundering money for Iran to evade sanctions against that country, the same NYSDFS has been remiss in its more local duties.

  A major New York bank franchise, Emigrant Bank, is up for sale to Apple Bank for Savings, but the NYSDFS appears asleep at the switch. The NYSDFS is rubbing stamping mergers and branch closings, and not responding to comments from the public.

  On August 6, Inner City Press / Fair Finance Watch submitted a timely challenge to the NYSDFS against a pre-merger branch closing by Emigrant. While not responding, the NYSDFS then provided notice of a merger application filed August 8, saying the comment period expired August 6 - click here to view.

 The NYSDFS has not explained this either. Can you say Kafka?

August 13, 2012

First, Brazil's Banco Itau was said to be interested in buying in the United States, looking at Royal Bank of Scotland's Citizens Bank franchise, or Santander - Sovereign or even BNP's Bank of the West. Then they denied it. But do they protest too much?

Past (and future?) CRA rogue WesBanco is buying into Pennsylvania...

August 6, 2012

Still sleazy: Community Bank System Inc. is closing five branches, three of which are former HSBC Bank USA NA branches divested by First Niagara. Among the remaining two, one of the branches is from among the three additional branches that Community Bank is acquiring from First Niagara. Supposedly the consolidation will be effective Sept. 10 and the consolidations will not result in any layoffs.

Green Dot just gave back much of its goodwill — and market value — in one 24-hour period. Green Dot shares lost 61.15% on July 27, prompted by management's decision to slash the firm's full-year guidance in anticipation of rapidly increasing competition.

Green Dot now expects just 5% growth in the average number of active cards, down from the greater-than-20% forecast provided in April. Cash transfer growth was cut as well, to 15% from 20% in the first quarter. The slowdown is likely to hit earnings hard, with the company forecasting 2012 EPS at $1.29 to $1.32, down from the original range of $1.65 to $1.70. That guidance cut marked the second time this year that Green Dot has softened its predictions.

"We see a greater level of uncertainty going forward in our business as our market and the prepaid industry in general continues to evolve," Chairman, President and CEO Steven Streit said on a July 26 conference call, monitored by SNL Financial...

On behalf of Inner City Press / Fair Finance Watch and its members and affiliates (collectively, "ICP"), this is a FOIA request concerning withheld submission related the applications of Mitsubishi UFJ Financial Group, Inc., The Bank of Tokyo-Mitsubishi UFJ, Ltd and UnionBanCal Corporation to acquire Pacific Capital Bancorp & Santa Barbara Bank & Trust, which ICP timely protested.

Many of the applicants' submissions are being withheld, including directly on issues raised in ICP's timely protest. For example, and this is specifically requesting, a July 31 submission recites an FRB questions about Tax Refund Anticipation Loans (raised by ICP), and says "Please see Confidential Exhibit 1."

ICP is request that and the other withheld exhibits.

Similarly, in a July 24 submission, there is a question about Swiss regulators' inquiring into interest rate manipulation (that is, LIBOR scandal) - and it says "Please see Confidential Exhibit 2."

ICP is request that and the other withheld exhibits.

July 30, 2012

   Two of the vendors that sold the credit card add-ons cited in Capital One's settlement with the CFPB and OCC also do business with Wells Fargo, Citigroup and Bank of America: private equity owned Affinion Group Holdings, and Intersections, for which Bank of America is more than half of the company's income....

As IMF Briefs on Spain, Former Chief Rato Pushed Bankia to Bailout, Safeguards?

By Matthew Russell Lee

UNITED NATIONS, July 27 -- When the International Monetary Fund's mission chief for Spain James Daniel held an embargoed (until now) press call Friday morning, he was asked about the flame out of Bankia, which was chaired by former IMF chief Rodrigo Rato.

  While not followed up on the call, Rato's and now the IMF's role raise questions about the need for safeguards given the revolving door through which former IMF officials pass. Can former IMF-ers benefit from bail outs or "programs" of the the IMF?

  The story of Bankia and its IPO is an ugly and extensive one. The global co-ordinators on the deal were Deutsche Bank -- which, as Inner City Press has noted, has a former official now on the Federal Reserve Board -- J.P. Morgan, Bank of America Merrill Lynch, and UBS.

  The retail underwriters on the retail tranche were Bankinter, Sabadell and Barclays, now of LIBOR fame.

L'affaire DSK garnered worldwide media coverage. But what of financial scandals involving former IMF officials? Watch this site.

July 23, 2012

So just in the last week there are announcements of a credit union merger proposal in Washington State (Prevail and Harborstone), the buy-up of United Community Bnak in Texas, and of Inland in Ontario, California; there is CRA-challenged WesBanco making a move into Pittsburgh. And there is a proposed deal in New York we will keeping a close, close eye on. Watch this site.

July 16, 2012

HSBC is subject to a Senate hearing this week, on funding support for terrorism... JPMorgan Chase's losses mount, along with evidence of what Jaime Dimon knew and when he knew it...

Even without major nationwide news there are a lot of small regional deals, like

July 2: Montana, 7 branch deal

July 2: Maine deal

July 3: Illinois deal, Heartland and Farmer City

July 5: Kansas deal, Southern Kansas

July 5: Nebraska, Valley Bank

July 6: Texas, LubCo (Lubbock)

July 9: California, Opus Bank buying 10 branches in and around LA

July 10: Maryland, federal savings bank deal

July 10: Texas: Comanche - Texas Savings

And that's just in 10 days. Overseas, HSBC is selling in Monaco and buying in Egypt, GE is selling, so is Santander in Latin America...

On Angola's Oil Funds, IMF Tells Inner City Press It's Working on Discrepancies

By Matthew Russell Lee

UNITED NATIONS, July 12, updated -- After a series of questions take by the Internation Monetary Fund on Thursday about Greece and Ireland, Portugal and Cyprus, Inner City Press' question about Angola and transparency was asked by spokesman Gerry Rice:

"On Angola, what is the IMF's response to requests that the IMF insist on an audit of the oil revenue unaccounted for from 2007 to 2011?"

  Rice had an answer prepared in his binder, from which he read, saying, "the IMF attaches great important to the transparency of governments in management of public finances."

  He said the IMF and Angola have "devoted efforts" in light of the "large discrepancies observed in this accounts since 2011."

  Rice claimed this has "produced important results" such as "highlighting factors underlying the discrepancies" and "promoting the introduction of institutional measures" for "accountability" for "Angola's oil revenue."

  But where did the money go, other than to real estate in and around Lisbon? Who is being held accountable?

  Rice continued that "the Angolan authorities say the intend to complete work" soon, that they "have adopted measure to address underlying problems."

  As to the IMF, Rice said that the "Board concludedyesterday its 2012 Article 4 consultations with Angola" and that "there will be more info on that discussion, a Public Information Notice" soon. We'll see.

  Inner City Press submitted two other questions, on Sri Lanka and Hungary. On the latter, the IMF half answered, that the authorities are requesting only a Stand By Agreement, "not a PLN."

July 9, 2012

Germany's Bafin is probing Deutsche Bank for LIBOR manipulation. DB's last quarterly report disclosed that the bank had received subpoenas and requests from regulators and government entities in the U.S. and Europe in connection with setting currency rates. Watch for mid-July...

July 2, 2012

Now the estimate for JPMorganChase's London whale dalliance is $4 to $6 million...

In Greek IMF Tragedy & Lagarde Guilt, Africa Ignored As Sudan Protests, Coups

By Matthew Russell Lee

UNITED NATIONS, June 28 -- The International Monetary Fund and its director Christine Lagarde often use Africa, or the idea of Africa, as a place that they vaguely help or at least care about.

But at Thursday IMF briefing, amid repeated questions about Greece, Cyprus, Spain and Hungary, not a single sub Saharan Africa question was taken, much less answered. It's not that they weren't asked. Inner City Press submitted questions about the Democratic Republic of the Congo and these, among others:

In Sudan, the IMF earlier this month urges the government to institute "emergency measures." Have the steps since announced, which have given rise to protests that have been cracked down on, been consistent or inconsistent with the IMF's advice?

Pledges to the IMF have given rise to questions & protests in South Africa, the Philippines and elsewhere, by those who say the money could be better spent at home on the poor. What is the IMF's response?

And again: What is the status of IMF programs in and reviews of Mali and Guinea Bissau, given coups in each country?

  But the IMF did not take the questions (in previous weeks, it has answered Inner City Press' questions about Sudan by email after the fact.)

  Now, the IMF gives austerity advice to Sudan, then when protests erupt, the IMF would answer or even take the question.

  A journalist ran in late, citing an interview at the American Enterprise Institute, and still got another answer on Greece. Perhaps it is Lagarde's guilt for telling Greeks to pay taxes when she doesn't. But what about those children in Niger? Watch this site.

June 25, 2012

While the CFPB may have tried to downplay it, Capital One had by far the most complaints against it, see https://data.consumerfinance.gov/dataset/Credit-Card-Complaints/25ei-6bcr and search for Capital One. We'll have more on this.

June 18, 2012

So Mitsubishi UFJ's application to acquire Santa Barbara Bank & Trust is now essentially amended to say at least five branches would be closed, in Gilroy, Hollister Main, Salinas-Harden Ranch, Watsonville and Lompoc. The policy is... confidential.

June 11, 2012

So the FDIC, even after the subprime meltdown, rules that GE Capital Financial Inc, buying the deposits of MetLife Bank, is NOT responsible for the predatory lending of WMC, because it "was a subsidiary of a different financial institution (GE Capital Retail Bank)." This hairsplitting is shameful -- and dangerous. Watch this site.

June 4, 2012

Deutsche Bank AG bragged that its special situations group won the auction for a $911 million loan portfolio being sold by two units of Capmark Financial Group: Midvale, Utah-based Capmark Bank and Capmark Finance LLC. Typically, DB did not reveal the price it paid...

IMF Peppered on Lagarde's Linking Greece to Niger, But Sudan UNanswered

By Matthew Russell Lee

UNITED NATIONS, May 31 -- The International Monetary Fund's biweekly embargoed press briefing on Thursday focused almost entirely on the protests to Managing Director Christine Lagarde's comments that Greeks should pay their taxes -- while she does not pay taxes -- and as one Greek journalist focused in on, her comparison of Greece and Niger.

  IMF spokesman Gerry Rice responded to this last by paying the IMF has to serve all of its members including the low income ones; he directed the press to Lagarde's clarification if not apology on Facebook. But is it enough?

