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.

February 24, 2020

RBC Planning Bank Only For the Richest Highlights Community Reinvestment Act Fight

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SOUTH BRONX, Feb 22 – Royal Bank of Canada has said openly it plans a new bank in the United States only for the most affluent. This steps right in the middle of a bank deregulatory move by U.S. Comptroller of the Current Joseph Otting, and comes after Fair Finance Watch and Inner City Press documented already disparate lending by RBC and its apparently not-enough Los Angeles-based prey, City National, here and here in the LA Times.

  Royal Bank of Canada plans to open a consumer bank in the United States early next year targeting wealthy clients, with the aim of expanding deposits, its chief financial officer said on February 21. “We want to broaden the product and service offering that we have (in the U.S.), similar to what we have in Canada,” CFO Rod Bolger said. RBC’s consumer bank would initially focus on high-net-worth clients in U.S. but eventually target the 'mass affluent' as well, he said.  RBC’s U.S. business, including City National bank, which it acquired in 2015, accounts for 23% of total revenue.

February 17, 2020

On Crypto IMF Tells Inner City Press It Did Not Suggest Any Digital Currency to ECCU

By Matthew Russell Lee, Patreon
BBC - Decrypt - LightRead - Honduras - Source

SDNY COURTHOUSE, Feb 13 – Before the International Monetary Fund's February 13 embargoed briefing, Inner City Press asked the IMF to confirm or deny something in the crypto-currency media, that "IMF ADVISES EASTERN CARIBBEAN STATES TO TRIAL DIGITAL CURRENCY."

Inner City Press covers not only the IMF but also all things crypto in the U.S. District Court for the Southern District of New York, for example SEC v. Telegram and the prosecution of Virgil Griffith formerly of Ethereum.   Inner City Press asked the IMF, "It is reported that to the Eastern Caribbean Currency Union, the IMF suggests to experiment with a common digital currency, on a blockchain. Can you elaborate?"  

 While IMF spokesperson Gerry Rice during the briefing answered Inner City Press' Somalia and Egypt questions, it was afterward that this answer arrived by e-mail, "attributable to Gerry Rice, IMF Spokesman and Director of Communications:    

'The IMF did not suggest to experiment with a common digital currency. In March 2019, the Eastern Caribbean Central Bank (ECCB) launched a central bank digital currency pilot project, using blockchain technology, on its own initiative.

  As noted in the IMF Concluding Statement of the 2019 discussion on the common policies of the Eastern Caribbean Currency Union (ECCU) member countries, the digital currency could expose the ECCB and the financial system to various risks, including for financial intermediation, financial integrity, and cybersecurity. Given these risks of the digital currency, the IMF stressed that the ongoing pilot project should proceed cautiously.”   

Manafort Lender Steven Calk Cannot Move Trial to Chicago SDNY Judge Schofield Rules

By Matthew Russell Lee, Exclusive Patreon
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, Feb 14 – Steven M. Calk of FDIC-regulated Federal Savings Bank was presented and arraigned on May 23 in the U.S. District Court for the Southern District of New York for financial institution bribery for corruptly using his position with FSB to issue $16 million in high-risk loans to Paul Manafort in a bid to obtain a senior position with the Trump administration, namely Undersecretary of the Army.

  On Friday, November 8 Calk filed a motion to move the case to his hometown of Chicago, arguing in part that his "business" there will be disrupted if the case is not transferred. He says he "remains an owner of TFSB." But as Inner City Press noted on November 8, he ignores the New York connections of his Manafort loans.

 Now on February 12, Calk's motion to move the case has been denied: "OPINION AND ORDER as to Stephen M. Calk: As the location of the Defendant is the only factor that weighs in favor of transfer, and that factor is not dispositive, Platt, 376 U.S. at 24546; accord Parrilla, 2014 WL 1621487, at *14, Defendant's motion for transfer is DENIED.The Clerk of Court is respectfully directed to close the motion at Docket No. 33. (Signed by Judge Lorna G. Schofield on 2/12/2020)."  Inner City Press will continue to follow this case.

  An August 26 filing in the case says that the SDNY prosecutors have as discovering "produced in excess of 1.2 million pages to date, the majority of which were from files of this Office" - in New York.

February 10, 2020

In OneCoin Case Now David Pike Charged With Bank Fraud For Scrubbing Ruja Ignatova Name

By Matthew Russell Lee, Patreon
BBC - Decrypt - LightRead - Honduras - Source

SDNY COURTHOUSE, Feb 7 – David Pike was repeatedly mentioned during the November 2019 trial which culminated in a jury convicting Mark Scott of money laundering for OneCoin, before U.S. District Court for the Southern District of New York Judge Edgardo Ramos.  

