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.

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.

Forbes points out that Wikileaks founder Julian Assange has said that he’s going to make a major U.S. bank the focus of a coming Wikileaks dump. And now writer Andy Greenberg also spotlights a previous interview in Computer World in which Assange said he’s sitting on a stockpile of data from Bank of America. Coincidence?

Update of December 6, 2010: Forbes points out that Wikileaks founder Julian Assange has said that he’s going to make a major U.S. bank the focus of a coming Wikileaks dump. And now writer Andy Greenberg also spotlights a previous interview in Computer World in which Assange said he’s sitting on a stockpile of data from Bank of America. Coincidence?

November 29, 2010

The Journal: “Bank of America Corp. and J.P. Morgan Chase & Co. have hit snags in efforts to restart nearly 230,000 foreclosures across the U.S., meaning some cases are likely to remain in limbo until early next year. Several complications are slowing the process, ranging from the hiring of new law firms to handle foreclosure paperwork to making sure that correct procedures are being followed as new or revised files are submitted in the 23 states where court approval is required for foreclosures. The delays aren't a sign that documentation problems are worse than previously acknowledged by the nation's two largest banks by assets, according to the companies. And Bank of America, based in Charlotte, N.C., and J.P. Morgan, of New York, haven't backed down from their insistence that no one was wrongly foreclosed on as a result of errors in affidavits or other loan documents.” We'll see.

November 22, 2010

Citigroup says it is reviewing about 14,000 foreclosure cases for potential errors, making it the latest bank to acknowledge flaws in how it handled documents used to evict homeowners. In testimony prepared for delivery at a House subcommittee hearing Thursday, Harold Lewis, a managing director of the bank's CitiMortgage unit, is expected to say Citi is reviewing about 10,000 foreclosure documents to ensure they are correct. Another 4,000 are being reviewed because they may not have been signed with a notary public present, as required by state law.”

November 15, 2010

Also brewing is an application involving Spanish savings bank Caja Madrid, and an ownership stake in City National Bank of Florida. Regulators have slapped around the latter, while Caja Madrid's record hardly gives confidence. A showdown may be looming. The application has been requested from officials at the Federal Reserve Bank of Atlanta. Watch this site.

November 8, 2010

   Citigroup, Wells Fargo and Bank of America face lawsuits over misstatements in their underwriting of residential mortgage-backed securities, the banks belatedly disclosed Friday in quarterly regulatory filings. BofA said in its filing that it faces suits over more than $375 billion in mortgage-backed securities.The Federal Home Loan Bank of Chicago filed suit in state courts in Illinois and California against a total of 17 institutions, including units of H&R Block and Barclays last month. The Federal Home Loan Bank of Indianapolis, using similar language, sued 10 institutions, including Citi, J.P. Morgan Chase and GMAC Mortgage Group, a unit of Ally Financial Inc., in Indiana state court last month. Cambridge Place Investment Management, a $3.1 billion manager of asset-backed debt, is suing a dozen banks including Citi, Morgan Stanley, Goldman Sachs and J.P. Morgan in federal court...

November 1, 2010

“Citigroup Global Markets Ltd. has bought the Israeli government's entire 11.69% stake in Israel Discount Bank Ltd. (DSCT.TV) for 832 million shekels ($231 million) and will distribute those shares to other institutional investors, Discount Bank said Tuesday” of last week. Why isn't a Federal Reserve Board review required for this?

Yes, Household had a bad reputation well before HSBC decided to buy them. For example, when Household bought Beneficial Finance, Inner City Press / Fair Finance Watch received numerous complaints from consumers, and filed comments with regulators against the combination. As such, HSBC was on notice of these concerns.

While the regulators were considering HSBC's application to buy Household, Inner City Press / Fair Finance Watch made its views known not only to the regulators but also to board members of HSBC. The deal was structured so as to avoid Community Reinvestment Act review (Household's thrift was extinguished, its “non bank bank” (a credit card bank) did not trigger CRA review.

Inner City Press / Fair Finance Watch was called by whistleblowing employees of Household who said they were ordered to refinance all loans over a certain number of days delinquent - “putting lipstick on the pig,” they called it. Household's performance did not get better, more probably worse, in that it was ultimately managed from further away, and by management - including Mr. Flint - which was arrogant, wouldn't admit there were any problems.

Inner City Press / Fair Finance Watch had been aware of Household as a predatory lender since well before HSBC's application. HSBC battened down the hatches, tried to evade CRA review, never made improvements...

October 18, 2010

Why not impose a moratorium on foreclosures? The excuse given last week was that it would freeze up the economy. Several participants in a meeting with President Obama came back with the same sound byte, that in Nevada over 50% of home sales are on properties that have been foreclosed on.

Why was Nevada the example? Could it have to do with Harry Reid? Vice President Joe Biden is headed to Reno this week, to stump for Reid.

