Welcome to Inner City Press’ CRA Report. Our other Reporters cover the financial services industry, human rights, the Federal Reserve, and other beats. ICP has published a book about the CRA-relevant topic of predatory lending - click here for sample chapters, a map, and ordering information. CBS MarketWatch of April 23, 2004, says the the novel has "some very funny moments," and that the non-fiction mixes "global statistics and first-person accounts." 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']," City Limits, 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.
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here
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, Oct 11
–
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger. Among them
was UMB - a bank whose lending Inner City Press
and Fair Finance Watch had been scrutinizing,
and now challenge.
UMB is asking its regulators to allow it to
expand, buying Denver-based Heartland. The
application, Fair Finance Watch on June 21
formally told the Fed, should not be
approved. In 2022, the most recent
year for which Federal data is available, UMB
Bank, N.A. made over 2000 mortgage loans to
whites, and only 117 loans to African Americans.
For
every denial to an African American, it made
only 2.02 loans. But for whites, for every
denial it made 3.45 loans. It should be referred
to DOJ.
There
is litigation, there is also this, reported at
the time of Silicon Valley Bank's failure: "UMB
Bank, a regional bank headquartered in Kansas
City, Missouri, and with branches across the
Midwest, Southwest, and Western United States,
has total assets of $38 billion and deposits
totaling $32 billion, according to the FDIC.
However, only 16% of deposits fall under the
$250,000 FDIC insurance threshold, leaving
74.11% (equivalent to $28.36 billion) vulnerable
to potential losses."
Why
would regulators even consider approving its
expansion? On June 21, Fair Finance Watch filed
a formal Community Reinvestment Act challenge to
UMB's application to the Federal Reserve, adding
state by state data:
UMB Bank in 2022 in Missouri made 842 mortgage
loans to whites, and only 76 loans to African
Americans. Meanwhile it denied 41 applications
from African Americans, and only 257 from
whites.
UMB Bank in Colorado - in which it seeks to
expand - in 2022 made 378 mortgage loans to
whites, and only 13 loans to African Americans.
Meanwhile it denied six applications from
African Americans, and only 107 from whites.
UMB Bank in 2022 in Texas made 78 mortgage loans
to whites, and only six loans to African
Americans. Meanwhile it denied two applications
from African Americans, and only 27 from
whites.
These disparities cry out for a referral to DOJ,
and public hearings on, and denial of, UMB's
major expansion application.
On
October 11 UMB's outside counsel Davis Polk sent
the Fed a response but withheld branch closing,
subsidiary, fintech and crypto information from
Fair Finance Watch - so Inner City Press cc-ed
them on a FOIA request for:
This
is a formal FOIA request for the withheld
exhibits to UMB's October 11 submission to the
Federal Reserve in connection with its protested
application to acquire Heartland Financial, in
particular "Confidential" Exhibits A and B,
including about fintech and branch closings and
all activities engaged in by corporate
subsidiaries. This is presumptively public; if
any is withheld, all reasonably segregable
portions should be provided.
UMB
recites and responds: 1. Provide a description
of the activities conducted by the following UMB
subsidiaries: a. UMBCDC, Inc., Kansas City,
Missouri; b. UMB Financial Services, Inc.,
Kansas City, Missouri; c. UMB Management Equity
Holdings Inc., Kansas City, Missouri; d. UMB
Merchant LLC, Kansas City, Missouri; and e. UMB
Asset Management, LLC, Kansas City, Missouri The
requested information is included in AIR
Confidential Exhibit A. Convenience and Needs 2.
Provide an update on UMB Bank’s branch
consolidation analysis and confirm whether any
of the branches listed in Public Exhibit 3 of
the Additional Information Response, dated
August 5, 2024 (“August AI Response”) would be
consolidated, following consummation of the
proposed transaction. The requested information
is included in AIR Confidential Exhibit B.
Discuss any plans to engage in
crypto-asset-related activities or fintech
partnerships. The requested information is
included in AIR Confidential Exhibit
A.
Again,
this is both important for the public to know
and is presumptively public; if any is withheld,
all reasonably segregable portions should be
provided.
Watch
this site.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH BRONX,
Oct 4
– Two tech-focused credit unions announced this
week they intend to merge, if they get approval
from the National Credit Union Association.
Digital Federal Credit Union is based on the
East Coast, and First Tech is on the West Coast,
wanting to follow Microsoft into Atlanta, and
Amazon into northern Virginia.
But
what are their lending records?
According
to 2023 Home Mortgage Disclosure Act data
reviewed be Fair Finance Watch, nationwide in
2023, First Technology Credit Union made
1532 mortgage loans to whites, and only 41 loans
to African Americans. Meanwhile it denied only
368 applications from whites, and fully 37 from
African Americans.
Digital Federal nationwide in 2023 made 2196
mortgage loans to whites, and only 178 loans to
African Americans. Meanwhile it denied only 1122
applications from whites, and fully 261 from
African Americans.
These disparities should result in the denial of the proposed merger. But credit unions are for now not subject to the Community Reinvestment Act, and NCUA refuses to consider such issues. Watch this site
***
by
Matthew R.