  But Pike did not appear in the trial as a cooperating witness, as did OneCoin's now disappeared founder Ruja Ignatova's brother Konstantin Ignatov. See Inner City Press' first coverage here, and pick-ups here and here (BBC). Pike was not a defendant, or even in the same indictment as Scott and the OneCoin siblings.  

 Now on February 7 there's been the filing of a superseding indictment against Pike, after his waiver of indictment. Pike is indicted for Conspiracy to Commit Bank Fraud, with a quote from his email about "scrubbing" Ruja Ignatova from documents. More on Patreon here.

February 3, 2020

On Luanda Leaks Inner City Press Asked IMF Which Says 3 Year Program Includes Fighting Corruption

By Matthew Russell Lee, CJR PFT NY Post

NEW YORK CITY, Dec 19 – When the International Monetary Fund held its biweekly embargoed media briefing on November 7, Inner City Press submitted questions including on Equatorial Guinea, see below.

On January 30, Inner City Press in connection with thee 9:30 am embargoed briefing submitted questions about Luanda Leaks, Cameroon and some other topics. On Luanda Leaks, Inner City Press asked, " On Luanda Leaks, what have been the IMF's findings and actions given the evidence that has come out in the growing scandal?" This was emailed before 11 am:

    Luanda leaks     We do not comment on ongoing criminal investigations, trials and leaked documents.     Angola has a three-year EFF program with the IMF. As in other IMF programs, the fight against corruption is an important part of the program with Angola. This involves, inter alia, the strengthening of relevant legislation, such as working on an enhanced AML/CFT law, and other laws promoting stronger governance in public institutions. The effort also involves increased public transparency, for instance the timely publication of certified annual accounts by state-owned enterprises and increased use of the government’s electronic platform for procurement.   

Cameroon     The Executive Board has completed the fifth review of the arrangement under the Extended Credit Facility for Cameroon on January 22. For more details I would kindly suggest to consult our press release here

On November 7 Inner City Press asked: "On Equatorial Guinea, what is the status (and dollar volume) of the IMF's consideration of a program, and the weighing if at all on the length of time Obiang has been in power? "The loan, the amount of which has not been revealed, is scheduled to be considered by the IMF executive board in December."

 From the IMF's November 7 transcript, with video on page: "There's another question from Matthew, which I'll take on Equatorial Guinea, asking what's the status and the volume of the IMF's consideration of a program for Equatorial Guinea and the weighing, if at all, length of time that President Obiang has been in power. On that, I can say that just recently on October 21st, the Equatorial Guinea authorities and an IMF team reached staff level agreement on a three-year arrangement. Again, under the extended Fund facility, which is the more concessional arm of the IMF's lending. The authorities are working on an agreed set of measures that could allow the new program to be considered by the IMF's Executive Board in December. And Matthew had asked about the volume. We're looking at the program that could be supported by approximately $280 million. So, that's four [sic] Equatorial Guinea.  And anything else in the room?"

On September 26 Spokesperson already then Gerry Rice,  for new Managing Director Kristalina Georgieva, on Turkey said "this is also from Matthew, he has asked ' On Turkey, what is the IMF's response to ruling AKP deputy chair Numan Kurtulmuş criticizing a meeting between IMF & opposition parties, saying Turkey has "closed the topic with the IMF."'

  Then Rice said it is normal to meet with opposition - except in Cameroon, apparently - and that there has been no indication from the Turkish authorities they are looking for a program.

  On September 12 Inner City Press asked the IMF: "On Zimbabwe, please confirm or deny IMF's Patrick Imam saying that "it is clear, compared to the projections of the original SMP, which did not foresee the severity of the drought and its secondary impact, nor the electricity shock, that growth is almost certainly going to be revised downwards and inflation upwards compared to the original SMP forecasts." And what is the IMF's view of the (economic) impact of the crack down on protest and human rights defenders?"

  Spokesperson Gerry Rice said that the IMF team is in Harare, from September 5 to 17. On human rights, he said the IMF "focuses on economics" and that such questions should be directed to... bilateral creditor. At least he didn't say the UN, which under Guterres doesn't care.

