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.

June 21, 2021

To PPP Bank Fraud China National Muge Ma Haltingly Pleads Guilty, Sept 22 Sentencing

By Matthew Russell Lee, Patreon Podcast
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, June 15 – Amid mounting fraud in the U.S. Paycheck Protection Program, including banks and non-bank fintech lenders refusing to report the most basic data about what they done with the money, an investigative project of Inner City Press, on May 21, 2020 there was the arrest of Muge Ma, as known as "Hummer Mars," a Chinese national residing in Manhattan.

At 7 pm he was remanded to custody in jail as a risk of flight, see below.

 On September 11, after various other attempts, Ma tried again before Judge Richard M. Berman. He continued remand but agreed to hear Ma's Constitutional / Sixth Amendment right to counsel arguments, on September 30. Inner City Press live tweeted September 11, here and below.

   On June 15, Ma was brought into the courtroom of Judge Berman by two Marshals, for his change of plea proceeding. But it did not go smoothly. When asked to allocute to his crimes, Ma did not want to say that he had intended to defraud the banks.

  Then why was he pleading guilty? And why should he get "acceptance of responsibility" reduction in offense level at sentencing?

  Next, Ma resisted describing his aggravated identity theft. He kept saying that he applied in his own name, but possessed the email of another, with the name in it. Really?

June 14, 2021

JPMChase Barred Woman From Joint Account After Husband's Death, JPMC Says Too Late

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, June 8 – Lurline Lewy and her husband Rudolph had a $104,000 account at JP Morgan Chase Bank at 596 Fort Washington Avenue in Manhattan. 

  Her husband died, and Chase denied her access to the funds. Now after years are asking she has sued, and Chase says it's too late. 

      On June 8, U.S. District Court for the Southern District of New York Judge Alvin K. Hellerstein held a proceeding. Inner City Press covered it. 

  Morgan Chase pushed its argument that it is too late.

Judge Hellerstein remarked that a bank should be expected to keep records.

He denied the motion to dismiss and said a new scheduling order will issue.

June 7, 2021

Truist Bank Was Sued As White Boys' Club Now Settling the Case But Will Club Continue?

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, June 2 – Truist Bank has been defending itself from charges of discrimination and retaliation, and trying to limit discovery.   Now on June 2, Truist is settling.

 On March 10, U.S. District Court for the Southern District of New York Magistrate Judge Ona T. Wang held a discovery proceeding. Inner City Press covered it.   

Sharon Lee's complaint cites a White dominated "boys' club."

 She says Truist has failed to provide documents about comparators, a key for a discrimination case.  

It seemed the information would be limited to Atlanta and New York.

Now on June 2, the court has been informed by letter that in Lee v. Trust Bank, the discrimination case, "the parties have reached a settlement in principle that resolves all of Plaintiff's claims... The Parties are available for a conference should the Court require any further information." Like, will the club continue?

May 31, 2021

PNC Bank Is Sued In NY For Usury As Buys BBVA Over Abstention Now More Delay

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, May 27 – PNC Bank and its Midland Loan Services have been sued for usury, predatory lending and civil conspiracy, under New York and Federal law.  

 The complaint docketed on December 29, 2020 in the U.S. District Court for the Southern District of New York, which Inner City Press covers, describes PNC's lending on a number of homes and allegedly racking up $250 charges.

It questions the reporting on line 205 of the HUD statement. When the plaintiff questioned it, he was called an "assh*ole." 

 The case is filed while PNC seeks to buy the US retail banking business of BBVA for $16 billion, an application to the Federal Reserve Board and other regulators which is subject to the Community Reinvestment Act.

 On December 30 the case was assigned to SDNY District Judge P. Kevin Castel, who has ordered: "ORDER INITIAL PRETRIAL CONFERENCE: COUNSEL FOR PLAINTIFF (OR THE REMOVING DEFENDANT) SHALL IMMEDIATELY SEND A COPY OF THIS ORDER TO ALL PARTIES. Counsel for all parties shall appear for an Initial Pretrial Conference, held pursuant to Rule 16 of the Federal Rules of Civil Procedure, March 1, 2021 at 12:00 p.m. Principal trial counsel shall appear at this and all subsequent conferences. SO ORDERED. Initial Conference set for 3/1/2021 at 12:00 PM before Judge P. Kevin Castel. (Signed by Judge P. Kevin Castel on 12/30/2020)."

  But after a conference was set for March 1, PNC's lawyers wrote in to get it pushed back to April 22. On April 8, PNC's lawyers wrote in again, asking for more delay to two weeks after any answer or motion to dismiss.