Lee, Patreon Substack
FEDERAL COURT, Sept 27
–
In the Midwest, Busey Bank is trying to move
into the Kansas City area via merger, with a
disparate lending record. Fair Finance Watch
with Inner City Press on the FOIA has filed a
timely first comment on, the Applications
Van Dukeman, First Busey's CEO called it a
"great fit from a cultural perspective." But
consider Busey Bank's culture, its disparate
lending record:
First
Busey's Busey Bank in Illinois in 2023 - data
not yet included in any CRA exam - made 1163
mortgage loans to whites, and only 772 loans to
African Americans. Meanwhile it denied only 216
applications from whites, and fully 24 from
African Americans. Busey Bank should be referred
to DOJ.
Busey
Bank in Missouri in 2023 - data not yet included
in any CRA exam - made 49 mortgage loans to
whites, and onlyseven loans to African
Americans. Meanwhile it denied only 21
applications from whites, and fully eight from
African Americans
Busey
Bank in Indiana in 2023 - data not yet included
in any CRA exam - made 22 mortgage loans to
whites, and only two loans to African
Americans.
Busey
Bank in Florida in 2023 - data not yet included
in any CRA exam - made 80 mortgage loans to
whites, and only ONE loan to an African
American.
There
is litigation, for example under the FCRA, here
- dropped without explanation, presumable
settled, the FRB should ask First Busey about
all outstanding consumer litigation.
And
there was the First Busey board member,
Elisabeth Kimmel, caught in the college
admissions scandal, here.
by
Matthew R.
Lee, Patreon Substack
FEDERAL COURT, Sept 20 –
In the battleground state of Michigan, a bank is
trying to move into suburban Detroit via merger,
with a disparate lending record. Fair Finance
Watch with Inner City Press on the FOIA has
filed a timely first comment on, the
Applications ChoiceOne Financial Services, Inc.,
Sparta, Michigan; to merge with Fentura
Financial, Inc., and thereby indirectly acquire
The State Bank
Kelly Potes, ChoiceOne’s CEO said that the
proposed "transaction will allow ChoiceOne to
strengthen its presence in the suburbs of
Detroit while adding the markets of Flint and
Saginaw." But consider ChoiceOne's disparate
lending
record:
Consider
that ChoiceOne Bank in Michigan in 2023 - data
not yet included in any CRA exam - made 759
mortgage loans to whites, and only TWENTY to
African Americans. Meanwhile it denied only 246
applications from whites, while denying 10 of
the applications that, based on its marketing,
it received from African Americans. ChoiceOne
should be referred to DOJ.
Meanwhile
The State Bank in Michigan in 2023 - data not
yet included in any CRA exam - made 414 mortgage
loans to whites, and only THREE to African
Americans. Meanwhile it denied only 36
applications from whites, while denying one of
the few applications that, based on its
marketing, it received from African Americans.
The State Bank should also be referred to DOJ.
On
September 17, ChoiceOne calling itself COB wrote
in, inter alia, that loans "denied were Home
Equity Line of Credit loans, for which no denial
reason is given. Reporting denial reasons for
HELOCs is optional, rather than mandatory for
COB, and COB opts not to report." This is far
from a best practice - we'll have more on this.
Why
would regulators even consider approving this
merger? Watch this site.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX,
Sept 8 –As ConnectOne Bank and First National
Bank of Long Island congratulate themselves on a
merger proposal, the preliminary review by Fair
Finance Watch finds problems.
ConnectOne, taking deposits in New York, New
Jersey and Florida, in 2023 made only one
mortgage loan to an African American
applicant.
Meanwhile First National Bank of Long Island,
after a weak and disparate lending performance
in 2023, now lists on its website that mortgages
are only offered through Rocket Mortgage. How do
and would these two banks - which should be kept
separate and not be allowed the merge, under the
Community Reinvestment Act, serve communities.
It appears that they don't.
Inner City Press will be FOIA-ing the required applications for regulatory approval when they are filed. Watch this site
***
SOUTH
BRONX, Sept
4 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying.
On September 4, Fair Finance Watch and Inner City Press submitted supplemental opposition to the regulators, including about a newly filed class action that "demonstrates Capital One's outrageous, illegal, and widespread practice of disclosing—without consent—the Nonpublic Personal Information1 and Personally Identifiable Financial Information2 (together, “Personal and Financial Information”) of Plaintiffs and the proposed Class Members to third parties, including Meta, Google, Microsoft, DoubleClick, NewRelic, Adobe, Everest, Skai/Kenshoo, Snowplow, BioCatch, Tealium, and possibly others."
After
they applied late March 20, Inner City
Press submitted a second Freedom of Information
Act request to the Office of the Comptroller of
the Currency (and to the Federal Reserve).
On
July 26, after a FOIA appeal - and after closing
the public comment period - the OCC belatedly
gave Inner City Press documents showing Capital
One briefed the OCC on a "big" deal in November
2023; it was code named "Project Sirius."
Then
overly chummy texts from Andy Navarrete, who
testified at the public meeting, and Pient Tran
to the OCC's Marci Heppner and others.
For
example, Andy to Marci, sorry for the late ping,
if Richard wanted to call, could you do a 1:1
Zoom at 7:30 [pm]. But of course. That and more
now on Inner City Press' DocumentCloud here
Inner City Press continues to dig through the
records - and to prepare another FOIA appeal.
Back
on June 25 the OCC belatedly responded to Inner
City Press' FOIA request - by withholding in
full 185 pages. OCC FOIA production on
DocumentCloud here.
Inner City Press appealed.