October 11, 2010

Bank of America Corp. is facing an Oct. 8 deadline to halt foreclosures in North Carolina, according to a letter to the bank from state Attorney General as reported by SNL. He noted in the letter, dated Oct. 5, that while BofA has halted foreclosure proceedings in 23 states across the country, North Carolina was not among them. "As soon as possible and by no later than the close of business on Oct. 8, 2010, please confirm that Bank of America has halted foreclosure proceedings in North Carolina,"he said. Additionally, he requests that the bank provide a description of how it verifies and documents information related to a foreclosure before an affidavit is submitted. He also sent letters to several other banks and mortgage lenders, among them Wells Fargo & Co., JPMorgan Chase & Co., Citigroup Inc. unit CitiMortgage Inc., SunTrust Banks Inc. unit SunTrust Mortgage Inc., PHH Corp. unit PHH Mortgage Corp., IMB Management Holdings LP unit OneWest Bank FSB, PNC Financial Services Group Inc., Lehman Brothers Holdings Inc. unit Aurora Bank FSB, U.S. Bancorp unit U.S. Bank NA, HSBC Holdings plc unit HSBC Mortgage Services, MetLife Inc. unit MetLife Bank NA, BB&T Corp. and Invesco Ltd. unit American Home Mortgage Servicing Inc. In those letters, Cooper asked the companies to provide information by Oct. 12 on how they are re-examining their foreclosure process in North Carolina and how foreclosure information is documented and verified. Watch this site.

October 4, 2010

So Bernanke last week said the media ten to “make the good times too hot and the bad times too cold.” This from a man who, like his predecessor, ignored timely comments that Citigroup et al were predatory lenders...

September 27, 2010

While much of the financial press puts out laudatory softball pieces about Doug Flint as new chief of HSBC -- a sample one is below -- Inner City Press remembers him from conference calls on HSBC's acquisition of Household International, dissembling and setting up a deal that hurt not only consumers but also HSBC's shareholders. Good job, Doug...

Sample puff piece: “Douglas Flint (left) may be the “compromise candidate” for the role of HSBC Holdings chairman following a power struggle, but the straight-talking chief financial officer of the U.K.’s largest bank is highly regarded by analysts and has a strong track record in regulation and corporate governance. The 55-year old Scotsman looks set to take over from Stephen Green as HSBC chairman once the appointment is rubber-stamped by the board in Shanghai next week, beating Michael Geoghegan to the post.... According to this Wall Street Journal article, the industry considers Flint “rigorous, shrewd and independent-minded.'”

September 20, 2010

From JPMorgan Chase: “We are sorry for the difficulties that recently affected Chase.com, and we apologize for not communicating better with you during this issue.” Yeah, right...

September 13, 2010

On Pakistan, IMF Won't Explain Lack of Debt Relief, Why & When Loans, MDG Games

UNITED NATIONS, September 9 -- Despite the flooding crisis in Pakistan, the International Monetary Fund is offering loans, which barely make up for the debt payments Pakistan is making. Inner City Press on September 9 asked IMF Spokesperson Caroline Atkinson the following question:

“In Pakistan, given the scope of the flooding and that 60% of the population lives in poverty, why is the IMF not considering debt forgiveness, and grants instead of loans? Does IMF dispute that Pakistan's debt payments ($500 million) are larger than the $450 million loan?”

Ms. Atkinson paraphrased the first part of the question, and declined to read out the second part. She said there was a question from this reporter, that “talks about the scope of the flooding, which is indeed terrible... We are assessing, there is a damage assessment by the World Bank and ADB [Asia Development Bank], results in late October.”

But there is no dispute that Pakistan is deeply damaged. Why use the damage assessment as an excuse? Ms. Atkinson went on to say that Pakistan's financial minister was at the IMF last week, discussing an ENDA (emergency) loan that she said will be approved by the board on a date not even set yet.

But she did not read out, or answer, this: “Does IMF dispute that Pakistan's debt payments ($500 million) are larger than the $450 million loan?”

Nor did Ms. Atkinson acknowledge another question Inner City Press submitted, after in her introduction she presented the IMF's commitment to what she called the “Millennium Development Challenge Goals” -- seeming to conflate the MDGs with the U.S. Millennium Challenge.

Inner City Press submitted this question, in the same manner as the paraphrased Pakistan question, that NGOs have

“criticized the IMF 'for appearing to retreat to its “traditional position" and not providing enough flexibility on unwinding deficits without harming development spending.' Your response?”

To this, no answer. Watch this site.

Footnote: The IMF's Ms. Atkinson did read out and provide a response to an Inner City Press question on Serbia. Given the vote later today in the UN General Assembly on Serbia's resolution about the International Court of Justice, the IMF's answer will be reported at that time.

* * *

UK disclosure: “BAE Systems Plc, a global company engaged in the development, delivery and support of advanced defense, security and aerospace systems announced Monday that it has engaged Wells Fargo and JP Morgan to advise on strategic options with regard to the Platform Solutions business, including a possible sale.” Ah, arms manufacturers...