  The questions on Greece kept coming, until Rice said, this will be our last question on Greece. But it wasn't.

  Inner City Press submitted a number of questions, including "On Hungary, can you respond to an analysis (by Citigroup) that "the IMF may still require structural expenditure cuts and changes to the tax system"?

  Rice said, on Hungary, that there are "no dates... to start negotiations," adding that "we do continue" to be in touch with "the Hungarian authorities. A lot of actions are needed," he said, "to ensure central bank independence."

  Then the questioning turned back to Greece. Rice said there will be no new mission until elections and a new government. One wonders how big the protests would be, if Lagarde went there now?

  Others of Inner City Press' questions have yet to be answered, on Pakistan, the Democratic Republic of Congo, Cote d'Ivoire and one on Sudan, on which the UN Security Council was simultaneously meeting on Thursday morning:

On Cote d'Ivoire, can you confirm that next month a decision is expected on "an IMF-backed debt relief deal calling for relief of $5-billion of the country's debt, reducing its current stock of debt by 40%"?

What is the status of Pakistan reaching out for a new facility? Is it true the "IMF wants Pakistan to raise tax revenue from the present 10% of GDP to 15% of GDP by 2013"?

On Sudan, because some are critical of the IMF's Edward Gemayel recent recommendation of a "structural reform program," could you explain what this means for the Sudanese?

Watch this site.

May 29, 2012

Losers: Citigroup has sold 404 million common shares in Akbank TAS through an equity offering, representing a 10.1% equity interest in Akbank, for 5.24 Turkish liras per share. Total proceeds from the transaction are expected to be about $1.15 billion at the current exchange rate, resulting in an after-tax loss of about $243 million in the second quarter. The transaction is estimated to generate approximately 23 basis points of Tier 1 common capital under Basel III, according to a May 25 news release.

Meanwhile, Facebook's botched IPO cost Citigroup's automated trading desk about $20 million.

May 21, 2012

So JPMorgan Chase's gambling loss morphed from $2 billion to more than $3 billion, and some still say that "real reform" was put in place...

On Sudan IMF Has No View on Oil Transit Fee, Notes Country's in Arrears

By Matthew Russell Lee

UNITED NATIONS, May 17 -- As tensions have escalated between Sudan and South Sudan about oil transfer fees and the size of Sudan's debt, Inner City Press has repeatedly asked the International Monetary Fund for its view of the oil fee dispute and about possible debt relief for Sudan.

  At the IMF's Spring Meetings in Washington last month Inner City Press put the question to IMF regional expert Masood Ahmed. Finally on Thursday afternoon, after Inner City Press re-submitted the question to the IMF's embargoed briefing that morning, the following arrived:

Subject: Sudan questions
Date: Thu, May 17, 2012 at 1:55 PM
From: [Spokesperson at] imf.org
To: Matthew Russell Lee [at] innercitypress.com

This is in response to your questions on Sudan and South Sudan:

Q - What is the IMF doing on or about the Sudan - South Sudan oil transfer fee dispute?

At the request of the African Union, the IMF has provided estimates of the fiscal and external impact of South Sudan’s separation on both countries. The Fund has not taken any position on the amount of financial assistance or oil transit fees that South Sudan could pay.

Q - … and about any debt relief for Sudan?

The Fund is discussing with the authorities economic policies to help stabilize the situation and implement reforms to sustain more inclusive growth. These could underpin a new Staff Monitored Program. Despite Sudan’s good cooperation on policies and payment to the Fund under successive SMPs, Sudan remains in arrears to the IMF and therefore ineligible to use Fund resources.

These answers are appreciated; among the questions that remain outstanding is

"What is the status of IMF programs in and reviews of Mali and Guinea Bissau, given coups in each country? "

If the IMF's work on the Sudans was at the request for the African Union, what about ECOWAS and these two coup d'etats? Watch this site.

May 14, 2012

So JPMorgan Chase gambles and loses $2 billion, and on Meet the Press Jaime Dimon says there was "almost no excuse." So, what's the partial excuse? Dimon claims JPMorgan Chase has supported 70% of Dodd Frank. But what about the Volcker Rule? Then on the McLaughlinGroup, Financial Times editor Gillian Tett says FT will editorialize for "better regulation" after l'affaire JPMorgan Chase. We'll see.

On Myanmar, IMF Won't Assess Reversion to Repression, Kachin Not Considered

By Matthew Russell Lee

UNITED NATIONS, May 7 -- When the International Monetary Fund's Meral Karasulu took questions about the IMF's work in and assessment of Myanmar on Monday night, one expected military rule and fighting in the ethnic zones to be a topic.

  But amid the IMF's rosy view, pitching for example natural gas reserves, the world's major wire services focused on exchange rates, natural gas and, in the case of AFP, the Paris Club creditors getting paid back their money.

  Inner City Press asked Meral Karasulu two questions: how likely does the IMF think that a reversion to military rules, and did the IMF even consider the continued conflict in Kachin state in its assessment?

Meral Karasulu politely dodged the first question, saying that the IMF has no "comparative advantage in political analysis," even that it would be "inappropriate" to consider the risk of reversion.

  But as reported exclusively last week by Inner City Press, when UN Secretary General Ban Ki-moon visited Myanmar he thanked and welcomed a company specializing in surveillance technology, including to Gaddafi's Libya, click here for that story.

  Meral Karasulu emphasized the Myanmar's main economic activity is not in the ethnic areas.

  Asked where Myanmar's reserves actually are, Meral Karasulu said in three state owned banks controlled by the Ministry of Finance.

When she was asked what percentage of Myanmar's budget is devoted to the military she said she did not know. (Perhaps relatedly, on Sri Lanka where the IMF does have a lending program, it downplays the growth of military spending even after the scorched earth military compaign of 2009).

Of corruption in Myanmar, Meral Karasulu said she has "no anecdotes," and that during country visits the IMF can't see it. Meral Karasulu will return to Myanmar in the second half of May. Watch this site.

May 7, 2012

IMF Notes Heglig Impact, Dodges on Sudans Oil Transfer Fee, Answers Romania

By Matthew Russell Lee

UNITED NATIONS, May 3 -- During the International Monetary Fund's Spring Meeting last month, Inner City Press asked the the spokesperson for the IMF's Masood Ahmed about the conflict between Sudan and South Sudan:

after the press conference, in which my question was about Egypt, I asked Masood Ahmed about Sudan, South Sudan and the IMF, on which he's written, and specifically his / the IMF's view of the oil transfer fee (and impact of stopping oil pumping and destroying the Heglig field). I was told to email the question so here it is: I cover the UN, and Sudan diplomats say they want $34 a barrel transfer fee, South Sudan offers some 40 cents, citing example of Chad to Cameroon, and Azerbaijan to Turkey. What is the IMF's view of this oil transfer fee issue?

   But even as, or because, the conflict military and diplomatic around Heglig continued to heat up, the IMF never answered.

    And so to the IMF's bi-weekly embargoed briefing on May 3 Inner City Press, from in front of the UN Security Council where the day prior Sudan's Ambassador spoke of an investigation and possible reparations for Heglig, resubmitted the above question as well as a question about Romania.

    Lead IMF spokesman Gerry Rice on camera answered the Romania question, saying that even after the fall of the government the IMF mission remains in dialogue and will report back.

   On the reformulated Sudans question, the IMF replied:

In response to your question on South Sudan during today’s press briefing, you can attribute this to an IMF spokesperson:

"Conflict in border areas and a prolonged shutdown of oil production will have serious implications on both countries' economies and people's livelihoods. We look forward to a mutually beneficial resolution of oil and other bilateral issues as soon as possible."

While appreciated, this was the question posed by Inner City Press:

"What is the IMF doing in Sudan and South Sudan given the economic and oil transfer fee roots of the conflict between them? South Sudan cites the IMF for the less than a dollar a barrel transfer fee it proposes. I asked Ahmed Masood during the Spring meeting but have not heard back. What IS the IMF's position?"

So Inner City Press has asked again, and is now told "Sure. Will get back to you on this." Watch this site.

April 30, 2012

ICP has commented to the FDIC, and NYS DFS:

On behalf of Inner City Press / Fair Finance Watch and its members and affiliates (collectively, "ICP"), this is a comment opposing and requesting public hearings on the application by New York Community Bank to acquire substantially all of the assets, and $2.3 billion of deposits of Aurora Bank FSB.

On the FDIC's web site, the comment period on this application runs through May 5, 2012. This comment is timely.

Aurora is a subprime, some say predatory, lending unit of the scandal wracked Lehman Brothers. For the record:

"Aurora had become one of the largest players in that market, originating $25-billion worth of loans in 2006. It was also the biggest supplier of loans to Lehman for securitization. Lehman had acquired a stake in Aurora in 1998 and had taken control in 2003. By May, 2006, some people inside Lehman were becoming worried about Aurora's lending practices."

NYCB is a bank which has sought to fly under the radar -- for example, a recent search of the FFIEC HMDA data back for "New York Community Bank" reveals only one HMDA reporter, 0000016022-3, reporting geography specific data in only three MSAs.

In these MSA, NYCB is decidedly disparate in its marketing and lending.

In the Phoenix MSA in 2010, the most recent year for which data is publicly available, NYCB made 292 conventional home purchase loans to whites and NO such loans to African Americans. Based on its disparate marketing, NYCB received only four such applications from African Americans, and denied three of them. To Latinos, NYCB more only 14 such loans, compared to the 292 to whites.

In the Fort Lauderdale MSA in 2010, NYCB made 38 conventional home purchase loans to whites, and NO such loans to African Americans.

In the West Palm Beach MSA in 2010, NYCB made 83 refinance loans to whites and only ONE such loan to an African American applicant, and only seven to Latinos.

The FDIC [and NYSDFS] should require answers, extend the comment period and hold public hearings.

April 23, 2012

In the course of spinning its first quarter earnings numbers, Capital One's CEO let it slip that $75 million are being set aside to deal with fraudulently sold products. "Oops." This has been raised to the OCC and Federal Reserve; watch this site.

At IMF, Canada's FinMin Flaherty Tells ICP Glad for Delay of Volcker Rule, Geithner

By Matthew Russell Lee

WASHINGTON DC, April 20 -- The Volcker Rule on proprietary trading by banks was one of the responses to the subprime financial meltdown of 2008.

