Inner City Press' Community Reinvestment Reporter

  

     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 informationCBS 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.

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. 2014: MRL on Beacon Reader  For or with more information, contact us. See, in November 2021, Inner City Press' book "Belt and Roadkill," here


April 21, 2025

On Discover Merger Federal Reserve Ex Parte Met Capital One so Good Friday Rubber Stamp

by Matthew R. Lee

SOUTH BRONX, April 18 – Before Capital One announced and applied to buy Discover, they and their law firm were allowed to meet secretly with the Federal Reserve.

  After they applied late March 20,  Inner City Press submitted a Freedom of Information Act request to the Fed. While they granted expedited treatment, they delayed nearly a near before on March 4 dumping over 1000 redacted pages.

  These begin with ex parte meetings between the bank, its law firm and the Fed - telephone calls in February 2024, and a meeting inside the Fed on March 7, 2024 (the Fed waited until March 4, 2025 to disclose this). 1000 page on Inner City Press' DocumentCloud here. 200+ more pages here.  FOIA determination letter here

Inner City Press immediately appealed. More than a month later, and apparently preparing its rubber stamp, the Federal Reserve upheld its own withholding in full and denied the appeal, letter here
 - teeing up the April 18 approval, with Discovery consent order as fig leaf.

 The fix was in: on March 3, days after the CFPB dropped its lawsuit against Capital One, the OCC suddenly declared Capital One "Outstanding" under the Community Reinvestment Act. Who's in the  OCC's and Fed's wallet, now?

Back 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 on the OCC  on Inner City Press' DocumentCloud here.

Then FOIA appeal denial and Good Friday rubber stamp.

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April 14, 2025

On Discover Merger Fed Ex Parte Met Capital One Withheld FOIA Docs 1 Year Denies Appeal

by Matthew R. Lee

SOUTH BRONX, April 11 – Before Capital One announced and applied to buy Discover, they and their law firm were allowed to meet secretly with the Federal Reserve.

  After they applied late March 20,  Inner City Press submitted a Freedom of Information Act request to the Fed. While they granted expedited treatment, they delayed nearly a near before on March 4 dumping over 1000 redacted pages.

  These begin with ex parte meetings between the bank, its law firm and the Fed - telephone calls in February 2024, and a meeting inside the Fed on March 7, 2024 (the Fed waited until March 4, 2025 to disclose this). 1000 page on Inner City Press' DocumentCloud here. 200+ more pages here.  FOIA determination letter here

Inner City Press immediately appealed. More than a month later, and apparently preparing its rubber stamp, the Federal Reserve upheld its own withholding in full and denied the appeal, letter here.

On March 3, days after the CFPB dropped its lawsuit against Capital One, the OCC suddenly declared Capital One "Outstanding" under the Community Reinvestment Act. Who's in the  OCC's and Fed's wallet, now?

Back 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 on the OCC  on Inner City Press' DocumentCloud here

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April 7, 2025

Fed Extends Its Time on FOIA Appeal of Capital One Talks as Rocket Eyes Mr Cooper

by Matthew R. Lee

SOUTH BRONX, April 3 – After Capital One applied to buy Discover, in an anticompetitive deal that should be rejected by regulators, now Rocket announces a plan to buy Mr. Cooper, after Redfin. Expect more - including questions.

On March 3, days after the CFPB dropped its lawsuit against Capital One, the OCC suddenly declared Capital One "Outstanding" under the Community Reinvestment Act. Who's in the  OCC's wallet, now?

Back 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." That and more now on Inner City Press' DocumentCloud here

  Now Inner City Press' FOIA to the Fed resulted in 1000 plus pages, but redactions. It appealed, and on March 11 was granted expedited processing.

Now on April 3, another extension: "we are extending the period for our response until April 17, 2025, in order to consult with two or more components of the Board having a substantial interest in the determination of the appeal. If a determination can be made before April 17, 2025, we will respond to you promptly." So will they rule on FOIA before they rule on the merger? Watch this site.

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Feds Drop Community Reinvestment Act Rule as Fed Conceals Its Dealing with Capital One

by Matthew R. Lee

SOUTH BRONX / DC, March 28 – Before Capital One announced and applied to buy Discover, they and their law firm were allowed to meet secretly with the Federal Reserve, see below.

  After they applied late March 20, 2024  Inner City Press submitted a Freedom of Information Act request to the Fed. While they granted expedited treatment, they delayed nearly a near before on March 4, 2025 dumping over 1000 redacted pages.

Now on March 28 the Fed has announced that "the federal bank regulatory agencies today announced, in light of pending litigation, their intent to issue a proposal to both rescind the Community Reinvestment Act (CRA) final rule issued in October 2023 and reinstate the CRA framework that existed prior."

  The Fed's late-provided FOIA documents begin with ex parte meetings between the bank, its law firm and the Fed - telephone calls in February 2024, and a meeting inside the Fed on March 7, 2024 (the Fed waited until March 4, 2025 to disclose this). 1000 page on Inner City Press' DocumentCloud here. 200+ more pages here.  FOIA determination letter here

Inner City Press has filed a FOIA appeal to the Federal Reserve - and raised it in a March 21 comments, along with a new Bank for International Settlements study that cries out for denial of the merger.

On March 24, the Fed's response: "Because your letter was received after the end of the public comment period, it will not be made a part of the record of this case unless the Board in its sole discretion determines to consider your late comments." Yeah, discretion...

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March 24, 2025

On Discover Merger Subprime Antitrust Problems Redacted in FRB Cap One FOIA Docs

by Matthew R. Lee

SOUTH BRONX, March 18 – Before Capital One announced and applied to buy Discover, they and their law firm were allowed to meet secretly with the Federal Reserve.

  After they applied late March 20,  Inner City Press submitted a Freedom of Information Act request to the Fed. While they granted expedited treatment, they delayed nearly a near before on March 4 dumping over 1000 redacted pages.

  These begin with ex parte meetings between the bank, its law firm and the Fed - telephone calls in February 2024, and a meeting inside the Fed on March 7, 2024 (the Fed waited until March 4, 2025 to disclose this). 1000 page on Inner City Press' DocumentCloud here. 200+ more pages here.  FOIA determination letter here

Inner City Press has filed a FOIA appeal to the Federal Reserve - including for the withheld competitive information. This is key, amid reports even DOJ has found subprime antitrust problems, hidden by the Fed so far.

On March 3, days after the CFPB dropped its lawsuit against Capital One, the OCC suddenly declared Capital One "Outstanding" under the Community Reinvestment Act. Who's in the  OCC's and Fed's wallet, now?

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March 17, 2025

Rocket Eyes Redfin As Anticompetitive Capital One Discover Merger Pends Amid FOIA Appeal

by Matthew R. Lee

SOUTH BRONX, March 11 – After Capital One applied to buy Discover, in an anticompetitive deal that should be rejected by regulators, now Rocket announces a plan to buy Redfin. Expect more - including questions.

On March 3, days after the CFPB dropped its lawsuit against Capital One, the OCC suddenly declared Capital One "Outstanding" under the Community Reinvestment Act. Who's in the  OCC's wallet, now?

Back 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." That and more now on Inner City Press' DocumentCloud here

  Now Inner City Press' FOIA to the Fed resulted in 1000 plus pages, but redactions. It appealed, and on March 11 was granted expedited processing. But will they rule on FOIA before they rule on the merger? Watch this site.

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March 10, 2025


On Discover Merger Fed Ex Parte Met Capital One Redacted FOIA Docs Now Appeal Filed

by Matthew R. Lee

SOUTH BRONX, March 6 – Before Capital One announced and applied to buy Discover, they and their law firm were allowed to meet secretly with the Federal Reserve.

  After they applied late March 20,  Inner City Press submitted a Freedom of Information Act request to the Fed. While they granted expedited treatment, they delayed nearly a near before on March 4 dumping over 1000 redacted pages.

  These begin with ex parte meetings between the bank, its law firm and the Fed - telephone calls in February 2024, and a meeting inside the Fed on March 7, 2024 (the Fed waited until March 4, 2025 to disclose this). 1000 page on Inner City Press' DocumentCloud here. 200+ more pages here.  FOIA determination letter here

Inner City Press has filed a FOIA appeal to the Federal Reserve including that "the records are heavily redacted. On this proposed merger in which antitrust harm to consumers is a major issue, the Board has withheld in full for example so-called 'Confidential Exhibit B Additional Information on Competitive Impact.'    In the second file the Board provided on March 4, 2025, pages 119 to 201 are redacted in full.     FOIA expressly mandates that any "reasonably segregable portion" of a record must be disclosed to a requester after the redaction - 5 U.S.C. § 552(b). And see, PHE, Inc. v. Dep’t. of Justice, 983 F.2d 248,252. Likewise, from the communications between Federal Reserve staff and representatives of the bank(s) there are redactions we are challenging on appeal. As simply one example, FRB attorney Lucy Chang received an email from Capital One's outside counsel on March 22, 2024, before public announcement of the merger proposal - after "thanks for getting back to me," an entire paragraph is redacted. In the same chain, "the vmail I left you next week [REDACTED]." These should all be reviewed on appeal.  

On March 3, days after the CFPB dropped its lawsuit against Capital One, the OCC suddenly declared Capital One "Outstanding" under the Community Reinvestment Act. Who's in the  OCC's and Fed's wallet, now?

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March 3, 2025

Amid Discover Merger CFPB Drops Capital One Case FFW Asks Who Is In Fed Wallet?

by Matthew R. Lee

SOUTH BRONX, Feb 27 – 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, see below).

On February 27, "the Plaintiff, Consumer Financial Protection Bureau, dismisses with prejudice this action against all Defendants" - Capital One. Who's in the Federal Reserve's and OCC's wallet, now?

Back 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. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded. When did the Fed start secret talks with Capital One?

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February 24, 2025


As General Motors Tries To Sneak Into Banking via Utah ILC FDIC Credits CRA Protest of FFW

by Matthew Russell Lee, Patreon Book Substack

BRONX / FEDERAL COURT, Feb 19 –   General Motors is an opportunity. It previously applied to try to get into banking through the Utah Industrial Loan Company loophole, but was opposed and withdrew. 

  Now, for obvious reasons, it has reapplied - under the old CRA rules, which have been repealed and superseded, no less. On February 7 Fair Finance Watch filed opposition with the FDIC and Utah regulator:

This is a timely first comment by Fair Finance Watch  opposing and requesting an extension of the FDIC's public comment period on the Applications by General Motors for deposit insurance.

 This re-submitted proposal, if approved, would make a mockery of the Community Reinvestment Act. The FDIC should hold public hearings, and on the current record deny the application.   

GM does business and its bank would, well beyond Utah. But it seeks to limit its CRA to… Utah.   Tellingly, the application states that "GM Financial has developed this Community Reinvestment Act (“CRA”) plan based on the Federal Deposit Insurance Corporation (“FDIC”) CRA regulations that were effective on March 31, 2024, rather than the new framework that was finalized on October 24, 2023 (the “2023 CRA Framework”).

The questions to be considered at the public hearing are not only the regulatory evasion of ILCs - more unacceptable after the financial meltdown - but also CRA assessment areas, covering of affiliates, etc. 

On February 18, this: "William J. Donnelly, Senior Vice President  GM Financial  801 Cherry Street, Suite 3500  Fort Worth, TX 76102  Dear Mr. Donnelly:  This letter is in reference to a Community Reinvestment Act (CRA) protest filed by Mr. Matthew  R. Lee of Fair Finance Watch, concerning your application for an Industrial Loan Charter and  deposit insurance, filed on January 31, 2025.  We reviewed the enclosed correspondence and  consider it to constitute a protest for purposes of this application, in accordance with the  provisions of 12 C.F.R. Section 303.  The protest concerns the proposed institution’s CRA  compliance and how the convenience and needs factor will be addressed in the application  process.  You may provide a written response on the protest to me until March 5, 2025."

  Inner City Press also opposes the redactions to the application, including to the "Financial Model"  

Another car company has applied, and Inner City Press requested the application ten days ago without response yet - this is not acceptable. Watch this site.

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February 17, 2025


Capital One Was Sued for Predatory Lending in East Harlem Now Removes to SDNY

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Feb 12 – Capital One Bank refused a payment plan and moved to foreclose on woman's property in East Harlem in upper Manhattan, NYC.

 She sued in state court - and Capital One moved to transfer the case to Federal court in the U.S. District Court for the Southern District of New York, where Inner City Press found it in the docket. 

 The plaintiff recounts how she was tricked, akin to predatory lending. She is seeking punitive damages and an injunction preventing further foreclosure actions.

 The case is Sanders v. Capital One, N.A., 1:25-cv-1252 (Unassigned)

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February 10, 2025


General Motors Tries To Sneak Into Banking Via Utah ILC Using Old CRA Rules So Opposed

by Matthew Russell Lee, Patreon Book Substack

BRONX / FEDERAL COURT, Feb 7 –   General Motors is an opportunity. It previously applied to try to get into banking through the Utah Industrial Loan Company loophole, but was opposed and withdrew. 

  Now, for obvious reasons, it has reapplied - under the old CRA rules, which have been repealed and superseded, no less. On February 7 Fair Finance Watch filed opposition with the FDIC and Utah regulator:

This is a timely first comment by Fair Finance Watch  opposing and requesting an extension of the FDIC's public comment period on the Applications by General Motors for deposit insurance.

 This re-submitted proposal, if approved, would make a mockery of the Community Reinvestment Act. The FDIC should hold public hearings, and on the current record deny the application.   

GM does business and its bank would, well beyond Utah. But it seeks to limit its CRA to… Utah.   Tellingly, the application states that "GM Financial has developed this Community Reinvestment Act (“CRA”) plan based on the Federal Deposit Insurance Corporation (“FDIC”) CRA regulations that were effective on March 31, 2024, rather than the new framework that was finalized on October 24, 2023 (the “2023 CRA Framework”).1 Implementation and enforcement of the 2023 framework was enjoined by the District Court for the Northern District of Texas on March 29, 2024,2 and its future effectiveness remains uncertain."

  Not only is GM, in reapplying, seeking to take advantage of that - it is clearly feeling it is more likely now to get a rubber stamp. But there even community banks oppose these ILC applications. The questions to be considered at the public hearing are not only the regulatory evasion of ILCs - more unacceptable after the financial meltdown - but also CRA assessment areas, covering of affiliates, etc. 