On July 24, the very day on which the OCC and
Fed said they were closing the written comment
period, the OCC upheld in full its FOIA denials,
determination letter on Inner City Press'
Document Cloud here.
When did the Fed start secret talks with Capital
One?
***
by
Matthew R.
Lee, Patreon Substack
FEDERAL COURT, Aug 27 –
In the battleground state of Michigan, a bank is
trying to move into suburban Detroit via merger,
with a disparate lending record. Fair Finance
Watch with Inner City Press on the FOIA has
filed a timely first comment on, the
Applications ChoiceOne Financial Services, Inc.,
Sparta, Michigan; to merge with Fentura
Financial, Inc., and thereby indirectly acquire
The State Bank
Kelly Potes, ChoiceOne’s CEO said that the
proposed "transaction will allow ChoiceOne to
strengthen its presence in the suburbs of
Detroit while adding the markets of Flint and
Saginaw." But consider ChoiceOne's disparate
lending
record:
Consider
that ChoiceOne Bank in Michigan in 2023 - data
not yet included in any CRA exam - made 759
mortgage loans to whites, and only TWENTY to
African Americans. Meanwhile it denied only 246
applications from whites, while denying 10 of
the applications that, based on its marketing,
it received from African Americans. ChoiceOne
should be referred to DOJ.
Meanwhile
The State Bank in Michigan in 2023 - data not
yet included in any CRA exam - made 414 mortgage
loans to whites, and only THREE to African
Americans. Meanwhile it denied only 36
applications from whites, while denying one of
the few applications that, based on its
marketing, it received from African Americans.
The State Bank should also be referred to DOJ.
Why
would regulators even consider approving this
merger? Watch this site.
***
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, Aug 9
–
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger, banks whose
lending Inner City Press and Fair Finance Watch
had been scrutinizing, even more so that the
2023 data is out.
This week Inner City Press filed with the Fed, a
timely first comment on, the Applications of
SouthState Corporation to merge with Independent
Bank Group, Inc., and Independent
Bank.
SouthState in South Carolina in 2023 - data not
yet included in any CRA exam - made 5013
mortgage loans to whites, and only 228 loans to
African Americans. Meanwhile it denied only 670
applications from whites, and fully 195 from
African Americans. SouthState should be referred
to DOJ.
SouthState in North Carolina in 2023 - data not
yet included in any CRA exam - made 1334
mortgage loans to whites, and only FIFTY SEVEN
loans to African Americans. Meanwhile it denied
only 173 applications from whites, and fully 20
from African Americans.
SouthState in Florida in 2023 - data not yet
included in any CRA exam - made 2755 mortgage
loans to whites, and only 165 loans to African
Americans. Meanwhile it denied only 958
applications from whites, and fully 69 from
African Americans.
SouthState in Georgia in 2023 - data not yet
included in any CRA exam - made 1176 mortgage
loans to whites, and only 318 loans to African
Americans. Meanwhile it denied only 304
applications from whites, and fully 88 from
African Americans.
SouthState in Alabama in 2023 - data not yet
included in any CRA exam - made 945 mortgage
loans to whites, and only FIFTY ONE loans to
African Americans. Meanwhile it denied only 87
applications from whites, and fully 17 from
African Americans. SouthState should be referred
to DOJ.
Nationwide
in 2023, SouthState made 7798 mortgage loans to
whites, and only 947 loans to African Americans.
Meanwhile it denied only 2491 applications from
whites, and fully 558 from African
Americans.
Why would regulators even consider approving its
expansion?
Even
more so now: on August 9, SouthStreet submitted
to the Fed a response - that deals only with
Independent Bank.
Inner City Press is requesting an extension of the public comment period, public / virtual evidentiary hearings and that, on the current record, the applications not be approved
***
SOUTH
BRONX, July
26 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. After they applied late March 20,
Inner City Press submitted a second Freedom of
Information Act request to the Office of the
Comptroller of the Currency (and to the Federal
Reserve).
On
July 26, after a FOIA appeal - and after closing
the public comment period - the OCC belatedly
gave Inner City Press documents showing Capital
One briefed the OCC on a "big" deal in November
2023; it was code named "Project Sirius."
Then
overly chummy texts from Andy Navarrete, who
testified at the public meeting, and Pient Tran
to the OCC's Marci Heppner and others.
For
example, Andy to Marci, sorry for the late ping,
if Richard wanted to call, could you do a 1:1
Zoom at 7:30 [pm]. But of course. That and more
now on Inner City Press' DocumentCloud here
Inner City Press continues to dig through the
records - and to prepare another FOIA appeal.
Back
on June 25 the OCC belatedly responded to Inner
City Press' FOIA request - by withholding in
full 185 pages. OCC FOIA production on
DocumentCloud here.
Inner City Press appealed.
SOUTH
BRONX, July
24 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. After they applied late March 20,
Inner City Press submitted a second Freedom of
Information Act request to the Office of the
Comptroller of the Currency (and to the Federal
Reserve).
On
May 14 - still without providing FOIA documents
- the OCC and Fed set a July 19 virtual public
meeting.
On
the eve of it, Capital One announced a vague and
less than credible plan - they previously
violated their ING Direct pledge - including
this time $75 billion in largely subprime auto
loans. Fair Finance Watch testified for three
minutes.
On
June 25 the OCC belatedly responded to Inner
City Press' FOIA request - by withholding in
full 185 pages. OCC FOIA production on
DocumentCloud here.