September 6, 2010

The war over New York's Stuyvesant Town and Peter Cooper Village apartment complex has heated up as lenders including Bank of America and US Bancorp have moved to foreclose and for a public auction for the 56-building complex on Oct. 4...

From the Inner City Press department of No Honor Among Thieves: according to a complaint filed July 23 in U.S. District Court for the Southern District of Indiana, Regions Bank and Wells Fargo equally backed a $95 million loan to Corporate Plaza Partners LLC to build the 19-story, 376,000-square-foot NASCAR office building in Charlotte. When Corporate Plaza Partners' parent company filed for bankruptcy, Regions said, Wells Fargo, the designated agent of the loan, failed to aggressively go after the company for the balance of the loan and protect itself and Regions from taking "potentially huge losses."

"Regions expected that Wells Fargo could be trusted to administer the CPP Loan even-handedly and in the best interests of both lenders," Regions said in its complaint. "As alleged herein, however, Wells Fargo repeatedly ignored loan defaults, rebuffed demands by Regions to exercise collection remedies, and allowed the collateral to diminish drastically in value." According to court files reviewed by SNL, a Wells Fargo officer said June 24 that the lenders faced a $30 million to $40 million loss on the loan.

"The loss suffered by Regions is a direct and proximate result of Wells Fargo's breach of express provisions of the CPP Loan agreement as well as the implied covenant of good faith and fair dealing," Regions said in its complaint.

The NASCAR office building is essentially complete today, Regions said, but its market value fell in 2010 as vacancy rates across the Charlotte area increased. In June, Regions said, Wells Fargo proposed to buy Regions' share in the loan at about 42 cents on the dollar.

We note the proposed $1.5 billion merger of First Niagara and New Alliance, the Community Reinvestment Act implications of which should be explored in coming weeks....

On AIG's sale of 80% of American General to Fortress -- will AIG still have to file American General's HMDA data? Or is that subject to some sort of “control” test? We aim to find out.

From DJ: “Colombia's financial institutions posted a combined net profit of 3.08 trillion Colombian pesos ($1.70 billion) during the first half of the year, up 14% from the same period in 2009, the country's banking regulator said Friday. The increase was due to higher revenues from lending, the regulator said...Among foreign-owned banks, the local unit of Spain's Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC) earned COP232 billion, up from COP204 billion. The local unit of Spain's Banco Santander SA (STD, SAN.MC) reported its net profit rose 17% to COP53 billion from COP45 billion. The local unit of U.K. bank HSBC PLC (HBC, HSBA.LN) posted a net loss of COP20 billion. The loss compares with a net loss of COP7.4 billion in the first half of 2009. The local unit of Citigroup Inc. (C) reported a profit of COP73 billion, 43% lower than in the same period a year ago.”

And what about the FARC? What about Santos?

Much too little, much too late: “On Thursday, Citi agreed to pay $75 million to settle SEC civil charges that its officials vastly understated Citi's exposure, saying it had declined to just $13 billion in its second and third-quarter earnings releases of 2007, withholding the full extent of its risky assets. The SEC also charged two executives who played key roles in the preparation of Citi's quarterly earnings statements, former chief financial officer Gary Crittenden and former investor-relations chief Arthur Tildesley Jr., who agreed to pay $100,000 and $80,000 respectively to settle the charges.”

IMF Cuts Off Funds for Central Africa, Goes on Vacation, Ignores Guinea Bissau, Ukraine, Hungary and even Haiti Questions

UNITED NATIONS, July 24 -- The IMF, which positions itself as concerned about lower income countries and people, cut off funding to the central bank for six Central African states, and then went on vacation.

  The cut off was justified, based on corruption. But when will the problem be solved and the funding be restored?

   On July 22, Inner City Press submitted a series of questions to the IMF in connection with Spokesperson Caroline Atkinson's online briefing, which we can no longer call fortnightly.

  Of the questions, only one was read out loud, about the Central African bank. The other questions were neither read nor answered. And there will be no next briefing until late August, after the IMF Board's vacation under August 20. (In fairness to the IMF, the World Bank also followed with a cut-off.)

On July 22, Ms. Atkinson read out:

“thanks to those of you who participated online. And I’ll get back to any of you that have further questions that we haven’t been able to take. Actually, I just see—sorry, there’s another one [from Inner City Press] that’s flashed up, asking about the status of the Fund’s review of the Bank of Central African States and 'when will the suspension and disbursements to countries—well, to the BEAC, which then on lends to countries be reconsidered?'

“And just note that we have been closely engaged with the authorities at the BEAC and with the CEMAC member country authorities to help them to address the underlying issues that allowed it to take place. And we hope very much that we can reach satisfactory understandings that will provide assurance that money disbursed through the BEAC will be properly safeguarded and that, therefore, we can continue with the disbursements. And, of course, we’ll let you know when that happens. Okay, thank you very much.”

She also said, “the Executive Board will be on an informal recess from Monday, August 2, until Friday, August 20. We will also, by the way, be having our next press briefing probably late in August.”