  On Friday at the IMF, Inner City Press asked Canadian Finance Minister Jim Flaherty about what it has reported as the Group of 20's opposition to the rule, especially for its treatment of non-US sovereign debt.

  Flaherty told Inner City Press, "it came up informally a couple of times... I can tell you, Canada is please there's been delay in planned implementation date, concerned about extraterritorial effect, I've discussed with Secretary Geithner and we look forward to further developments."

  Geithner, as we've noted and even asked the US State Department to explain, did not show up for the Finance Ministers meeting about Rio + 20 and sustainable development held Friday at the World Bank. But has Geithner given Flaherty some re-regulatory assurance?

  Flaherty was also asked about a "disagreement" he had with Germany's Finance Minister Wolfgang Schauble, concerning whether European countries were doing enough about their crisis to avoid Flaherty's requested veto and loss of European seats in the IMF.

  Flaherty said he's known Schauble for as long as he's been Germany minister, Flaherty has served longer. Could that be the problem?

Inner City Press asked him directly, beyond the alleged differential treatment of sovereign debt, if the mixing of banking and proprietary trading played a role in the meltdown.

  "We're all entitled to our views," Flaherty replied. "In the Canadian situation, proprietary trading was not an issue for us. Some would argue it was not causative. I'll leave to others to debate." Yeah - while he whispers to Tim Geithner about it, then at the G20 in Mexico.

  Later Friday afternoon outside the IMF a protest marched by, to chants including Occupy Wall Street. Few journalists looked up from "making the donuts," so to speak, packaging Christine Lagarde's canned quotes to Charlie Rose as news. And so it has gone at the IMF. Watch this site.

April 23, 2012

In the course of spinning its first quarter earnings numbers, Capital One's CEO let it slip that $75 million are being set aside to deal with fraudulently sold products. "Oops." This has been raised to the OCC and Federal Reserve; watch this site.

April 16, 2012

"A transparent effort by Capital One to impede lawful competition" has been alleged, by two who should know: John Kanas and John Bohlsen formerly of NY-based North Fork Bank. They had served in executive roles with Capital One following the December 2006 sale of North Fork Bancorp. Inc. before departing by mutual agreement in August 2007. Their respective separation agreements contained provisions restricting them from engaging in the consumer or commercial banking business in New York, New Jersey and Connecticut until August 2012. Both executives participated among a group of investors that formed BankUnited and acquired the assets of a south Florida institution of a similar name upon its failure in May 2009. Capital One described the government-assisted deal as "the first step" of Kanas' and Bohlsen's plan to create "a second North Fork" in the New York market.

North Fork, like Capital One, underserved lower income and communities of color. So, a plague on both their houses. The case is pending before the U.S. District Court for the Eastern District of Virginia. A hearing on the plaintiffs' summary judgment motion has been set for April 27, but Capital One has requested that the court simultaneously hear summary judgment motions from both sides on May 11.

As IMF Tells Bangladesh How to Regulate Banks, Insiders Rush for Licenses

By Matthew Russell Lee

UNITED NATIONS, April 11 -- While the International Monetary Fund often insists it does not impose conditions on loans, for the $1 billion program it announced Wednesday for Bangladesh, it required among other things lower fuel subsidies, and centralizing bank regulation.

  Inner City Press asked David Cowen, IMF Mission Chief for Bangladesh, about this bank regulation condition, and about the rush by Bank Bangladesh to give licenses to nine new banks chartered by political insiders, on the eve of the IMF decision.

  Cowen described the required amendments to the Bank Companies Act, for "fit criteria for bank directors," and said that the IMF was aware of the recent license grants, and hadn't had the chance to discuss them with Bangladesh authorities.

  He said regular procedures for licensing new banks had been followed -- indeed -- and that the banks should be subject to the regulations applicable to all banks in Bangladesh.

Here's a description of the six most recent banks and their sponsors:

"former president and Jatiya Party chief H.M. Ershad (Union Bank), ruling party lawmakers Fazle Noor Taposh (Modhumati Bank) and Mohiuddin Khan Al Amgir (Farmers Bank), S.M. Amjad Hussain (South Bangla Agriculture and Commerce Bank) and Ashequr Rahman (Meghna Bank) and Moniruzzaman Khan Khandaker (Midland Bank), the income tax lawyer to Shaikh Hasina."

What was that again, about "fit criteria for bank directors"?

  Meanwhile HSBC is trying either to sell its 13 Bangladesh branches, reportedly to Standard Chartered, or simply to close them by some accounts.

  On April 10 HSBC announced it is in talks to sell off its operations in Pakistan and is moving in on a sale of its South Korean businesses to the Korea Development Bank.

  Beyond Bangladesh, other Asian markets where HSBC has fewer than 20 branches are Brunei Darussalam, Macao, New Zealand, the Philippines and Sri Lanka. Watch this site.

As IMF Praises and Turns from Iceland, Cites Basel, Calls Hungary Anti-Bank

By Matthew Russell Lee

UNITED NATIONS, April 12 -- Has Iceland turned the corner away from financial meltdown? The International Monetary Fund seems to think so. On Thursday the IMF released three reviews of the country and held an embargoed conference call for the press hosted by Julie Kozack, tellingly her last as IMF Mission Chief to Iceland. She will be moving on to Lithuania and Poland.

  The IMF has praised Iceland's write-down of debts, while criticizing Hungary's restructuring, complaining that "all losses from the implied debt reduction would be borne by the banks alone."

  As previously noted by Inner City Press, the IMF likes bank mergers. Last April, IMF European Department Director Antonio Borges told reporters on Friday that Belgium was smart to have pushed Fortis to being acquired by BNP Paribas. He urged more such mergers.

  Inner City Press asked Borges if the IMF proposed any safeguards at all, given that concerns exist that when a local bank is acquired by one based far away, there will be less reinvestment and accountability.

  Borges, while calling this an “interesting question,” bragged that the IMF organized a coordinated effort to get large banks to treat communities, particularly in Emerging Europe, fairly, and that this had worked

  And so it seems, the IMF likes bank mergers. In Iceland this is footnoted, that "data for Landsbankinn and Islandsbanki reflect the impact of their respective mergers with Sp Kef. and Byr in the second half of 2011."

  Only yesterday, the IMF minimized the rushed licensing of nine new banks by political insiders in Bangladesh on the eve of its program with that country, saying that at least they'll be subject to new rules.

  Regarding bank regulation in Iceland, the IMF says

"A strong, intrusive, and independent supervisory agency is essential to help avoid the build-up of risks that can lead to crisis... additional examiners with credit risk expertise may be needed in the onsite inspection area and the credit risk bureau may need more resources to become a powerful supervisory tool. Staff underscored that preserving the FME’s independence, and its capacity and willingness to act, is essential to ensure that the needed strengthening of supervision continues, toward full compliance with Basel Core Principles."

But what of bank regulation in countries like the United States, UK, France and Germany? Watch this site.

April 9, 2012

IMF Eyes Hungary, Has Adviser in South Sudan, Complaints on Lagarde Access

By Matthew Russell Lee

UNITED NATIONS, December 15 -- While the International Monetary Fund is often loath to speak about human rights situations in countries, Thursday when Inner City Press asked IMF spokesman David Hawley about Hungary's Prime Minister Viktor Orban's move to assert control over the nation's central bank, Hawley was ready with an answer.

  "We are carefully examining recent legislative proposals with respect to the central bank," the IMF's Hawley said. "Any erosion of central bank independence would be of great concern." From the IMF transcript:

HAWLEY: "a question from Matthew Lee at Inner-City Press on Hungary. His question is How would relations and a program with the IMF be impacted by the prime minister's announced plan to assert control over the central bank and demote its president? I can answer that by saying that we are carefully examining the recent legislative proposals with respect to the central bank and erosion of central bank independence would be of great concern."

  It's worth noting that one proposal, to combine central bank functions with bank regulation, is already the case at the US Federal Reserve, which the IMF does not criticize.

  Inner City Press also asked, "now that the South Sudan National Legislative Assembly on Dec. 13 voted to join the IMF, what are the next steps and what can the IMF do for South Sudan?"

  While that vote only took place December 13, Hawley said that the work to make South Sudan a full member of the IMF is "well advanced," even that the IMF has a "resident adviser in the country." From the IMF transcript:

HAWLEY: "Matthew Lee of Inner-City Press notes that South Sudan intends to join the IMF and what are the next steps and what can the IMF do for South Sudan? Discussions or work on South Sudan becoming a full member of the IMF are well advanced. South Sudan's main challenges are maintaining economic stability, investing its oil resources wisely in social and infrastructure development and to build an environment and institutions to support sustained economic development. In terms of what we're doing to support these policy goals, we're stepping up on our technical policy advice in areas where the Fund has expertise and we have a resident adviser now in the country."

  The Director of the IMF's Africa Department IMF's Antoinette Monsio Sayeh was on the schedule December 14 at the International Engagement Conference for South Sudan, on topics including "Transparency."

  But at the December 15 IMF briefing, Hawley was asked when Managing Director Lagarde will make herself available for questions from those covering the IMF, with the complaint made that she has hardly been available since she took over in June. Hawley said this would be "taken on board." We'll see.

December 12, 2011

Bad karma: Bank of New York Mellon moved to evict Occupy Pittsburgh from "its" park. Will there be repercussions?

First Niagara's recent capital raise have been aimed at curtailing uncertainty around the stock as it continues to work on divesting some of the branches it is seeking approval to acquire from its branch deal with HSBC. FBR Capital Markets analyst Bob Ramsey told SNL Financial that, while the company will look to maximize the value of any deals, it will likely sell the branches in three transactions. The bidders could include larger companies, such as M&T Bank Corp. and KeyCorp, with upstate New York operations, Ramsey said. Smaller companies could potentially be the buyers, such as De Witt, N.Y.-based Community Bank System Inc., but he wondered whether they would have the capital to make the acquisitions. So do we...

December 5, 2011

By Matthew Russell Lee

UNITED NATIONS, December 1 -- On Yemen, the International Monetary Fund kept meeting with Ali Saleh officials even as his government killed protesters. On December 1, Inner City Press asked the IMF, "with Ali Saleh's signature of the deal, what is the IMF's thinking and plans for the country? Whom in Yemen has the IMF spoken with and when?"