Inner City Press appealed.
On July 24, the very day on which the OCC and
Fed said they were closing the written comment
period, the OCC upheld in full its FOIA denials,
determination letter on Inner City Press'
Document Cloud here.
Inner City Press has requested an extension of
the comment periods - the Fed hasn't even
responded.
Meanwhile
Capitol One lobbying continues, for example with
a Pennsylvania state legislator extolling
Capital One's subprime, here.
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites. It grew worse in the
just-out 2023 data.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site.
***
SOUTH
BRONX, July
19 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. After they applied late March 20,
Inner City Press submitted a second Freedom of
Information Act request to the Office of the
Comptroller of the Currency (and to the Federal
Reserve).
On
May 14 - still without providing FOIA documents
- the OCC and Fed set a July 19 virtual public
meeting.
On
the eve of it, Capital One announced a vague and
less than credible plan - they previously
violated their ING Direct pledge - including
this time $75 billion in largely subprime auto
loans.
Fair
Finance Watch testified, with Inner City Press
on the FOIA:
This
proposal is anticompetitive, and Capital One is
making a mockery of the Community Reinvestment
Act, with an absurdly small CRA assessment area
and now, at the 11th hour, a cynical pledge that
includes $75 billion in subprime, often
predatory car lending.
How much of this last minute pledge would in
fact be subprime? At what interest rates? The
regulators should ask, today - and must extend
the comment
period.
You have and will hear from colleagues about the
ongoing lending disparities. I want to focus in
my three minutes on the lack of transparency,
and the regulatory agencies' role in
it.
The day the banks announced the proposed merger,
Inner City Press submitted Freedom of
Information Act requests to both the Federal
Reserve and the Office of the Comptroller of the
Currency.
The Fed, as has become a pattern, granted Inner
City Press' FOIA request expedited treatment -
and then did not provide any of the responsive
documents, claiming it needed more
time. The OCC did at least
respond to the FOIA request - but it withheld,
in full, 193 out of 210 responsive
pages.
From what was released, it shows three meetings
with Capital One and the OCC in February and
March, right before the start of the public
comment period. An OCC email says "the
purpose of this meeting is to get everyone on
the same page out of the gate" in response to an
email from Capital One's lawyer. This is called
regulatory capture. Can you say, What's in your
wallet?
...The
Philadelphia National Bank case of the Supreme
Court, unlike the Chevron deference relied on
not yet overrule, stated that "a merger which
produces a firm controlling an undue percentage
share of the relevant market, and results in a
significant increase in the concentration of
firms in that market, is so inherently likely to
lessen competition substantially that it must be
enjoined in the absence of evidence clearly
showing that the merger is not likely to have
such anticompetitive effects." 374 U.S. 321 at
363.
By
Matthew Russell Lee, Patreon Maxwell
Book
SOUTH
BRONX, July 12 – The FDIC on July 12 imposed a
fair lending condition on banks Inner City Press
/ Fair Finance Watch challenged last November:
"Fair
Finance Watch has been reviewing Peoples
Security Bank and Trust Company and FNCB Bank
including their 2022 HMDA data not taken into
account in any CRA exam and finds it
troubling. In Pennsylvania in 2022,
Peoples Security Bank and Trust Company made 532
HMDA-reported loans to whites - and only FOUR to
African Americans, while denying five
applications. FNCB Bank in
Pennsylvania in 2022 made 247 HMDA-reported
loans to whites - and only ONE to an African
Americans, while denying three applications. A
referral should be made to the DOJ for fair
lending violations."
At
that time, the FDIC wrote: "Matthew
Lee, Esquire Executive Director Inner City
Press/Fair Finance Watch P.O. Box 20047 New
York, New York 10017 Dear Mr. Lee: We received
your e-mail dated November 10, 2023, regarding
the application for Peoples Security Bank and
Trust Company to merge with FNCB Bank. We
reviewed your correspondence in accordance with
the guidelines of 12 C.F.R. Section 303.2(c) and
303.2(l), and we consider it a protest... Any
future comments should be sent to the applicant
and to this office."
The bank's outside
counsel Troutman Pepper responded. But
now in July 2024: "Dear Mr.
Lee: We are writing to inform
you that the FDIC approved Peoples
Security Bank and Trust
Company’s application to merge with
FNCB Bank. As part of the
application review process, we
investigated the issues you raised in
your e-mail dated November 10, 2023,
and after conducting our own
analysis, the FDIC approved the
application with conditions... In the
course of reviewing public input on
the application, the FDIC received an
adverse comment from a protester
that was considered a CRA
protest. The CRA protest was
critical of Peoples Security
Bank and Trust Company’s and FNCB
Bank’s home mortgage lending
efforts to Black applicants in
Pennsylvania and asserted that the
lack of lending was discriminatory
and should be referred to the
Department of Justice... After a
careful review of the concerns, the
FDIC decided to approve the
application with the following
condition. This condition will
help ensure Peoples Security Bank and
Trust Company meets the home
mortgage lending needs of the Black
population in its assessment
areas. Within 30 days of
consummation, adopt a Fair Lending
Action Plan deemed acceptable by the
FDIC to address low levels of
home mortgage applications from, and
lending to, Black applicants and
borrowers, and in
majority-minority areas, and provide
the New York Regional Office with
quarterly, written updates on
its progress under the plan."
Watch
this site.
