Welcome to Inner City Press’ CRA Report. Our other Reporters cover the financial services industry, human rights, the Federal Reserve, and other beats. ICP has published a book about the CRA-relevant topic of predatory lending - click here for sample chapters, a map, and ordering information. CBS MarketWatch of April 23, 2004, says the the novel has "some very funny moments," and that the non-fiction mixes "global statistics and first-person accounts." The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters." See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," City Limits, Oct. 2004. The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere.
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See, in November 2021, Inner City Press' book "Belt and Roadkill,"
here
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repealed and superseded, no less.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.
***
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.
***
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.
***
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.
***
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.
***
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.
***
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...
***
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.
***
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)
***
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.
***
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
***
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
***
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.
***
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.
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.
***
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.
***
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.
***
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, Oct 11
–
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger. Among them
was UMB - a bank whose lending Inner City Press
and Fair Finance Watch had been scrutinizing,
and now challenge.
UMB is asking its regulators to allow it to
expand, buying Denver-based Heartland. The
application, Fair Finance Watch on June 21
formally told the Fed, should not be
approved. In 2022, the most recent
year for which Federal data is available, UMB
Bank, N.A. made over 2000 mortgage loans to
whites, and only 117 loans to African Americans.
For
every denial to an African American, it made
only 2.02 loans. But for whites, for every
denial it made 3.45 loans. It should be referred
to DOJ.
There
is litigation, there is also this, reported at
the time of Silicon Valley Bank's failure: "UMB
Bank, a regional bank headquartered in Kansas
City, Missouri, and with branches across the
Midwest, Southwest, and Western United States,
has total assets of $38 billion and deposits
totaling $32 billion, according to the FDIC.
However, only 16% of deposits fall under the
$250,000 FDIC insurance threshold, leaving
74.11% (equivalent to $28.36 billion) vulnerable
to potential losses."
Why
would regulators even consider approving its
expansion? On June 21, Fair Finance Watch filed
a formal Community Reinvestment Act challenge to
UMB's application to the Federal Reserve, adding
state by state data:
UMB Bank in 2022 in Missouri made 842 mortgage
loans to whites, and only 76 loans to African
Americans. Meanwhile it denied 41 applications
from African Americans, and only 257 from
whites.
UMB Bank in Colorado - in which it seeks to
expand - in 2022 made 378 mortgage loans to
whites, and only 13 loans to African Americans.
Meanwhile it denied six applications from
African Americans, and only 107 from whites.
UMB Bank in 2022 in Texas made 78 mortgage loans
to whites, and only six loans to African
Americans. Meanwhile it denied two applications
from African Americans, and only 27 from
whites.
These disparities cry out for a referral to DOJ,
and public hearings on, and denial of, UMB's
major expansion application.
On
October 11 UMB's outside counsel Davis Polk sent
the Fed a response but withheld branch closing,
subsidiary, fintech and crypto information from
Fair Finance Watch - so Inner City Press cc-ed
them on a FOIA request for:
This
is a formal FOIA request for the withheld
exhibits to UMB's October 11 submission to the
Federal Reserve in connection with its protested
application to acquire Heartland Financial, in
particular "Confidential" Exhibits A and B,
including about fintech and branch closings and
all activities engaged in by corporate
subsidiaries. This is presumptively public; if
any is withheld, all reasonably segregable
portions should be provided.
UMB
recites and responds: 1. Provide a description
of the activities conducted by the following UMB
subsidiaries: a. UMBCDC, Inc., Kansas City,
Missouri; b. UMB Financial Services, Inc.,
Kansas City, Missouri; c. UMB Management Equity
Holdings Inc., Kansas City, Missouri; d. UMB
Merchant LLC, Kansas City, Missouri; and e. UMB
Asset Management, LLC, Kansas City, Missouri The
requested information is included in AIR
Confidential Exhibit A. Convenience and Needs 2.