  Later on December 1 the IMF sent this response:

"on your question on Yemen, the IMF welcomes the signing of the agreement, which we hope will bring the crisis to an end. The agreement involves a formation of a new government that we look forward to working with. We understand that the new government will put in place an economic stabilization plan as per the GCC agreement, and we stand ready to support such a plan with an IMF-supported program if the new government wishes to reengage with the IMF."

  Back on March 31, Inner City Press asked then-IMF spokesperson Caroline Atkinson (now with the Obama administration)

“On Yemen, please describe IMF's engagement with current gov't after Ghazi Shbeikat's talks earlier this month, and any impact its killing of protesters has had.”

Ms. Atkinson translated this to “I have a question online about Yemen: Please describe the IMF’s engagement with the current government after talks earlier this month and any impact the violence has had.”

The violence -- that is, the killing of protesters -- has been so bad even Yemen's Permanent Representative to the UN Abduallah Alsaidi, former head of the Group of 77 and China, has quit. Here was Ms. Atkinson's (first) answer:

“Of course, in Yemen, Syria, and other cases we deplore any violence and we hope for peaceful resolution of political issues–We have a program actually outstanding with Yemen and there have been contacts at a technical level with the central bank monitoring developments.

  Then on April 28, Inner City Press asked the IMF's David Hawley to “describe the IMF's interface with Syria and Yemen, and how the crackdowns there may impact that, and how they are viewed by the IMF.”

Hawley said that the IMF's program with Yemen are “on hold in the current situation,” and then referred to comments by IMF Middle East and Central Asia director Masood Ahmed -- who is the one who said, the previous day in Dubai, that the IMF is “ready to work with the Yemeni authorities... once the situation allows.”

  Did that mean a reduction in violence -- which could be brought about, at least theoretically, by MORE repression rather than less -- or the exit of Saleh? The IMF didn't say.

  And now, after what's called the immunity deal, the IMF stands ready. We'll continue on this - watch this site.

 Footnote: The IMF had not had a press briefing for four weeks, but still on the morning of December 1 its web page did not list any press briefing. Too late, despite monitoring the web page, Inner City Press found out about a briefing, submitted the question about and a request for "an explanation of the lack of IMF web page notice of this morning's briefing."

There was at least a response to the Yemen question, above. But nothing on the other. Watch this site.

Royal Bank of Scotland Group bragged on Dec 1 that the Reserve Bank of India would allow the transfer of its retail and commercial businesses in India to HSBC. "We continue to work closely with HSBC and the regulators to complete the transfer in a manner that is in the best interests of our clients and employees," a Royal Bank of Scotland spokesman said. The WSJ said The statement follows media reports flagging potential roadblocks to the deal from India's central bank. There OUGHT to be roadblocks...

November 28, 2011

A BankAtlantic Bancorp investor has filed a lawsuit to block the sale of BankAtlantic to BB&T. The suit, filed the complaint in Delaware's Chancery Court, claims the deal allows BB&T to "unlawfully cherry-pick" assets and that the two sides structured the deal with a "flagrant disregard" for BankAtlantic investors. There are CRA problems too...

November 21, 2011

This is the new one:

Sumitomo Mitsui Financial Group, Inc. and Sumitomo Mitsui Banking Corporation, both of Tokyo, Japan Continue to increase their ownership interest to 9.9 percent of the voting shares of The Bank of East Asia, Limited, Hong Kong S.A.R., Peoples Republic of China, Continue

Sumitomo Mitsui Financial Group, Inc. and Sumitomo Mitsui Banking Corporation, both of Tokyo, Japan and thereby indirectly increase their interest in The Bank of East Asia (U.S.A.), N.A., New York, New York 3 New York 12/09/2011

Watch this site.

November 14, 2011

Belatedly and not enough, First Niagara and the Department of Justice have come to a deal on the divestiture of branches acquired from HSBC. (First Niagara agreed July 31 to acquire 195 branches. Under the deal, First Niagara will divest 26 branches in Erie, Niagara and Orleans counties in upstate New York. Most of the branches that will be sold are in Erie County, in which Buffalo is located. First Niagara will sell 18 branches there, seven in Niagara County and one in Orleans.

Troublingly, First Niagara will not be divesting a majority of the branches and deposits that it is acquiring in the HSBC deal. In the three counties affected by the divestiture order, First Niagara is acquiring 59 branches and $5.30 billion in deposits. The company will keep 55.9% of the branches in those counties and 69.0% of deposits. We'll see -- watch this site.

November 7, 2011

Rabobank Admits Subprime Exposure & Purchase of Failed Banks, Desjardins on Citi Deal

By Matthew Russell Lee

UNITED NATIONS, October 31 -- When the UN scheduled a press conference Monday entitled "Financial Crisis and Cooperative Banks," it was expected that the two cooperative banks invited to speak would be akin to the credit unions being praised in the Occupy Wall Street movement, in opposition to big banks like JPMorgan Chase and Bank of  America.

  But on the UN podium was the chairman of Dutch multinational Rabobank, Mr. Piet Moerland. Inner City Press asked him about protests to Rabobank in the United States, complete with mariachi bands and complaints of discriminating against small borrowers, and also about Rabobank's statements that it was "exposed" to subprime lending in the US. Video here, from Minute 26:05.

  Moerland replied that Rabobank had to expand outside of The Netherlands because of its small population, and that the US is its most important non-Dutch market. He acknowledged the exposure to subprime lending, calling it "indirect," but bragged that Rabobank grew from 30 billion Euros in 2006 up to 40 billion Euros.

  He said in the US it's made purchases "at the request of the FDIC" - that is, of failed banks. Apparently, Rabobank has profited from the global financial crisis. Moerland said that in California, Rabobank is "about half way there." We'll see.

Why such a multinational bank would be presented at the UN as the poster child of the cooperative movement, a topic on which former UK prime minister Gordon Brown speechified to the General Assembly later on Monday, is not clear.

  Smaller but similarly mystifying was the presence of Canada's Desjardins Group. Its CEO Monique Leroux said that before growing outside of Canada -- it already has a presence in Florida in the US -- or making other expansions, it would speak with its people.

  Inner City Press asked about a recent Desjardins deal with Citigroup and Staples, to buy a credit card portfolio. Did Desjardins check with its depositors before that business transaction? Ms. Leroux referred back to a 2009 meeting at which business lines were agreed to. After that, it seems, it's just business.

October 31, 2011

   Old MF Global Holdings, having tried to suck up to JPMorgan and Barclays, is now rumored to be an acquisition target for not only Goldman Sachs but also State Street Corp. and Macquarie Group. Problematizing any soft landing might be target for Occupy Wall Street...

October 24, 2011

At Occupy Wall Street, People's Trial of Goldman Sachs Set for Nov 3

By Matthew Russell Lee

WALL STREET, October 22 -- As it got colder in Lower Manhattan on October 22 the Occupy Wall Street meeting of the General Assembly considered a proposal for a people's tribunal against Goldman Sachs, for November 3. While other proposals were confronted by blocks, a form of quasi veto, this one passed by consensus.

  A block away JPMorgan Chase stood surrounded by fencing and police. It has been the subject of a number of marches from Zuccotti Park, but Goldman Sachs until now as escaped direct action. Goldman does not offer regular bank accounts or student loans, although it trades in both, and in the predatory subprime mortgages which triggered the global financial meltdown.

  At Occupy Wall Street solidarity events in Philadelphia, banks including the prospective fifth Too Big To Fail institution Capital One were denounced. But Goldman Sachs' will be the first people's tribunal. How will it proceed?

  Meanwhile the former CEO of Citibank blathered that the Occupiers should forget about the past and just look forward -- triggering responses that one should be this logic empty out the prisons.

   Bank of America was described as moving risky derivative into its FDIC-insured bank, putting the American people further at risk.

  Goldman itself defunded its previous fundee, the Lower East Side People's Federal Credit Union -- where Inner City Press has been a customer -- because it dared invited OWS to one of its events.

October 17, 2011

Occupy Wall Street Visits JPMorgan Chase with Police, Goldman & Capital One Next?

By Matthew Russell Lee

WALL STREET, October 12 -- On a blustery Wednesday afternoon in Lower Manhattan, a crowd gathered in front of JPMorgan Chase, blocked off by police.

  At first it first no larger than past symbolic protests in front of Chase Manhattan Plaza. Then a phalanx of marchers came from Zuccotti Park out on Broadway, also contained by police. Occupy Wall Street had arrived. Click here for video by Inner City Press.

  When JP Morgan and Chase Manhattan merged, community groups challenged them for "redlining" poor neighborhoods like the South Bronx, and even sued. In the case by Inner City Press about the merger, Morgan Chase tried as a Strategic Litigation Against Public Participation (SLAPP) suit to get its extensive attorneys fees paid. It failed, but received a massive bailout.

  On October 12 it took police with a bullhorn to get the protesters to continue, on to Liberty Street and the Federal Reserve. The previous evening had seen a protest of Bank of America; around the corner is Capital One, seeking to become the fifth largest bank in the US by buying ING DIRECT.

  Still escape direct protest is Goldman Sachs. "How do you get your hands around them?" one protester asked Inner City Press. How indeed.

  Goldman underwrote many of the predatory mortgage bonds that led to the crisis, then got more bailout funds than anyone. But it gives campaign contributions to both parties, including through its executives to President Obama when he travels to New York. We will continue on this.

October 10, 2011

Another example of big bank nepotism and sleaze: "Former Bank of America Corp. executive Sallie Krawcheck will receive $6 million after leaving the bank following a management reshuffle last month." Somewhere Sandy Weill is laughing....

October 3, 2011 --

As Police Arrest Occupy Wall Street Protesters, Focus on Banks, Benghazi Analogy?

By Matthew Russell Lee

BROOKLYN BRIDGE, October 1 -- As drizzle fell on the Brooklyn Bridge and the East River beneath it, the New York Police Department took protesters off the bridge, their hands restrained behind their backs, in busses with signs that said "Out of Service" and "Promotional Bus."

  The Occupy Wall Street protesters continue to gather steam, even as most of the media has ignored them, or mocked them for not having a single message.

  Signs clasped to the fence of Bloomberg's City Hall said, "No Bail Outs" and "Too Big Too Fail means Too Big To Allow."

   These references to the four American megabanks -- Citigroup, JPMorgan, Bank of America and Wells Fargo -- about to be joined by a fifth in Capital One seem focus enough.

  Despite the size of the bailouts and the lack of criminal prosecution for predatory lending, there has until now been little direct fightback. Now there is, and the police are out in force.