So what will happen with BEAC, the central bank for the six states of the Economic Community of Central African States (CEMAC) -- Gabon, Equatorial Guinea, Cameroon, Chad, Congo Republic and Central African Republic?  CAR for example is in chaos, with elections supposedly upcoming but rebels active in Birao and elsewhere.

In the interim, in Cameroon the Finance Ministry was robbed. The Minister of Finance, Essimi Menye said FCFA 700 million as reported by the media as having been stolen would have required a pickup vehicle to transport. He also said such a sum of money was not kept at the Ministry rather at the Bank of Central African States, BEAC. Hmm...

Inner City Press' other questions, which the IMF has yet to acknowledge much less respond to:

On Guinea-Bissau, does naming of coup leader to the top Army post have an impact on IMF re-scheduling consideration of HIPC & MDRI?

Also on Hungary, why is the IMF opposed to Orban's proposed bank tax?

Regarding Haiti, some have questioned why the IMF's new $60 million is not a grant but a loan. Can you please explain?

On Ukraine, will the Board on 7/28 be considering both a $3 billion loan & breaches of information disclosure requirements by Ukraine? What's the connection between the two?

Watch this site.

July 19, 2010

A securities arbitration panel ordered J.P. Morgan Securities to pay a customer more than $2 million, including sanctions... A Financial Industry Regulatory Authority arbitration panel in Richmond, Va., awarded $1.8 million, plus interest from May 2008. The Finra panel also made an additional--and rare--award of sanctions in the form of $218,000 in legal fees, $25,000 in expert witness fees, and $9,000 in costs, according to the award, dated July 8. It found that J.P. Morgan and its lawyer, Stephanie Karn of Richmond, Va., allegedly weren't "wholly forthcoming.”

Why are we not surprised?

At Citigroup, "I'm very pleased we have produced solid operating results for the second consecutive quarter," Chief Executive Vikram Pandit said during a conference call with investors. Growth will come from overseas, CFO John Gerspach told reporters during a conference call. The further away from the U.S., the better Citi's prospects are for making new loans, he said. Consumer banking revenue rose 9% in Latin America and gained 10% in Asia, which generated a combined 90% of Citi's second-quarter consumer banking income of $1.2 billion.

And on the conference call, there was no answer to an analyst's request to meet with Pandit or his bandits...

Bank of America was the world's largest private bank last year, topping Switzerland's UBS, with $1.74 trillion in assets, ahead of UBS' $1.59 trillion. Morgan Stanley, which jumped four places from last year after buying Citigroup's Smith Barney brokerage, held third place with $1.51 trillion in assets. Wells-Fargo and Credit Suisse rounded out the top five, while Switzerland's family-controlled Pictet & Cie. cracked the top-10 for the first time, with $243.21 billion in assets...

As Romanian Court Rules Against Pension Cuts, IMF Nods at 5% VAT Increase

UNITED NATIONS, July 1 -- Romania's Constitutional Court has struck down the pension cuts connected to the International Monetary Fund's facility to that country. On July 1 Inner City Press asked IMF Spokesperson Caroline Atkinson for the IMF's reaction to the decision, and if the government's move to boost the Value Added Tax from 19% to 24% would be enough for the IMF.

Two weeks earlier, Ms. Atkinson had responded to Inner City Press' question about the Constitutional Court in this way, as transcribed by the IMF itself:

“I have a question online, which is a bunch of questions, but on Romania: 'The government’s measures are being challenged in the Constitutional Court. What does the IMF think of the suit? What impact might it have on the IMF facility for Romania?' And it’s absolutely right that the fiscal adjustment measures, which are prior actions for our program, have to be approved by the Constitutional Court, and of course we respect that process. That’s an entirely appropriate process. We don’t think that that will lead to any -- I mean, that’s not something that we’re concerned about.”

And so on July 1 Inner City Press asked, “the Constitutional Court has now rejected the pension cuts connected to the IMF facility. What is the IMF's reaction, since two weeks ago it was said that the IMF did not expect this result?”

Ms. Atkinson said, “I'm not sure about that.” But she'd said of the Court review, “That's not something that we're concerned about,” a lack of concern that can be equated with not expecting a negative court decision.

June 28, 2010

Game on: Inner City Press / Fair Finance Watch has filed a timely challenge with the Federal Reserve to the pending applications of The Toronto-Dominion Bank to acquire The South Financial Group and its Carolina First Bank.

FFW obtained TD's 2009 HMDA-LAR, which has not been reviewed or taken into account in any regulatory review of TD. The data are troubling, showing for example that in 2009 Toronto Dominion denied fully 83% of mortgage loan applications from African Americans, versus only 42% of applications from whites. TD's denial rates for Latinos and Native Americans, both 68%, were also troubling. Public hearings should be held and the applications not approved.

TD in fact makes rate spread or subprime loans, but not in a fair manner. African Americans at TD are 1.93 times more likely to be confined to higher cost loans than whites.

While the FRB, despite the stated purpose of HMDA in helping to identify discrimination, has shifted to a dismissive approach to HMDA, it will be hearing different at its upcoming HMDA hearings, testimony at which should be considered by the FRB in connection with this application.