Provide an update on UMB Bank’s branch
consolidation analysis and confirm whether any
of the branches listed in Public Exhibit 3 of
the Additional Information Response, dated
August 5, 2024 (“August AI Response”) would be
consolidated, following consummation of the
proposed transaction. The requested information
is included in AIR Confidential Exhibit B.
Discuss any plans to engage in
crypto-asset-related activities or fintech
partnerships. The requested information is
included in AIR Confidential Exhibit
A.
Again,
this is both important for the public to know
and is presumptively public; if any is withheld,
all reasonably segregable portions should be
provided.
Watch
this site.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH BRONX,
Oct 4
– Two tech-focused credit unions announced this
week they intend to merge, if they get approval
from the National Credit Union Association.
Digital Federal Credit Union is based on the
East Coast, and First Tech is on the West Coast,
wanting to follow Microsoft into Atlanta, and
Amazon into northern Virginia.
But
what are their lending records?
According
to 2023 Home Mortgage Disclosure Act data
reviewed be Fair Finance Watch, nationwide in
2023, First Technology Credit Union made
1532 mortgage loans to whites, and only 41 loans
to African Americans. Meanwhile it denied only
368 applications from whites, and fully 37 from
African Americans.
Digital Federal nationwide in 2023 made 2196
mortgage loans to whites, and only 178 loans to
African Americans. Meanwhile it denied only 1122
applications from whites, and fully 261 from
African Americans.
These disparities should result in the denial of the proposed merger. But credit unions are for now not subject to the Community Reinvestment Act, and NCUA refuses to consider such issues. Watch this site
***
by
Matthew R.
Lee, Patreon Substack
FEDERAL COURT, Sept 27
–
In the Midwest, Busey Bank is trying to move
into the Kansas City area via merger, with a
disparate lending record. Fair Finance Watch
with Inner City Press on the FOIA has filed a
timely first comment on, the Applications
Van Dukeman, First Busey's CEO called it a
"great fit from a cultural perspective." But
consider Busey Bank's culture, its disparate
lending record:
First
Busey's Busey Bank in Illinois in 2023 - data
not yet included in any CRA exam - made 1163
mortgage loans to whites, and only 772 loans to
African Americans. Meanwhile it denied only 216
applications from whites, and fully 24 from
African Americans. Busey Bank should be referred
to DOJ.
Busey
Bank in Missouri in 2023 - data not yet included
in any CRA exam - made 49 mortgage loans to
whites, and onlyseven loans to African
Americans. Meanwhile it denied only 21
applications from whites, and fully eight from
African Americans
Busey
Bank in Indiana in 2023 - data not yet included
in any CRA exam - made 22 mortgage loans to
whites, and only two loans to African
Americans.
Busey
Bank in Florida in 2023 - data not yet included
in any CRA exam - made 80 mortgage loans to
whites, and only ONE loan to an African
American.
There
is litigation, for example under the FCRA, here
- dropped without explanation, presumable
settled, the FRB should ask First Busey about
all outstanding consumer litigation.
And
there was the First Busey board member,
Elisabeth Kimmel, caught in the college
admissions scandal, here.
by
Matthew R.
Lee, Patreon Substack
FEDERAL COURT, Sept 20 –
In the battleground state of Michigan, a bank is
trying to move into suburban Detroit via merger,
with a disparate lending record. Fair Finance
Watch with Inner City Press on the FOIA has
filed a timely first comment on, the
Applications ChoiceOne Financial Services, Inc.,
Sparta, Michigan; to merge with Fentura
Financial, Inc., and thereby indirectly acquire
The State Bank
Kelly Potes, ChoiceOne’s CEO said that the
proposed "transaction will allow ChoiceOne to
strengthen its presence in the suburbs of
Detroit while adding the markets of Flint and
Saginaw." But consider ChoiceOne's disparate
lending
record:
Consider
that ChoiceOne Bank in Michigan in 2023 - data
not yet included in any CRA exam - made 759
mortgage loans to whites, and only TWENTY to
African Americans. Meanwhile it denied only 246
applications from whites, while denying 10 of
the applications that, based on its marketing,
it received from African Americans. ChoiceOne
should be referred to DOJ.
