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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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.
***
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
***
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.
***
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...
***
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?
***
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.
***
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?
***
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?
***
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.
***
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)
***
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 data is available, UMB
Bank, N.A. made over 2000 mortgage loans to
whites, and only 117 loans to African Americans.
For
every denial to an African American, it made
only 2.02 loans. But for whites, for every
denial it made 3.45 loans. It should be referred
to DOJ.
There
is litigation, there is also this, reported at
the time of Silicon Valley Bank's failure: "UMB
Bank, a regional bank headquartered in Kansas
City, Missouri, and with branches across the
Midwest, Southwest, and Western United States,
has total assets of $38 billion and deposits
totaling $32 billion, according to the FDIC.
However, only 16% of deposits fall under the
$250,000 FDIC insurance threshold, leaving
74.11% (equivalent to $28.36 billion) vulnerable
to potential losses."
Why
would regulators even consider approving its
expansion? On June 21, Fair Finance Watch filed
a formal Community Reinvestment Act challenge to
UMB's application to the Federal Reserve, adding
state by state data:
UMB Bank in 2022 in Missouri made 842 mortgage
loans to whites, and only 76 loans to African
Americans. Meanwhile it denied 41 applications
from African Americans, and only 257 from
whites.
UMB Bank in Colorado - in which it seeks to
expand - in 2022 made 378 mortgage loans to
whites, and only 13 loans to African Americans.
Meanwhile it denied six applications from
African Americans, and only 107 from whites.
UMB Bank in 2022 in Texas made 78 mortgage loans
to whites, and only six loans to African
Americans. Meanwhile it denied two applications
from African Americans, and only 27 from
whites.
These disparities cry out for a referral to DOJ,
and public hearings on, and denial of, UMB's
major expansion application.
Watch
this site.
***
SOUTH
BRONX, June
12 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. While they applied late March 20, as of
1 pm on March 22 there was no notice of the
Federal Reserve's or OCC's websites. Inner City
Press submitted second FOIA requests to each
agency. Public hearings should be held, not only
on antitrust but also lending disparities at
both companies.
On
April 24 the Fed extended its comment period to
May 31 - without (yet?) granting public
hearings, nor providing the FOIA documents.
Yet on June 12, this: "June 11 (Reuters) -
Capital One Financial Corp: * CAPITAL ONE EXEC
SAYS IN CONVERSATION WITH U.S. FEDERAL RESERVE
AND OFFICE OF COMPTROLLER OF CURRENCY ON
DISCOVER DEAL - INVESTOR CONFERENCE." In
conversation? With no documents provided to the
opposed public? Inner City Press / Fair Finance
Watch registered for the public meeting, in
opposition.
On
May 14 - still without providing FOIA documents
- the Fed and OCC set a July 19 virtual public
meeting. And already, pro merger lobbying had
begun, for example here
by a group previously identified in a Trenton NJ
political quid pro quo scandal.
Then
an SC Astroturf
piece, then going green.
Next
a former NH
Commissioner, and a "former Democratic campaign
strategist in Southern Nevada."
Unreal. We'll have more on this.
The OCC first put its application in its reading
room. And it is an outrage, Capital One gaming
the CRA system. For example "the Proposed
Transaction would result in CONA establishing a
new assessment area in Delaware, which
will include all census tracts in Sussex County
and seven contiguous census tracts in Kent
County."
That
for a nationwide card and subprime auto
lender...
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites.
By
Matthew Russell Lee, Patreon Maxwell
Book
SOUTH
BRONX, May 16 – The Texas Bankers
Association and ABA managed to finagle a Federal
court ruling allowing its and the ABA's members'
non-compliance with the Consumer Financial
Protection Bureau's small business data
collection rules, pending Supreme Court decision
on CFPB's structure and funding. Order here.
Now
on May 16, 2024, the Supreme Court has found the
CFPB's structure to be Constitutional, by a 7-2
vote. "Congress shielded the Bureau from the
influence of the political branches,” Justice
Clarence Thomas wrote in the majority opinion
for the court. “Under the
Appropriations Clause, an appropriation is
simply a law that authorizes expenditures from a
specified source of public money for designated
purposes. The statute that provides the Bureau’s
funding meets these requirements.”