SOUTH
BRONX, July
5 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. After they applied late March 20,
Inner City Press submitted a second Freedom of
Information Act request to the Office of the
Comptroller of the Currency (and to the Federal
Reserve).
On
May 14 - still without providing FOIA documents
- the OCC and Fed set a July 19 virtual public
meeting.
On
June 25 the OCC belatedly responded to Inner
City Press' FOIA request - by withholding in
full 185 pages. OCC FOIA production on
DocumentCloud here.
Inner City Press appealed.
Meanwhile
Capitol One lobbying continues, for example with
a Pennsylvania state legislator extolling
Capital One's work with subprime, here.
Has he seen their predatory car lending?
The OCC put part of its application in its
reading room. And it is an outrage, Capital One
gaming the CRA system. For example "the Proposed
Transaction would result in CONA establishing a
new assessment area in Delaware, which
will include all census tracts in Sussex County
and seven contiguous census tracts in Kent
County."
That
for a nationwide card and subprime auto
lender...
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site.
***
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, June
21 –
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger. Among them
was UMB - a bank whose lending Inner City Press
and Fair Finance Watch had been scrutinizing,
and now challenge.
UMB is asking its regulators to allow it to
expand, buying Denver-based Heartland. The
application, Fair Finance Watch on June 21
formally told the Fed, should not be
approved. In 2022, the most recent
year for which Federal data is available, UMB
Bank, N.A. made over 2000 mortgage loans to
whites, and only 117 loans to African Americans.
For
every denial to an African American, it made
only 2.02 loans. But for whites, for every
denial it made 3.45 loans. It should be referred
to DOJ.
There
is litigation, there is also this, reported at
the time of Silicon Valley Bank's failure: "UMB
Bank, a regional bank headquartered in Kansas
City, Missouri, and with branches across the
Midwest, Southwest, and Western United States,
has total assets of $38 billion and deposits
totaling $32 billion, according to the FDIC.
However, only 16% of deposits fall under the
$250,000 FDIC insurance threshold, leaving
74.11% (equivalent to $28.36 billion) vulnerable
to potential losses."
Why
would regulators even consider approving its
expansion? On June 21, Fair Finance Watch filed
a formal Community Reinvestment Act challenge to
UMB's application to the Federal Reserve, adding
state by state data:
UMB Bank in 2022 in Missouri made 842 mortgage
loans to whites, and only 76 loans to African
Americans. Meanwhile it denied 41 applications
from African Americans, and only 257 from
whites.
UMB Bank in Colorado - in which it seeks to
expand - in 2022 made 378 mortgage loans to
whites, and only 13 loans to African Americans.
Meanwhile it denied six applications from
African Americans, and only 107 from whites.
UMB Bank in 2022 in Texas made 78 mortgage loans
to whites, and only six loans to African
Americans. Meanwhile it denied two applications
from African Americans, and only 27 from
whites.
These disparities cry out for a referral to DOJ,
and public hearings on, and denial of, UMB's
major expansion application.
Watch
this site.
***
SOUTH
BRONX, June
12 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. While they applied late March 20, as of
1 pm on March 22 there was no notice of the
Federal Reserve's or OCC's websites. Inner City
Press submitted second FOIA requests to each
agency. Public hearings should be held, not only
on antitrust but also lending disparities at
both companies.
On
April 24 the Fed extended its comment period to
May 31 - without (yet?) granting public
hearings, nor providing the FOIA documents.
Yet on June 12, this: "June 11 (Reuters) -
Capital One Financial Corp: * CAPITAL ONE EXEC
SAYS IN CONVERSATION WITH U.S. FEDERAL RESERVE
AND OFFICE OF COMPTROLLER OF CURRENCY ON
DISCOVER DEAL - INVESTOR CONFERENCE." In
conversation? With no documents provided to the
opposed public? Inner City Press / Fair Finance
Watch registered for the public meeting, in
opposition.
On
May 14 - still without providing FOIA documents
- the Fed and OCC set a July 19 virtual public
meeting. And already, pro merger lobbying had
begun, for example here
by a group previously identified in a Trenton NJ
political quid pro quo scandal.
Then
an SC Astroturf
piece, then going green.
Next
a former NH
Commissioner, and a "former Democratic campaign
strategist in Southern Nevada."
Unreal. We'll have more on this.
The OCC first put its application in its reading
room. And it is an outrage, Capital One gaming
the CRA system. For example "the Proposed
Transaction would result in CONA establishing a
new assessment area in Delaware, which
will include all census tracts in Sussex County
and seven contiguous census tracts in Kent
County."
That
for a nationwide card and subprime auto
lender...
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites.
By
Matthew Russell Lee, Patreon Maxwell
Book
SOUTH
BRONX, May 16 – The Texas Bankers
Association and ABA managed to finagle a Federal
court ruling allowing its and the ABA's members'
non-compliance with the Consumer Financial
Protection Bureau's small business data
collection rules, pending Supreme Court decision
on CFPB's structure and funding. Order here.
Now
on May 16, 2024, the Supreme Court has found the
CFPB's structure to be Constitutional, by a 7-2
vote. "Congress shielded the Bureau from the
influence of the political branches,” Justice
Clarence Thomas wrote in the majority opinion
for the court. “Under the
Appropriations Clause, an appropriation is
simply a law that authorizes expenditures from a
specified source of public money for designated
purposes. The statute that provides the Bureau’s
funding meets these requirements.”