Meanwhile
The State Bank in Michigan in 2023 - data not
yet included in any CRA exam - made 414 mortgage
loans to whites, and only THREE to African
Americans. Meanwhile it denied only 36
applications from whites, while denying one of
the few applications that, based on its
marketing, it received from African Americans.
The State Bank should also be referred to DOJ.
On
September 17, ChoiceOne calling itself COB wrote
in, inter alia, that loans "denied were Home
Equity Line of Credit loans, for which no denial
reason is given. Reporting denial reasons for
HELOCs is optional, rather than mandatory for
COB, and COB opts not to report." This is far
from a best practice - we'll have more on this.
Why
would regulators even consider approving this
merger? Watch this site.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX,
Sept 8 –As ConnectOne Bank and First National
Bank of Long Island congratulate themselves on a
merger proposal, the preliminary review by Fair
Finance Watch finds problems.
ConnectOne, taking deposits in New York, New
Jersey and Florida, in 2023 made only one
mortgage loan to an African American
applicant.
Meanwhile First National Bank of Long Island,
after a weak and disparate lending performance
in 2023, now lists on its website that mortgages
are only offered through Rocket Mortgage. How do
and would these two banks - which should be kept
separate and not be allowed the merge, under the
Community Reinvestment Act, serve communities.
It appears that they don't.
Inner City Press will be FOIA-ing the required applications for regulatory approval when they are filed. Watch this site
***
SOUTH
BRONX, Sept
4 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying.
On September 4, Fair Finance Watch and Inner City Press submitted supplemental opposition to the regulators, including about a newly filed class action that "demonstrates Capital One's outrageous, illegal, and widespread practice of disclosing—without consent—the Nonpublic Personal Information1 and Personally Identifiable Financial Information2 (together, “Personal and Financial Information”) of Plaintiffs and the proposed Class Members to third parties, including Meta, Google, Microsoft, DoubleClick, NewRelic, Adobe, Everest, Skai/Kenshoo, Snowplow, BioCatch, Tealium, and possibly others."
After
they applied late March 20, Inner City
Press submitted a second Freedom of Information
Act request to the Office of the Comptroller of
the Currency (and to the Federal Reserve).
On
July 26, after a FOIA appeal - and after closing
the public comment period - the OCC belatedly
gave Inner City Press documents showing Capital
One briefed the OCC on a "big" deal in November
2023; it was code named "Project Sirius."
Then
overly chummy texts from Andy Navarrete, who
testified at the public meeting, and Pient Tran
to the OCC's Marci Heppner and others.
For
example, Andy to Marci, sorry for the late ping,
if Richard wanted to call, could you do a 1:1
Zoom at 7:30 [pm]. But of course. That and more
now on Inner City Press' DocumentCloud here
Inner City Press continues to dig through the
records - and to prepare another FOIA appeal.
Back
on June 25 the OCC belatedly responded to Inner
City Press' FOIA request - by withholding in
full 185 pages. OCC FOIA production on
DocumentCloud here.
Inner City Press appealed.
On July 24, the very day on which the OCC and
Fed said they were closing the written comment
period, the OCC upheld in full its FOIA denials,
determination letter on Inner City Press'
Document Cloud here.
When did the Fed start secret talks with Capital
One?
***
by
Matthew R.