On a recent investors' conference call, TD bragged about its “FDIC-assisted transactions” -- which , significantly, were not reviewed for CRA, and on which there was no comment period. A public hearing is needed on this one. FFW's request in this letter for a complete copy of the applications includes also any and all information in the possession of the FRS concerning TD's “FDIC assisted transactions.”

Meanwhile, shareholders of South Financial have filed suit against the deal. See, e.g., Greenville (SC) News, June 22, 2010. TD has told its shareholders it will somehow convert fast food restaurants into bank branches. See, e.g., Globe & Mail, June 17, 2010. Before serving up its disparate lending, public hearings should be held. These issues must be explored, under managerial and financial factors, in connection with these applications. FFW has requested public hearings.

As Romania's Wage Cuts Challenged in Court, IMF Says Not Concerned, Lead Nowhere

UNITED NATIONS, June 17 -- A day after Romania's opposition filed a challenge to the government's cutbacks of public sector wages by 25%, International Monetary Fund spokesperson Caroline Atkinson said, we don't think it will lead to anything, it's not something we're concerned about. Video here, from Minute 30:04.

Inner City Press had asked, "What does the IMF think of the suit and what impact might it have on the IMF's facility for Romania?" Ms. Atkinson said this was "absolutely right, the fiscal adjustment measures which are prior actions for our program, have to be approved by the Constitutional Court."

This makes it sound like review by the Court is routine -- or "entirely appropriate," as Ms. Atkinson put it. But Reuters reported that the "government can start applying the austerity measures ahead of any court judgment, but if declared unconstitutional they would have to be revoked."

If Reuters is correct that the pending challenge in the Constitutional Court could result in the austerity -- or "fiscal adjustment" -- measures being revoked, why does the IMF so blithely predict it will lead to nothing, and say they are not concerned about it?

Ms. Atkinson began by saying, there is a question from Inner City Press online, "a bunch of questions, but on Romania." She then never read out or answered any of the other questions, about Hungary, Poland, Zimbabwe and Kyrgyzstan. There was, however, another question about Kyrgyzstan, the IMF's answer to which we will include in a forthcoming wider piece about the bloodshed there. Stay tuned.

Footnote:

From the Taylor Bean indictment -- ""[Farkas] and a TBW co-conspirator had in fact diverted that $25 million from an Ocala Funding bank account," the document said. "Further, [Farkas] and other co-conspirators supplied the 10% down payment on behalf of the two $50 million investors without the investors' knowledge or consent." The 30-page indictment included a forfeiture notice listing assets including a 1963 Rolls Royce, a 1958 Mercedes Benz Cabriolet 220 and a 1961 Porsche." Rev rev.

June 14, 2010

So while Citigroup is looking to sell its $50 billion portfolio of retailers' credit card loans, as with CitiFinancial it says it cannot find a buyer. Is Citigroup trying to become the unwilling but continuing predator? Among those not willing to buy: HSBC and GE Money. Those perhaps looking: Santander. Sears, Citi's "partner," is getting pissed.

So JP Morgan Chase was hit with the UK FSA's largest fine ever, for blending its own money with that of clients. Why are we not surprised?

Citigroup in cemetery scam: The Financial Industry Regulatory Authority has hit Citigroup Inc. (C) with $1.5 million of sanctions for allegedly failing to supervise millions of dollars in trust funds belonging to cemeteries in Michigan and Tennessee. The agency accused the company of mishandling funds as broker Mark Singer and two of his customers were involved in a scheme to misappropriate more than $60 million in cemetery trust funds in 2004 through 2006. Citi, which neither admitted nor denied the allegations but consented to the entry of Finra's finding, will pay a $750,000 fine and $750,000 in commissions repayment

Amid Protests, IMF Says Wage Cuts Were Romania's Choice, IMF for Vulnerable

UNITED NATIONS, May 20 -- With Romania wracked by the most serious protests since its 1989 revolution, Inner City Press on May 20 asked International Monetary Fund spokesperson Caroline Atkinson if the IMF would consider re-negotiating the 25% pay cut to public sector employees portrayed by the government as a condition for receiving a Greece-like bailout.

   On May 6 when Inner City Press asked about Romania, Ms. Atkinson said there were negotiations going on. On May 20, Ms. Atkinson's lengthy answer denied IMF responsibility for the cuts, saying they were choices of the government.

  Ms. Atkinson of the IMF said:

"This gives me an opportunity to clarify that the IMF did not specify or insist on any wage cuts with Romania... we did agree with the Romanian government that some further fiscal tightening would be needed in order to put their program back on track .. the goal is to have sustainable public finances that will allow for a recovery and there are of course different combinations of expenditure cuts and tax increases..

"The government chose to focus on the expenditure side in particular on wage cuts. That was the government's decision. Of course there are no easy options when there are budget cuts. We have been clear that we want to protect the most vulnerable and to have measures that limit the impact on society and can get the most ownership within society."