SOUTH
BRONX,
May 8 – As US bank regulators talk about working
to increase the fairness of the financial
system, and closely scrutinizing mergers and the
spread of bad practices, banks continue to
assume they can combine.
Before the Capital One - Discover proposal, and
ABA lawsuit against the Community Reinvestment
Act regulation, there was FirstSun Capital
Bancorp of Denver and Dallas saying it will
merge with Homestreet, Inc. and Homestreet Bank
of Seattle, Washington.
On February 23 Fair Finance Watch with Inner
City Press on the FOIA filed a protest:
"FirstSun's flagship Sunflower Bank, in Texas in
2022, made 694 mortgage loans to whites, and
only 41 to African Americans. Meanwhile it
denied 12 applications from African Americans,
and only 34 from whites. This is
disparate, and more disparate both than the
aggregate in Texas.
Nationwide in 2022, Sunflower Bank made 3059
mortgage loans to whites, and only 194 to
African Americans. Meanwhile it denied 49
applications from African Americans, and only
259 from whites.
For the record, on managerial resources and
otherwise, note that on September 27, 2023,
FirstSun Capital Bancorp, the parent company of
Sunflower Bank, Guardian Mortgage and First
National 1870 (collectively, “Sunflower”), filed
a notice of data breach with the Attorney
General of California... an unauthorized party
likely took advantage of the flaw in the MOVEit
software and downloaded copies of files
[containing] personally identifiable
information."
Now FirstSun is simply changing charters to try
to get fast approval: FirstSun Capital Bancorp
will switch to a Texas state charter rather than
a national one as it continues to pursue its
acquisition of HomeStreet, the bank announced
last week: “In our discussions with the OCC in
Washington, it became obvious that we would not
gain near-term approval." What a scam.
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, May 1 –
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger. Among them
was UMB - a bank whose lending Inner City Press
and Fair Finance Watch had been
scrutinizing.
Now UMB, paradoxically, is asking its regulators
to allow it to expand, buying Denver-based
Heartland. The application, Fair Finance Watch
says, should not be approved. In
2022, the most recent year for which Federal
data is available, UMB Bank, N.A. made over 2000
mortgage loans to whites, and only 117 loans to
African Americans.
For
every denial to an African American, it made
only 2.02 loans. But for whites, for every
denial it made 3.45 loans. It should be referred
to DOJ.
There
is litigation, there is also this, reported at
the time of Silicon Valley Bank's failure: "UMB
Bank, a regional bank headquartered in Kansas
City, Missouri, and with branches across the
Midwest, Southwest, and Western United States,
has total assets of $38 billion and deposits
totaling $32 billion, according to the FDIC.
However, only 16% of deposits fall under the
$250,000 FDIC insurance threshold, leaving
74.11% (equivalent to $28.36 billion) vulnerable
to potential losses."
Why
would regulators even consider approving its
expansion? Watch this site.
***
SOUTH
BRONX, April
24 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. While they applied late March 20, as of
1 pm on March 22 there was no notice of the
Federal Reserve's or OCC's websites. Inner City
Press submitted second FOIA requests to each
agency. Public hearings should be held, not only
on antitrust but also lending disparities at
both companies.
On
April 24 the Fed extended its comment period to
May 31 - without (yet?) granting public
hearings, nor providing the FOIA documents.
On April 19
the Fed wrote to extended its
time to respond to Inner City
Press' February 19 FOIA to May
3
April 19,
2024
RE: Docket
ID OCC–2022–0008 - FOIA
Acting
Comptroller Hsu and others at the OCC:
Inner City
Press, as an active FOIA requester to the OCC, timely comments
on your pending regulation to demand that the OCC rule on the
propriety of all requests for confidential treatment during the
comment period on an application - or automatically extend the
comment period.
Too often, applicant
national bank over-request confidential treatment, but benefit
from it due to the OCC's slow processing of FOIA requests. Case
in point is Capital One / Discover - Inner City Press on
February 19 submitted a request for communications between the
OCC and the banks. Still none of those records as of April 19,
as the comment period is set to close. (We expect it to be
extended, but this is not the case on most applications).
Nor even on the
application has the OCC ruled on the propriety of the requests
for confidential treatment. This must be addressed by the OCC.
There is other
FOIA problems at the OCC - as well as some polite staffers, we
note - but we emphasize the above to ensure consideration and
action.
Expectantly,
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX, NY, April 11– When the US
Department of Justice sued and
immediately settled with
Lakeland Bank for fair lending
violations, it announced a
proposed merger with Provident
Bank.
As
if to sweep it under the carpet.
And
when Fair Finance Watch looked into it, it found
that the DOJ settlement did not address in any
way the banks' disparities in New York. So on
December 1, the FDIC's comment deadline, it
filed a protest, with Inner City Press on the
FOIA.
Jump
cut to March 15, 2023, when Provident's Deputy
General Counsel filed a letter with the New York
Fed, cc-ing Rodgin Cohen - only on New Jersey,
nothing on the disparities in New York.
On
January 18 Provident asked two Board questions -
by withholding the entire answers. Inner City
Press immediately FOIAed: "The entire response
is withheld, about fair lending compliance,
including public commitments that are
unfulfilled. This cannot stand; the information
must be provided before the Board acts in any
way on the application (other than denial.)"
Jump
cut to mid-February: while still not providing
the withheld past answer, the Fed asked more
questions. Letter here.