SOUTH
BRONX,
May 8 – As US bank regulators talk about working
to increase the fairness of the financial
system, and closely scrutinizing mergers and the
spread of bad practices, banks continue to
assume they can combine.
Before the Capital One - Discover proposal, and
ABA lawsuit against the Community Reinvestment
Act regulation, there was FirstSun Capital
Bancorp of Denver and Dallas saying it will
merge with Homestreet, Inc. and Homestreet Bank
of Seattle, Washington.
On February 23 Fair Finance Watch with Inner
City Press on the FOIA filed a protest:
"FirstSun's flagship Sunflower Bank, in Texas in
2022, made 694 mortgage loans to whites, and
only 41 to African Americans. Meanwhile it
denied 12 applications from African Americans,
and only 34 from whites. This is
disparate, and more disparate both than the
aggregate in Texas.
Nationwide in 2022, Sunflower Bank made 3059
mortgage loans to whites, and only 194 to
African Americans. Meanwhile it denied 49
applications from African Americans, and only
259 from whites.
For the record, on managerial resources and
otherwise, note that on September 27, 2023,
FirstSun Capital Bancorp, the parent company of
Sunflower Bank, Guardian Mortgage and First
National 1870 (collectively, “Sunflower”), filed
a notice of data breach with the Attorney
General of California... an unauthorized party
likely took advantage of the flaw in the MOVEit
software and downloaded copies of files
[containing] personally identifiable
information."
Now FirstSun is simply changing charters to try
to get fast approval: FirstSun Capital Bancorp
will switch to a Texas state charter rather than
a national one as it continues to pursue its
acquisition of HomeStreet, the bank announced
last week: “In our discussions with the OCC in
Washington, it became obvious that we would not
gain near-term approval." What a scam.
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, May 1 –
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger. Among them
was UMB - a bank whose lending Inner City Press
and Fair Finance Watch had been
scrutinizing.
Now UMB, paradoxically, is asking its regulators
to allow it to expand, buying Denver-based
Heartland. The application, Fair Finance Watch
says, should not be approved. In
2022, the most recent year for which Federal
data is available, UMB Bank, N.A. made over 2000
mortgage loans to whites, and only 117 loans to
African Americans.
For
every denial to an African American, it made
only 2.02 loans. But for whites, for every
denial it made 3.45 loans. It should be referred
to DOJ.
There
is litigation, there is also this, reported at
the time of Silicon Valley Bank's failure: "UMB
Bank, a regional bank headquartered in Kansas
City, Missouri, and with branches across the
Midwest, Southwest, and Western United States,
has total assets of $38 billion and deposits
totaling $32 billion, according to the FDIC.
However, only 16% of deposits fall under the
$250,000 FDIC insurance threshold, leaving
74.11% (equivalent to $28.36 billion) vulnerable
to potential losses."
Why
would regulators even consider approving its
expansion? Watch this site.
***
SOUTH
BRONX, April
24 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. While they applied late March 20, as of
1 pm on March 22 there was no notice of the
Federal Reserve's or OCC's websites. Inner City
Press submitted second FOIA requests to each
agency. Public hearings should be held, not only
on antitrust but also lending disparities at
both companies.
On
April 24 the Fed extended its comment period to
May 31 - without (yet?) granting public
hearings, nor providing the FOIA documents.
On April 19
the Fed wrote to extended its
time to respond to Inner City
Press' February 19 FOIA to May
3
April 19,
2024
RE: Docket
ID OCC–2022–0008 - FOIA
Acting
Comptroller Hsu and others at the OCC:
Inner City
Press, as an active FOIA requester to the OCC, timely comments
on your pending regulation to demand that the OCC rule on the
propriety of all requests for confidential treatment during the
comment period on an application - or automatically extend the
comment period.
Too often, applicant
national bank over-request confidential treatment, but benefit
from it due to the OCC's slow processing of FOIA requests. Case
in point is Capital One / Discover - Inner City Press on
February 19 submitted a request for communications between the
OCC and the banks. Still none of those records as of April 19,
as the comment period is set to close. (We expect it to be
extended, but this is not the case on most applications).