  The FDIC is administering a loophole that even many in the industry, because consumer and CRA advocates, oppose.       So, it is time for public hearings. 

    For the record, this is a timely comment on: "  20250105    GM Financial Bank Salt Lake City-Provo-OREM Area SALT LAKE CITY, UT    Deposit Insurance (New Bank)    01/31/2025    03/02/2025"

 It is unclear why this is listed as an application to the Chicago Region of the FDIC, which covers "Territory: Illinois, Indiana, Kentucky, Michigan, Ohio, Wisconsin." There should be an explanation. 

  Inner City Press also opposes the redactions to the application, including to the "Financial Model"   Watch this site.

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February 3, 2025


After Flagstar NYCB Rubber Stamped Despite CRA Now Bank to Close 60 Branches

By Matthew Russell Lee, Patreon

SOUTH BRONX / SDNY, Jan 31 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.

  Fair Finance Watch found that in 2019 Flagstar made 60,982 mortgage loans to whites, with 13,963 denial to whites - while making only 3799 loans to African Americans with fully 1777 denials to African American. This was significantly worse than other lenders.

  New York Community Bank's record as an enabler of and profiteer off slumlords led Inner City Press file a Community Reinvestment Act challenge to its then-proposed merger with Astoria Bank, which fell apart.

A year a half later, the proposed merger was still not done and the extended deadline was approaching, amid talk of, as we predicted, fair lending action.

Then at 8 am on November 7, the banks bragged they had Fed approval. But a visit to the Fed's website at 8:40 am did not find any press release of approval. The Fed is getting more and more lax. We'll have more on this.

Inner City Press has gone back to find Flagstar's comments on the proposed and still pending Community Reinvestment Act regulations - tellingly, full of resistance: "Because Flagstar supports the goals of the CRA, the Bank submits this comment letter to highlight concerns about the Agencies' proposed reforms to the CRA framework. This Proposal would undermine the objectives of the CRA and run contrary to the Agencies' stated effmts to ensure that the law continues to be an effective force for strengthening banks and the communities they serve, which j: intludes (i) low- and moderate-income ("LMI") individuals, families, and neighborhoods; (ii) small businesses and farms; and (iii) communities in need of financial services and economic development. Flagstar is particularly concerned about the proposed retail lending assessment area requirements, which would impose significant regulatory, operational, and staffing burdens on banks (especially when coupled with the proposed data collection requirements); force banks to spread limited CRA resources thin and undermine the effectiveness of their CRA programs; and place banks at a competitive disadvantage to nonbanks and other lenders not subject to the CRA. In our view, these challenges will discourage banks from engaging in retail lending and other CRA activities that could otherwise benefit local communities, contrary to the spirit of the law. Moreover, as applied to Flagstar, the proposed retail lending assessment requirements would be so overly burdensome and unworkable that they would likely cause us to question and rethink our business model. 1. There is insufficient data to justify abandoning longstanding interpretations of the CRA to require the delineation of lending-based assessment areas; Requiring the delineation of a lending-based assessment area would go beyond the text and purpose of the CRA." Yeah.

In late January 2025, Flagstar CFO Lee Smith said Flagstar is closing about 60 retail branches, most of which it leases; about 20 private-client retail locations; and a couple of operating centers that are owned by the bank.

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January 27, 2025

In Florida Disparate United Community Banks Wants ANB But Lending Disparties Raised

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Jan 25 – In Florida, United Community Bank is trying to move into the Miami 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 Application by UCB to acquire American National Bank.

  But consider United Community Bank's disparate lending record:    

  In South Carolina in 2023, United Community Banks made 673 mortgage loans to whites with 282 denials. Meanwhile to African Americans in the state it made only FIFTY ONE loans, while denying fully 45 applications.

In Florida in 2023, United Community Banks made 240 mortgage loans to whites with 86 denials. Meanwhile to African Americans in the state it made only TWELVE loans, while denying five applications.

  Nationwide, United Community Banks is scarcely better. In 2023 overall it made 5576 mortgage loans to whites with 4114 denials. Meanwhile to African Americans nationwide it made only 477 loans, while denying fully 1246 applications. That is to say, while UCB to whites had more loans then denial, to African Americans it had nearly three times as many denials as of loans. A referral should be made to the DOJ for a pattern and practice of fair lending violations.  

  Fair Finance Watch and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act.

The new Merger Guidance should be applied - that is a test case, in this new era.

Watch this site.

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January 20, 2025


On Capital One Discover OCC Doubled Down on FOIA Withholding Now Customers Cut Off

by Matthew R. Lee

SOUTH BRONX, Jan 17 – 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.

  Nor does it seem the Fed has taken note of Capital One cutting off its own customers on January 16, then passing the buck to a third party vendor, Fidelity Information Services. Something is deeply wrong with Capital One, but the Fed and OCC don't seem to care.

Meanwhile Capitol One lobbying continues even now in 2024, from New Mexico even to Harlem by a social worker with bankers on the board. How is this Astroturfing organized?

Without approvals, now the banks have set shareholders' votes for February 18, 2025.

 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. 

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January 13, 2025

In Virginia Disparate TowneBank Wants Village Bank Now Inner City Press Files FOIA Appeal

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Jan 9 – In Virginia, a bank is trying to move into the Richmond 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 Application by TowneBank to acquire Village Bank & Trust.

  But consider ChoiceOne's disparate lending record:    

In Viginia in 2023 - in HMDA data not yet taken into account in any CRA exam - Towne Bank based on its marketing made 1282 mortgage loans to whites, and only 192 loans to African Americans. Meanwhile it denied 43 applications from African Americans, and only 64from whites. It should be referred to DOJ.  

In North Carolina in 2023 Towne Bank based on its marketing made 1107 loans to whites, and only 80 loans to African Americans. Meanwhile it denied 10 applications from African Americans, and only 92 from whites.

   In Maryland in 2023 Towne Bank based on its marketing made 1172 loans to whites, and only 366 loans to African Americans. Meanwhile it denied 30 applications from African Americans, and only 40 from whites.

The new Merger Guidance should be applied - that is a test case.

TowneBank filed a response on December 4, by Troutman Pepper's Seth A. Winter who claims data documenting HMDA data has nothing to do with a merger - he should know better, since he represented Linkbancorp which was forced to implement a lending plan after Inner City Press documented similar disparities. It is a bad faith response.

And another: Inner City Press on December 12 submitted a FOIA request for Towne Bank's branch closing information, asking for the expedited treatment it routinely gets from other agencies. But the FDIC denied it, being dismissive of the impact of branch closings - and the FDIC took 27 days to deny expedited processing, providing no email address to appeal to.

But on January 9 Inner City Press emailed its FOIA appeal to FDIC General Counsel Harrel M. Pettway, informing him that his agency's "SecureDelivery.us" portal doesn't allow for submission of appeals. Need for reform - and a stay of the application.

Watch this site.

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January 6, 2025


On Capital One Discover OCC Doubled Down on FOIA Withholding Now Harlem Astroturfing

by Matthew R. Lee

SOUTH BRONX, Jan 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. 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 even now in 2024, from New Mexico even to Harlem by a social worker with bankers on the board. How is this Astroturfing organized?

Without approvals, now the banks have set shareholders' votes for February 18, 2025.

 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. 

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December 30, 2024

Stock Fraudster Sterling Bancorp Bid To Sell Bank with Weak CRA to Everbank Shirking NY

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Dec 24 – Sterling Bancorp, which settled with DOJ on securities fraud, it trying to sell its Sterling Bank & Trust including in New York, where it has a need to improve CRA Investment Test rating to Everbank. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications

   This is a request for a full copy of, and a timely first comment on, the Applications of EverBank to acquire Sterling Bank & Trust (with a rare Needs to Improve CRA rating on Investment Test in New York), and not scandal plagued Sterling Bancorp.        Sterling Bancorp was recently prosecuted by DOJ; EverBank purports that by buying the bank portion it is not touched by the scandal. But what is the showing that the criminal conduct at the Bancorp was entirely insulated from the bank and those who work there, and its practices?      As a CRA matter, militating for a hearing, Sterling Bank has a rare Needs to Improve rating on the investment test in NY.

On December 24 Everbank wrote in to the Fed stating that "EverBank maintains the following two office locations in New York, neither of which is a “branch”... Islandia, NY: Located at 11 Oval Drive, Suite 107, Islandia, NY 11749.11 This location consists of an approximately 31,000 square-foot facility... EverBank notes that its lease for the Islandia, New York location is due to expire in 2025, after which EverBank expects to move the back-office operations currently conducted at that location to another non-branch office location on Long Island, New York." Needs to improve...

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December 23, 2024

On Capital One Discover OCC Doubled Down on FOIA Withholding Feb 18 Votes Astroturfing

by Matthew R. Lee

SOUTH BRONX, Dec 18 – 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 even now in mid December, for example in Pennsylvania, here

Without approvals, now the banks have set shareholders' votes for February 18, 2025.

 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. 

***

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December 16, 2024

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Dec 12 – The Federal Reserve - both the Board of Governors in Washington and the FRBNY - have been sued by Banco San Juan International for the terminal of its master account(s).

On the motion to dismiss, oral arguments were held on December 12 before U.S. District Court for the Southern District of New York Judge John G. Koeltl. Inner City Press was there. Thread:

Fed's lawyers from Simpson Thacher law firm cite Custodia (crypto) case. Does this outside counsel rep raise conflicts of interest on mergers?

 Note: Simpson Thacher represents many banks applying to the Fed for merger approvals - why did the  Fed, which has many in house lawyers, have to hire them? And isn't there now a conflict of interest on the merger applications? Fed: The Reserve Banks are not govt

 Fed / Simpson Thacher: Congress has not provided these [edgy] banks any remedy. Anyway we've shown good faith in closing their master account. [Isn't this now a variant of the de-banking legislation in Congress?]

Fed / Simpson Thacher: The FRBNY, like me, is not subject to the 5th Amendment, as a private citizen.

FRBoard Joshua: We don't know why the Board is in this case. Judge: The plaintiff argues that the Board controlled the decision FRBoard: We're not responsible

Plaintiff: The banks is down to 10 accounts, with $20,000 in them. It is for all intents & purposes closed. We may appeal to the Supreme Court, now that deference to agencies [Chevron]. The court in Custodia denied the Fed's [Simpson Thacher's?] motion to dusmiss

Plaintiff: The Fed never closed the master accounts of Deutsche Bank, despite wrongdoing - and what about "Toronto Dominion, which pled guilty to money laundering"?

 [Note: TD's Leonardo Ayala is being prosecuted in the District of NJ]

 Inner City Press will stay on these cases.

This case is Banco San Juan Internacional, Inc. v. The Federal Reserve Bank of New York, et al., 1:23-cv-06414 (Koeltl) 

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December 9, 2024

On Capital One Discover OCC Doubled Down on FOIA Withholding Amid New Astroturfing

by Matthew R. Lee

SOUTH BRONX, Dec 6 – 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 even now in December, for example a New Hampshire "IT executive," 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. 

***

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December 2, 2024

CRA Problems with ConnectOne Merger With First of Long Island Lead to Challenge & Delay

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Nov 25 –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 has now FOIA-ed and challenged the required applications for regulatory approval, on November 18 to the FDIC.

On November 25 the FDIC wrote to ConnectOne Bank  Frank S. Sorrentino, III – Chairman and CEO that Fair Finance Watch "raises issues regarding both bank’s records of lending to African American persons  in New York and nationwide, respectively.  The anticipated time and review required to  investigate these issues has necessitated the removal of the application from expedited processing." FDIC letter on Inner City Press' DocumentCloud here

Watch this site

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November 25, 2024

Stock Fraudster Sterling Bancorp Bid To Sell Bank with Weak CRA to Everbank Hit by FFW

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Nov 20 – Sterling Bancorp, which settled with DOJ on securities fraud, it trying to sell its Sterling Bank & Trust including in New York, where it has a need to improve CRA Investment Test rating to Everbank. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications

   This is a request for a full copy of, and a timely first comment on, the Applications of EverBank to acquire Sterling Bank & Trust (with a rare Needs to Improve CRA rating on Investment Test in New York), and not scandal plagued Sterling Bancorp.        Sterling Bancorp was recently prosecuted by DOJ; EverBank purports that by buying the bank portion it is not touched by the scandal. But what is the showing that the criminal conduct at the Bancorp was entirely insulated from the bank and those who work there, and its practices?      As a CRA matter, militating for a hearing, Sterling Bank has a rare Needs to Improve rating on the investment test in NY. The rest of that Performance Evaluation is not credit - it talks about and praises mortgage lending when the HMDA data show negligible volume.  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      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 we timely request public hearings

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November 18, 2024

First Busey $1B Bid For CrossFirst Hit by Fair Finance Watch Info Hidden Now FOIA Delay

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Nov 4 – 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 - including contempt for CRA, 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.

When the Fed provided the application, the banks had withheld their CRA data. So, "This is a formal FOIA request for the withheld exhibits to the First Busey / CrossFirst application, in particular "Confidential" Exhibits 9 ("First Busey Community Reinvestment Act Data") and 10 ("CrossFirst Community Reinvestment Act data"). This is presumptively public."

Rather than provide the CRA info, First Busey's Monica L. Bowe, Executive Vice President & Chief Risk Officer of First Busey Corporation - and of the Risk Management Association- submitted a letter saying CRA conditions are never attached - false, and telling.

Inner City Press' FOIA request? The Fed on November 4 extended its time to reply - and unlike other less arrogant banks, First Busey has provided nothing. Watch this site.

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November 11, 2024

Fair Finance Watching Hit HomeStreet FirstSun On Lending Disparities Now Deal Dying

by Matthew Russell Lee

SOUTH BRONX, Nov 5 – 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."

  Then FirstSun simply changed 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.

 And it still didn't work - in early November the deal died, with the Fed and Texas regulators saying they will not approve. Watch this site.

November 4, 2024

In Virginia Disparate TowneBank Eyes Richmond Area via Village Bank But Challenge

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Nov 1 – In Virginia, a bank is trying to move into the Richmond 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 Application by TowneBank to acquire Village Bank & Trust.

  But consider ChoiceOne's disparate lending record:    

In Viginia in 2023 - in HMDA data not yet taken into account in any CRA exam - Towne Bank based on its marketing made 1282 mortgage loans to whites, and only 192 loans to African Americans. Meanwhile it denied 43 applications from African Americans, and only 64from whites. It should be referred to DOJ.  