On
February 27 Provident provided spin, including
that "under the consent order that it entered
into with the U.S. Department of Justice.
These obligations require Lakeland Bank to,
among other things, establish a $12
million loan subsidy fund to increase credit for
consumers applying for loans in
majority-Black and Hispanic census tracts in a
five-county area in and around Newark, New
Jersey" - but nothing where other disparities.
Letter here.
On
April 11, 2024, the Fed hauled off and approved,
noting Inner City Press / Fair Finance Watch
"objected to the proposal, alleging that in
2021, Provident Bank and Lakeland Bank made no
home loans to African American individuals in
New York State.30 30 The data cited by the
commenter corresponds to publicly available 2021
data by Provident Bank and Lakeland Bank under
HMDA. Following consummation of the proposed
transaction, the combined organization will add
to its assessment area Bronx and Kings counties,
each of which includes a significant number of
majority-minority and LMI communities... The
Board also has considered the DOJ Consent Order,
including Lakeland Bank’s efforts towards
meeting its obligations under the DOJ Consent
Order, and that the DOJ Consent Order binds
Provident without further action by the Board."
We'll see.
Watch this site.
***
SOUTH
BRONX,
April 1 – As US bank regulators talk about
working to increase the fairness of the
financial system, and closely scrutinizing
mergers and the spread of bad practices, banks
continue to assume they can combine.
Before the Capital One - Discover proposal, and
ABA lawsuit against the Community Reinvestment
Act regulation, there was FirstSun Capital
Bancorp of Denver and Dallas saying it will
merge with Homestreet, Inc. and Homestreet Bank
of Seattle, Washington.
On February 23, 2024 Fair Finance Watch with
Inner City Press on the FOIA filed with the
Federal Reserve: "FirstSun's flagship Sunflower
Bank, in Texas in 2022, made 694 mortgage loans
to whites, and only 41 to African Americans.
Meanwhile it denied 12 applications from African
Americans, and only 34 from whites.
This is disparate, and more disparate both than
the aggregate in Texas.
Nationwide in 2022, Sunflower Bank made 3059
mortgage loans to whites, and only 194 to
African Americans. Meanwhile it denied 49
applications from African Americans, and only
259 from whites.
For the record, on managerial resources and
otherwise, note that on September 27, 2023,
FirstSun Capital Bancorp, the parent company of
Sunflower Bank, Guardian Mortgage and First
National 1870 (collectively, “Sunflower”), filed
a notice of data breach with the Attorney
General of California... an unauthorized party
likely took advantage of the flaw in the MOVEit
software and downloaded copies of files
[containing] personally identifiable
information."
HomeStreet, meanwhile, is politely said to have
had a "tough" 2023.
More
than a month later, FirstSun emailed Fair
Finance Watch and Inner City Press a response,
referring to, but not providing copies of,
letters of support it says it has procured. Nor
has the Federal Reserve forwarded these along,
or put them online. We'll have more on this.
FFW and Inner City Press have been deeply
concerned about the rush by the Federal Reserve
to rubber-stamp mergers by redliners, money
launderers and predatory lenders. This has been
killing the Community Reinvestment Act and so a
timely request public hearings.
By
Matthew Russell Lee, Patreon
FEDERAL COURT /
S Bronx, March 29 –
Whether or not the U.S. Community Reinvestment
Act will be again enforced under this
Administration and its regulators including
under the incoming divided Congress is an open
question.
On November 25, 2022 Fair Finance Watch with
Inner City Press on the FOIA filed comments with
the Federal Deposit Insurance Corporation
against
the
applications
by Prosperity
Bank in Texas.
In April 2023,
the FDIC
imposed
conditions on
one - and in
March 2024, on
the other,
Lone Star.
November
25, 2022
Federal
Deposit
Insurance
Corporation
Attn: Chairman
Martin J.
Gruenberg
Dallas Kristie
K. Elmquist,
Regional
Director Julie
V. Banfield,
Deputy
Regional
Director Chris
Finnegan
Re:
Comment on
Applications
by Prosperity
Bank, El
Campo, Texas
to acquire
Lone Star Bank
of West Texas
and
FirstCapital
Bank of Texas,
N.A.
Dear
Chairman
Gruenberg,
Regional
Director
Elmquist,
Ass't Regional
Director
Finnegan and
others at the
FDIC:
This is a
request for
all
information in
the possession
of the FDIC
about, and a
timely comment
on, the
Applications
of Prosperity
Bank, El
Campo, Texas
to acquire
Lone Star Bank
of West Texas
and
FirstCapital
Bank of Texas,
N.A. which
appear on the
FDIC website
under
"Applications
In Process
Subject to the
CRA Report"
with an
initial
comment
periods
running
through
December 16.
This comment
is
timely.
The applicant
Prosperity
Bank in 2021
in Texas based
on its
disparate
marketing made
5453 mortgage
loans to
whites --
while making
only 188 loans
to African
Americans.
Meanwhile it
denied fully
94
applications
from African
Americans,
versus only
1186 from
whites. This
is far out of
keeping with
the
demographics,
and others
lenders, in
Texas in
particularly
in Prosperity
Bank's CRA
assessment
areas - this
is
outrageous.
The applicant
Prosperity
Bank in 2021
in Oklahoma
based on its
disparate
marketing made
320 mortgage
loans to
whites --
while making
only 38 loans
to African
Americans.