Tell that to the tens of thousands protesting in Romania's streets. Watch this site.

Citi costs the public: Citigroup received a $45 billion investment under Treasury's Troubled Asset Relief Program. The bank repaid $20 billion and converted, with Treasury's approval, the remaining $25 billion to common stock giving taxpayers 27% of the New York bank. Treasury hired Morgan Stanley and gave it "discretionary authority" to sell the Citi shares at market prices, according to a prospectus filed in April. Selling the shares at market prices is in contrast to a follow-on offering of shares in which Treasury could have sold substantial blocks at once. That process gives the seller price certainty but often depresses the share price because of a surge in supply. Selling at the market, as Treasury has chosen to do, buffers the shares from a sudden change in volume. However, the recent 21% plunge in Citi's value will probably diminish returns for Treasury and raises the possibility some of the shares could be sold at a loss.

May 17, 2010

J.P. Morgan Chase & Co. and Deutsche Bank have both removed themselves from the running for RBS Sempra's energy-trading and retail-energy-supplier businesses, largely because of expectations of a "Volcker Rule" that would force banks to exit from proprietary-trading businesses. Good.

May 10, 2010

Citigroup said a one-notch downgrade of its long-term debt and short-term commercial paper rating would likely mean the bank has to replace $10.8 billion in commercial paper, $2.5 billion in tender option bonds, and $1.1 billion in margin requirements. However, the bank said it has $82.3 billion in liquidity resources it could use as a contingency for such a downgrade, Citi said in its first-quarter earnings filing with the Securities and Exchange Commission. Congress is debating a financial reform bill that might end the concept of "too-big-to-fail," defining banks that would pose too big a systemic risk to the financial industry and the economy to be allowed to fail. If enacted, such legislation would result in rating downgrades, bond-rating agencies warned they might downgrade big banks.

May 3, 2010

Notable is the lawsuit against Wells Fargo for failure to maintain ten apartment buildings in the Bronx, New York that it is foreclosing on, including 3018 Heath Avenue. The case involves over 500 families, tenants of Millbank Real Estate before it defaulted on its $35 million mortgage. Then Wells Wargo and LNR Partners moved in.

April 26, 2010

FOIA, and Citigroup's cheapskatery, in the news: Citigroup Inc.'s unsuccessful bid for the teetering banking operations of Washington Mutual Inc. proposed that the U.S. government absorb a majority of the thrift's loan losses and limited Citigroup's financial exposure to $10 billion, according to a document released by regulators. Terms of the offer by the New York bank previously were kept secret by the Federal Deposit Insurance Corp., which sold the failed banking units to J.P. Morgan Chase & Co. for $1.88 billion in September 2008. The document was disclosed following a Freedom of Information Act request...

April 19, 2010

Three former JPM Chase executives Denis O'Leary, Stephen Rotella and Harry DiSimone have formed Encore Financial Partners, funds raised by Goldman Sachs, to "target" U.S. based banks...

Large loans from foreign banks, including Citigroup Inc. and Deutsche Bank AG, helped to feed "the buildup of risk" in Iceland's banking system, which collapsed spectacularly in 2008, a comprehensive report from a parliamentary commission concluded.

According to the report, Kjalar hf, an investment company controlled by Ólafur Ólafsson, borrowed from Citigroup's Citibank unit in 2007, using as collateral shares in Iceland's Kaupthing Bank held by a Kjalar subsidiary, Egla Invest. Mr. Ólafsson was a big Kaupthing shareholder.In January 2008, with Kaupthing's share price falling, Citibank made a margin call. So Kjalar turned to Kaupthing. Kaupthing granted a €120 million loan. In March, after Iceland's currency weakened, Kjalar borrowed more. The next month, Glitnir also made a loan to Kjalar.

Björgólfur Thor Björgólfsson, an Icelandic mogul, received a €153 million ($208 million) loan from Landsbanki, in which he and his father had a 41% stake, to satisfy demands from Deutsche Bank. The report said the German bank lent him €800 million in July 2007 to finance the takeover of generic-drug company Actavis Group. Landsbanki's former chief executive described the deal in an interview with the commission: "Then it ends...with us lending Björgólfur Thor our own money so he can honor certain things in Actavis," an apparent reference to satisfying debt covenants. Such transactions between a bank and its major owners are out of step with banking rules elsewhere. "Here, we call it insider dealing," says Cornelius Hurley, director of the banking-law program at Boston University. Prof. Hurley notes that U.S. regulations put "Draconian" restrictions on the amount and terms of loans to insiders.A Deutsche Bank spokeswoman declined to comment.

April 12, 2010

In the first study of the just-released 2009 mortgage lending data, Inner City Press / Fair Finance Watch has found that U.S. Bancorp confined African Americans to higher-cost loans above the Federal defined subprime rate spread 1.72 times more frequently than whites. U.S. Bancorp confined Latinos to higher-cost loans above the rate spread 1.71 times more frequently than whites, the data show. 2009 is the sixth year in which the data distinguishes which loans are higher cost, over the federally-defined rate spread.