In North Carolina in 2023 Towne Bank based on its marketing made 1107 loans to whites, and only 80 loans to African Americans. Meanwhile it denied 10 applications from African Americans, and only 92 from whites.

   In Maryland in 2023 Towne Bank based on its marketing made 1172 loans to whites, and only 366 loans to African Americans. Meanwhile it denied 30 applications from African Americans, and only 40 from whites.

The new Merger Guidance should be applied - that is a test case.

Why would regulators even consider approving this merger? Watch this site.

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October 28, 2024


Questioning Capital One Discover Merger NY AG Asks for Subpoena Now More Astroturf

by Matthew R. Lee

SOUTH BRONX, Oct 23 – 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."

Meanwhile Capital One's "Astro-turfing" continues - for example in California, here.

On October 23, while the Federal Reserve calls submissions of these abuses untimely, NY Attorney General Letitia James asked an NYS Judge to a subpoena against Capital One:

"Discover agreed to provide a waiver... Capital One declined to provide such a waiver. Instead, its counsel stated that it had been told by the OCC that issuing a voluntary waiver of federal confidentiality protections would contravene OCC regulations that restrict the ability of State law enforcement agencies to exercise “visitorial powers” over national banks.

27. Attorneys in the Attorney General’s Antitrust Bureau later spoke with attorneys at the OCC, who confirmed the OCC’s position."

What regulators. The case has yet to be assigned an index number.

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October 21, 2024

First Busey $1B Bid For CrossFirst Hit by Fair Finance Watch As Bowe Thumbs Nose at CRA

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Oct 15 – 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 - including contempt for CRA, 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.

When the Fed provided the application, the banks had withheld their CRA data. So, "This is a formal FOIA request for the withheld exhibits to the First Busey / CrossFirst application, in particular "Confidential" Exhibits 9 ("First Busey Community Reinvestment Act Data") and 10 ("CrossFirst Community Reinvestment Act data"). This is presumptively public."

Rather than provide the CRA info, First Busey's Monica L. Bowe, Executive Vice President & Chief Risk Officer of First Busey Corporation - and of the Risk Management Association- submitted a letter saying CRA conditions are never attached - false, and telling. Watch this site.

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October 14, 2024

UMB Bank Application for Heartland Hit on Disparties Now Info Withheld So FOIA Request

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.

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October 7, 2024

As First Tech and Digital Credit Unions Seek to Merge Disparate Lending Ignored by NCUA

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

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September 30, 2024

First Busey $1B Bid For CrossFirst Hit by CRA Challenge by Fair Finance Watch on Disparities

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.

Why would regulators even consider approving this merger? Watch this site.

September 23, 2024

In Battleground Michigan Disparate ChoiceOne Eyes Detroit via State Bank Opaque HELOC

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.

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September 16, 2024

CRA Problems with ConnectOne Merger With First of Long Island Fair Finance Watch Finds

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

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September 9, 2024

Opposing Capital One Discover Fair Finance Watch Raises Case of Customer Info to Meta

by Matthew R. Lee

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?

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September 2, 2024

In Battleground Michigan Disparate ChoiceOne Eyes Detroit Area via State Bank But Challenge

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.

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August 26, 2024

The scams and/of the regulators continue - still nothing from the FDIC, nor for a full day and coutning from the Federal Reserve: "This is a request for a copy of the application of Porticoes Capital LLC and Porticoes Investors, LLC;    to become bank holding companies by acquiring Porticoes National Bank (in formation), please confirm receipt & provide the documents - more than a day later, neither had been done...

August 19, 2024

  Can one start a bank that is just a "blank check" entity to buy other banks? The OCC has said yes to Porticoes National Bank and now the FDIC is considering it. Inner City Press / Fair Finance Watch, to give it full consideration, has requested from the FDIC a copy of the application. Twice. And a week after the first request, nothing...


August 12, 2024

SouthState Lending Disparities Triggered CRA Challenge Now Reply Only As To Independent

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

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August 5, 2024

On Capital One Discover OCC In Nov 2023 Called It Big Project Sirius then Andy Texts

by Matthew R. Lee

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.

  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. When did the Fed start secret talks with Capital One?

July 29, 2024

On Capital One Discover OCC Doubles Down on FOIA Withholding After Predatory Pledge

by Matthew R. Lee

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. 

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July 22, 2024

On Capital One Discover Opposition by Fair Finance Watch with Inner City Press on FOIA

by Matthew R. Lee

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.  

 Here, the presumption has not been rebutted - quite the contrary, given Capital One's rogue and predatory ways, going back to its acquisition of ING Direct and beyond.  On the current record, this proposed merger must be rejected. Capital One's application for regulatory approval must be denied.  

This concludes my remarks, but not my FOIA requests

July 15, 2024

CRA Challenge to Peoples Security Bank FNCB Results in FDIC Fair Lending Condition

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.


July 8, 2024

On Capital One Discover OCC Withholds 185 Pages Inner City Press Appeals as PA Pol Spins

by Matthew R. Lee

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. 

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June 24, 2024

UMB Bank Application Buy Heartland Now Challenged on Disparties & As Shaky Regional

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.

***

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June 17, 2024

Capital One Should Discover Merger Dead But Brags of Access Before July 19 Public Meeting

by Matthew R. Lee

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. 

  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. 
May 20, 2024

Supreme Court Upholds CFPB Structure 7-2 Amid Industry Attacks and Merger Proposals

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.”

Back on August 11 the two credit union associations wrote it to get a stay - while they themselves try to merge - as Capital One and Discover are now. That should be denied. Watch this site.

May 13, 2024

Amid Attack on CRA FirstSun HomeStreet Bid Hit on Lending Disparities Now Charter Switch

by Matthew Russell Lee

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.

     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.

May 6, 2024

After Being IDed As Shaky Regional UMB Bank Wants to Buy Heartland But Disparities

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.

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April 29, 2024

Capital One Should Discover Merger Dead FRB Extends to May 31 Inner City Press FOIAed Fed

by Matthew R. Lee

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 22, 2024

  As US bank regulations rubber stamp mergers, they withhold from the public even the applications they are approving. When the OCC put out for comment its FOIA regulations, Inner City Press commented:

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,

 

Matthew R. Lee, Esq., Executive Director
Inner City Press / Fair Finance Watch
Bronx, New York

April 15, 2024

Lakeland Bank DOJ Deal Left Disparities So Protest Now Fed Rubber Stamps Provident

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.

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April 8, 2024

Amid Attack on CRA FirstSun HomeStreet Bid Hit on Disparities Now Belated Partial Response

by Matthew Russell Lee

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.


April 1, 2024

Prosperity Bank Hit by CRA Challenge to Lone Star Bank now FDIC Condition Reimposed

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.

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March 25, 2024

FDIC Imposes CRA Condition After Mississippi Bank Merger Challenged by Fair Finance Watch

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.

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March 18, 2024

NYCB Was Gifted Signature Bank Now Otting Cash as CEO by Mnuchin Thumbs Nose at CRA

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.

 Jump cut to early February 2024 and NYCB's stock price fell by 60%, Valley National down too.

On February 29, NYCB's long time CEO Thomas Cangemi was out and NYCB said it had "identified material weaknesses." Why didn't the regulators identify them, as Fair Finance Watch protested Flagstar, and on Signature?

Now the kicker: Steve Mnuchin invests, and taps as CEO of NYCB Joseph Otting, who led attacks on the Community Reinvestment Act, and scammed the CRA comment process when last he headed a bank.

 New York Community Bank CEO Joseph Otting will receive an annual base salary of $1.25 million, the bank disclosed in a Securities and Exchange Commission filing Friday.  Otting will also be eligible for an annual cash bonus with a target value of $2.25 million, but that amount could balloon to $4.5 million, according to the filing.  Otting is receiving a one-time, 10-year stock option award covering 15 million shares at $2 per share, NYCB said The options will vest over three years in equal quarterly installments, unless there’s a change in control of the bank. In that case, they’d vest immediately, the bank said.

So Otting may sell, or preside over the failure, of another bank, like OneWest.

We'll have more on this.

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March 4, 2024

Capital One Should Discover Merger Dead as FTC Hits Kroger & Inner City Press FOIAs Fed

by Matthew R. Lee

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."

 But still no records as of March 2, when the FTC came out against Kroger's proposed $24.6B purchase of Albertsons, saying it "threatens shoppers & workers." So how could Capital One / Discover be approved?

February 26, 2024

Capital One Should Discover Merger Dead CEO Brags to Zombies Inner City Press FOIAs Fed

by Matthew R. Lee

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. 

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February 19, 2024

As JPMorgan Chase Seeks to Grab More Money in Affluent Areas Fair Finance Watch Protests

by Matthew R. Lee

South Bronx, Feb 17 -- The monopolization of banking in the US has seen JPMorgan Chase grow well beyond the 10% of nationwide deposit cap that Congress purported to set, as Chase was awarded First Republic and parts of other failed banks. 

  Now Chase proposes to gobble up even more deposits, this time by opening hundreds of branches, in affluent and disproportionately non-diverse communities. 

  Chase in applying to its purported regulator the Office of the Comptroller of the Currency or OCC has chosen not to include the street addresses of the branches it proposes to open.

So on February 17 Fair Finance Watch, with Inner City Press on the FOIA, submitted a sample first comment to the OCC, Acting Comptroller Michael J. Hsu and others, comparing branches Chase proposes to close and open in this instance, February 2 and February 6, in Ohio:  

  On February 2, 2024 the OCC received a filing from Chase to close Eastgate Wyler Park    867 WYLER PARK DRIVE         CINCINNATI    OH    45245    Hamilton    080223A  

On February 6, 2024, the OCC received an application from Chase to open Maineville Town Center    NWC of OH Hwy 48 and US Hwy 22         Maineville    OH    45039    Warren    217362A  

Now, because Chase chooses to list its proposed branch openings not by street address (which information it has) but instead by street-corner (apparently, even if not on a corner), we will herebelow compare the zip codes. [The OCC should henceforth require Chase and others to including street address and census tract in applications.]  

 In Zip Code 45245 where Chase is closing, there are 388 African American residents and 17,817 whites - significantly more diverse than Zip Code 45039 where Chase proposes to open (21,702 whites and only 191 African Americans).   

   In Zip Code 45245 where Chase is closing, fully 21% of households make less than $30,000, and 16% make between $30,000 and $50,000 - significantly lower income than Zip Code 45039 where Chase proposes to open (only 9% of households below $30,000 and only 12% between $30,000 and $50,000). 

  This comparison is troubling; the OCC should require Chase to (re) apply listing street addresses and census tracts, and should make its own comparisons, as this new Chase proposed strategy is rolled out.    

   Fair Finance Watch and Inner City Press are hereby opposing these applications / proposal (including proposed closings) and are requesting public hearing on this issue.

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February 12, 2024

ABA of Large Banks Sue CRA Reg on Day FNB Settles on Fair Lending after CRA Protest

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, NY Feb 5 – On the day a bank that has been permitted several mergers even as it engaged in discrimination settled those charges, on February 5 "The American Bankers Association, the U.S. Chamber of Commerce, Independent Community Bankers of America, Texas Bankers Association, Independent Bankers Association of Texas, Amarillo Chamber of Commerce and Longview Chamber of Commerce filed a lawsuit in the Northern District of Texas against the Federal Reserve, FDIC and OCC."

  Beyond venue shopping, the largest banks in the US are responsible for the ABA lawsuit - they are hypocrites, on which we'll have more.

Consider: First National Bank of Pennsylvania applied to the Federal Reserve to buy Yadkin bank in North Carolina, Fair Finance Watch challenged it on Community Reinvestment Act and fair lending grounds.  

 The Federal Reserve, as usually, rubber stamped the merger.   Now in February 2024 the Justice Department had sued and settled with FNB on fair lending grounds.

Inner City Press had wanted to ask DOJ about the Fed (including in its recent Patriot Bank action), but has been unable so far.  Watch this site

February 5, 2024

As OCC Proposes to End Automatic Approvals It Withheld under FOIA US Bank Letter it Used

By Matthew Russell Lee, Patreon

SOUTH BRONX NYC, Jan 29  – How untransparent and pro-bank are today's regulators, including the Office of the Comptroller of the Currency?

  We ask as the OCC on January 29, 2024 announced a proposal for what it pitched as more transparency in merger reviews. The proposal, they said, "detail[s] the types of deals that would typically secure approval and the issues that could complicate or derail transactions," Michael Hsu, the acting comptroller, said. The end of so-called automatic approvals is overplayed; a database would help. But too some, this appears to be a sop to the banks, not communities or consumers. Consider:

Back on February 10, 2023 came the OCC's denial in full of Inner City Press' Freedom of Information Act request about its approval of U.S. Bank's application to acquire Union Bank, which Fair Finance Watch and others challenged under the Community Reinvestment Act. 

 Inner City Press submitted the request in November 2022, and immediately clarified and narrowed the request after an OCC inquiry.

On February 10, 2023, the OCC responded - and withheld 16 pages in full

On February 14, Inner City Press filed its appeal.

On March 16, 2023, OCC Deputy General Counsel Patricia S. Grady denied the appeal in full - the bank's commitment letter the OCC based its approval all it totally secret. Letter on Inner City Press' DocumentCloud here. This is unacceptable. Will it be addressed?

  Watch this site.

January 29, 2029

  What is happening to the Federal Reserve? Beyond misrating Patriot Bank just before its DOJ redlining settlement, how the Fed is withholding info about its inquiry into Lakeland Bank's discrimination deal. Ten days ago - with no documents yet - Inner City Press / Fair Finance Watch FOIA-ed the Fed: "This is a formal FOIA request for the two exhibits withheld in full by Provident Financial Services, Inc., Jersey City, New Jersey in its January 18, 2024 Additional Information response in connection its pending application  to acquire Lakeland Bancorp, Inc., Oak Ridge, New Jersey, and thereby indirectly acquire Lakeland Bank, which recently settled lending discrimination charges with DOJ   The January 18 response recites then states: Provide an update to all action items included in the Consent Order, reflecting those items which have been completed and any other pertinent updates, including, but not limited to, the status of any deliverables required under the Consent Order that have not yet been completed. Please refer to the attached Confidential Exhibit 1 for a response to this Item.   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.)


