Inner City Press' Community Reinvestment Reporter

  

     Welcome to Inner City Press’ CRA Report.  Our other Reporters cover the financial services industry, human rights, the Federal Reserve, and other beats.  ICP has published a book about the CRA-relevant topic of predatory lending - click here for sample chapters, a map, and ordering informationCBS MarketWatch of April 23, 2004, says the the novel has "some very funny moments," and that the non-fiction mixes "global statistics and first-person accounts."  The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters."  See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," City Limits, Oct. 2004.  The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site  Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere.

Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere. Click here for a recent BBC piece on Inner City Press' reporting from the United Nations. New: Follow us on TWITTER   BloggingHeads.tv  Click for March 1, 2011 BloggingHeads.tv re Libya, Sri Lanka, UN Corruption by Inner City Press. 2014: MRL on Beacon Reader  For or with more information, contact us. See, in November 2021, Inner City Press' book "Belt and Roadkill," here


February 10, 2025


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

by Matthew Russell Lee, Patreon Book Substack

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

  Now, for obvious reasons, it has reapplied - under the old CRA rules, which have been repealed and superseded, no less.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

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

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

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

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

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

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

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

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

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February 3, 2025


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

By Matthew Russell Lee, Patreon

SOUTH BRONX / SDNY, Jan 31 Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions.

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

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

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

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

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

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

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January 27, 2025

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

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Jan 25 – In Florida, United Community Bank is trying to move into the Miami area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Application by UCB to acquire American National Bank.

  But consider United Community Bank's disparate lending record:    

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

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

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

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

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

Watch this site.

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January 20, 2025


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

by Matthew R. Lee

SOUTH BRONX, Jan 17 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.

On the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.

On June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.

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

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

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

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites.  It grew worse in the just-out 2023 data.

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site. 

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January 13, 2025

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

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Jan 9 – In Virginia, a bank is trying to move into the Richmond area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Application by TowneBank to acquire Village Bank & Trust.

  But consider ChoiceOne's disparate lending record:    

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

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

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

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

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

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

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

Watch this site.

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January 6, 2025


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

by Matthew R. Lee

SOUTH BRONX, Jan 4 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.

On the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.

On June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.

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

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

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites.  It grew worse in the just-out 2023 data.

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site. 

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December 30, 2024

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

by Matthew R. Lee, Patreon Substack

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

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

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

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December 23, 2024

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

by Matthew R. Lee

SOUTH BRONX, Dec 18 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.

On the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.

On June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.

Meanwhile Capitol One lobbying continues even now in mid December, for example in Pennsylvania, here

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

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites.  It grew worse in the just-out 2023 data.

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site. 

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December 16, 2024

by Matthew Russell Lee, Patreon Book Substack

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

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

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

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

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

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

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

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

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

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

 Inner City Press will stay on these cases.

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

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December 9, 2024

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

by Matthew R. Lee

SOUTH BRONX, Dec 6 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.

On the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.

On June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.

Meanwhile Capitol One lobbying continues even now in December, for example a New Hampshire "IT executive," here

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites.  It grew worse in the just-out 2023 data.

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site. 

***

Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.

December 2, 2024

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

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Nov 25 –As ConnectOne Bank and First National Bank of Long Island congratulate themselves on a merger proposal, the preliminary review by Fair Finance Watch finds problems.

  ConnectOne, taking deposits in New York, New Jersey and Florida, in 2023 made only one mortgage loan to an African American applicant.  

  Meanwhile First National Bank of Long Island, after a weak and disparate lending performance in 2023, now lists on its website that mortgages are only offered through Rocket Mortgage. How do and would these two banks - which should be kept separate and not be allowed the merge, under the Community Reinvestment Act, serve communities. It appears that they don't.

 Inner City Press has now FOIA-ed and challenged the required applications for regulatory approval, on November 18 to the FDIC.

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

Watch this site

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November 25, 2024

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

by Matthew R. Lee, Patreon Substack

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

   This is a request for a full copy of, and a timely first comment on, the Applications of EverBank to acquire Sterling Bank & Trust (with a rare Needs to Improve CRA rating on Investment Test in New York), and not scandal plagued Sterling Bancorp.        Sterling Bancorp was recently prosecuted by DOJ; EverBank purports that by buying the bank portion it is not touched by the scandal. But what is the showing that the criminal conduct at the Bancorp was entirely insulated from the bank and those who work there, and its practices?      As a CRA matter, militating for a hearing, Sterling Bank has a rare Needs to Improve rating on the investment test in NY. The rest of that Performance Evaluation is not credit - it talks about and praises mortgage lending when the HMDA data show negligible volume.  Inner City Press is requesting an extension of the public comment period, public / virtual evidentiary hearings and that, on the current record, the applications not be approved      FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings

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November 18, 2024

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

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Nov 4 – In the Midwest, Busey Bank is trying to move into the Kansas City area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications

  Van Dukeman, First Busey's CEO called it a "great fit from a cultural perspective." But consider Busey Bank's culture - including contempt for CRA, its disparate lending record:   

First Busey's Busey Bank in Illinois in 2023 - data not yet included in any CRA exam - made 1163 mortgage loans to whites, and only 772 loans to African Americans. Meanwhile it denied only 216 applications from whites, and fully 24 from African Americans. Busey Bank should be referred to DOJ. 

Busey Bank in Missouri in 2023 - data not yet included in any CRA exam - made 49 mortgage loans to whites, and onlyseven loans to African Americans. Meanwhile it denied only 21 applications from whites, and fully eight from African Americans 

Busey Bank in Indiana in 2023 - data not yet included in any CRA exam - made 22 mortgage loans to whites, and only two loans to African Americans.  

Busey Bank in Florida in 2023 - data not yet included in any CRA exam - made 80 mortgage loans to whites, and only ONE loan to an African American.     

There is litigation, for example under the FCRA, here - dropped without explanation, presumable settled, the FRB should ask First Busey about all outstanding consumer litigation. 

And there was the First Busey board member, Elisabeth Kimmel, caught in the college admissions scandal, here.

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

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

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

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November 11, 2024

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

by Matthew Russell Lee

SOUTH BRONX, Nov 5 – As US bank regulators talk about working to increase the fairness of the financial system, and closely scrutinizing mergers and the spread of bad practices, banks continue to assume they can combine.

  Before the Capital One - Discover proposal, and ABA lawsuit against the Community Reinvestment Act regulation, there was  FirstSun Capital Bancorp of Denver and Dallas saying it will merge with Homestreet, Inc. and Homestreet Bank of Seattle, Washington. 

  On February 23 Fair Finance Watch with Inner City Press on the FOIA filed a protest: "FirstSun's flagship Sunflower Bank, in Texas in 2022, made 694 mortgage loans to whites, and only 41 to African Americans. Meanwhile it denied 12 applications from African Americans, and only 34 from whites.   This is disparate, and more disparate both than the aggregate in Texas. 

    Nationwide in 2022, Sunflower Bank made 3059 mortgage loans to whites, and only 194 to African Americans. Meanwhile it denied 49 applications from African Americans, and only 259 from whites. 

   For the record, on managerial resources and otherwise, note that on September 27, 2023, FirstSun Capital Bancorp, the parent company of Sunflower Bank, Guardian Mortgage and First National 1870 (collectively, “Sunflower”), filed a notice of data breach with the Attorney General of California... an unauthorized party likely took advantage of the flaw in the MOVEit software and downloaded copies of files [containing] personally identifiable information."

  Then FirstSun simply changed charters to try to get fast approval: FirstSun Capital Bancorp will switch to a Texas state charter rather than a national one as it continues to pursue its acquisition of HomeStreet, the bank announced last week: “In our discussions with the OCC in Washington, it became obvious that we would not gain near-term approval." What a scam.

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

November 4, 2024

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

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Nov 1 – In Virginia, a bank is trying to move into the Richmond area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Application by TowneBank to acquire Village Bank & Trust.

  But consider ChoiceOne's disparate lending record:    

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

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

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

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

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

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October 28, 2024


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

by Matthew R. Lee

SOUTH BRONX, Oct 23 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying.

On September 4, Fair Finance Watch and Inner City Press submitted supplemental opposition to the regulators, including about a newly filed class action that "demonstrates Capital One's outrageous, illegal, and widespread practice of disclosing—without consent—the Nonpublic Personal Information1 and Personally Identifiable Financial Information2 (together, “Personal and Financial Information”) of Plaintiffs and the proposed Class Members to third parties, including Meta, Google, Microsoft,  DoubleClick, NewRelic, Adobe, Everest, Skai/Kenshoo, Snowplow, BioCatch, Tealium, and possibly others."

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

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

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

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

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

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October 21, 2024

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

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Oct 15 – In the Midwest, Busey Bank is trying to move into the Kansas City area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications

  Van Dukeman, First Busey's CEO called it a "great fit from a cultural perspective." But consider Busey Bank's culture - including contempt for CRA, its disparate lending record:   

First Busey's Busey Bank in Illinois in 2023 - data not yet included in any CRA exam - made 1163 mortgage loans to whites, and only 772 loans to African Americans. Meanwhile it denied only 216 applications from whites, and fully 24 from African Americans. Busey Bank should be referred to DOJ. 