  "Obama's moved so far to the right," a protester complained, staring as if hyponotized into the swirling squad car lights.

At the foot of the Brooklyn Bridge, Inner City Press was pushed back by a phalanx of police. A protester yelled, Are you all getting overtime? The answer was yes.

InnerCityPress YouTube videos sampling interviews: click here

 A young woman said she had come to the bridge "straight from Slut Walk," another event in Union Square. The talk in the crowd was that those arrested a second time weren't getting bail.

  The analogy to non-violent protests this year in Cairo and Tunis and Benghazi and Homs is dismissed by some staid foreign correspondents. But the energy is not dissimilar, and response is moving at least directionally toward similarity too. Watch this site.

Occupy Wall Street Target JPMorgan Paid Police Monitors, Paid Blair for Occupied Palestine

By Matthew Russell Lee

UNITED NATIONS, October 2 -- As over 700 Occupy Wall Street protesters were arrested Saturday by the New York City Police Department, in the scrum at the entrance to the Brooklyn Bridge there was talk of mega-bank J.P. Morgan Chase having given money to the NYPD.

It's hardly hidden: the bank's web site brags that

"JPMorgan Chase recently donated an unprecedented $4.6 million to the New York City Police Foundation. The gift was the largest in the history of the foundation and will enable the New York City Police Department to strengthen security in the Big Apple. The money will pay for 1,000 new patrol car laptops, as well as security monitoring software in the NYPD's main data center."

Given that the protests are largely directed that bailouts to and abuse of the political system by JPMorgan, Citigroup, Bank of America, Wells Fargo and prospectively Capital One, it is certainly relevant, and to many troubling, that the police take money from the very target of the protest.

The police will use the money for laptops and "security monitoring software" - would that target the anonymizer app Vibe that's emerged, created by Hazem "White Hat" Sayed?

Ray Kelly, widely touted as a candidate to replace Michael Bloomberg as Mayor, offered his "profound gratitude" to JPM Chase CEO Jamie Dimon. Will this relationship and the mass arrests be explained?

And what of the use of MTA busses to arrest protesters, as photographed by Inner City Press in its story last night? On Sunday morning, Inner City Press asked the Transit Workers Union Local 100 for its comment and what it will do. Watch this site.

JP Morgan Chase stands accused of improper involvement not only in New York City policing, but in corrupting the Middle East peace process through UN envoy Tony Blair, who is also a JP Morgan consultant.

For some time Inner City Press has asked the UN, and Blair himself after a New York City meeting of the Middle East Quartet, about his involvement in cell phone deals in the Occupied Palestinian Territories, without answer.

On Friday, September 30 Inner City Press asked Secretary General Ban Ki-moon's spokesman Martin Nesirky:

Inner City Press: I am sure you’ve seen these stories of late about Tony Blair. Often you’ll say, speak to Tony Blair. It’s not that easy to do, as you might imagine. So I wanted to ask the UN side of it. These articles are saying that increasing questions have arisen about the double service of Tony Blair for J.P.Morgan as a consultant and as the Middle East peace envoy. And they point to particular deals around cell phones... I don’t expect the UN to say anything anti-Blair, but what is the UN’s role in reviewing those conflicts of interest? Is there a kind of review that’s done for other UN officials to view whether the outside activities or other activities of Tony Blair conflict with what he does for the UN system?

Spokesperson Martin Nesirky: Well, as we have said before, Tony Blair is the Quartet envoy. He is the Representative of the Quartet. He is not the UN envoy in the Quartet. That is not his role, okay? And so, I think you’re knocking on the wrong door here.

Inner City Press: who does the review of whether there is a conflict of interest? Is it just up to Tony Blair himself or is there some, does the Quartet have some secretariat or administrative body to review these charges?

Spokesperson: Well, I think you’d need to check with, first of all, I think it’s right, you could certainly check with Tony Blair’s office in the first instance. But, also of course, you could check with the other participants in the Quartet, as well. But, just to be clear, it’s not a UN role.

  So JP Morgan Chase with its money can corrupt the UN Middle East process -- then say "it's not a UN role." And the bank can pay the New York police, which mass arrests those protesting its bailout. What's next? Watch this site.

September 26, 2011

So at UBS a "rogue" trader burned over $2 billion, and not much of a peep yet from the regulators including the Federal Reserve. Meanwhile, Bank of America look move to sell its correspondent banking business.

September 19, 2011

Now First Niagara says that "in September" it will announce to whom it would sell of HSBC branches, it's allowed to acquire them. What a Rube Goldberg of a transaction. It will be opposed.

September 12, 2011

So Bank of America denies it plans to close 600 branches. OK - how many does it plan to close?

In Lebanon, Société Générale de Banque au Liban, said Sept. 9 that it gained final approval from the Central Bank of Lebanon to acquire the assets and liabilities of Lebanese Canadian Bank. The acquisition will raise the unit's total assets to $11 billion, its deposits to $8.6 billion and its loans to $3 billion. The bank will also take over Lebanese Canadian Bank's 35 branches, which will come under the unit's signage. Consequently, the unit will operate a total of 101 branches....

September 5, 2011

Wells Fargo is moving to settle in Memphis just the type of racially discriminatory predatory lending and foreclosure charges that it has previously bragged about beating in court, for example in Baltimore. We'll be watching this -- and another big bank, next week. Watch this site.

August 29, 2011

What does the FDIC consider before selling off a bank? According to SNL Financial, "Evansville, Ind.-based Old National Bancorp on Aug. 26 revealed plans to close nine branches of failed Integra Bank NA and consolidate them into other branches of the failed bank as part of an ongoing assessment that could eventually lead to more consolidations. Old National acquired the Evansville-based bank July 29, after it was shuttered by the OCC. Effective Sept. 30, Old National will close nine of Integra Bank's 52 branches. Five of the failed bank's Evansville branches will be closed, along with one branch in Mt. Vernon, Ill. In Kentucky, Old National will shutter one branch in Madisonville and transfer the accounts to another Madisonville location. The company will also close one branch each in Clay and Poole in Kentucky, transferring the accounts to branches in Providence, Ky., and Sebree, Ky., respectively." These transaction are done without public comment. But what does the FDIC consider?

August 22, 2011

In a marriage of sleaze earlier this month, Spartanburg, S.C.-based Advance America Cash Advance Centers Inc. said it agreed to purchase for $45.6 million Atlanta-based CompuCredit Holdings Corp.'s retail storefront consumer finance business -- approximately 300 locations in nine states...

August 15, 2011

   The proposal from HSBC to transfer 195 branches to First Niagara is even worse that it first looked, based only on First Niagara's weak CRA program that led to its last acquisition, of NewAlliance in Connecticut, being protested from nearly all of First Niagara's communities. Now First Niagara says that of the 195, it would closed 33, and try to sell off 67. Can any regulator accept such a disruptive and cynical "middleman" transaction?  It will be opposed...

August 8, 2011

Beyond the fair lending violations at and consumer abuse by Capital One, ING is being investigated for violating sanctions and doing business in Sudan, Cuba and Iran. This is being raised - watch this site.

August 1, 2011

Serial acquirer First Niagara, opposed by community groups and local elected officials on its recent deal in for New Alliance in New Haven, now seeks to pay $1 billion to buy 195 Northeast branches from HSBC, mainly in Upstate New York, held approximately $15.0 billion in deposits and $15.0 billion in gross assets as of May 31. First Niagara will pick up 183 branches in Upstate New York, four branches in northern Westchester County, N.Y., two branches in Putnam County, N.Y., and six branches in Connecticut. HSBC said it will be consolidating approximately 13 branches located in Connecticut and New Jersey into nearby HSBC branches by the first quarter of 2012, subject to regulatory approval. We'll be there - watch this site.

July 25, 2011

“Banco do Brasil projects to have a network of up to 20 branches and 400,000 new customers in the U.S. in five years, the executive told the news agency. The prospective EuroBank acquisition is subject to approval” - and yeah, not so fast...

July 18, 2011

HSBC is putting up for sale not only its credit cards -- Capital One and Wells are the touted bidders -- but also branches, with M&T, First Niagara and Key in competition. This would clearly close a lot of branches: they should (have to) compete on that. Watch this site.

July 11, 2011

When Christine Lagarde appeared on July 10 on the Amanpour show on ABC, she said that her ethics test is what her mother would say was okay. Amanpour then didn't ask her, what would maman say about l'affaire Bernard Tapie? Bad journalism.

Brazilian federal prosecutors based in Rio de Janeiro have initiated a lawsuit against three major banks for alleged irregularities in charging of client fees between 2008 and 2010, the prosecutors said in a statement last week. The three banks are HSBC, Santander and Itau-Unibanco, Brazil's largest bank by assets...

July 4, 2011

"We have a hard time seeing a settlement with fines in the $20 billion to $25 billion range, as originally discussed," the analysts said. "We think that it will have much lower penalties than originally proposed, if it happens at all." -- Bank of America's $8.5 billion settlement with 22 mortgage investors may sharply reduce or eliminate penalties against the largest U.S. mortgage servicers under investigation by the states' attorneys general, according to Amherst Securities Group. The size of the settlement with Bank of America, the largest servicer of U.S. mortgages, and mandates to improve how the institution treats loans in default will make it harder for the attorneys general to find consensus, according to a client note Thursday from Amherst.

Inner City Press: 1) it shouldn't buy BofA out of the other problems. 2) the AGs let their thunder be stolen...

June 27, 2011

A potential acquirer for BNP Paribas' Bank of the West has now been named: US Bancorp. We'll see. Consumers and analysis have heaped scorn on Capital One's proposal to buy ING Direct. Even from a purely financial point of view, it's said to only make sense if Capital One intends on another acquisition, for example of HSBC's credit card business, the kind HSBC acquired along with the predatory Household International. But there's a $270 million break-up fee in the Capital One deal, and ING will not want to pay it. Game on.

Distracted by DSK & Hacking, IMF Ignores Sudan & Afghan Banks

By Matthew Russell Lee

UNITED NATIONS, June 23 -- With the International Monetary Fund refusing to answer or even acknowledge questions about its consideration of programs from Afghanistan through Belarus to South Sudan, set for independence on July 9, it seems the arrest and resignation of Dominique Strauss Kahn, the two candidate race to replace him and a recent hacking scandal have distracted the IMF.