January 22, 2024


Patriot Bank Settled on Redlining After CRA Satisfactory Rating from Federal Reserve

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Jan 20 – Patriot Bank in Tennessee settled redlining discrimination charges with DOJ on January 17, 2024.

But the Federal Reserve in 2022 gave Patriot Bank a "Satisfactory" rating under the Community Reinvestment Act, stating that "no evidence of discriminatory or other illegal  credit practices inconsistent with helping to meet community credit needs was identified." 

 So the Federal Reserve, at least its CRA exams and merger reviews, is not credible.

And DOJ? Settling for less than $2 million?

 Inner City Press has submitted a FOIA request to the Fed, on behalf of Fair Finance Watch, about another recent DOJ lending discrimiantion case and FRB merger, Provident / Lakeland - watch this site

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January 15, 2024

Disparate Hudson Valley Credit Union Wants to Gobble Up a Bank Removing it from CRA

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Jan 12 – The trend of credit unions buying banks is growing - and credit unions are not subject to the Community Reinvestment Act. Nor do some of them respect the fair lending laws.

  Take, this week, the proposed acquisition in New York of Catskill Hudson Bancorp by Hudson Valley Credit Union.

   Home Mortgage Disclosure Act data for 2022, reviewed by Inner City Press / Fair Finance Watch, show that Hudson Valley Credit Union made 141 loans to African Americans while denying more applications, 164, from African Americans. By contrast it made fully 2583 loans to white, which less than half than number of denials: 1128.

HVCU should be referred to the Justice Department for prosecution. But it will not be under the Community Reinvestment Act. This loophole must be closed.

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January 8, 2024

Truist Moving to Close 72 Bank Branches Amid Merger Fallout Covered Up by US Regulators

By Matthew R. Lee, FOIA docs

NEW YORK CITY, Jan 5 – Back when BB&T announced a $66 billion proposal to take over Suntrust Bank, they said they would close an undisclosed number of branches.

Then after Federal Reserve Governor Lael Brainard was asked by Inner City Press / Fair Finance Watch about the Fed's lax review of previous mergers, conveniently, the Fed "announce[d] termination of enforcement action with BB&T Corporation" for money laundering.

  Now in January 2024, the re-named Truist says it will close 72 branches by March. Nine branches are set to close in North Carolina and seven in the DC metropolitan area; also in Alabama, Georgia (8), Kentucky, Maryland and West Virginia. This is the result of the mergers the regulators allow, then don't follow up on.

We'll have more on this - watch this site. 

January 1, 2024

Old National Bank Bid for CapStar Protested After 2021 Settlement 2022 Lending Disparities

by Matthew Russell Lee

SOUTH BRONX, Dec 27 – As US bank regulators talk about working to increase the fairness of the financial system, banks with striking histories of discrimination, even histories acknowledged by settlement, blithely apply for approval to buy other banks. 

 So it is with Old National, which settled lending discrimination charges in 2021, but remained disparate after that - and now seeks to buy CapStar Bank in Nashville.   On December 27, Fair Finance Watch with Inner City Press on the FOIA filed comments with the Office of the Comptroller of the Currency:  "This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Old National to acquire CapStar.   As the OCC must know, Old National was the subject of fair lending discrimination charges and settled them in 2021. See, e.g., "Old National Bank preventing loan access to Black borrowers could be illegal, experts say"...    

But still in 2022, Old National in Indiana based on its disparate marketing made 2609 mortgage loans to whites, with 791 denials to whites -- while making only 114 loans to African Americans, with fully 97 denials.  This is unacceptable.  In 2022 in Minnesota, based on its disparate marketing, Old National made 850 loans to whites, with 223 denial and only 9 loans to African American, with just as many denials to African Americans: nine. This is totally unacceptable.      CapStar in Tennessee in 2022 made 1522 loans to whites with 125 denials, while making only 49 loans to African American, with ten denials. In North Carolina in 2022, CapStar made five loans to whites, and NONE to African Americans.    There is no public benefit to this proposal. 

   Fair Finance Watch and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners. We timely request public hearings. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved

December 25, 2023

Sleazy as can be: U.S. Bank will pay $36 million over allegations the company illegally blocked out-of-work consumers from accessing unemployment benefits during the coronavirus pandemic, top federal banking regulators announced on Tuesday.  At the onset of the COVID-19 pandemic, U.S. Bank had contracts with at least 19 states and the District of Columbia to deliver unemployment benefits to millions of newly out-of-work Americans through its prepaid card.  But due to expanded antifraud controls, the nation's fifth-largest lender froze tens of thousands of prepaid card accounts without leaving users a way to regain access, according to the U.S. Office of the Comptroller of the Currency and U.S. Consumer Financial Protection Bureau.

December 18, 2023

  Fair Finance Watch's CRA filing in Mississippi has been deemed by the FDIC to "constitute a protest for purposes of this application:

Dear Mr. Lee,  This letter is to acknowledge receipt of your correspondence on December 9, 2023, concerning  an application filed by Merchants & Marine Bank, Pascagoula, Mississippi, to merge with  Mississippi River Bank, Belle Chasse, Louisiana.  We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2  (c) and (1) and consider it to constitute a protest for purposes of this application. A determination on the request for a hearing has not yet been made and the FDIC will provide information regarding that request in subsequent correspondence.  cc: Merchants & Marine Bank CEO Clayton Legear

December 11, 2023

Amid FDIC Questions Disparate Mississippi Bank Merger Challenged by Fair Finance Watch

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Dec 9 – 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. Watch this site.

***

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December 4, 2023

PA Merger Partner FNCB Admits Disparities As Link Was Hit by Fair Finance Watch Now Plan

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Dec 1 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

 In October, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

On November 10, Fair Finance Watch commented on an even more disparate combination, Peoples Security Bank and Trust Company bid to acquire and merge with FNCB Bank, noting that on 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.

  Now the banks have admitted to the FDIC: "FNCB Bank’s preliminary HMDA data from the first three quarters of 2023 reveals a significant decrease in loan volume due to an unexpected and unplanned change in FNCB Bank’s mortgage processing system. In early 2022, FNCB Bank partnered with a third party, Promontory MortgagePath (“PMP”), to provide mortgage fulfillment services. However, in October 2022, PMP  Deputy Regional Director Scott D. Strockoz Federal Deposit Insurance Corporation December 1, 2023 Page 6  unexpectedly announced closure of the company due to the unprecedented and rapid deterioration of the mortgage market. PMP did not provide FNCB Bank with advance notice of its decision. In order to continue to serve the needs of its communities during 2023, FNCB Bank brokered residential mortgage loan applications to a third-party lender pending the establishment of a new processing system. Consequently, FNCB Bank recorded a total of 42 brokered loan applications through September 30, 2023, which resulted in 32 loans originated by its third-party lender partner. Because these brokered loans were not closed in FNCB Bank’s name, the loans are not included in FNCB Bank’s 2023 HMDA data. Accordingly, a review of FNCB Bank’s preliminary 2023 HMDA data will indicate that it did not meet 2022 peer benchmarks for loan originations in MMCTs and loan applications generated in LMI tracts when reviewed in FNCB Bank’s assessment areas (which, for peer comparison, includes only those institutions in its assessment area with an application volume between 50% and 200% of FNCB Bank’s). Due to PMP’s withdrawal from its partnership with FNCB Bank, the following trends are evident based on a total of 45 mortgage applications and 33 originations reported by FNCB Bank as HMDA loans during this period: • Applications from MMCTs were 2.22% of total applications. • Majority-Minority loan originations were 0%." Zero. Watch this site.

If the regulators at the FDIC means what they claim, this application should be denied. Watch this site.

November 27, 2023

CRA Challenged to Burke & Herbert on Summit Is Deemed Protest by FDIC despite Bogus Reply

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Nov 20 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank. Despite a showing of disparities at Burke & Herbert even worse than at Linkbank, which the FDIC imposed a condition on, Burke on November 15 issued a vacuous response. They drop an ad-hominen footnote which ignores that the evidence put forward in a litigation survives the suit's withdrawal.

On November 20, the FDIC overruled Burke & Herbert's position: "
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."

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.  

November 20, 2023

CRA Response by Burke & Herbert on Summit Merger Ignores FDIC Conditioning Linkbank

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Nov 15 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank. Despite a showing of disparities at Burke & Herbert even worse than at Linkbank, which the FDIC imposed a condition on, Burke on November 15 issued a vacuous response. They drop an ad-hominen footnote which ignores that the evidence put forward in a litigation survives the suit's withdrawal.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.   

  Summit Community Bank is also of concern. In West Virginia in 2022 it made 403 mortgage loans to whites, and only EIGHT to African Americans. Meanwhile it denied 3 applications from African Americans, and only 97 from whites (compared to 403 originations).  This is disparate, and more disparate both than the aggregate in West Virginia. 

  And that's not even getting into Burke & Herbert's overdraft fee abuses. More on that to follow - more than conditions, this application should be denied.

 In October, after a similar challenge by Fair Finance Watch on data and complaints not even as bad, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.


If the regulators at the FDIC means what they claim, including in the new CRA regulation, this application should be denied. Watch this site.

November 13, 2023

Fair lending beat, filed in the Pennsylvania edition: " 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. A referral should be made to the DOJ for fair lending violations.    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."

November 6, 2023

Atlantic Union CRA Protested on American National Replies 2.4 Disparities Is Fine

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX NY, Nov 4 –  Two of 2023's largest US proposed bank mergers were announced this summer: Atlantic Union applying to buy Atlantic National in Virginia, and Banc of California to buy PacWest.    Fair Finance Watch had been monitoring the banks, and on September 25 commented to the Federal Reserve on and against Atlantic Union - American National, below.

On October 6, mailed October 11, Atlantic Union's counsel claims that it's fine that Atlantic Union, in Virginia in 2022, made 2819 mortgage loans to whites, and only 197 to African Americans. Meanwhile it denied 159 applications from African Americans, and only 944 from whites.

  Atlantic Union has told the Federal Reserve that's fine.

 That is to say, beyond the 2.4 denial rate disparate, American Union made fully 14 mortgage loans to whites for every loan to an African American.  Statewide in Virginia for the aggregate, the ratio was five to one. 

This is outrageous; again, American Union should be referred by the FRB to the Department of Justice.

   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 we timely request public hearings. 

   We'll have more on this.

***

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October 30, 2023

CRA Challenge to Burke & Herbert Summit Merger After Linkbank Conditioned by FDIC

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 28 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.   

  Summit Community Bank is also of concern. In West Virginia in 2022 it made 403 mortgage loans to whites, and only EIGHT to African Americans. Meanwhile it denied 3 applications from African Americans, and only 97 from whites (compared to 403 originations).  This is disparate, and more disparate both than the aggregate in West Virginia. 

  See also, as to proposed acquirer Burke & Herbert, this "civil action seeking monetary damages, restitution and declaratory relief from Defendant Burke & Herbert Bank & Trust Company (“Burke & Herbert”), arising from the unfair and unconscionable assessment and collection of “overdraft fees” (“OD Fees”) on accounts that were never actually overdrawn. 2. This practice breaches contract promises made in Burke & Herbert’s adhesion contracts. 3. In plain, clear, and simple language, the checking account contract documents discussing OD Fees promise that Burke & Herbert will only charge OD Fees or Non-Sufficient Funds Fees (“NSF Fees”) on transactions where there are insufficient funds to cover them. 4. As happened to Plaintiff, however, Burke & Herbert charges OD Fees even when there are sufficient funds to cover a debit card transaction," citation, etc.

 Earlier in October, after a similar challenge by Fair Finance Watch on data and complaints not even as bad, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.


If the regulators at the FDIC means what they claim, including in the new CRA regulation, this application should be denied. Watch this site.

October 23, 2023

Linkbankcorp Bid To Buy Partners Bancorp Conditioned by FDIC Now Linkbank Spins

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 21 – Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

  Now in October, the FDIC has required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

But Link keeps spinning, issuing a press release about these partial approvals without mentioning the condition, and concluding it "remains subject to the approval of the Board of Governors of the Federal Reserve System and other customary closing conditions. LINK anticipates closing the Merger in the fourth quarter of 2023." How do they know?

* * *

   The ABA's Rob Nichols, formerly of the Treasury Department, has attacked the reporting of demographics in small business lending, saying it will be painting “an incomplete and potentially misleading picture of small business lending to underserved groups." Then there are the lawsuit trying to stop any reporting. Because, apparently, no picture is better than a supposedly incomplete one. Mean while the ABA is an investor: the "American Bankers Association, a trade group for U.S. banks, said on Friday that [it] had joined a $30 million investment round in Finxact, a startup." How does that work?

October 16, 2023

   Who can get into banking in the USA? Well, bunq is trying, despite being fined in Benelux for using AI as their anti money laundering screen. And how would that work for fair lending? Watch this site.

October 9, 2023

Link Bank Bid To Buy Partners Bancorp Was Hit by Fair Finance Watch Now Plan Required

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 7 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

  Now in October, the FDIC has required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

October 2, 2023

Deutsche Bank Fined for Greenwashing Scam, Next Should Be Fine for False CRA Claims

By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, Sept 25 – Deutsche Bank was sued for their enabling of Jeffrey Epstein, in lawsuits filed on Thanksgiving 2022 in the U.S. District Court for the Southern District of New York, where Inner City Press found them in the docket.

  On September 25, 2023 Deutsche Bank was belatedly fined $25 million for greenwashing. The SEC said that despite marketing itself as an ESG leader, from August 2018 until late 2021 DWS failed to implement certain provisions of its global ESG integration policy "as it had led clients and investors to believe it would. Investment advisers must ensure that their actions conform to their words," said Sanjay Wadhwa, deputy director of the SEC's division of enforcement and head of its climate and ESG task force.    "Here, DWS advertised that ESG was in its DNA, but, as the SEC's order finds, its investment professionals failed to follow the ESG investment processes that it marketed."

This logic should be applied to false CRA claims like KeyCorp's - and others'....

September 25, 2023

CRA Challenge to Atlantic Union - American National Proposed Merger on Loan Disparities

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX NY, Sept 23 –  Two of 2023's largest US proposed bank mergers were announced this summer: Atlantic Union applying to buy Atlantic National in Virginia, and Banc of California to buy PacWest.    Fair Finance Watch had been monitoring the banks, and on September 25 commented to the Federal Reserve on and against Atlantic Union - American National: 

Dear Chair Powell, Secretary Misback and others in the FRS:  This is a timely first comment on, the Applications of Atlantic Union Bankshares Corporation to acquire American National Bankshares.