In May, the Federal Reserve approved, along with a rare abstention, PNC - BBVA.

Now on May 27, this: "Initial Pretrial Conference held on 5/27/2021. Plaintiffs second amended complaint due August 2, 2021. Defendants pre-motion letters addressed to the second amended complaint due by August 23, 2021. Plaintiffs response due September 9, 2021. Discovery stayed until further order of this Court."

May 24, 2021

M&T Bank Is Sued After Loan Deal With Convicted Felon In Unusual FCRA Case

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, May 17 – Sandra Klaus sued M&T Bank, who seeking to acquire People's United, for improperly dealing with a convicted felon in connection with an auto loan.     

     On May 17, U.S. District Court for the Southern District of New York Judge Paul A. Engelmayer held a proceeding. Inner City Press covered it. 

  M&T's lawyer bad-mouthed the plaintiff all the while saying the bank is open to mediation or a Magistrate Judge. Judge Engelmayer opined that this was not your usual Fair Credit Reporting Act case.

In XRP Case SEC Argues To Get Access to Ripple's Legal Advice But Privilege Asserted

By Matthew Russell Lee, Patreon Podcast
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, May 21– In SEC v. Ripple Labs Inc. et al., a discovery hearing was held on April 30 before U.S. District Court for the Southern District of New York Magistrate Judge Netburn. Inner City Press live tweeted it, see below, then put underlying emails on Patreon here.

On May 21, after an SEC submission now on Patreon here, podcast here, Judge Netburn held another conference, this time on whether the SEC can get access to legal advise to Ripple. Inner City Press fought to cover it and did, live tweeting it here:

Judge Netburn: A lawyer might say, It's clear (or not clear) that XRP should be regulated as a security. In a sense that's expert testimony. Ripple's lawyer's view was just one view. But now the defense is focused on external factors...

Judge Netburn: I haven't seen a case about a fair notice defense that deals with the subjective view. The Chipotle case talked about a good faith belief. But my reading of the cases as to fair notice is that an entity's subjective belief is not relevant.

SEC's Jorge Tenreiro: I would point the court to the US v. Exxon case from the DDC where what happened is, the party tried to say, My defense is based on what the Dept of Energy said. And the judge said, No, you can't cut it up like that.

 SEC's Tenreiro: I keep citing Chipotle because it's almost on all fours --

Judge Netburn: It was also written by a very smart judge.

Tenreiro: Look at the memo from Law Firm A. There were subsequent communications with those lawyers. We need those, not just those that Ripple has chosen to disclose to the market. They are a market participant - they are the important one, the one with the asset

 SEC's Tenreiro: What if Mr. Garlinghouse was quoting in an email after [ex-SEC] Bill Hinman's speech -- Judge Netburn: We can look and see what Ripple did. But attorney client communications are of a different sort, and protected for a good policy reason.

 SEC's Tenreiro: What if their lawyer told them, you still have to deal with the SEC? That would be game over for their defense, that they were confused. We don't know what they have given the exchanges... Ripple tells us, what you were thinking is relevant.

 SEC's Tenreiro: If Ripple was not confused, what does it matter if we were confused? In Chipotle it is said that attorney client has to be construed narrowly. If the lawyers told them, it's confusing, it helps them. But if not...

SEC's Tenreiro: If they got advice that identified the standards they need to follow, that the speech doesn't apply to them, then it's different. The policy concerns weight for disclosure here. This has become the heart of the case.

Judge Netburn: I'll turn to Ripple. Ripple's lawyer Gregory Rapawy: Here the SEC is asking the court to declare a broad waiver. They argued the selective disclosure doctrine from Von Bulow [Here's something, mid-thread, here]

 Ripple's Rapawy: It doesn't matter that we believed and believe that XRP is not an investment contract - it's strict liability. Our defense is fair notice, not on our state of mind.

 Ripple's Rapawy: Neither parties communications are "at issue," and therefore there is no waiver. 

Judge Netburn: The SEC says the individual defendants are using a good faith defense, and that you claim to Judge Torres that the evidence will be the same.

Judge Netburn: The SEC was saying, You may have been impacting the market in a biased way. Ripple's Rapawy: Under Von Bulow, selective disclosure prior to litigation does not constitute a waiver.

 SEC's Tenreiro: The Chipotle [case] is to the contrary. Page 19 of their opposition, I'm not going to read it since it's redacted. But they said they believed XRP was not an investment contract. So it's at issue.

 Court reporter: He cut out for one minute. SEC's Tenreiro: County of Erie dealt with a very specific qualified immunity defense... Finally your Honor, the question is, Do they unfairly influence the market.

May 17, 2021