Lee, Patreon Substack
FEDERAL COURT, Aug 27 –
In the battleground state of Michigan, a bank is
trying to move into suburban Detroit via merger,
with a disparate lending record. Fair Finance
Watch with Inner City Press on the FOIA has
filed a timely first comment on, the
Applications ChoiceOne Financial Services, Inc.,
Sparta, Michigan; to merge with Fentura
Financial, Inc., and thereby indirectly acquire
The State Bank
Kelly Potes, ChoiceOne’s CEO said that the
proposed "transaction will allow ChoiceOne to
strengthen its presence in the suburbs of
Detroit while adding the markets of Flint and
Saginaw." But consider ChoiceOne's disparate
lending
record:
Consider
that ChoiceOne Bank in Michigan in 2023 - data
not yet included in any CRA exam - made 759
mortgage loans to whites, and only TWENTY to
African Americans. Meanwhile it denied only 246
applications from whites, while denying 10 of
the applications that, based on its marketing,
it received from African Americans. ChoiceOne
should be referred to DOJ.
Meanwhile
The State Bank in Michigan in 2023 - data not
yet included in any CRA exam - made 414 mortgage
loans to whites, and only THREE to African
Americans. Meanwhile it denied only 36
applications from whites, while denying one of
the few applications that, based on its
marketing, it received from African Americans.
The State Bank should also be referred to DOJ.
Why
would regulators even consider approving this
merger? Watch this site.
***
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, Aug 9
–
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger, banks whose
lending Inner City Press and Fair Finance Watch
had been scrutinizing, even more so that the
2023 data is out.
This week Inner City Press filed with the Fed, a
timely first comment on, the Applications of
SouthState Corporation to merge with Independent
Bank Group, Inc., and Independent
Bank.
SouthState in South Carolina in 2023 - data not
yet included in any CRA exam - made 5013
mortgage loans to whites, and only 228 loans to
African Americans. Meanwhile it denied only 670
applications from whites, and fully 195 from
African Americans. SouthState should be referred
to DOJ.
SouthState in North Carolina in 2023 - data not
yet included in any CRA exam - made 1334
mortgage loans to whites, and only FIFTY SEVEN
loans to African Americans. Meanwhile it denied
only 173 applications from whites, and fully 20
from African Americans.
SouthState in Florida in 2023 - data not yet
included in any CRA exam - made 2755 mortgage
loans to whites, and only 165 loans to African
Americans. Meanwhile it denied only 958
applications from whites, and fully 69 from
African Americans.
SouthState in Georgia in 2023 - data not yet
included in any CRA exam - made 1176 mortgage
loans to whites, and only 318 loans to African
Americans. Meanwhile it denied only 304
applications from whites, and fully 88 from
African Americans.
SouthState in Alabama in 2023 - data not yet
included in any CRA exam - made 945 mortgage
loans to whites, and only FIFTY ONE loans to
African Americans. Meanwhile it denied only 87
applications from whites, and fully 17 from
African Americans. SouthState should be referred
to DOJ.
Nationwide
in 2023, SouthState made 7798 mortgage loans to
whites, and only 947 loans to African Americans.
Meanwhile it denied only 2491 applications from
whites, and fully 558 from African
Americans.
Why would regulators even consider approving its
expansion?
Even
more so now: on August 9, SouthStreet submitted
to the Fed a response - that deals only with
Independent Bank.
Inner City Press is requesting an extension of the public comment period, public / virtual evidentiary hearings and that, on the current record, the applications not be approved
***
SOUTH
BRONX, July
26 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. After they applied late March 20,
Inner City Press submitted a second Freedom of
Information Act request to the Office of the
Comptroller of the Currency (and to the Federal
Reserve).
On
July 26, after a FOIA appeal - and after closing
the public comment period - the OCC belatedly
gave Inner City Press documents showing Capital
One briefed the OCC on a "big" deal in November
2023; it was code named "Project Sirius."
Then
overly chummy texts from Andy Navarrete, who
testified at the public meeting, and Pient Tran
to the OCC's Marci Heppner and others.