  Atlantic Union, in Virginia in 2022, made 2819 mortgage loans to whites, and only 197 to African Americans. Meanwhile it denied 159 applications from African Americans, and only 944 from whites.

  This is disparate, and more disparate both than the aggregate in Virginia, and than American National Bank and Trust.

 That is to say, beyond the 2.4 denial rate disparate, American Union made fully 14 mortgage loans to whites for every loan to an African American.  Statewide in Virginia for the aggregate, the ratio was five to one. 

This is outrageous; American Union should be referred by the FRB to the Department of Justice.

 In Maryland in 2022, American Union denied the applications of African Americans 4.31 times more frequently than those of whites.

In North Carolina in 2022, American Union made 17 loans to whites for every loan to an African American. Again, this is outrageous; American Union should be referred by the FRB to the Department of Justice.    

We also note the issues in the overdraft class action that Atlantic Union settled, but on information and belief did not fully address, in 2021. See, MARTY HINTON, individually and on behalf of all others similarly situated, Plaintiff, v. ATLANTIC UNION BANK, Defendant. Civil Action No. 3:20-cv-651-JAG  (Complaint) and (Order denying Atlantic Union's motion to dismiss)  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  

   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 we timely request public hearings. 

   We'll have more on this.

September 18, 2023

  Citigroup has been rightly targeted with protest for years (see for example Predatory Bender) - but last week the ongoing lending protest turned environmental, and a Citigroup staffer showed the bank's attitude, pushing and yelling and it seems splashing coffee, video here. More next week, after UNGA...

September 11, 2023

Schwab Moved Bank and CRA Duty to Desert SW After TD Ameritrade Buy, Now Challenge

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Sept 8 – There are largely non-bank company which buy or charter a bank to serve them, but barely if at all comply with the Community Reinvestment Act.

On September 8, 2023, Fair Finance Watch called out Charles Schwab's two banks, to the Federal Reserve:

On behalf of Fair Finance Watch, this is a timely comment on the CRA performance and plans of Charles Schwab, including as impacted by the TD Ameritrade acquisition.

   That acquisition raised a number of issues adverse for consumers, but there was not FRB comment period.    However, this is a timely comment on the CRA PE of the two Charles Schwab banks, Charles Schwab Bank, SSB and Charles Schwab Premier Bank, SSB, which have in connection with the acquisition moved their headquarters to Texas, with an amorphous additional service area of "the desert Southwest."  

Significantly, looking at the top 100 banks regulated by the Federal Reserve, Charles Schwab has the lowest ratio of CRA lending and investments as a % of total assets.    It cannot pass its CRA exam, and its CRA plan cannot continue to be accepted or approved, on this basis.  

The FRB should convene a public hearing, and should reach out to groups through Schwab's (actual) service area.   Watch this site.

September 4, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound has More Fed CRA Questions

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Sept 1 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve.

On September 1, the Fed belated asked: "Describe how Applicant intends to  evaluate whether the products and services provided by the resultant institution will meet the needs  of LMI individuals. Further, if any legacy products or services should change in the future,  describe how Applicant will ensure that the needs of LMI individuals in its AAs continue to be  met. Please provide your response addressed to the undersigned within eight business days of the date of this  letter." Watch this site.

August 28, 2023

Lakeland Bank DOJ Deal Left Disparities in NY So Protest now Fed Asks of DOJ Settlement

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, NY, Aug 26– 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 August 22, the Fed asked the banks: "Department of Justice Consent Order (“Consent Order”) 1. Provide an update to all action items included in the Consent Order, reflecting those items which have been completed and any other pertinent updates." As of August 26, no response received from these banks...

Watch this site.

***

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August 21, 2023

Credit Union Associations Demand Stay of CFPB 1071 Rule As They Also Move to Merge

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, August 14 –  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.

On August 3, the ABA wrote to demand the CFPB extend the stay to its non-members, here.

On August 11 the two credit union associations wrote it to get a stay - while they themselves try to merger. The letter was signed by NAFCU Vice President of Regulatory Affairs Ann Petros and CUNA Deputy Chief Advocacy Officer and Managing Counsel Alexander Monterrubio.

There will be fightback.

August 14, 2023

Banks Downgraded as Regulators Encourage Mergers But Link Bid To Buy Partners is Litmus

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Aug 8–  Regional banks are being downgraded, by Moody's and others; the US bank regulators are encouraging mergers. But will they uphold the Community Reinvestment Act as they have, of late, not been? See below.

ecf Moody's cut ratings of 10 banks on Monday. Here's the list of banks downgraded:  Commerce Bancshares BOK Financial Corporation  M&T Bank Corporation Old National Bancorp  Prosperity Bancshares Amarillo National Bancorp Webster Financial Corporation Fulton Financial Corporation  Pinnacle Financial Partners Associated Banc-Corp 

Moody's also said it placed six large banks under review for possible downgrades. They are:  Bank of New York Mellon Corporation Northern Trust Corporation State Street Corporation Cullen/Frost Bankers Truist Financial Corporation  U.S. Bancorp

Moody's also said it shifted the outlook of 11 banks from stable to negative. They are:  PNC Financial Services Group Capital One Financial Corporation Citizens Financial Group Fifth Third Bancorp  Huntington Bancshares  Regions Financial Corporation  Cadence Bank F.N.B. Corporation Simmons First National Corporation Ally Financial  Bank OZK

   Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve

August 7, 2023

ABA Demands Stay of CFPB 1071 Rule As Regulators Triggered PacWest Merger Proposal

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, August 3 –  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.

On August 3, the ABA wrote to demand the CFPB extend the stay to its non-members, here. There will be fightback.

 Meanwhile, Pennsylvania, California, Delaware and Virginia are portrayed as diverse and even progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve, below.

On July 25, amid winks from the US bank regulators about approving such mergers, PacWest is rushing to combine with Banc of California. Will the regulators throw out the window their claims of renewed vigor, to encourage yet more mergers? Watch this site.

July 31, 2023

Regulatory Double Talk Triggers PacWest Merger Proposal Like Link Bank Doomed Bid

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, July 25 –  Pennsylvania, California, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve, below.

Now on July 25, amid winks from the US bank regulators about approving such mergers, PacWest is rushing to combine with Banc of California. Will the regulators throw out the window their claims of renewed vigor, to encourage yet more mergers? Watch this site.

July 23, 2023

Link Bank In Bid To Buy Partners Bancorp On the Ocean Rebound Misrepresented to FDIC

By Matthew Russell Lee, Patreon

SOUTH BRONX, July 22 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsider.

On July 12, the FRBP asked Link questions, including "5. Discuss whether a compliance committee or any fair lending or CRA-related committees  have been established by Applicant or LinkBank. If so, provide the minutes. If not,  provide any minutes of the board of either Applicant or LinkBank since the March 22,  2021, Consumer Affairs Report of Examination discussing consumer compliance, fair  lending, and/or CRA matters. 6. Provide LinkBank’s most recent consumer compliance risk assessment."

On July 19, Link admitted it has misspoken to the FDIC and tried to amend it: "Dear Ms. Goñi: On behalf of LINKBANK, Camp Hill, Pennsylvania, a Pennsylvania chartered commercial bank, we would like to revise LINKBANK’s responses to comments received ... as follows: Subsidiaries and Affiliates 1. Describe ownership details for the two subsidiaries partially owned by the Virginia Partners Bank (Johnson Mortgage Company) and the Bank of Delmarva (FBW LLC) and what will happen to these subsidiaries and all the other subsidiaries of each bank as part of the merger transactions. LINKBANK would like to retract the following statement made in LINKBANK’s response to comment 1, “The parties expect to dissolve all of the subsidiaries of TBOD and VPB at or following consummation of the closing of the Transaction with the exception of Johnson Mortgage and 410 William Street, LLC.”  LINKBANK will acquire all of the current subsidiaries of TBOD and VPB in the Bank Mergers and none of these subsidiaries will be dissolved at or prior to the consummation of the transaction. Prior to dissolving any subsidiaries post-closing, LINKBANK will conduct an analysis pursuant to 12 U.S.C. 1828(c)(1)(A) and contact FDIC staff to confirm whether any notice or application is necessary."

If the regulators at the Fed and FDIC mean what they claim, this application should be denied. Watch this site.

July 17, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound Protested Inaction on Bad Exam

By Matthew Russell Lee, Patreon

SOUTH BRONX, July 15 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsider.

On July 12, the FRBP asked Link questions, including "5. Discuss whether a compliance committee or any fair lending or CRA-related committees  have been established by Applicant or LinkBank. If so, provide the minutes. If not,  provide any minutes of the board of either Applicant or LinkBank since the March 22,  2021, Consumer Affairs Report of Examination discussing consumer compliance, fair  lending, and/or CRA matters. 6. Provide LinkBank’s most recent consumer compliance risk assessment."

If the regulators at the Fed and FDIC mean what they claim, this application should be denied. Watch this site.

July 10, 2023

Oakwood Bank Was Protested on MapleMark Bank Merger Now Both Downgraded on CRA

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

FEDERAL COURT / S Bronx, July 8 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question.

  This has become even more true in 2023, with regulators under fire for misregulation of the failing banks, and of handing them over to mega banks like JPM  Chase. Hence Janet Yellen has promised "openness" to mergers of midsized (and presumably small) banks. Let the rubber stamping begin!

This perhaps explains the industry press hand-wringing about the failure of some mergers subject to CRA protest, largely by Fair Finance Watch. In May 2023, there's MVB bank, here.

Sometimes a CRA protest presage / precedes a downgrade.

Back in August 2022: "Matthew Lee, Esq. Fair Finance Watch P.O. Box 20047 New York City, New York 10017 Re: MapleMark Bank’s Application to Acquire Oakwood Bank Dear Mr. Lee, We are writing to inform you that MapleMark Bank, Dallas, Texas, withdrew its application to acquire and merge with Oakwood Bank, Dallas, Texas. Please note that we will perform any necessary follow-up of the concerns you raised as part of our consumer compliance and Community Reinvestment Act examination programs. We appreciate your concerns and value community input into the application process." Yeah.

   Fair Finance Watch with Inner City Press on the FOIA  filed comments with the Federal Deposit Insurance Company to a proposed merger involving a bank subject to a rare CRA condition: Oakwood Bank in Dallas, and MapleMark Bank:

"March 21, 2022  Dear 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 Oakwood Bank to merge with MapleBank Bank, both of Dallas, Texas.  

The FDIC publicly imposed a CRA / fair lending condition on Oakwood for its underperformance in Dallas, see, e.g., FDIC required Oakwood Bank to "develop plans to equitably lend to low- and moderate-income borrowers in predominately minority parts of Southern Dallas... [and] action plans to improve small business lending in census tracts in majority-minority, and low- to moderate-income areas. Those action plans have to be adopted by the banks' board of directors and submitted to the FDIC, which is also requiring regular updates on the banks' progress." 

 There is a long history here. See, e.g., American Banker, "Oakwood's CRA Problems Continue."  

 Inner City Press has submitted a FOIA request to the FDIC for All records reflecting and regarding the fair lending / Community Reinvestment Act condition publicly imposed by the FDIC on Oakwood Bank in Dallas, Texas, including all non exempt portions of reports purporting to show performance  

This is a matter of public interest, as it MapleMark's engagement with fintech(s), see, e.g., MapleMark Bank is utilizing German fintech in a partnership  Jun 9, 2021 — A Dallas-based bank funded by local family offices is partnering with a German fintech.. Very Truly Yours,     Matthew Lee, Esq.   Executive Director  Inner City Press/Fair Finance Watch

  Since then, both banks have received rare Needs to Improve CRA ratings...


July 3, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound Evasively Answers on Lehman

By Matthew Russell Lee, Patreon

SOUTH BRONX, June 28 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsider.

On June 14, LINKBANK through counsel answered the Federal Reserve's questions including:

"The proposed acquisitions will increase LINKBANK’s size by approximately 150
percent and will increase its presence from one state (Pennsylvania) to five (with the
addition of Delaware, Maryland, New Jersey, and Virginia). Please explain your
plan to ensure continued satisfactory oversight of consumer compliance, CRA, and
fair lending matters, including any changes to staffing and committees.
LINK acknowledges that the increase in scale and geographic scope resulting from the
proposed transaction necessitates confirmation of a compliance management framework
that ensures sufficient oversight of bank activities, particularly with respect to consumer
compliance, CRA and fair lending matters.
LINK’s executive management team has significant experience leading larger community
banking institutions, ranging in asset size from $3 billion to $18 billion. Accordingly, as
LINK has developed and executed its growth strategy, it has placed a high priority on
building the infrastructure, including policies, procedures and systems, as well as the
senior management talent, necessary to support a significantly larger and more complex
organization, including early investments in compliance and related functions. For
example, LINK’s management team includes a legal, compliance and risk management
structure comparable to much larger institutions, including seasoned professionals in the
roles of Chief Risk Officer, General Counsel, Chief Compliance Officer and Senior Risk
Officer, which is robust for an institution the size of LINK. These individuals, together
with LINKBANK’s President, Chief Consumer Banking Officer, Director of Training
and Development, and senior leaders from deposit, lending and branch operations
functions, comprise LINK’s management Compliance Committee" -

 who ARE these people?

On June 28, LINK BANK regurgitated this empty answer to the FDIC, which also asked "5. Clarify or provide support for the responses to merger application question 8 regarding the pro forma financial statements: a. Explain the difference between the goodwill impact amounts of $43.934 million and $28.993 million. Please see Confidential Exhibit A. 2. Provide a narrative description of how the transaction affects and is affected by the chain banking organization to which the target banks belong, whether the target banks have engaged in any transactions with the other members of the chain banking organization in connection with the proposed mergers, and indicate whether Ken Lehman will have a continuing role in the combined entities. The parties respectfully submit that the proposed merger transaction will not have a significant impact on, and is not significantly affected by, the chain banking organization to which the target banks belong. The target banks have not engaged in any transactions with other members of the chain banking organization in connection with the proposed merger transaction. As described in more detail in the response to Question 8 in the Interagency Bank Merger Application for both TBOD and VPB, following the proposed merger transaction, Mr. Lehman will serve as a director of LINKBANK and LINKBANCORP but will not serve as Chairman, Vice Chairman or an executive officer of these combined entities."