Regional bank BB&T in 2009 confined African Americans to higher-cost loans above the rate spread 1.90 times more frequently than whites, and confined Latinos to higher-cost loans above the rate spread 1.43 times more frequently than whites.

Regions in 2009 confined African Americans to higher-cost loans above the rate spread 1.68 times more frequently than whites, and confined Latinos to higher-cost loans above the rate spread 1.33 times more frequently than whites.

Several lenders, including a large credit union, exhibited disparities denial rate beween African and Latinos compared to whites in 2009. Citigroup, for example, denied applications by African Americans 1.45 times more frequently than whites, while denying Latinos 1.35 times more frequently than whites. JPMorgan Chase denied applications by African Americans 1.54 times more frequently than whites, while denying Latinos 1.41 times more frequently than whites. The Pentagon Federal Credit Union denied applications by African Americans 2.04 times more frequently than whites, while denying Latinos 1.84 times more frequently than whites. Further studies will follow.

April 5, 2010

JPM Chase's Dimon remains both arrogant and evasive. "'For JP Morgan Chase, it was not a question of access or need–to the extent we needed it, the markets were always open to us–but the program did save us money,' Dimon said. J.P. Morgan stopped using the guarantees in April 2009 because 'it just added to the argument that all banks had been bailed out and fueled the anger directed toward banks.' Dimon d idn’t say how much the bank saved from the FDIC’s lending program." Why not?

March 29, 2010

China and Boston: BofA's "Brian Moynihan said China Construction Bank is a key strategic partner for the U.S. lender. He made the comments at a media briefing during his first official visit to China since he took up the post at Bank of America. Moynihan said the bank is 'comfortable where we are,' in response to a question on whether the U.S. lender will raise its stake in the Chinese bank."

Some say that Moynihan still living in Boston, where activists visited him while he was painting his house, means he'll try to move BofA right out of Charlotte NC. We'll see.

March 22, 2010

More and more complains are pouring in about Citigroup, Citifinancial and Citi card services making repeated and abusive telephone calls. One complainants says she took out a personal loan from CitiFinancial, and since then has been mis-charged late fees that they refuse to explain, only call about. Citi does Radio Shack's private label calls, and has a robo-caller calling its customers. This is the new Citi?

With Euro Tanking On Reports of Greece Turning to IMF, of Half Answers, on Dodd Bill and Sri Lanka

By Matthew Russell Lee

UNITED NATIONS, March 18, updated -- As Angela Merkel speaks darkly about ejecting from the Euro zone non compliant countries like Greece, that country's renewed threat of turning for help to the International Monetary Fund has the market selling off the Euro.

  Near the end of the IMF's fortnightly press briefing on Thursday morning, spokesperson Caroline Atkinson, beyond saying the IMF has not had a request for financial assistance, declined to describe various aspects of Greece's relations with the IMF. Her boss, Dominique Strauss Kahn, previously bragged that the IMF would "intervene" in Greece upon request.

  France's finance minister Lagarde, belatedly added to the UN's climate finance group after Secretary General Ban Ki-moon was confronted with the fact he'd named men to all 19 positions on the panel, has said the EU can still be Greece's interlocutor and helper, not the IMF.

  Her president Sarkozy has a personal motive to oppose IMF help to Greece: Strauss Kahn is polling ahead of him for the next French election.

   Inner City Press submitted to the IMF during its briefing, but without answer yet, questions about financial reform and the Fund's apparently stalled consideration of a third tranche to Sri Lanka. It was mostly Greece on Thursday, with few answers from the IMF.

Update: later these two answers came in from the IMF:

Re Senator Dodd’s bill, overall, we support the thrust toward comprehensive reforms that would address the gaps in financial regulation illustrated by the crisis. Strong and prompt implementation would both help to secure financial stability going forward.

Re Sri Lanka, not much update. As you know, staff will visit Colombo after the parliamentary elections and the formation of the new cabinet, to discuss with the government its plan for a 2010 budget.

Best regards,
Yoshiko Kamata
Media Relations, IMF

March 15, 2010

The story goes that Barclays is interesting in another North American buy. Four institutions are mentioned as targets: Fifth Third, Comerica, SunTrust or PNC. In Washington last week, Inner City Press mentioned the last of these to a Pittburgher, who said such a deal would be "terrible" for the city. We'll see.

Citigroup, HSBC and JPMorgan Chase helped cause the collapse of Lehman Brothers Holding Inc. by demanding more collateral and changing guarantee agreements, the bankruptcy examiner said last week. “The demands for collateral by Lehman’s lenders had direct impact on Lehman’s liquidity pool,” said Anton Valukas, the U.S. Trustee-appointed examiner, in a 2,200-page report filed in Manhattan federal court. “Lehman’s available liquidity is central to the question of why Lehman failed.”