This is far
out of keeping
with the
demographics,
and others
lenders, in
Oklahoma in
particularly
in Prosperity
Bank's CRA
assessment
areas - this
is
outrageous.
Very Truly
Yours,
Matthew Lee,
Esq.
Executive
Director
Inner City
Press/Fair
Finance Watch
On
April 6, 2024
sent April 10,
the FDIC
imposed this
condition:
"After a
careful review
of the
concerns, the
FDIC decided
to approve the
application
with the
following
condition.
This condition
will help
ensure the
home mortgage
lending needs
of African
American
populations in
Prosperity
Bank’s
assessment
areas are met.
Enhance the
bank’s Fair
Lending Action
Plan (Plan)
adopted by the
Board of
Directors of
Prosperity
Bank and
submit changes
to the FDIC
for approval
within 60 days
of the
application
approval date.
The Plan
updates and
revisions, as
applicable,
should provide
strategies to
improve the
volume of home
mortgage
applications
from, and
originations
to African
American
applicants
within each of
the designated
assessment
areas
established in
Texas. The
Plan should
also provide
strategies to
improve the
volume of home
mortgage
applications
from, and
originations
in
majority-minority
census tracts
and
majority-Hispanic
tracts within
designated
assessment
areas in
Texas. The
enhancements
should be
developed in
the context of
available
demographic
data, as well
as safe and
sound lending
considerations,
and provide
for periodic
review of the
Bank's
efforts, using
measurable
criteria, to
assess actions
and progress.
The Bank will
continue to
provide
quarterly
updates to the
FDIC's Dallas
Regional
Office
detailing the
Bank's
progress under
the Plan."
The
condition was
re-imposed in
March 2024
when the FDIC
approved the
Lone Star Bank
application.
Watch this
site.
Watch
this site.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX,
March 23 – While the US bank regulators purport
to be cracking down on fair lending and other
abuses of consumers, they continue to allow
banks of all sizes to pass exams and merge when
they apply, despite deep
disparities.
On
December 9, Fair Finance Watch (with Inner City
Press on the FOIA) commented to the FDIC:
Merchants & Marine Bank to acquire
Mississippi River Bank:
The applicant Merchants & Marine Bank in
2022 in Mississippi based on its disparate
marketing made 148mortgage loans to whites --
while making only 10 loans to African Americans.
This is far out of keeping with the
demographics, and others lenders, in Mississippi
in particularly in Merchants & Marine Bank's
CRA assessment areas.
In Alabama it is worse. And it would get worse
in Louisiana, into which the bank is apply to
expand via Mississippi River Bank.
The applicant Merchants & Marine Bank in
2022 in Alabama based on its disparate marketing
made 26 mortgage loans to whites -- and NONE. to
African Americans.
This
is far out of keeping with the demographics, and
others lenders, in Alabama in particularly in
Merchants & Marine Bank's CRA assessment
areas - this is outrageous.
There are other issues.... Fair Finance Watch is
requesting an extension of the public comment
period, evidentiary hearings and that, on the
current record, the applications not be
approved.
On
March 19, 2024, the FDIC recounted Fair Finance
Watch / Inner City Press' CRA protest and
imposed a condition, to develop a plan to serve
African American borrowers, we've uploaded it on
DocumentCloud here.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX / SDNY, March 16– With no public comment
period, New York Community Bank was handed the
40 branches of Signature Bank, to re-open them
as braches of Flagstar, which NYCB bought in a
proceeding delayed by fair lending problems.
Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed.
So, a fair lending rogue benefited from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors.
***
March
4, 2024
Capital One Should Discover Merger Dead as FTC Hits Kroger & Inner City Press FOIAs Fed
SOUTH
BRONX,
Feb 26 – Capital One will apply to buy Discover,
in an anticompetitive deal that should be
rejected by regulators if they mean what they
have been saying. Public hearings should be
held, not only on antitrust but also lending
disparities at both companies.
On February 20 Capital One CEO Rich Fairbanks
bragged about communications he's had with the
regulators, then referred to "customary
regulatory approvals." Inner City Press
immediately submitted Freedom of Information Act
requests to the Federal Reserve and OCC for all
such communications. Both agencies confirmed
receipt. The Fed wrote grandly that "You have
provided facts regarding your qualification as a
representative of the news media."
February
26, 2024
Capital One Should Discover Merger Dead CEO Brags to Zombies Inner City Press FOIAs Fed
SOUTH
BRONX,
Feb 20 – Capital One will apply to buy Discover,
in an anticompetitive deal that should be
rejected by regulators if they mean what they
have been saying. Public hearings should be
held, not only on antitrust but also lending
disparities at both companies.
On February 20 Capital One CEO Rich Fairbanks
bragged about communications he's had with the
regulators, then referred to "customary
regulatory approvals." Inner City Press
immediately submitted Freedom of Information Act
requests to the Federal Reserve and OCC for all
such communications. Both agencies confirmed
receipt.
The
call, a transcript of which was not posted hours
later, consisted of largely craven questions
from Capital One's stable of "analysts,"
including Goldman Sachs' Ryan Nash, TD Cohen's
Moshe Orenbuch, from Citi an Aaron sitting in
for Jill Shea, and finally JPMorgan's Rich
Shane, who said "I'm not big on saying this on
calls, but... congratulations." Really.
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site.
***
February
19, 2024