  When the IMF on Thursday morning held its first press briefing in two weeks, the questions largely related to the race between Christine Lagarde of France and Agustin Carstens of Mexico to replace DSK. Two questions, one online and the other in-person, concerned the IMF getting hacked. Deputy spokesman David Hawley said that “files were copied,” but deferred other answers.

  Inner City Press submitted as it has in the past four questions by the IMF's online briefing center. In the past at least some questions have been answered, about Sudan and less frequently Sri Lanka.

  But in his post-DSK era, these June 23 questions were entirely ignored:

With South Sudan set to declare independence on July 9, what is the status of the IMF's consideration of South Sudan, including in light of Sudanese president Omar al Bashir's threat to cut off the pipelines that takes South Sudan's oil to market?

Afghan authorities have complained about negotiations with IMF. On Afghanistan, can you state the status of and explain IMF's requirement that shareholders not have any management role in Afghan banks, given that this is allowed in the US, for example?

In terms of the IMF's research budget, some have questioned whether the IMF at times censors the conclusions of research. Is that true, and if so how does the IMF respond to the criticism?

In Belarus, will the new arrests of protesters in the last days have any impact on the IMF's consideration of Belarus' request for an IMF program?

  Nor in the half hour between Hawley saying “there are no more questions” -- which wasn't true -- and the expiration of the embargo were any of the four questions answered. Previously the IMF has been asked about gift filings by its top officials, and hasn't answered. Oh, transparency.

June 20, 2011

It's looking as of this writing on June 19 like PNC will be the applicant to buy Royal Bank of Canada's 400 US branches, the old Centura Bank. And the BNP Paribas will be under pressure, due to its exposure to Greece, to sell off its US operations.

  Meanwhile we can report: after the challenge to Comerica - Sterling, they have been unable to meet their goal of closing in the second quarter. Watch this site.

June 13, 2011

Amid Lagarde & DSK Scandals, IMF Won't Answer on Belarus or Jamaica

By Matthew Russell Lee

UNITED NATIONS, June 9 -- Without a managing director, without transparency and seemingly without regard to human rights, the International Monetary Fund is negotiating with Belarus about a loan larger than the $3 billion the Russians lent, conditioned on privatization to Russian firms.

During the IMF's bi-weekly briefing on June 9, Inner City Press submitted this question:

“On Belarus, what is the IMF's thinking after Russia cut electrical supply this week, after crackdown on online protests and long sentences to political opponents, and what does the IMF say that to require privatization would be serving Russian buyers of Belarus assets?”

  IMF spokesperson Caroline Atkinson, facing in-person questions about Dominique Strauss Kahn, took three online questions -- about Pakistan, Argentina and Latvia -- but not this Inner City Press question about Belarus (nor another one, about Jamaica).

  After not acknowledging the timely submitted questions during the briefing, afterward Inner City Press received this email from the IMF about Belarus:

Subject: Your question on Belarus
From: [ ] @imf.org
Date: Thu, Jun 9, 2011 at 10:43 AM
To: Matthew.Lee [at] innercitypress.com

Matthew, With regard to your question today on Belarus. As you probably know, a previously scheduled IMF mission is currently in Minsk (the dates are June 1-13) to conduct post-program monitoring. The standing policy has been that we don’t comment on specific country matters while missions are in the field and discussions are in progress. We will update the press on the mission’s outcome when it concludes.

The purpose of this mission is to discuss policies that would restore economic stability and put the economy on the path of strong and sustainable growth. The mission will use the opportunity to exchange views with the authorities on possible next steps in response to their request for the Fund-supported program.

Regards, [ ] IMF Press Office

  It's been reported that IMF Head of the mission Chris Jarvis has met Deputy Prime Minister Sergey Rumas. Inner City Press replied with a request to be informed of any IMF press conference call about any announcement with Belarus, but the IMF press person who had replied was listed as out of the office.

  On Jamaica, the IMF asked for more specifics, to which Inner City Press replied:

Jamaican Finance Secretary Wesley Hughes met with the IMF, now returns to Jamaica for talks with trade unions, in connection with which Minister of State in the Ministry of Finance and the Public Service, Senator Arthur Williams, has spoken of the “Government’s inability to pay the $20 billion owed this year, and has proposed an extended payment period, to protect the gains made in the economy and to preserve its agreement with the IMF.”

So 1) does the IMF dispute that the Jamaican gov't can't pay, must extend the payment period “to preserve its agreement with the IMF”?

Separately, 2) what did the IMF tell Finance Secretary Hughes about this?

  After not taking this question during the briefing, then asking two rounds of counter questions about it, the IMF finally replied:

Subject: RE: FW: Question Received (6/9/2011 10:10:02 AM)
From: [ ] @imf.org
Date: Thu, Jun 9, 2011 at 1:14 PM
To: matthew.lee [at] innercitypress.com

Matthew, We are not going to make any comment on ongoing negotiations between the administration and the unions. I would refer your questions to the Jamaican authorities.

The government’s commitments related to the program are outlined in the documents of the second and third reviews of the stand-by arrangement, which you can consult online in the Jamaica page [of the IMF].

  So, after not acknowledging the timely submitted questions during the briefing, and even asking questions about the questions, the IMF declined to answer either of them. Some transparency. The IMF did not even respond to repeatedly emailed questions about its policies on gifts. To be continued.

The competition for ING Direct has heated up, with GE battling Capital One, while KKR tries for a minority stake. Capital One, some feel, some be the odd one out. We'll have more on this.

June 6, 2011

Another merger has been announced, with Bank United proposing to buy Herald National Bank, with a strange non-compete clause in which CEO John Kanas couldn't manage the bank he'd be buying. This should not be approved.

Also, Cincinnati-based First Financial Bank inked an agreement to acquire all 16 of the retail banking branches of Liberty Savings Bank located in Ohio. And on the seamier side, Gaddafi's favor bank Goldman Sachs Group is close to selling Litton Loan Servicing to Ocwen Financial, with an announcement possible within days.

May 30, 2011

So HSBC and Goldman Sachs are among banks that held funds for Muammar Gaddafi’s government investment fund -- HSBC held $292.7 million across 10 accounts and Goldman Sachs had almost $44 million in four accounts as of June 30, 2010, according to a document on the Libyan Investment Authority...

May 23, 2011

By Matthew Russell Lee, News Analysis

UNITED NATIONS, May 18 -- The arrest for sex crimes of International Monetary Fund managing director Dominique Strauss Kahn, and his interim replacement by his American deputy John Lipsky, have together revived a story exclusively reported by Inner City Press in 2009.

Then, two senior advisers to UN Secretary General Ban Ki-moon told Inner City Press of worries that the US would take over the top spot at the IMF and give the World Bank to China, which in turn would not insist that the UN Secretary General term beginning in 2012 go to an Asian.

Under that theory, if Europe lost the IMF -- as seems even more possible now -- and China got a top Bretton Woods institution spot, the Europeans could make a play for the 2012 UN term.

Until Strauss Kahn's arrest, and now US Treasury Secretary Geithner's call that a formal “interim” replacement be named, quite possibly Lipsky, those close to Ban like South Korea's Permanent Representative to the UN were bragging that a second term for Ban was in the bag.

Now, at least until the IMF situation is resolved, Team Ban's 2009 nightmare scenario is suddenly closer to coming into play.

Eastern Europeans candidates were already circling to succeed Ban, albeit in 2016, among them Srgjan Kerim, Jan Kubis and even Navi Pillay's deputy Ivan Simonovic.

Now Western Europeans may renew interest, if Europe loses the IMF. Staffan de Mistura is said by his staff to be interested. But surely there are others. Watch this site.

Per the WSJ, California Attorney General Kamala D. Harris is expected to announce Monday a new law-enforcement effort aimed at mortgage-industry practices. The effort will cover a range of activities, from loan origination to the packaging of mortgages into securities, and will include both civil and criminal prosecutions. Mr. Schneiderman has issued subpoenas to units of Ambac Financial Group Inc., Assured Guaranty Ltd., MBIA Inc. and Syncora Holdings Ltd.... Then what?

May 16, 2011:

As IMF Chief Strauss-Kahn Is Arrested, Denials of Rule-breaking Recalled, Immunity & Air France Arrangement Questioned

By Matthew Russell Lee

UNITED NATIONS, May 15 -- With Dominique Strauss-Kahn of the International Monetary Fund having been detained and then this morning arrested for sexual assault allegedly committed in the Sofitel near Times Square, attention has turned to the IMF's failure to discipline him for what its Executive Board called a “serious lapse of judgment” in 2008.

  In this case, IMF spokesman William Murray has been quoted that the IMF “has not immediate comment” on the arrest or charges.

  IMF staff, too, have been defensive about Strauss-Kahn and his compliance with rules. Inner City Press covers the IMF as well as the wider United Nations, and on March 17 Inner City Press asked the IMF to respond to what sources described as a pattern in which “DSK gets friends and family hired by IMF affiliates.”

  At that time, the IMF answer other of Inner City Press' questions, while ignoring this one. Two weeks later, Inner City Press asked:

Sent: Thursday, March 31, 2011 9:58:14 AM
To: IMF, Media Briefing Center

Again, Please state whether Dominique Strauss Kahn has any relatives working in the World Bank or other UN affiliated organizations, and if so why this does not run afoul of anti nepotism rules and principles? From: Matthew Russell Lee Media Outlet: Inner City Press

This time, the question drew a quick answer, albeit a dismissive one, from Mr. Murray:

From: Murray, William [at] mf.org
Date: Thu, Mar 31, 2011 at 10:22 AM
Subject: FW: Question Received (3/31/2011 9:58:14 AM)
To: Matthew Russell Lee [at] InnerCityPress.com

Matthew,

He has no relatives on the staff of the IMF. Given the premise of your question, let me note that the Bank and UN are wholly separate institutions from the IMF, with no fiscal or managerial connections. At the IMF we certainly have nepotism rules, and they have not been violated in any way.

But does the IMF have rules, that they require not be violated?

 It's now reported that Strauss-Kahn “has an arrangement with Air France that allows him to get on any flight and sit in first class.” What kind of arrangement is that? Who paid for it, and how much did they pay? Inner City Press has asked three spokespeople of the IMF, including Mr. Murray. Watch this site.

Footnote:  Inner City Press has been asked how, if Strauss-Kahn as an IMF official has a form of immunity, he could be detained, questioned and arrested by the New York Police Department. (The IMF has a history of citing immunity, for example for Paul Ross in Pakistan, click here.)