These are the people?

June 26, 2023

Key Bank Amid Data Breach Lawsuits Brags of Goodwill Grant As Engages In Disparate Loans

By Matthew Russell Lee, Patreon

SOUTH BRONX, June 21 - Key Bank is in decline, both in consumer compliance and in fair lending.

  Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation - in February 2023 to the Northern District of Georgia, to the Honorable Steven D. Grimberg.

  Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.

 It should be sued by the Department of Justice, and many others.

  In amateur response, KeyBank on June 20 bragged about a grant to Goodwill Industries of Michiana, Inc. Seth Keirns, KeyBank Northern Indiana Market President, gushed that "At Key, we’re passionate about removing barriers" - just not barriers to fair lending and fair housing.

 How do these grants compare to the lending promises Key made, and broke?  Watch this site.

June 19, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound Has Nameless CRA Answers

By Matthew Russell Lee, Patreon

SOUTH BRONX, June 17 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsider.

On June 14, LINKBANK through counsel answered the Federal Reserve's questions including:

"The proposed acquisitions will increase LINKBANK’s size by approximately 150
percent and will increase its presence from one state (Pennsylvania) to five (with the
addition of Delaware, Maryland, New Jersey, and Virginia). Please explain your
plan to ensure continued satisfactory oversight of consumer compliance, CRA, and
fair lending matters, including any changes to staffing and committees.
LINK acknowledges that the increase in scale and geographic scope resulting from the
proposed transaction necessitates confirmation of a compliance management framework
that ensures sufficient oversight of bank activities, particularly with respect to consumer
compliance, CRA and fair lending matters. LINK’s executive management team has significant experience leading larger community
banking institutions, ranging in asset size from $3 billion to $18 billion. Accordingly, as
LINK has developed and executed its growth strategy, it has placed a high priority on
building the infrastructure, including policies, procedures and systems, as well as the
senior management talent, necessary to support a significantly larger and more complex
organization, including early investments in compliance and related functions. For
example, LINK’s management team includes a legal, compliance and risk management
structure comparable to much larger institutions, including seasoned professionals in the
roles of Chief Risk Officer, General Counsel, Chief Compliance Officer and Senior Risk
Officer, which is robust for an institution the size of LINK. These individuals, together
with LINKBANK’s President, Chief Consumer Banking Officer, Director of Training
and Development, and senior leaders from deposit, lending and branch operations
functions, comprise LINK’s management Compliance Committee" -

 who ARE these people?

June 12, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound Has CRA Contemptuous Reply

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, June 7 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsidering. This should not be countenanced - rather than conditional approval, denial is called for.

On June 10, Inner City Press sumbitted a reply to the FDIC: Since Fair Finance Watch's inital comment in May, LINKBANK has submitted a response contemptuous of the Community Reinvestment Act process, rather than address the disparities in its lending record.    To remind, the disparity in 2021 for LINKBANK was 49 (or 53) HMDA-reported loans to whites versus TWO to whites. LINKBANK responds by attacking the comment and commenter, and claiming that comment says it lends "only" to whites - as if the two loans, compared at 53, are fine with it.     The FDIC is aware of the conditions it has imposed on applicants less disparate than this one, even if LINKBANK and/or its counsel are unaware.  These applications should be denied

If the regulators at the Fed and FDIC mean what they claim, this application should be denied. Watch this site.

June 5 2023

First Republic Given to JPM Chase amid Dimon Epstein Link now Closes 21 Branches Cites Cars

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, June 2 – After the failures of Silicon Valley Bank and Signature Bank in New York, now it's First Republic Bank.

  At 3 am Eastern time on May 1, the First Republic (and $13 billion) was given to JPMorgan Chase, which is already over the "maximum" 10% of US deposits threshold - and whose CEO Jamie Dimon has been ordered deposed about his knowledge of, and link to, the pedophile conspiracy of Jeffrey Epstein. It's come to this.

   The JPM Chase complaint is on Patreon, here.

 On June 1, it was reported that JPMorgan Chase will shut 21 branches of First Republic Bank by the end of the year as it integrates the failed lender into its operations, a JPMorgan spokesperson said. 'These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,' the spokesperson said." Of course, in urban areas underserved by Chase, most people don't have cars...

On March 20, 2023 U.S. District Court for the Southern District of New York Judge Jed S. Rakoff in a bottom line order dismissed some but not all claims, in the Epstein-related cases against JPMC and Deutsche Bank.

Inner City Press,, which reports daily on the SDNY (and the Community Reinvestment Act evasions of Chase and other banks like KeyCorp) put the order on its DocumentCloud here.

  April 30, 2023 piece on JPM Chasing First Republic amid WHCA glitz and the E. Jean Carroll v. Trump trial, on Substack here

  There was no public input into the sell-off, including into how many of First Republic's 84 branches for example in New York City will be closed.

  Back on April 18, after a telephone conference without transcription, Judge Rakoff ordered: "Jamie Dimon should be set aside two days for his deposition. On the first day, plaintiffs will have the opportunity to depose Mr. Dimon for a combined total of five hours. Mr. Staley will have the opportunity to depose Mr. Dimon for two hours. If, at the end of the first day, any party believes that it needs more time to depose Mr. Dimon, it must convene a joint call to Chambers by no later than 5:00 PM to explain why. The Court will then rule as to whether Mr. Dimons deposition should continue for a second day and, if so, for how long."

Will that call be open to the press and public?

More on Substack here.

***

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May 29, 2023

After SBA Fraud Trial of Shin Noah Bank Got Bank of Princeton To Buy It Despite Ongoing Issues

By Matthew Russell Lee, Video, Alamy photos

Federal Court / S Bronx, May 21 – Noah Bank's Edward Shin was on arrested for defrauding the U.S. Small Business Administration on May 29, 2019 and would, it was said, be presented later on May 29 before Magistrate Judge James L. Cott in the U.S. District Court for the Southern District of New York.

  Inner City Press after reporting the arrest went the SDNY Magistrate's Courtroom 5A and was told Shin would be presented at some undefined later hours. But with the door to 5A locked at 4:30 pm, Inner City Press was told Shin "has not been presented, there are no conditions agreed to."

  Jump cut to April 25, 2022. The case was re-assigned to Judge John P. Cronan, who has set trial for April 26. On the eve of it the US put in SBA documents about loans to produce companies, offering to redact some.

On October 6, 2022, Judge Cronan sentenced Shin to 14 months "in prison for his role in defrauding a Pennsylvania-based bank (the “Bank”) while serving as its CEO.  SHIN was convicted after a three-week trial before U.S. District Judge John P. Cronan on all counts, which charged SHIN with taking bribes in connection with the Bank’s issuance of loans that were guaranteed by the United States Small Business Administration Judge Cronan sentenced SHIN to three years of supervised release and ordered SHIN to pay forfeiture in the amount of $5,506,050 and a $600 special assessment fee."

On October 14, the US Attorney's Office wrote to Judge Cronan "to inform the Court that that Government has consulted with Noah Bank; the Bank is no longer seeking restitution in light of its settlement with the defendant."

Just after that, Noah reached an agreement to sell itself to The Bank of Princeton. It is hard to believe that the troubling compliance issues seen in the trial have been resolved. But the regulators, who have failed on Silicon Valley Bank, Signature Bank and First Republic (so far) approved the merger (saying they "do not consider the issues raised therein to constitute a protest for the purposes of this application") and spread Noah's rot further

May 22, 2023

Amid Bank Meltdowns Yellen Says Bring on the Mergers But Silent on CRA and Public Input

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, March 14 – Alongside the flame-out of Silicon Valley Bank, New York-based Signature Bank too failed. On Signature Bank's board of directors were not only Barney Frank (who after leaving Congress undermine his own Dodd Frank Act) but also former New York State Superintendent of Banks Derrick D. Cephas.

  Now after the failure (and give-away to JPMorgan Chase) of First Republic, at the G7 Janet Yellen has said, "I anticipate regulators to be open to increased mergers among regional banks in current banking environment."

  It is not mere speculation - Yellen is the boss of the Treasury's Office of the Comptroller of the Currency, and of the Administration's appointees at the Fed and FDIC.  So, bringing on the mergers - with Community Reinvestment Act review and public input be damned!

  Former Federal Reserve Bank of Philadelphia and Cleveland bigwig Michael E. Collins is on the board of Comerica, the bank that abandoned Detroit for Dallas. The Administration is saying that people will be held accountable - but who?

Oakwood Bank Was Protested on MapleMark Bank Merger Proposal & Withdrew now Interest

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

FEDERAL COURT / S Bronx, May 13 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question.

  This has become even more true in t 2023, with regulators under fire for misregulation of the failing banks, and of handing them over to mega banks like JPM  Chase. Hence Janet Yellen has promised "openness" to mergers of midsized (and presumably small) banks. Let the rubber stamping begin!

This perhaps explains the industry press hand-wringing about the failure of some mergers subject to CRA protest, largely by Fair Finance Watch. In May 2023, there's MVB bank, here.

Back in August 22: "Matthew Lee, Esq. Fair Finance Watch P.O. Box 20047 New York City, New York 10017 Re: MapleMark Bank’s Application to Acquire Oakwood Bank Dear Mr. Lee, We are writing to inform you that MapleMark Bank, Dallas, Texas, withdrew its application to acquire and merge with Oakwood Bank, Dallas, Texas. Please note that we will perform any necessary follow-up of the concerns you raised as part of our consumer compliance and Community Reinvestment Act examination programs. We appreciate your concerns and value community input into the application process." Yeah.

   Fair Finance Watch with Inner City Press on the FOIA  filed comments with the Federal Deposit Insurance Company to a proposed merger involving a bank subject to a rare CRA condition: Oakwood Bank in Dallas, and MapleMark Bank

May 15, 2023

Protest of MBV Leads To Merger Failure and Uncorrected Lies about Activist Investor

By Matthew Russell Lee, Patreon MVB File

SOUTH BRONX NY, May 13 – Alongside the wrongdoing by big banks from JPMorgan Chase to KeyCorp, there are other also dubious proposed merger by smaller banks and predators.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and filed this sample on MVB Bank:

Dear Chair Powell, Secretary Misback and others in the FRS:    This is a request for a full copy of, and a timely first comment on, the Applications of MVB Financial Corp., Fairmont, West Virginia; to acquire Integrated Financial Holdings, Inc., Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust, North Riverside, Illinois, and acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, "and more." 

Fair Finance Watch has been reviewing West Town Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling. FFW in looking into MVB Bank find its offers of banking for gaming, but for CRA questions, not even an email address, only a snail mail address. This is not a best practice, far from it. 

   In terms of HMDA data, in 2021, West Town Bank made 319 mortgage loans to whites with seven denials. Meanwhile to African Americans it made only TWENTY FIVE loans, while denying five applications. A referral should be made to the DOJ for fair lending violations.     MVB, proposing to buy West Town Bank including its hemp lending, is engaged in gaming lending, fintechs - but has not put its CRA file online or even available by emailing."

  Since filing, MVB provided Fair Finance Watch with what it calls its 271-page CRA file (for some reason, only "as of April 2022") which we put on DocumentCloud here to make it public as all CRA files should be, and the Fed has now informed Inner City Press that MVB withdrew its application.

MVB was quoted, lying, that it was because of "an activist investor" challenging the CRA rating: "Larry Mazza, CEO of the $3.6 billion-asset MVB Financial, said in an interview Wednesday that "a activist investor in IFHI had challenged the company's Community Reinvestment Act rating. With regulators exceptionally busy managing the regional bank failures, MVB and IFHI determined it could prove difficult to resolve that matter efficiently." The publication never fact-checked Mezza. We'll have more on this.

***

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May 8, 2023

First Republic Given to JPM Chase by FDIC Despite Antitrust and Dimon Epstein Link

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, May 1 – After the failures of Silicon Valley Bank and Signature Bank in New York, now it's First Republic Bank.

  At 3 am Eastern time on May 1, the First Republic (and $13 billion) was given to JPMorgan Chase, which is already over the "maximum" 10% of US deposits threshold - and whose CEO Jamie Dimon has been ordered deposed about his knowledge of, and link to, the pedophile conspiracy of Jeffrey Epstein. It's come to this.

   The JPM Chase complaint is on Patreon, here.

On March 20, 2023 U.S. District Court for the Southern District of New York Judge Jed S. Rakoff in a bottom line order dismissed some but not all claims, in the Epstein-related cases against JPMC and Deutsche Bank.

Inner City Press,, which reports daily on the SDNY (and the Community Reinvestment Act evasions of Chase and other banks like KeyCorp) put the order on its DocumentCloud here.

  April 30, 2023 piece on JPM Chasing First Republic amid WHCA glitz and the E. Jean Carroll v. Trump trial, on Substack here

  There was no public input into the sell-off, including into how many of First Republic's 84 branches for example in New York City will be closed.

  Back on April 18, after a telephone conference without transcription, Judge Rakoff ordered: "Jamie Dimon should be set aside two days for his deposition. On the first day, plaintiffs will have the opportunity to depose Mr. Dimon for a combined total of five hours. Mr. Staley will have the opportunity to depose Mr. Dimon for two hours. If, at the end of the first day, any party believes that it needs more time to depose Mr. Dimon, it must convene a joint call to Chambers by no later than 5:00 PM to explain why. The Court will then rule as to whether Mr. Dimons deposition should continue for a second day and, if so, for how long."

Will that call be open to the press and public?

More on Substack here.

***

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May 1, 2023

First Republic Searches For Savior But KeyCorp Can't Get a Handout for Disinvestment

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, April 26 – Key Bank is in decline, in consumer compliance and in fair lending - and now, in deposits and stock price.

  Faring worse, at least for now, is First Republic. The talk is of a bailout or forced sale. But to whom?

   With the US bank regulators giving away troubled banks, Silicon Valley Bank to First Citizens, and Signature Bank to NYCB, it is imperative they know the Key Bank cannot be given any more branches, any more communities to take advantage of. Already, Key has government contract to distribute benefits, and garnish wages.

   Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.   It should be sued by the Department of Justice, and many others - just ask NCRC.

  Key Bank is, Fair Finance Watch now says, the Key to Disinvestment. It is the redlining bank.

Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation - in February 2023 to the Northern District of Georgia, to the Honorable Steven D. Grimberg. 

   In amateur response, KeyBank on February 7 bragged on the for-pay CSR Wire about grants it is giving out. But how do they compare to the lending promises Key made, and broke?  Watch this site 

***

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April 24, 2023

Key Falls So As US Banks Being Handed Out KeyCorp Can't Get a Handout for Disinvestment

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, April 20 – Key Bank is in decline, in consumer compliance and in fair lending - and now, in deposits and stock price.

  On April 20 KeyCorp underperformed the estimate, with deposits down year on year; its price fell. If only investors knew how much worse it is.

   With the US bank regulators giving away troubled banks, Silicon Valley Bank to First Citizens, and Signature Bank to NYCB, it is imperative they know the Key Bank cannot be given any more branches, any more communities to take advantage of. Already, Key has government contract to distribute benefits, and garnish wages.

   Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.   It should be sued by the Department of Justice, and many others - just ask NCRC.

  Key Bank is, Fair Finance Watch now says, the Key to Disinvestment. It is the redlining bank.

Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation - in February 2023 to the Northern District of Georgia, to the Honorable Steven D. Grimberg. 

   In amateur response, KeyBank on February 7 bragged on the for-pay CSR Wire about grants it is giving out. But how do they compare to the lending promises Key made, and broke?  Watch this site 

***

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April 17, 2023

Prosperity Bank Hit by CRA Challenge to FirstCapital Bank now FDIC Condition Imposed

By Matthew Russell Lee, Patreon

FEDERAL COURT / S Bronx, April 10 – 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, see below.

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, Assistant Regional Director (Consumer Protection) 1601 Bryan Street, 38th Floor Dallas, Texas 75201-4586 

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, 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."

Watch this site.

April 10, 2023

FRB Claims No Review of Signature Crypto So FOIA Appeal Citing Gov Barr on Transparency

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, April 8 – Alongside the larger flame-out of Silicon Valley Bank, Signature Bank too failed.

  Now the Federal Reserve in belated response to Inner City Press' FOIA request says it has no record of reviewing Signature and crypto, nor any "record reflecting any  review by the FRS of Silvergate’s (and Provident Bancorp Inc.,  Metropolitan Commercial Bank, Signature Bank, Customers  Bancorp Inc.) of the banks’ connections with crypto-currency firms."

  Federal Reserve letter to Inner City Press here

 The Fed did, however, belatedly give Inner City Press the Farmington State Bank application it approved, with 100% ownership by Bahamas based Jean Chalopin. It's now on Inner City Press' DocumentCloud here.

On April 8, Inner City Press filed a FOIA appeal with the Fed: "This is an appeal of the FRB's denial and delayed and untransparent processing of and determinations on Inner City Press' December 22, 2022 FOIA request... After more than three months, all the FRB provided was the public portion of Farmington State Bank's application - this while FRB Governor Barr just told Congress that the Fed wants to be transparent, including to outside reviews.     Most cynically, the Denial claims that "confidential information is not responsive" - basing that on its interpretation of a first request for clarification, a misinterpretation that all Inner City Press was request was previously public information - information which even then the Fed did not provide for eleven weeks.  We wanted and want the records reflecting the FRS' review of Farmington State Bank's application, and the records about the Fed's review of crypto and the names firms: Silvergate with its FTX connections, record reflecting any review by the FRS of Silvergate's (and Provident Bancorp Inc., Metropolitan Commercial Bank, Signature Bank, Customers Bancorp Inc).

   Does the Fed as Governor Barr said want to be transparent or not?

We'll have more on this.

April 3, 2023

With US Banks Being Handed Out Key Bank Cannot Get a Handout As Key to Disinvestment

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, March 29 – Key Bank is in decline, both in consumer compliance and in fair lending.   

   Now with the US bank regulators giving away troubled banks, Silicon Valley Bank to First Citizens, and Signature Bank to NYCB, it is imperative they know the Key Bank cannot be given any more branches, any more communities to take advantage of. Already, Key has government contract to distribute benefits, and garnish wages.

   Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.   It should be sued by the Department of Justice, and many others - just ask NCRC.

  Key Bank is, Fair Finance Watch now says, the Key to Disinvestment. It is the redlining bank.

Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation - in February 2023 to the Northern District of Georgia, to the Honorable Steven D. Grimberg. 

   In amateur response, KeyBank on February 7 bragged on the for-pay CSR Wire about grants it is giving out. But how do they compare to the lending promises Key made, and broke?  Watch this site

March 27, 2023

Signature Bank Handed to NYCB Fair Lending Rogue as Barney Frank & Cephas on Board

By Matthew Russell Lee, Patreon

SOUTH BRONX / SDNY, March 19 – 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, see below.

But now, erasing history, it is announced that New York Community Bank has agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal, the Federal Deposit Insurance Corp. said late Sunday.  The 40 branches of Signature Bank will become Flagstar Bank, starting Monday. Flagstar is one of New York Community Bank’s subsidiaries. The deal will include the purchase of $38.4 billion in Signature Bank’s assets, a little more than a third of Signature’s total when the bank failed a week ago.

  So, a fair lending rogue benefits from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors? We'll have more on this.

  Fair Finance Watch found that in 2019 Flagstar made 60,982 mortgage loans to whites, with 13,963 denial to whites - while making only 3799 loans to African Americans with fully 1777 denials to African American. This was significantly worse than other lenders.

  New York Community Bank's record as an enabler of and profiteer off slumlords led Inner City Press file a Community Reinvestment Act challenge to its then-proposed merger with Astoria Bank, which fell apart.

Now a year a half later, the proposed merger is still not done and the extended deadline is approaching, amid talk of, as we predicted, fair lending action. Both companies' stock prices are down. CRA and fair lending sometimes do have an impact. Watch this site.

 Watch this site.

CRA Protest to Gaming MVB Bank Bid On Hemp Lender West Town Bank Yields More Questions

By Matthew Russell Lee, Patreon MVB File
BBC - Honduras - CIA Trial book - NY Mag

SOUTH BRONX NY, March 23 – Amid the focus on big mergers like Bank of Montreal Harris - BNP Paribas and the stalled Flagstar / NYCB, there are other also dubious smaller merger proposals.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and filed this:

Dear Chair Powell, Secretary Misback and others in the FRS:    This is a request for a full copy of, and a timely first comment on, the Applications of MVB Financial Corp., Fairmont, West Virginia; to acquire Integrated Financial Holdings, Inc., Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust, North Riverside, Illinois, and acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, "and more." 

Fair Finance Watch has been reviewing West Town Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling. FFW in looking into MVB Bank find its offers of banking for gaming, but for CRA questions, not even an email address, only a snail mail address. This is not a best practice, far from it. 

   In terms of HMDA data, in 2021, West Town Bank made 319 mortgage loans to whites with seven denials. Meanwhile to African Americans it made only TWENTY FIVE loans, while denying five applications. A referral should be made to the DOJ for fair lending violations.     MVB, proposing to buy West Town Bank including its hemp lending, is engaged in gaming lending, fintechs - but has not put its CRA file online or even available by emailing."

  First after the filing, MVB provided Fair Finance Watch with what it calls its 271-page CRA file (for some reason, only "as of April 2022") which we've put on DocumentCloud here to make it public as all CRA files should be.

On March 23, 2023 - with no reference to SVB or Signature, Fed questions including

"MVB has agreed to sell its Chartwell Compliance subsidiary to the consulting firm, Ankura. a. Update the pro forma organizational chart provided in Confidential Exhibit A of the Additional Information Response, dated February 7, 2023, to reflect the sale of this subsidiary. b. Discuss whether MVB will retain any personnel associated with its Chartwell Compliance subsidiary following consummation of its sale to Ankura. c. Describe any anticipated changes to MVB’s compliance function, as a result of the proposed sale of Chartwell Compliance. d. Provide the date the transaction is expected to close. 2. Provide an update on the status of IFHI’s sale of and the dissolution of West Town Insurance Agency, Inc. Confirm whether any other IFHI subsidiaries have been or are expected to be sold or disposed of prior to consummation of the proposed transaction. If yes, identify each such subsidiary and provide the status of the sale or disposition. 3. In addition to data conversion, discuss proposed integration steps to incorporate West Town Bank & Trust with and into MVB Bank, Inc. (“MVB Bank”), Fairmont, West Virginia. INTERNAL FR/OFFICIAL USE // SECURE EXTERNAL 4. On page 21 of the FR Y-3, MVB states that MVB Bank is in the process of reviewing the products and services of West Town Bank. The additional information submitted on November 30, 2022, stated that that review was still ongoing and was expected to be completed in early 2023. Assuming that analysis is now completed, explain whether any products and services offered by either MVB Bank or West Town Bank would be discontinued after consummation of the proposed transaction. Additionally, discuss whether there would be any changes to the terms or provision of the products and services currently provided, including fees.

March 20, 2023

OCC Withheld US Bank CEO Letter It Used To Approve Union Bank Merger now Denies Appeal

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NYC, March 18  – How untransparent and pro-bank are today's regulators, including the Office of the Comptroller of the Currency?

The example on February 10, 2023 was the OCC's denial in full of Inner City Press' Freedom of Information Act request about its approval of U.S. Bank's application to acquire Union Bank, which Fair Finance Watch and others challenged under the Community Reinvestment Act. 

 Inner City Press submitted the request in November 2022, and immediately clarified and narrowed the request after an OCC inquiry.

On February 10, 2023, the OCC responded - and withholds 16 pages in full, providing no information at all. This on the day the OCC holds a symposium about mergers - with speakers from corporate law firms.

Here's from the OCC's letter:

"Your request for the October 10, 2022 letter from Andrew Cecere and records related or directly referenced in the October 10, 2022 is denied.

We have withheld 16 pages..."

On February 14, Inner City Press filed its appeal...

On March 16, 2023, OCC Deputy General Counsel Patricia S. Grady denied the appeal in full - the bank's commitment letter the OCC based its approval all it totally secret. This while banks are failing. She wrote: "The October 10 letter is a communication between the Bank and the supervisory office
responsible for the examination of the Bank, related to commitments made by the Bank that are
matters of supervisory concern and related to the examination of the Bank. Likewise, the related
information is connected to the OCC’s exercise of its regulatory responsibilities over the Bank
and to the examination of the Bank. Therefore, the requested information is covered by the
broad scope of Exemption 8. Accordingly, I find that these records were properly withheld
under Exemption 8." Full letter now on Inner City Press' DocumentCloud here. This is unacceptable.

  Watch this site.

March 13, 2023

First Bank Wanting To Sell to  Credit Union Not Subject to Community Reinvestment Act Draws Protest

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, March 11 – There is a trend of credit unions buying banks, throughout the United States. But credit unions are not subject to the Community Reinvestment Act, despite being insured by the public - and therefore the effect is to undermine the CRA.

 Now in March 2023 Fair Finance Watch with Inner City Press on the FOIA has commented on one:

"Dear Director Gruenberg, Tom Dujenski, Regional Director, Susan Janson & Rick Packard, Dana English, Ms Patton and others in the FDIC:   This is a request for a full copy of, and a timely first comment on, the Applications by Alabama ONE Credit Union to buy First Bank, Wadley, AL.    This application is listed on the FDIC's website of application subject to CRA comment, with a comment period running through at least March 11, 2023. https://cra.fdic.gov/cram02?inApplNb=20230117&inApplType=MERGER This comment is timely.  As an initial matter, this is a request that the FDIC immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment. Fair Finance Watch has been reviewing Alabama ONE Credit Union including its 2021 HMDA data and finds it troubling.   In terms of HMDA data, in 2021 in Alabama, Alabama ONE Credit Union made 390 mortgage loans to whites with only 18 denials. Meanwhile to African Americans it made only SIXTY ONE loans, while denying fully 13 applications. A referral should be made to the DOJ for fair lending violations.    Public evidentiary hearings are needed, particularly given the trend of less regulated credit union buying FDIC-insured banks."

And in the application to the FDIC, this: "As a credit union, Alabama ONE is not subject to the Community Reinvestment Act." The FDIC has told Fair Finance Watch it is studying the comment, which was sent to Director Gruenberg. Watch this site.

March 6, 2023

Park National Bank Settled Redlining Case with DOJ As Federal Reserve Rubber Stamps Mergers

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX, March 1 – Park National Bank discriminates, the Department of Justice has belatedly concluded, and fined the bank $9 million. Too little, too late.

  The Federal Reserve and other regulators have rubber stamped mergers by this bank, and others like it.

In 2015, Inner City Press / Fair Finance Watch told the Federal Reserve and other regulators about the problems at City National Bank. And the Fed(s) did nothing.  Here's from that time:


Royal Bank of Canada and affluent-focused Los Angeles-based City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch.

Back on April 11, Inner City Press submitted a Freedom of Information Act (FOIA) request to the Federal Reserve for it communication with and about RBC and City National. Only on September 30, more than five MONTHS later, did the Fed response. In the spirit of transparency, we are putting the FOIA response online here.

  It shows among many other things that RBC was meeting with the Federal Reserve well before the public announcement of its City National proposal; it has many redactions which we will be appealing, for example “When you have a chance, please put a note in our files indicating that we asked Charles Fleet about [REDACTED] (b)(5) . Thanks.”

FOIA: On Royal Bank of Canada-CNB, Here's Federal Reserve's Response to ICP On FOIA Five Months Ago by Matthew Russell Lee


February 27, 2023

NBT Bank Bid To Combines Its Disparities With Salisbury Is a CRA Litmus Test for the OCC

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Feb 24 –  New York and Connecticut are portrayed as diverse and progressive places. But their banks, not so much. 

 Consider for example the proposed merger between New York-based NBT Bank NA and Salisbury Bank & Trust with branches in Connecticut and New York, where it is closing one in Poughkeepsie. 