For
example, Andy to Marci, sorry for the late ping,
if Richard wanted to call, could you do a 1:1
Zoom at 7:30 [pm]. But of course. That and more
now on Inner City Press' DocumentCloud here
Inner City Press continues to dig through the
records - and to prepare another FOIA appeal.
Back
on June 25 the OCC belatedly responded to Inner
City Press' FOIA request - by withholding in
full 185 pages. OCC FOIA production on
DocumentCloud here.
Inner City Press appealed.
SOUTH
BRONX, July
24 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. After they applied late March 20,
Inner City Press submitted a second Freedom of
Information Act request to the Office of the
Comptroller of the Currency (and to the Federal
Reserve).
On
May 14 - still without providing FOIA documents
- the OCC and Fed set a July 19 virtual public
meeting.
On
the eve of it, Capital One announced a vague and
less than credible plan - they previously
violated their ING Direct pledge - including
this time $75 billion in largely subprime auto
loans. Fair Finance Watch testified for three
minutes.
On
June 25 the OCC belatedly responded to Inner
City Press' FOIA request - by withholding in
full 185 pages. OCC FOIA production on
DocumentCloud here.
Inner City Press appealed.
On July 24, the very day on which the OCC and
Fed said they were closing the written comment
period, the OCC upheld in full its FOIA denials,
determination letter on Inner City Press'
Document Cloud here.
Inner City Press has requested an extension of
the comment periods - the Fed hasn't even
responded.
Meanwhile
Capitol One lobbying continues, for example with
a Pennsylvania state legislator extolling
Capital One's subprime, here.
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites. It grew worse in the
just-out 2023 data.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site.
***
SOUTH
BRONX, July
19 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. After they applied late March 20,
Inner City Press submitted a second Freedom of
Information Act request to the Office of the
Comptroller of the Currency (and to the Federal
Reserve).
On
May 14 - still without providing FOIA documents
- the OCC and Fed set a July 19 virtual public
meeting.
On
the eve of it, Capital One announced a vague and
less than credible plan - they previously
violated their ING Direct pledge - including
this time $75 billion in largely subprime auto
loans.
Fair
Finance Watch testified, with Inner City Press
on the FOIA:
This
proposal is anticompetitive, and Capital One is
making a mockery of the Community Reinvestment
Act, with an absurdly small CRA assessment area
and now, at the 11th hour, a cynical pledge that
includes $75 billion in subprime, often
predatory car lending.
How much of this last minute pledge would in
fact be subprime? At what interest rates? The
regulators should ask, today - and must extend
the comment
period.
You have and will hear from colleagues about the
ongoing lending disparities. I want to focus in
my three minutes on the lack of transparency,
and the regulatory agencies' role in
it.
The day the banks announced the proposed merger,
Inner City Press submitted Freedom of
Information Act requests to both the Federal
Reserve and the Office of the Comptroller of the
Currency.
The Fed, as has become a pattern, granted Inner
City Press' FOIA request expedited treatment -
and then did not provide any of the responsive
documents, claiming it needed more
time. The OCC did at least
respond to the FOIA request - but it withheld,
in full, 193 out of 210 responsive
pages.
From what was released, it shows three meetings
with Capital One and the OCC in February and
March, right before the start of the public
comment period. An OCC email says "the
purpose of this meeting is to get everyone on
the same page out of the gate" in response to an
email from Capital One's lawyer. This is called
regulatory capture. Can you say, What's in your
wallet?
...The
Philadelphia National Bank case of the Supreme
Court, unlike the Chevron deference relied on
not yet overrule, stated that "a merger which
produces a firm controlling an undue percentage
share of the relevant market, and results in a
significant increase in the concentration of
firms in that market, is so inherently likely to
lessen competition substantially that it must be
enjoined in the absence of evidence clearly
showing that the merger is not likely to have
such anticompetitive effects." 374 U.S. 321 at
363.