  Earlier this year, Inner City Press (un) covered the case of a French diplomat who was arrested for attempted purchase of cocaine and resisting arrest, but was later allowed to flee the country before trial.

  The practice is to allow one such flight - but the person is not supposed to re-enter the United States -- which, in the cocaine case, has in fact happened, which neither the French government nor US State Department have yet explained, click here. Watch this site.

May 9, 2011

JPMorgan Chase & Co. was subpoenaed by the U.S. Securities and Exchange Commission over failed mortgages, it was reported last week, as the SEC probes banks sued for allegedly boosting their profits by failing to share refunds from sellers of faulty debt.

May 2, 2011

Now Citibank is accused of killing those who owe it money. In the past, Inner City Press has covered JPMorgan Chase investing in a Japanese finance company which told a borrower to sell his kidney. But this is killing:

In Indonesia, Citi on Hot Seat

Debt Collection Brought In-House After Outside Agents Accused in Man's Death

JAKARTA, Indonesia—Citigroup Inc. said it has hired more than 1,400 people and brought its debt-collection duties in Indonesia in-house, following accusations that outside debt collectors used by the bank may have caused the death of a credit-card debtor.

This month, police arrested three debt-collection agents used by Citibank after a customer died in one of the bank's branches. Police said Irzen Octa was found dead in a Citibank branch in Jakarta after he complained about his credit-card debt.

South Jakarta Police Chief Col. Gatot Edy Pramono said the suspects met with Mr. Octa in a small room and interrogated him, according to the Associated Press. He said an autopsy found a ruptured blood vessel in his head and wounds on his nose.

...The debt-collection hires came after Indonesia's central bank said recently that Citi had violated some collection rules. Bank Indonesia Gov. Darmin Nasution said Wednesday that the central bank is considering penalties against Citi. This month, the central bank ordered the company to stop recruiting new credit-card customers while it investigated whether the bank's collection practices had led to Mr. Octa's death.

The latest episode isn't the first time questions were raised over Citi's debt-collection tactics abroad. In India, a Citi customer in Mumbai alleged in 1999 that outside debt collectors put a knife to his throat and threatened to kill him if he didn't pay his $27,000 credit-card debt. The collectors were later arrested and charged with extortion because undercover officers had witnessed the episode. Citi said at the time that its debt collectors were well-trained and not permitted to use threats.

In 1995, another India customer accused the owner of the same outside Citi collection agency of threatening to have one of his kidneys removed and sold unless he paid an overdue bill of $765. Citi, then part of Citicorp, denied the customer's account at the time.

"These are isolated cases and we have the appropriate controls in place to operate in more than 100 countries," a Citi spokeswoman in New York said Thursday.

Last December, police in India arrested a Citi employee at a branch near New Delhi amid allegations the employee colluded with others to siphon off an estimated $67.2 million from wealth-management customers.

Separately, Indonesian lawmakers called for penalties against Citigroup after a hearing this month that examined allegations that a Citi employee embezzled millions of dollars from customers. Penalties could include being blocked from taking new credit-card customers to losing its license to operate in the world's fourth most populous country.

April 25, 2011

Declining interest, rising interest rates: at this year's Citigroup shareholders' meeting, only 400 people attended, fewer than in previous years. About 25% of shareholders voted for a proposal by the City of New York Comptroller's office demanding that the board launch an independent review of Citi's mortgage and foreclosure practices. But the sleaze just continues...

April 18, 2011

IMF Promotes Bank Mergers, Says Bigger is Better, Politics & Portugal Dodged

By Matthew Russell Lee

WASHINGTON DC, April 15 -- The International Monetary Fund is unabashedly promoting the takeover of small banks by large ones, claiming that its own work in “Emerging Europe” since the financial meltdown shows that communities are better served by large banks, even if based far away or in other countries.

  IMF European Department Director Antonio Borges told reporters on Friday that Belgium was smart to have pushed Fortis to being acquired by BNP Paribas. He urged more such mergers.

  Inner City Press asked Borges if the IMF proposed any safeguards at all, given that concerns exist that when a local bank is acquired by one based far away, there will be less reinvestment and accountability.

  Borges, while calling this an “interesting question,” bragged that the IMF organized a coordinated effort to get large banks to treat communities, particularly in Emerging Europe, fairly, and that this had worked. See IMF transcript, below.

  Inner City Press began to ask about attempts to encourage or require reinvestment, for example in the UK -- but moderator Simonetta Nardin said there was no time for follow up questions.

  Meanwhile, Borges took but refused to answer two questions about Portugal, citing an IMF policy against officials working on their own countries, and also claiming that the IMF does not get involved in politics. What -- encouraging bank mergers is not political? Watch this site.

From the IMF's transcript:

Inner City Press: you seem to be saying that bank mergers—small banks being bought by big ones sort of unqualifiedly may be a good thing. In some countries people think that local banks are more accountable, that if you move the assets to a faraway headquarters that there's less responsive. What do you say to that critique and is that something that the IMF takes any account of?

MR. BORGES: you ask a very interesting question, because this is a problem we were faced with over the last few years. In many of the countries of emerging Europe, you find banks that actually are owned by other banks elsewhere and there were concerns that, as there might be problems in the domestic countries of those banks that assets would be pulled out from emerging Europe and they might suffer. And the Fund, the IMF, invested quite a bit of effort to organize a coordinated effort on the part of all these banks to behave in the best possible interests of those economies, and I must say this was quite successful, because as a result, these countries are now recovering very well and their banks are operating well. So, if anything, the experience of emerging Europe demonstrates that having large, solid banks operate in your country may be an important source of stability if things are properly managed.

* * *

A U.S. appeals court ruled April 15 that Wells Fargo & Co. wrongly claimed $115 million in tax deductions for the 2002 tax year from transactions the court called "abusive tax shelters." The so-called SILO deals involve banks that bought railcars or other equipment from the public agencies, claimed millions in depreciation tax benefits, and then leased the equipment back to the agency. The U.S. Court of Appeals for the Federal Circuit ruled that 26 SILO transactions involving Wells Fargo were "purely circular transactions" that were "abusive tax shelters." The appeals court said a trial judge in the case "permissibly found that the claimed tax deductions are for depreciation on property Wells Fargo never expected to own or operate, interest on debt that existed only on a balance sheet, and write-offs for the costs of transactions that amounted to nothing more than tax deduction arbitrage."

Sounds like Wells..

April 11, 2011

This, we like: JPMorgan Chase was unsuccessful in blocking from its annual shareholders' meeting a proposal to “prevent holding investments in companies that, in management’s judgment, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights,” targets J.P. Morgan Chase’s stock holdings in Chinese oil company PetroChina. It's said that the company’s work in Darfur supports ICC-charged genocide in the region....

  On Citigroup, a senior Indonesian lawmaker called for penalties against Citi amid allegations that a local employee embezzled millions of dollars from customers, as well as questions about its debt-collection practices. Speaking to reporters in Jakarta on Thursday, Emir Moeis, chairman of the parliamentary committee overseeing the financial sector in Southeast Asia's most populous country, said the central bank should impose "stern actions" on Citigroup, "ranging from freezing its credit-card business to revoking its entire license in the country depending on the degree of violations it has committed." Bank Indonesia has already ordered Citibank, the largest foreign bank by assets in the country, not to accept new clients for its Citigold wealth management unit after a staff member, Inong Malinda Dee, was detained by police on March 23 on charges of stealing at least $2 million from clients after obtaining signed blank checks from clients. Citi detected the problem in February, and the current investigation shows the fraud dates back to December. Police also seized expensive cars in Ms. Dee's possession.

April 4, 2011

Inner City Press / Fair Finance Watch last week put in to the Fed a comment in the extended comment period on Bank of Montreal / Harris - M&I, and a new timely comment on Comerica Sterling:

Using the 2010 HMDA data, Inner City Press has commented that Bank of Montreal's Harris confined African Americans to higher cost, rate spread loans 2.35 times more frequently than whites. M&I Federal Savings Bank confined African Americans to higher cost, rate spread loans 2.1 times more frequently than whites. Bank of Montreal's Harris denied the applications of African Americans 2.35 times, and Latinos two times more frequently than those of whites. The Fed extended the comment period on the merger once, but now seeks to close it with the fair lending information still outstanding.

Inner City Press has submitted another timely comment, that Comerica, which is seeking to acquire Houston-based Sterling, in 2010 confined African Americans 6.26 times more frequently than whites to higher cost, rate spread loans. At Comerica, 11.3 percent of loans to African Americans were over the rate spread, versus only 1.9 percent of loans to whites.

March 28, 2011

So Bank of America, J.P. Morgan Chase, Wells Fargo, Citigroup and GMAC's Ally Financial have been “summoned” to Washington for a March 30 meeting with state attorneys general and at least three U.S. agencies. How will the public be represented?

March 21, 2011

After the disaster at Fukushima Daiichi nuclear plant in Japan, Deane Dray, a Citigroup analyst covering GE opined that “while it is still early in the unfolding nuclear facility crisis in Japan, we are getting many questions from investors as to what GE’s liability might potentially be,” Dray says that any potential GE liability in this incident appears limited by something called “Channelling law.”

Channeling law is the long-standing nuclear industry practice that assigns the liability for damages from a nuclear failure on plant operators, regardless of fault for an incident. Channeling law is applicable in Japan, and protects equipment suppliers and the designers of nuclear facilities from liability. According to Japan’s Law on Compensation for Nuclear Damage and Law on Contract for Liability Insurance for Nuclear Damage, power plant operators must provide 120 billion yen ($1.2 billion) of coverage and the government provides coverage beyond this level.

So GE will get off cheap, Citigroup predicts...

March 14, 2011

Citigroup, shopping its CitiFinancial unit, is willing to finance a deal or retain a stake in the company. News services list several potential bidder groups. One group reportedly includes Warburg Pincus LLC and KKR & Co. LP, aligned with Boadilla del Monte, Spain-based Banco Santander SA and BlackRock Inc.. Another includes Blackstone Group LP, Brysam Global Partners, Carlyle Group LLC, Thomas H. Lee Partners LP and WL Ross & Co. LLC. Good luck...

March 7, 2011

Inner City Press / Fair Finance Watch has filed a timely Community Reinvestment Act protest below with the Federal Reserve to Hancock Holding Co. of Gulfport MS to acquire Whitney Holding Corp. of New Orleans, LA.