New York-based Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on February 24 they filed a Community Reinvestment Act challenge with the Office of the Comptroller of the Currency:

This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by NBT Bank NA to acquire Salisbury Bank & Trust.       The applicant NBT Bank NA in 2021 based on its disparate marketing made 1813 mortgage loans to whites, with 666 denials to whites -- while making only TWENTY THREE loans to African Americans, with fully 21 denials. This is far out of keeping with the demographics, and others lenders, in NYS and beyond - this is outrageous.    NBT is in fact worse in New York State, where in 2021 it made 1332 mortgage loans to whites, with 508 denials to whites -- while making only 12 loans to African Americans, with fully 18 denials. This is even more outrageous.     A combination with Salisbury would be toxic. In Connecticut in 2021, Salisburn made 125 mortgage loans to whites with 7 denied - and NO loans to African Americans. Notably, in preparation for this proposed transction, Salisbury is engage in branch closing: SALISBURY BANK AND TRUST COMPANY 5 Bissell Street, Lakeville, CT 06039  Notice of intention to close branch office at 2064 New Hackensack Road, Town of Poughkeepsie, Dutchess County, New York 12603    There is no public benefit to this proposal.     FFW and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners, contrary to its rhetoric. We timely request public hearings.

If the regulators at the OCC mean what they claim, this application should be denied. Watch this site.

February 20, 2023

OCC Withheld US Bank CEO Letter It Used To Approve Union Bank Merger Now Appeal Filed

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NYC, Feb 14 – How untransparent and pro-bank are today's regulators, including the Office of the Comptroller of the Currency?

The example on February 10, 2023 was the OCC's denial in full of Inner City Press' Freedom of Information Act request about its approval of U.S. Bank's application to acquire Union Bank, which Fair Finance Watch and others challenged under the Community Reinvestment Act. 

 Inner City Press submitted the request in November 2022, and immediately clarified and narrowed the request after an OCC inquiry.

On February 10, 2023, the OCC responded - and withholds 16 pages in full, providing no information at all. This on the day the OCC holds a symposium about mergers - with speakers from corporate law firms.

Here's from the OCC's letter:

"Your request for the October 10, 2022 letter from Andrew Cecere and records related or directly referenced in the October 10, 2022 is denied.

We have withheld 16 pages..."

On February 14, Inner City Press filed its appeal:

"This is a FOIA appeal of the OCC's denial in full of the FOIA request I submitted on November 23, 2022 on behalf of Inner City Press and in my personal capacity, which the OCC summarized: "You requested the OCC's U.S. Bank - Union Bank merger approval order, including any conditions and any and all records related to the basis for the conditions, and approval. By PAL message dated December 7, 2022, you clarified that you are seeking the October 10, 2022 letter from Andrew Cecere to OCC as referenced in the approval order and records related or directly referenced in the October 10, 2022 letter (Date Range for Record Search: From 01/01/2022 To 11/23/2022)." 


 On February 10, 2023 -- eleven weeks after the request -- the OCC denied the narrowed request in full, providing not a single line or portion of the letter on which the OCC conditioned its merger approval. This is outrageous, and is hereby (within days, not weeks) appealed. 

  FOIA expressly mandates that any "reasonably segregable portion" of a record must be disclosed to a requester after the redaction (the deletion of part of a document to prevent disclosure of material covered by an exemption) of the parts which are exempt. 5 U.S.C. § 552(b). And see, Trans-Pac. Policing Agreement v. U.S. Customs Serv., 177 F.3d 1022,1028 (D.C.Cir. 1999) and PHE, Inc. v. Dep’t. of Justice, 983 F.2d 248,252 (D.C.Cir. 1993). 


 The OCC's approval order said:  "The Resulting Bank shall comply with the commitments contained in the letter from Andrew Cecere, Chairman, President and Chief Executive Officer, U.S. Bank National Association, to Tanya Smith, Deputy Comptroller for Large Bank Supervision, dated October 10, 2022." 

  The public and community groups have a right to know about, assess and act on the regulation and supervision activities of the OCC, which purport to protect and assist consumers. But to say that the approval is based on "commitments" by the bank - with its own compliance problems - while keeping those commitments entirely secret from the public undermines this principle, and the credibility of the OCC. It is inconsistent with the Administration's and Acting Controller's claims. The denial should be immediately reverse, and the letter provided."


 Watch this site.

February 13, 2023

OCC Withholds US Bank CEO Letter It Used To Approve Union Bank Merger, Corporate Capture

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NYC, Feb 10 – How untransparent and pro-bank are today's regulators, including the Office of the Comptroller of the Currency?

Today's example is the OCC's denial in full of Inner City Press' Freedom of Information Act request about its approval of U.S. Bank's application to acquire Union Bank, which Fair Finance Watch and others challenged under the Community Reinvestment Act. 

 Inner City Press submitted the request in November 2022, and immediately clarified and narrowed the request after an OCC inquiry.

Now on February 10, 2023, the OCC responds - and withholds 16 pages in full, providing no information at all. This on the day the OCC holds a symposium about mergers - with speakers from corporate law firms.

Here's from the OCC's letter:

"You requested the OCC's U.S. Bank - Union Bank merger approval order, including any conditions and any and all records related to the basis for the conditions, and approval. By PAL message dated December 7, 2022, you clarified that you are seeking the October 10, 2022 letter from Andrew Cecere to OCC as referenced in the approval order and records related or directly referenced in the October 10, 2022 letter (Date Range for Record Search: From 01/01/2022 To 11/23/2022). By PAL message dated December 7, 2022, we provided you a link to the OCC's approval order on OCC's website.

Your request for the October 10, 2022 letter from Andrew Cecere and records related or directly referenced in the October 10, 2022 is denied.

We have withheld 16 pages by the authority of U.S.C. 552(b)(4) and 12 C.F.R. 4.12(b)(4), trade secrets and commercial or financial information obtained from a person and privileged or confidential; and 5 U.S.C. 552 (b)(8) and 12 C.F.R. 4.12(b)(8), relating to records contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an agency responsible for the regulation or supervision of financial institutions. We have reviewed the information protected by the cited exemption(s) under a presumption of openness but have determined that it is reasonably foreseeable that the disclosure of the information would harm an interest protected by the applicable exemption(s).    

And what is that interest? Watch this site.

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February 6, 2023

Protest of Predatory TAB Bank Leads to CRA Downgrade amid Hemp Lender West Town Docs

By Matthew Russell Lee, Patreon MVB File

SOUTH BRONX NY, Feb 3 – Alongside the wrongdoing by big banks from JPMorgan Chase to KeyCorp, there are other also dubious proposed merger by smaller banks and predators.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and filed the sample on MVB Bank, below. On February 3, 2023 the FDIC issued a rare Needs to Improve rating under the Community Reinvestment Act to Transportation Alliance Bank d/b/a TAB Bank: "The FDIC lowered the CRA rating from “Satisfactory” to “Needs to Improve” due to an illegal credit practice present during the review period for this CRA evaluation."

 Note that "TAB has six strategic partners to offer consumer loans and credit cards: EasyPay Finance: EasyPay offers unsecured, closed-end, subprime consumer loans. Loans are originated through a network of merchants, primarily for retail products and services, such as automotive services, furniture, and pets. • Mission Lane: Mission Lane offers subprime credit card program for borrowers working to rebuild credit. • Snap Finance, Sunbit, FlexLending (new): FlexLending offers POS, closed-end loans to consumers purchasing tires. FlexLending also recently began offering a new direct-to-consumer loan program. • Integra (new): Integra offers unsecured, closed-end, subprime consumer loans." #PredatoryBedner. We'll have more on this. And on this, which we filed:

Dear Chair Powell, Secretary Misback and others in the FRS:    This is a request for a full copy of, and a timely first comment on, the Applications of MVB Financial Corp., Fairmont, West Virginia; to acquire Integrated Financial Holdings, Inc., Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust, North Riverside, Illinois, and acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, "and more." 

Fair Finance Watch has been reviewing West Town Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling. FFW in looking into MVB Bank find its offers of banking for gaming, but for CRA questions, not even an email address, only a snail mail address. This is not a best practice, far from it.

January 30, 2023

Lakeland Bank DOJ Deal Left Disparities in NY Now Provident Pitches Tech Musical Chairs

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NY, Jan 24 – 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 the below, with Inner City Press on the FOIA.

In January 2023, Provident's public face is to brag about musical chairs in its tech department, with no mention of the glaring fair lending issues: "Over the past year, Provident Bank in Iselin, New Jersey, has been rethinking how it defines top tech leadership roles as it prepares to double in size in a pending merger.  The bank filled three high-level technology positions in the last six months. Although none of these positions are new, some of the roles have been expanded and redefined. For example, Ravi Vakacherla succeeded the retired chief information officer of the bank at the end of August — but his role became chief digital and innovation officer. Damiano Tulipani was appointed chief information security in September. Most recently, Scott Hurlbert joined Provident in January as digital channels director, which encompasses channels that may not traditionally be seen as digital, such as the customer contact center and debit card services.  Redefining certain roles was part of a vision by CEO Anthony Labozzetta to advance innovation at the bank, a unit of the $13.6 billion-asset Provident Financial Services. The new appointments largely predate the bank's announcement that it would acquire Lakeland Bancorp in Oak Ridge, New Jersey — which will roughly double the bank's asset size if the merger closes as planned in the second quarter."

  As planned?? And what will the Federal Reserve do? Deck chairs on the Titanic....

January 23, 2023

BMO Harris BNP Gets Fed OK Despite Peters Case With Climate and Job Loss Dismissed

By Matthew Russell Lee, Patreon Story

FED COURT / S Bronx, Jan 17 – Whether or not the U.S. Community Reinvestment Act will actually be enforced under the Administration and its regulators remains an open question, or one answered in the negative, at least by the Federal Reserve. Consider: Inner City Press immediately reported that BMO Harris' application to buy Bank of the West and its more than 500 branches from BNP would be a litmus test.

 Fair Finance Watch noted, from Day 1, that in 2020 BMO Harris denied many more mortgage applications from African Americans than it approved: 509 denied versus only 223 loans made to African Americans, nationwide. BMO's numbers for whites were the reverse: 9270 loans made, versus less then six thousand denials. As noted, there are also climate and secrecy issues. Fair Finance Watch and other raised branch closings.

On October 14, the banks' counsel sent Fair Finance Watch what purported to be a copy of its submission to the Fed under the Ex Parte Rules -- but the entire thing was withheld, under this cover message: "Attached is the public portion of the BMO response to the Federal Reserve Bank of Chicago’s request for additional information received on October 3, 2022.      Please feel free to reach out to me with any questions.     Best,  Ro     Ro Spaziani Wachtell, Lipton, Rosen & Katz."  No substance was attached, just a request for confidential treatment

This was outrageous. The Fed itself should make these exhibits public.

On January 17, the Fed approved the merger, without the word "ponzi" appearing in the order, but these did appear: " The potential for job losses resulting from a merger is outside of the limited statutory factors that the Board is authorized to consider when reviewing an application or notice under the BHC Act. See Western Bancshares, Inc. v. Board of Governors, 480 F.2d 749 (10th Cir. 1973); see also U.S. Bancorp, FRB Order No. 2022-22 (October 14, 2022); BB&T Corp., FRB Order No. 2019-16 (November 19, 2019); KeyCorp, FRB Order No. 2016-12 (July 12, 2016); Community Bank System, Inc., FRB Order No. 2015-34 (November 18, 2015); Wells Fargo & Co., 82 Federal Reserve Bulletin 445 (1996);" and

"Some commenters expressed concerns regarding the amount of funding that BNP Paribas and Bank of Montreal have provided to fossil-fuel companies, while one commenter requested that the combined organization publish annual disclosures related to environmental issues. In addition, one commenter expressed concern that BOTW had not disclosed information regarding the diversity of its employees. These comments concern matters that are outside the scope of the limited statutory factors that the Board is authorized to consider when reviewing an application under the BHC Act. See Western Bancshares, Inc. v. Board of Governors, 480 F.2d 749 (10th Cir. 1973)."

The Fed sure loves that 1973 case. It's time to amend the BHC Act and CRA to provide a private right of action and of judicial review.

January 16, 2023

City National Bank Settled Redlining Case with DOJ After Federal Reserve Ignored FFW Proof

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX, Jan 12 – City National Bank discriminates, the Department of Justice has belatedly concluded, and fined the bank - owned by Royal Bank of Canada - $31 million. Too little, too late.

In 2015, Inner City Press / Fair Finance Watch told the Federal Reserve and other regulators about the problems at City National Bank. And the Fed(s) did nothing.  Here's from that time:


Royal Bank of Canada and affluent-focused Los Angeles-based City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch.

Back on April 11, Inner City Press submitted a Freedom of Information Act (FOIA) request to the Federal Reserve for it communication with and about RBC and City National. Only on September 30, more than five MONTHS later, did the Fed response. In the spirit of transparency, we are putting the FOIA response online here.

  It shows among many other things that RBC was meeting with the Federal Reserve well before the public announcement of its City National proposal; it has many redactions which we will be appealing, for example “When you have a chance, please put a note in our files indicating that we asked Charles Fleet about [REDACTED] (b)(5) . Thanks.”

FOIA: On Royal Bank of Canada-CNB, Here's Federal Reserve's Response to ICP On FOIA Five Months Ago by Matthew Russell Lee

January 9, 2023

On a application by a redliner involved in crypto, Fair Finance Watch filed a challenge citing lending disparities (and the CRA) under the Change in Bank Control Act: "Fair Finance Watch has been reviewing Quontic Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.   In terms of HMDA data, in 2021 in New York State, Quontic Bank made 594 mortgage loans to whites with 39denials. Meanwhile to African Americans it made only 73 loans, while denying 11 applications. This is more disparate that other banks in NYS. A referral should be made to the DOJ for fair lending violations.    Quontic is being sued, active case: 22-cv-7188 (SDNY).    An evidentiary hearing is necessary. This comment is timely" 

Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington, DC 20551-0001,  The Estate of Steven B. Schnall, Sherri Silver Schnall as Preliminary Executor, both of New York, New York;  to retain voting shares of Quontic Bank Acquisition Corp., and Quontic Bank Holdings Corp., and thereby indirectly retain voting shares of Quontic Bank, all of New York, New York.  In addition, the Schnall Disclaimer Trust A, Sherri Silver Schnall, individually and as co-trustee, both of New York, New York, with Amie Hoffman, as co-trustee, New Hope, Pennsylvania; the Sherri S. Schnall Family Irrevocable Trust, Amie Hoffman as trustee, both of New Hope, Pennsylvania;  to acquire voting shares of Quontic Bank Acquisition Corp., and Quontic Bank Holdings Corp., and thereby indirectly acquire voting shares of Quontic Bank. Accordingly, all notificants in this notice to become a group acting in concert.