Busey Bank in Missouri in 2023 - data not yet included in any CRA exam - made 49 mortgage loans to whites, and onlyseven loans to African Americans. Meanwhile it denied only 21 applications from whites, and fully eight from African Americans 

Busey Bank in Indiana in 2023 - data not yet included in any CRA exam - made 22 mortgage loans to whites, and only two loans to African Americans.  

Busey Bank in Florida in 2023 - data not yet included in any CRA exam - made 80 mortgage loans to whites, and only ONE loan to an African American.     

There is litigation, for example under the FCRA, here - dropped without explanation, presumable settled, the FRB should ask First Busey about all outstanding consumer litigation. 

And there was the First Busey board member, Elisabeth Kimmel, caught in the college admissions scandal, here.

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

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

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October 14, 2024

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

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, Oct 11 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger. Among them was UMB - a bank whose lending Inner City Press and Fair Finance Watch had been scrutinizing, and now challenge.

  UMB is asking its regulators to allow it to expand, buying Denver-based Heartland. The application, Fair Finance Watch on June 21 formally told the Fed, should not be approved.   In 2022, the most recent year for which Federal data is available, UMB Bank, N.A. made over 2000 mortgage loans to whites, and only 117 loans to African Americans.

 For every denial to an African American, it made only 2.02 loans. But for whites, for every denial it made 3.45 loans. It should be referred to DOJ.    

There is litigation, there is also this, reported at the time of Silicon Valley Bank's failure: "UMB Bank, a regional bank headquartered in Kansas City, Missouri, and with branches across the Midwest, Southwest, and Western United States, has total assets of $38 billion and deposits totaling $32 billion, according to the FDIC. However, only 16% of deposits fall under the $250,000 FDIC insurance threshold, leaving 74.11% (equivalent to $28.36 billion) vulnerable to potential losses."   

Why would regulators even consider approving its expansion? On June 21, Fair Finance Watch filed a formal Community Reinvestment Act challenge to UMB's application to the Federal Reserve, adding state by state data:

  UMB Bank in 2022 in Missouri made 842 mortgage loans to whites, and only 76 loans to African Americans. Meanwhile it denied 41 applications from African Americans, and only 257 from whites.

    UMB Bank in Colorado - in which it seeks to expand - in 2022 made 378 mortgage loans to whites, and only 13 loans to African Americans. Meanwhile it denied six applications from African Americans, and only 107 from whites.

   UMB Bank in 2022 in Texas made 78 mortgage loans to whites, and only six loans to African Americans. Meanwhile it denied two applications from African Americans, and only 27 from whites.   

  These disparities cry out for a referral to DOJ, and public hearings on, and denial of, UMB's major expansion application.

On October 11 UMB's outside counsel Davis Polk sent the Fed a response but withheld branch closing, subsidiary, fintech and crypto information from Fair Finance Watch - so Inner City Press cc-ed them on a FOIA request for:

This is a formal FOIA request for the withheld exhibits to UMB's October 11 submission to the Federal Reserve in connection with its protested application to acquire Heartland Financial, in particular "Confidential" Exhibits A and B, including about fintech and branch closings and all activities engaged in by corporate subsidiaries. This is presumptively public; if any is withheld, all reasonably segregable portions should be provided.

UMB recites and responds: 1. Provide a description of the activities conducted by the following UMB subsidiaries: a. UMBCDC, Inc., Kansas City, Missouri; b. UMB Financial Services, Inc., Kansas City, Missouri; c. UMB Management Equity Holdings Inc., Kansas City, Missouri; d. UMB Merchant LLC, Kansas City, Missouri; and e. UMB Asset Management, LLC, Kansas City, Missouri The requested information is included in AIR Confidential Exhibit A. Convenience and Needs 2. Provide an update on UMB Bank’s branch consolidation analysis and confirm whether any of the branches listed in Public Exhibit 3 of the Additional Information Response, dated August 5, 2024 (“August AI Response”) would be consolidated, following consummation of the proposed transaction. The requested information is included in AIR Confidential Exhibit B.  Discuss any plans to engage in crypto-asset-related activities or fintech partnerships. The requested information is included in AIR Confidential Exhibit A.   

Again, this is both important for the public to know and is presumptively public; if any is withheld, all reasonably segregable portions should be provided.

Watch this site.

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October 7, 2024

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

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Oct 4 – Two tech-focused credit unions announced this week they intend to merge, if they get approval from the National Credit Union Association.