As simply one example, in the Hattiesburg, Mississippi Metropolitan Statistical Area in 2009, the most recent year for which Home Mortgage Disclosure Act data is available, Hancock Bank denied each and every conventional home purchase application from African Americans, while make 56 such loans to whites (and none to Hispanics).

In its headquarters Gulfport MSA, Hancock Bank denied conventional home purchase loan applications from African Americans and Hispanics twice as often as those of whites.

To impose this record on Whitney's service area, including New Orleans, would have adverse impacts, which militate for public hearings and the denial of Hancock's applications.

In the New Orleans MSA in 2009, Hancock Bank of Louisiana made 55 conventional home purchase loans to whites, bot only three to African Americans, and none to Hispanics.

In the Baton Rouge MSA in 2009, Hancock Bank of Louisiana denied conventional home purchase loan applications from African Americans 2.35 times more frequently, and of Hispanics 2.91 times more frequently, that those of whites.

In the Mobile MSA in 2009, Hancock Ban of Alabama made nine conventional home purchase loans to whites, and none to African Americans or Hispanics.

In the Tallahassee MSA in 2009, Hancock Bank of Florida denied the conventional home purchase loan applications of African American a whopping 8.6 times more frequently than those of whites.

To impose this record on Whitney's service area, including New Orleans, would have adverse impacts, which militate for public hearings and the denial of Hancock's applications.

In the New Orleans MSA in 2009, Hancock Bank of Louisiana made 55 conventional home purchase loans to whites, bot only three to African Americans, and none to Hispanics.

In the Baton Rouge MSA in 2009, Hancock Bank of Louisiana denied conventional home purchase loan applications from African Americans 2.35 times more frequently, and of Hispanics 2.91 times more frequently, that those of whites.

Again, this militates for public hearings and the denial of Hancock's applications.

ICP also alleges that the transaction would have anti-competitive and anti-consumer effects, and timely requests a public hearing on the branch closings and loss of service which would result. Full disclosure of all branches that would be closed for the next three years should be made before the comment period closed, to allow input. ICP has requested an extension of the comment period.

* * *

   In other news: not only did Gaddafi's Libyan Investment Authority have a stake in HSBC -- now HSBC makes money from this, by not having to pay out any divident on the frozen stake....

February 28, 2011

JPMorgan Chase's cover up of multi billion dollar fund transfers by Madoff is an outrage, sure - but what were the regulators doing?

February 21, 2011

What's in a name? Citigroup renamed its discredited predatory lending unit CitiFinancial as “OneMain Financial,” renaming NASCAR teams in the process and now trying to sell it. But who would buy it - Blackstone? Why?

February 14, 2011

Among the list of banks that the sharks at Keefe Bruyette & Woods pegged last week as takeover bait are KeyCorp, National Penn Bancshares (in which Warburg Pincas has just upped its stake), Synovus Financial Corp and Regions Financial Corporation, pegged by some to hook up with CIT....

Shareholders have filed 76 political contribution resolutions so far this year, according to ISS. The measures mainly seek semi-annual reports about direct and indirect corporate spending for candidates and referendums. The first 2011 vote is set for April 21 at Citigroup Inc.'s annual meeting. A similar proposal won 30.3% of votes cast last year.

February 7, 2011

As noted by SNL, Bruce Berkowitz of Fairholme Capital Management LLC, which is the largest shareholder of CIT and also one of Region's largest stakeholders, hinted at a merger between CIT Group Inc. and Regions Financial Corp. during an interview with CNBC on Feb. 2, SNL has noted. Asked about consolidation, he said Regions has a "great low cost deposit base." He continued: "We also have CIT. We're the largest owner. CIT is a great business. What a sweet spot they're in … The only thing CIT needs is a low cost deposit base. Gee, I'm going to have to think of some candidates on that one."

BB&T Corp. Chairman, President and CEO Kelly King said the company's intention to be "aggressive" in its Texas expansion does not mean paying high prices to buy franchises. King, speaking via telephone at a financial conference Feb. 2, said that while Texas is an important region for BB&T, "that does not mean we will run out and take over Texas tomorrow." Who thought they would?

January 31, 2011

With Susquehanna Bancshares Inc. agreeing to acquire Abington Bancorp in Pennsylvania for $273 million, it strikes ICP/Fair Finance Watch that Susquehanna makes a disproportionately large percentage of African American applicants NOT get loans, including by making them “withdraw” their applications. Watch this site.

Last week J.P. Morgan Chase & Co. admitted it had overcharged more than 4,000 family members and foreclosed on 14, problems it turned up after an internal review. Chase is facing a civil lawsuit in South Carolina from a service member who claims he was overcharged and is seeking punitive damages. The Servicemembers Civil Relief Act caps interest rates for loans to active-duty military members at a 6% annual rate and shields them from foreclosure. The law applies to "any debt incurred" by a service member, including credit cards and car loans. The Delaware AG's office has demanded action from Citigroup Inc., Bank of America Corp., Wells Fargo & Co., PNC Financial Services Group Inc., Ally Financial Inc. and Goldman Sachs Group Inc.'s Litton Loans.

January 24, 2011

Let's review: the "concentration limit" forbids big financial firms from merging or buying another bank or large company if it results in the firm having liabilities greater than 10% of total U.S. liabilities. The limit "could also have the beneficial effect of causing the largest financial companies to either shed risk or raise capital to reduce their liabilities so as to permit additional acquisitions," the regulators said in the study. They didn't indicate the need to break up the biggest banks, as some officials would like to see. Federal Reserve Bank of Kansas City President Thomas Hoenig, for example, has spoken in favor of dismantling large banks. Regulators now have nine months to impose concentration limits on the banking industry. It will be up to the Federal Reserve to calculate banks' liabilities and implement the rule. Institutions that may be affected include J.P. Morgan Chase, Citigroup and Bank of America...

January 17, 2011

Citigroup in India claimed last week it is working out "fair compensation" for the customers affected by a scandal at its banking branch in the northern Indian town of Gurgaon. "We have been reconciling amounts involved with impacted customers...this process [of working out compensation] will happen over a period of time," the bank said in a statement. Police in Gurgaon are investigating a case in which an employee at the Citibank branch allegedly colluded with others to siphon off an estimated $67.2 million from wealth-management customers. The alleged scam included making false promises -- sort of like Citi's predatory lending...

Another predatory lenders, or at least servicer and forecloser -- Deutsche Bank -- is lurching toward the a sale to LGT Group of BHF-Bank, which it acquired as part of its purchase of Sal. Oppenheim jr. & Cie. SCA in March 2010. Handelsblatt reported Jan. 11 that the Liechtenstein-based bank and Deutsche Bank expect to close the deal within the next few weeks, having been in exclusive talks since December 2010. The deal is still subject to the approval of Germany's market regulator, Bafin...

January 10, 2011

India's capital markets regulator and the central bank are combining efforts in the investigation of a $70 million fraud, involving an employee of Citigroup Inc.'s Indian wealth management operations, even as the net is cast wider to get to the bottom of the scam. "There are a whole lot of investigations that are being conducted. We need to get a sense of what went wrong first...Co-ordination is happening very much now and the Reserve Bank of India and SEBI are working together to find out what went wrong.” The name is Citigroup....

January 3, 2011

J.P. Morgan Chase has been sued by the trustee attempting to recoup money for the companies of convicted Ponzi schemer Tom Petters. The money involved includes millions the bank took from Petters' accounts after his downfall and profits and fees it got from Petters' purchase of iconic camera company Polaroid. In a filing in federal court in Minnesota last week, Douglas A. Kelley, the court-appointed receiver for Petters' companies, alleged that J.P. Morgan knew, or should have known, that funds it seized from Petters' J.P. Morgan accounts after his arrest were fraudulently obtained. The suit also reiterated that J.P. Morgan and its One Equity Partners also knew, or should have known, the funds used by Petters to buy Polaroid were also from his Ponzi scheme....

December 27, 2010

Deutsche Bank AG said last week it is in talks to sell its BHF Bank unit to Liechtenstein's LGT Group. Deutsche Bank acquired BHF Bank when it took over private German bank Sal Oppenheim earlier this year with an aim of boosting its private-banking and wealth-management business. Can you say, money laundering and tax evasion?

December 20, 2010

Ah the revolving door -- Obama administration official Peter Orszag is going to work for Citigroup, as Clinton's Bob Rubin did. Any more predatory lending? Or was that “democratization of credit”?

December 13, 2010

HSBC's failure in the USA with Household Finance was profiled in a lengthy Reuters piece last week. Missing from the analysis was HSBC's era of buying near failing banks in Brazil and elsewhere. This is what gave them the over-confidence about Household. Now, they want to try more inroads in China. We'll see.

December 6, 2010

IMF Fudges on Ireland & Democracy, on Africa's Reduced Votes, Maldives Deferred

By Matthew Russell Lee

UNITED NATIONS, December 2 -- At the IMF's press briefing on December 2, spokesperson Caroline Atkinson took question after question about Ireland while deferring answers on the Maldives and East African Community and ignoring questions submitted about IMF chief Dominique Strauss Kahn's statement that his successor should come from outside the US or EU.

The IMF talks much about governance reform, but even under its much hyped recent changes, Africa as a continent will see its voting share drop from 5.9 per cent to 5.6 per cent. Inner City Press asked Thursday about this, and this was one question Ms. Atkinson took. She referred to “dynamic and emerging” economies -- apparently not in Africa -- but said that lower income countries would also have their voices amplified.

Inner City press had submitted this simple question: “In light of Mr Strauss Kahn's statement that next IMF chief should come from outside the US and EU, is he going to formally propose that to the Board or any other step?” The question was not taken or acknowledged. We'll see.

On Ireland, despite massive protests and statements by the opposition that they are not bound by the deal with the IMF, Ms. Atkinson said that the IMF had “discussions with the major, uh, the opposition parties” and was “satisfied” enough to present the deal to the IMF Executive Board.

But what does this mean? Are successive governments bound by IMF deals? Inner City Press had first submitted this question: “on Ireland, what is the IMF's position on approvals needed inside the country?” But the question was neither taken nor even acknowledged.
 
  Also on democracy, Ms. Atkinson was asked about Ukraine's President vetoing an IMF suggested tax increase due to protest. Ms. Atkinson said she hadn't heard of it, but would provide information later if she did. Inner City Press had asked it. So again, we'll see.