Nor even on the
application has the OCC ruled on the propriety of the requests
for confidential treatment. This must be addressed by the OCC.
There is other
FOIA problems at the OCC - as well as some polite staffers, we
note - but we emphasize the above to ensure consideration and
action.
Expectantly,
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX, NY, April 11– When the US
Department of Justice sued and
immediately settled with
Lakeland Bank for fair lending
violations, it announced a
proposed merger with Provident
Bank.
As
if to sweep it under the carpet.
And
when Fair Finance Watch looked into it, it found
that the DOJ settlement did not address in any
way the banks' disparities in New York. So on
December 1, the FDIC's comment deadline, it
filed a protest, with Inner City Press on the
FOIA.
Jump
cut to March 15, 2023, when Provident's Deputy
General Counsel filed a letter with the New York
Fed, cc-ing Rodgin Cohen - only on New Jersey,
nothing on the disparities in New York.
On
January 18 Provident asked two Board questions -
by withholding the entire answers. Inner City
Press immediately FOIAed: "The entire response
is withheld, about fair lending compliance,
including public commitments that are
unfulfilled. This cannot stand; the information
must be provided before the Board acts in any
way on the application (other than denial.)"
Jump
cut to mid-February: while still not providing
the withheld past answer, the Fed asked more
questions. Letter here.
On
February 27 Provident provided spin, including
that "under the consent order that it entered
into with the U.S. Department of Justice.
These obligations require Lakeland Bank to,
among other things, establish a $12
million loan subsidy fund to increase credit for
consumers applying for loans in
majority-Black and Hispanic census tracts in a
five-county area in and around Newark, New
Jersey" - but nothing where other disparities.
Letter here.
On
April 11, 2024, the Fed hauled off and approved,
noting Inner City Press / Fair Finance Watch
"objected to the proposal, alleging that in
2021, Provident Bank and Lakeland Bank made no
home loans to African American individuals in
New York State.30 30 The data cited by the
commenter corresponds to publicly available 2021
data by Provident Bank and Lakeland Bank under
HMDA. Following consummation of the proposed
transaction, the combined organization will add
to its assessment area Bronx and Kings counties,
each of which includes a significant number of
majority-minority and LMI communities... The
Board also has considered the DOJ Consent Order,
including Lakeland Bank’s efforts towards
meeting its obligations under the DOJ Consent
Order, and that the DOJ Consent Order binds
Provident without further action by the Board."
We'll see.
Watch this site.
***
SOUTH
BRONX,
April 1 – As US bank regulators talk about
working to increase the fairness of the
financial system, and closely scrutinizing
mergers and the spread of bad practices, banks
continue to assume they can combine.
Before the Capital One - Discover proposal, and
ABA lawsuit against the Community Reinvestment
Act regulation, there was FirstSun Capital
Bancorp of Denver and Dallas saying it will
merge with Homestreet, Inc. and Homestreet Bank
of Seattle, Washington.
On February 23, 2024 Fair Finance Watch with
Inner City Press on the FOIA filed with the
Federal Reserve: "FirstSun's flagship Sunflower
Bank, in Texas in 2022, made 694 mortgage loans
to whites, and only 41 to African Americans.
Meanwhile it denied 12 applications from African
Americans, and only 34 from whites.
This is disparate, and more disparate both than
the aggregate in Texas.
Nationwide in 2022, Sunflower Bank made 3059
mortgage loans to whites, and only 194 to
African Americans. Meanwhile it denied 49
applications from African Americans, and only
259 from whites.
For the record, on managerial resources and
otherwise, note that on September 27, 2023,
FirstSun Capital Bancorp, the parent company of
Sunflower Bank, Guardian Mortgage and First
National 1870 (collectively, “Sunflower”), filed
a notice of data breach with the Attorney
General of California... an unauthorized party
likely took advantage of the flaw in the MOVEit
software and downloaded copies of files
[containing] personally identifiable
information."
HomeStreet, meanwhile, is politely said to have
had a "tough" 2023.
More
than a month later, FirstSun emailed Fair
Finance Watch and Inner City Press a response,
referring to, but not providing copies of,
letters of support it says it has procured. Nor
has the Federal Reserve forwarded these along,
or put them online. We'll have more on this.