By
Matthew Russell Lee, Patreon Maxwell
Book
SOUTH
BRONX, July 12 – The FDIC on July 12 imposed a
fair lending condition on banks Inner City Press
/ Fair Finance Watch challenged last November:
"Fair
Finance Watch has been reviewing Peoples
Security Bank and Trust Company and FNCB Bank
including their 2022 HMDA data not taken into
account in any CRA exam and finds it
troubling. In Pennsylvania in 2022,
Peoples Security Bank and Trust Company made 532
HMDA-reported loans to whites - and only FOUR to
African Americans, while denying five
applications. FNCB Bank in
Pennsylvania in 2022 made 247 HMDA-reported
loans to whites - and only ONE to an African
Americans, while denying three applications. A
referral should be made to the DOJ for fair
lending violations."
At
that time, the FDIC wrote: "Matthew
Lee, Esquire Executive Director Inner City
Press/Fair Finance Watch P.O. Box 20047 New
York, New York 10017 Dear Mr. Lee: We received
your e-mail dated November 10, 2023, regarding
the application for Peoples Security Bank and
Trust Company to merge with FNCB Bank. We
reviewed your correspondence in accordance with
the guidelines of 12 C.F.R. Section 303.2(c) and
303.2(l), and we consider it a protest... Any
future comments should be sent to the applicant
and to this office."
The bank's outside
counsel Troutman Pepper responded. But
now in July 2024: "Dear Mr.
Lee: We are writing to inform
you that the FDIC approved Peoples
Security Bank and Trust
Company’s application to merge with
FNCB Bank. As part of the
application review process, we
investigated the issues you raised in
your e-mail dated November 10, 2023,
and after conducting our own
analysis, the FDIC approved the
application with conditions... In the
course of reviewing public input on
the application, the FDIC received an
adverse comment from a protester
that was considered a CRA
protest. The CRA protest was
critical of Peoples Security
Bank and Trust Company’s and FNCB
Bank’s home mortgage lending
efforts to Black applicants in
Pennsylvania and asserted that the
lack of lending was discriminatory
and should be referred to the
Department of Justice... After a
careful review of the concerns, the
FDIC decided to approve the
application with the following
condition. This condition will
help ensure Peoples Security Bank and
Trust Company meets the home
mortgage lending needs of the Black
population in its assessment
areas. Within 30 days of
consummation, adopt a Fair Lending
Action Plan deemed acceptable by the
FDIC to address low levels of
home mortgage applications from, and
lending to, Black applicants and
borrowers, and in
majority-minority areas, and provide
the New York Regional Office with
quarterly, written updates on
its progress under the plan."
Watch
this site.
SOUTH
BRONX, July
5 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. After they applied late March 20,
Inner City Press submitted a second Freedom of
Information Act request to the Office of the
Comptroller of the Currency (and to the Federal
Reserve).
On
May 14 - still without providing FOIA documents
- the OCC and Fed set a July 19 virtual public
meeting.
On
June 25 the OCC belatedly responded to Inner
City Press' FOIA request - by withholding in
full 185 pages. OCC FOIA production on
DocumentCloud here.
Inner City Press appealed.
Meanwhile
Capitol One lobbying continues, for example with
a Pennsylvania state legislator extolling
Capital One's work with subprime, here.
Has he seen their predatory car lending?
The OCC put part of its application in its
reading room. And it is an outrage, Capital One
gaming the CRA system. For example "the Proposed
Transaction would result in CONA establishing a
new assessment area in Delaware, which
will include all census tracts in Sussex County
and seven contiguous census tracts in Kent
County."
That
for a nationwide card and subprime auto
lender...
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site.
***
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, June
21 –
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger. Among them
was UMB - a bank whose lending Inner City Press
and Fair Finance Watch had been scrutinizing,
and now challenge.
UMB is asking its regulators to allow it to expand, buying Denver-based Heartland. The application, Fair Finance Watch on June 21 formally told the Fed, should not be approved. In 2022, the most recent year for which Federal da