January 27, 2020

Amid Credit Suisse Denial in Mozambique Scandal Corrupt Roles of UNSG Guterres

By Matthew Russell Lee, CJR PFT CEFC Video

FEDERAL COURTHOUSE, Dec 2 – As international bribery scandals particularly in Portuguese speaking countries involving UN Secretary General Antonio Guterres and his family expand but are not acted on by US prosecutors, apparently due to immunity, their EDNY case against Jean Boustani regarding Mozambique resulted on December 2 in not guilty verdicts.

  Amid Guterres' cover-up of his role in Lisbon based Gulbenkian Foundation's attempted sale of its Partex Oil and Gas' operations in Angola and elsewhere, there's been this other case in Federal Court in New York City, this time in Brooklyn, with another UN bribery echo. Here's the (redacted) indictment. On December 2 an EDNY jury acquitted Boustani of three counts: conspiracy to commit securities fraud, wire fraud conspiracy and conspiracy to commit money laundering.   Boustani testified and admitted to making payments to officials in Mozambique but denied that he defrauded investors.  Credit Suisse's Global Financing Group's Andrew Pearse, Detelina Subeva and Surjan Singh pled guilty; Pearse and Singh testified for the prosecution at Boustani's trial.  Three former officials of Mozambique, including ex-Finance Minister Manuel Chang, are also charged in the case, as is Privinvest's chief financial officer, Najib Allam, but they have not made U.S. court appearances. Chang has been detained in South Africa pending possible extradition to the U.S.  The government was represented by Hiral D. Mehta and Mark E. Bini of the US Attorney's Office for the Eastern District of New York, Sean W. O'Donnell and Margaret Moeser of DOJ's Money Laundering and Asset Recovery Section as well as David M. Fuhr and Katherine Nielsen of DOJ's Fraud Section.  Boustani was represented by Randall Jackson, Michael S. Schachter, Casey E. Donnelly and Philip F. DiSanto of Willkie Farr & Gallagher LLP and Daniel Gitner of Lankler Siffert & Wohl LLP.  The case is US v. Boustani et al., 18-cr-00681 (Kuntz).

  Now Credit Suisse has claimed that the loan of 622 million US dollars that it extended in 2013 to the fraudulent Mozambican company Proindicus is legitimate, and the Mozambican government must pay up for defaulting on the loan.  Credit Suisse was replying this week in a London court to the case made by the government that the loan was illegal, and that it is Credit Suisse that should reimburse Mozambique, and not the other way round.  According to a report by the Portuguese news agency Lusa, Credit Suisse argues that the Mozambican government guarantee for the Proindicus loan is binding, and that the bank is entitled to the payment of damages.

 What Lusa does not report is Antonio Guterres' links not only to UN briber CEFC China Energy, but the money he took from Angola's dos Santos family to get / buy the UNSG position. We'll have more on this.

January 20, 2020

In SDNY Judge Cave Declines To Stay Millennium Discovery Against Citi BOM Chase and Truist

By Matthew Russell Lee, Patreon
BBC - Decrypt - LightRead - Honduras - Source

SDNY COURTHOUSE, Jan 15 – When Millennium Laboratories, one of the largest urine testing companies in the US, declared bankruptcy in 2015, it spawned litigation that gave rise in the U.S. District Court for the Southern District of New York to a January 10 teleconference before and January 15 order by SDNY Magistrate Judge Sarah L. Cave. 

 The plaintiff, Marc S. Kirschner as trustee of the post-bankruptcy litigation trust, was opposing the bank defendants' request to essentially stay discovery in the proceeding. Kirschner argued that he needs access to documents in order to keep up with the discovery that is going forward in a related Delaware case.

   The banks being sued include JP Morgan Chase, Citigroup, Bank of Montreal and SunTrust, now known as Truist since it merged with BB&T.

    During the January 10 teleconference, which Inner City Press covered with the permission of the Court, the banks' lawyers argued that it is a threshold legal issue whether the syndicated leveraged loan at issue is a security, an issue that should be determined before discovery proceeds.

   But on January 15, Magistrate Judge Cave found "that is a threshold  question only with respect to the state securities law claims... Plaintiff has asserted five other common law causes of action for which that question is not necessarily  determinative."

 Therefore Judge Cave ruled that "a further stay of discovery is not  warranted, and that discovery should continue, as it has been, in coordination with the Delaware  Action.  Accordingly, this action having been referred to this Court for general pretrial  supervision, a case management conference will be held on Tuesday, February 25."

January 13, 2020

Telegram Said SEC Info Request Covers 12+ Nations Now SEC Cites Redacted Durov Depo