FFW and Inner City Press have been deeply
concerned about the rush by the Federal Reserve
to rubber-stamp mergers by redliners, money
launderers and predatory lenders. This has been
killing the Community Reinvestment Act and so a
timely request public hearings.
By
Matthew Russell Lee, Patreon
FEDERAL COURT /
S Bronx, March 29 –
Whether or not the U.S. Community Reinvestment
Act will be again enforced under this
Administration and its regulators including
under the incoming divided Congress is an open
question.
On November 25, 2022 Fair Finance Watch with
Inner City Press on the FOIA filed comments with
the Federal Deposit Insurance Corporation
against
the
applications
by Prosperity
Bank in Texas.
In April 2023,
the FDIC
imposed
conditions on
one - and in
March 2024, on
the other,
Lone Star.
November
25, 2022
Federal
Deposit
Insurance
Corporation
Attn: Chairman
Martin J.
Gruenberg
Dallas Kristie
K. Elmquist,
Regional
Director Julie
V. Banfield,
Deputy
Regional
Director Chris
Finnegan
Re:
Comment on
Applications
by Prosperity
Bank, El
Campo, Texas
to acquire
Lone Star Bank
of West Texas
and
FirstCapital
Bank of Texas,
N.A.
Dear
Chairman
Gruenberg,
Regional
Director
Elmquist,
Ass't Regional
Director
Finnegan and
others at the
FDIC:
This is a
request for
all
information in
the possession
of the FDIC
about, and a
timely comment
on, the
Applications
of Prosperity
Bank, El
Campo, Texas
to acquire
Lone Star Bank
of West Texas
and
FirstCapital
Bank of Texas,
N.A. which
appear on the
FDIC website
under
"Applications
In Process
Subject to the
CRA Report"
with an
initial
comment
periods
running
through
December 16.
This comment
is
timely.
The applicant
Prosperity
Bank in 2021
in Texas based
on its
disparate
marketing made
5453 mortgage
loans to
whites --
while making
only 188 loans
to African
Americans.
Meanwhile it
denied fully
94
applications
from African
Americans,
versus only
1186 from
whites. This
is far out of
keeping with
the
demographics,
and others
lenders, in
Texas in
particularly
in Prosperity
Bank's CRA
assessment
areas - this
is
outrageous.
The applicant
Prosperity
Bank in 2021
in Oklahoma
based on its
disparate
marketing made
320 mortgage
loans to
whites --
while making
only 38 loans
to African
Americans.
This is far
out of keeping
with the
demographics,
and others
lenders, in
Oklahoma in
particularly
in Prosperity
Bank's CRA
assessment
areas - this
is
outrageous.
Very Truly
Yours,
Matthew Lee,
Esq.
Executive
Director
Inner City
Press/Fair
Finance Watch
On
April 6, 2024
sent April 10,
the FDIC
imposed this
condition:
"After a
careful review
of the
concerns, the
FDIC decided
to approve the
application
with the
following
condition.
This condition
will help
ensure the
home mortgage
lending needs
of African
American
populations in
Prosperity
Bank’s
assessment
areas are met.
Enhance the
bank’s Fair
Lending Action
Plan (Plan)
adopted by the
Board of
Directors of
Prosperity
Bank and
submit changes
to the FDIC
for approval
within 60 days
of the
application
approval date.
The Plan
updates and
revisions, as
applicable,
should provide
strategies to
improve the
volume of home
mortgage
applications
from, and
originations
to African
American
applicants
within each of
the designated
assessment
areas
established in
Texas. The
Plan should
also provide
strategies to
improve the
volume of home
mortgage
applications
from, and
originations
in
majority-minority
census tracts
and
majority-Hispanic
tracts within
designated
assessment
areas in
Texas. The
enhancements
should be
developed in
the context of
available
demographic
data, as well
as safe and
sound lending
considerations,
and provide
for periodic
review of the
Bank's
efforts, using
measurable
criteria, to
assess actions
and progress.
The Bank will
continue to
provide
quarterly
updates to the
FDIC's Dallas
Regional
Office
detailing the
Bank's
progress under
the Plan."