March 8, 2010

IMF Says "No Agreement" With Sri Lanka, Meets in Hungary, Omits Bulgaria, Angola and Chavez Questions

By Matthew Russell Lee

UNITED NATIONS, March 4, updated -- The International Monetary Fund's lack of transparency is matched by its claims to be transparent. Take for example the IMF's arrangement with Sri Lanka, where parliament has been suspended and the state of emergency extended.

  Two weeks ago, Inner City Press submitted three questions to the IMF's briefing. Spokesman David Hawley did not take any of the questions on camera. Afterwards, and after complains, two of the three questions were answered, but not the one on Sri Lanka: "With an IMF team in Sri Lanka, what is the IMF's thinking on the EU's suspension of the GSP Plus tariff treatment, and/or the arrest of opposition politician Sarath Fonseka?"

  On March 4, Inner City Press submitted five questions, some repeatedly. Spokesperson Caroline Atkinson read out her own summary of the question, about the third tranche of the IMF's loan, and then said that the IMF "mission returned from Sri Lanka," we don't have an agreement, we don't expect the third tranche to be released."

  Then Ms. Atkinson said, I understand we have more online questions, we'll wait for technology. See transcript below.

  But it appears that the delay is not technology related, but rather consists of IMF staff screening and editing the questions that are submitted. Of Inner City Press' four other questions, only one was mentioned by Ms. Aktinson. Inner City Press had submitted, "In Hungary, why did the IMF meet with opposition party Fidesz? What was discussed? Fidesz says the discussions concerned the deficit, and if Fidesz comes to power in the April elections -- is that true?"

  Ms. Atkinson read only part of the question, then said that such meetings are "common... an exchange of views." But the opposition party said it had an agreement with the IMF. Shouldn't the IMF respond?

  Inner City Press submitted for the IMF's response this quote last week from Hugo Chavez: ""When Venezuela used to get financing, the IMF would come here and impose conditions and rules, and sometimes it would even dismantle our laws. But now, with China and Venezuela, we're on equal footing." But they woudn't even acknowledge, much less respond to, the request for a reaction.
 
Update: after the expiration of the IMF's embargo and the publication of the above, an IMF spokesperson replied, "I have nothing for you on this. However, I can confirm that Venezuela and China are both members of the IMF. "

  Two of the submitted questions were either not passed on to Ms. Atkinson, or were omitted by her and she said there are no more questions:

On Angola, is the IMF any closer to assigning a resident representative to Luanda? What progress has Angola made to the transparency discussed by the IMF, particularly in the oil sector?

Bulgarian Finance Minister Simeon Djankov says he's asked the IMF to inform him whether Greek owned banks are "draining funds from their Bulgarian units" - can the IMF confirm the request, if so will it respond in the 3 weeks given, and separately what does it think of this "draining" issue?

  This Bulgaria / Greece question, Inner City Press submitted repeatedly. But it was not acknowledged.

Update: after the briefing was over, an IMF spokesman wrote to Inner City Press that "I’ve asked Olga to get back to you on this. Not familiar with this request. We’re checking." Olga would seen to be Olga Stankova, Senior Press Officer. Numerous publicly available article quote Bulgarian officials about their request to the IMF.

 Of those few journalists present in person at the IMF's briefing, many of the questions were about Greece: would there be a meeting is DC? No.

  There were questions about Iceland and Ukraine, an expression of condolance for Chile, dodging on gold. Mr. Strauss-Kahn will be in Kenya, with Bob Geldoff and Raila Odinga., then on to Zambia. What about Angola? Watch this site.

Update: Later on Thursday, the following on Angola:

Subject: Angola
From: Thomson, Alistair at IMF
To: Inner City Press
Date: Thu, Mar 4, 2010 at 5:15 PM

Matthew, Thanks for your question on Angola. We are in the process of considering possible candidates for the post of resident representative. On your second question, fiscal transparency is a key part of the authorities' economic program agreed with the Fund. A mission is currently in the field to conduct the first review of the stand-by agreement.

We will continue to follow all this. Watch this site.

From the IMF's transcript:

Ms. Atkinson: I have a question online about the IMF's third tranche to Sri Lanka due in March. I believe we have announced that the mission's return from Sri Lanka that we don't have an agreement with them so we don't expect that the third tranche will be released at least until we have an agreement with them.I understand there are more online questions so we have to wait for technology....

I wanted to go to a question that I'd had online about Hungary. He was asking if there was significance in the mission meeting with the opposition party when they were there. I wanted to note that it's common practice that we will meet with — and this has happened before — that we've met with the opposition party, and of course there were no negotiations with people who were not in the government, but an informal exchange of views.

InnerCityPress.org footnote: The banks that helped conceal Greece's debt bomb included not only Goldman Sachs but also, on an arms deal no less, Deutsche Bank....

March 1, 2010

Just asking: if a bank funds settlements illegal under international law, and comes before the Fed on an application subject to public comment where this is raised, what happens? Watch this site.

With Citigroup moving to put Ernesto Zedillo on its board of directors, questions are re-emerging about Zedillo's actions on the 1997 massacre at Acteal in Chiapas...

February 22, 2010