The
condition was
re-imposed in
March 2024
when the FDIC
approved the
Lone Star Bank
application.
Watch this
site.
Watch
this site.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX,
March 23 – While the US bank regulators purport
to be cracking down on fair lending and other
abuses of consumers, they continue to allow
banks of all sizes to pass exams and merge when
they apply, despite deep
disparities.
On
December 9, Fair Finance Watch (with Inner City
Press on the FOIA) commented to the FDIC:
Merchants & Marine Bank to acquire
Mississippi River Bank:
The applicant Merchants & Marine Bank in
2022 in Mississippi based on its disparate
marketing made 148mortgage loans to whites --
while making only 10 loans to African Americans.
This is far out of keeping with the
demographics, and others lenders, in Mississippi
in particularly in Merchants & Marine Bank's
CRA assessment areas.
In Alabama it is worse. And it would get worse
in Louisiana, into which the bank is apply to
expand via Mississippi River Bank.
The applicant Merchants & Marine Bank in
2022 in Alabama based on its disparate marketing
made 26 mortgage loans to whites -- and NONE. to
African Americans.
This
is far out of keeping with the demographics, and
others lenders, in Alabama in particularly in
Merchants & Marine Bank's CRA assessment
areas - this is outrageous.
There are other issues.... Fair Finance Watch is
requesting an extension of the public comment
period, evidentiary hearings and that, on the
current record, the applications not be
approved.
On
March 19, 2024, the FDIC recounted Fair Finance
Watch / Inner City Press' CRA protest and
imposed a condition, to develop a plan to serve
African American borrowers, we've uploaded it on
DocumentCloud here.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX / SDNY, March 16– With no public comment
period, New York Community Bank was handed the
40 branches of Signature Bank, to re-open them
as braches of Flagstar, which NYCB bought in a
proceeding delayed by fair lending problems.
Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed.
So, a fair lending rogue benefited from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors.
***
March
4, 2024
Capital One Should Discover Merger Dead as FTC Hits Kroger & Inner City Press FOIAs Fed
SOUTH
BRONX,
Feb 26 – Capital One will apply to buy Discover,
in an anticompetitive deal that should be
rejected by regulators if they mean what they
have been saying. Public hearings should be
held, not only on antitrust but also lending
disparities at both companies.
On February 20 Capital One CEO Rich Fairbanks
bragged about communications he's had with the
regulators, then referred to "customary
regulatory approvals." Inner City Press
immediately submitted Freedom of Information Act
requests to the Federal Reserve and OCC for all
such communications. Both agencies confirmed
receipt. The Fed wrote grandly that "You have
provided facts regarding your qualification as a
representative of the news media."
February
26, 2024
Capital One Should Discover Merger Dead CEO Brags to Zombies Inner City Press FOIAs Fed
SOUTH
BRONX,
Feb 20 – Capital One will apply to buy Discover,
in an anticompetitive deal that should be
rejected by regulators if they mean what they
have been saying. Public hearings should be
held, not only on antitrust but also lending
disparities at both companies.
On February 20 Capital One CEO Rich Fairbanks
bragged about communications he's had with the
regulators, then referred to "customary
regulatory approvals." Inner City Press
immediately submitted Freedom of Information Act
requests to the Federal Reserve and OCC for all
such communications. Both agencies confirmed
receipt.
The
call, a transcript of which was not posted hours
later, consisted of largely craven questions
from Capital One's stable of "analysts,"
including Goldman Sachs' Ryan Nash, TD Cohen's
Moshe Orenbuch, from Citi an Aaron sitting in
for Jill Shea, and finally JPMorgan's Rich
Shane, who said "I'm not big on saying this on
calls, but... congratulations." Really.
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site.
***
February
19, 2024
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.
***
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
***
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.
***
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.
January
1, 2024
Old National Bank Bid for CapStar Protested After 2021 Settlement 2022 Lending Disparities
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.
***
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
***
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.
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.
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.
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.
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."
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."
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
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."
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" -
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
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.
***
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."
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!
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 BankMay
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.
***
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.
***
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
***
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
***
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."
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.
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."
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.
***
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."
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."
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.
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)."
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.