  Digital Federal Credit Union is based on the East Coast, and First Tech is on the West Coast, wanting to follow Microsoft into Atlanta, and Amazon into northern Virginia. 

 But what are their lending records?

According to 2023 Home Mortgage Disclosure Act data reviewed be Fair Finance Watch, nationwide in 2023, First Technology Credit Union  made 1532 mortgage loans to whites, and only 41 loans to African Americans. Meanwhile it denied only 368 applications from whites, and fully 37 from African Americans.     

  Digital Federal nationwide in 2023 made 2196 mortgage loans to whites, and only 178 loans to African Americans. Meanwhile it denied only 1122 applications from whites, and fully 261 from African Americans. 

   These disparities should result in the denial of the proposed merger. But credit unions are for now not subject to the Community Reinvestment Act, and NCUA refuses to consider such issues. Watch this site

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September 30, 2024

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

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Sept 27 – In the Midwest, Busey Bank is trying to move into the Kansas City area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications

  Van Dukeman, First Busey's CEO called it a "great fit from a cultural perspective." But consider Busey Bank's culture, its disparate lending record:   

First Busey's Busey Bank in Illinois in 2023 - data not yet included in any CRA exam - made 1163 mortgage loans to whites, and only 772 loans to African Americans. Meanwhile it denied only 216 applications from whites, and fully 24 from African Americans. Busey Bank should be referred to DOJ. 

Busey Bank in Missouri in 2023 - data not yet included in any CRA exam - made 49 mortgage loans to whites, and onlyseven loans to African Americans. Meanwhile it denied only 21 applications from whites, and fully eight from African Americans 

Busey Bank in Indiana in 2023 - data not yet included in any CRA exam - made 22 mortgage loans to whites, and only two loans to African Americans.  

Busey Bank in Florida in 2023 - data not yet included in any CRA exam - made 80 mortgage loans to whites, and only ONE loan to an African American.     

There is litigation, for example under the FCRA, here - dropped without explanation, presumable settled, the FRB should ask First Busey about all outstanding consumer litigation. 

And there was the First Busey board member, Elisabeth Kimmel, caught in the college admissions scandal, here.

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

September 23, 2024

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

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Sept 20 – In the battleground state of Michigan, a bank is trying to move into suburban Detroit via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications ChoiceOne Financial Services, Inc., Sparta, Michigan; to merge with Fentura Financial, Inc., and thereby indirectly acquire The State Bank 

  Kelly Potes, ChoiceOne’s CEO said that the proposed "transaction will allow ChoiceOne to strengthen its presence in the suburbs of Detroit while adding the markets of Flint and Saginaw." But consider ChoiceOne's disparate lending record:      

Consider that ChoiceOne Bank in Michigan in 2023 - data not yet included in any CRA exam - made 759 mortgage loans to whites, and only TWENTY to African Americans. Meanwhile it denied only 246 applications from whites, while denying 10 of the applications that, based on its marketing, it received from African Americans. ChoiceOne should be referred to DOJ.   

Meanwhile The State Bank in Michigan in 2023 - data not yet included in any CRA exam - made 414 mortgage loans to whites, and only THREE to African Americans. Meanwhile it denied only 36 applications from whites, while denying one of the few applications that, based on its marketing, it received from African Americans. The State Bank should also be referred to DOJ.

On September 17, ChoiceOne calling itself COB wrote in, inter alia, that loans "denied were Home Equity Line of Credit loans, for which no denial reason is given. Reporting denial reasons for HELOCs is optional, rather than mandatory for COB, and COB opts not to report." This is far from a best practice - we'll have more on this.

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

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September 16, 2024

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

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Sept 8 –As ConnectOne Bank and First National Bank of Long Island congratulate themselves on a merger proposal, the preliminary review by Fair Finance Watch finds problems.

  ConnectOne, taking deposits in New York, New Jersey and Florida, in 2023 made only one mortgage loan to an African American applicant.  

  Meanwhile First National Bank of Long Island, after a weak and disparate lending performance in 2023, now lists on its website that mortgages are only offered through Rocket Mortgage. How do and would these two banks - which should be kept separate and not be allowed the merge, under the Community Reinvestment Act, serve communities. It appears that they don't.

 Inner City Press will be FOIA-ing the required applications for regulatory approval when they are filed. Watch this site

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September 9, 2024

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

by Matthew R. Lee

SOUTH BRONX, Sept 4 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying.

On September 4, Fair Finance Watch and Inner City Press submitted supplemental opposition to the regulators, including about a newly filed class action that "demonstrates Capital One's outrageous, illegal, and widespread practice of disclosing—without consent—the Nonpublic Personal Information1 and Personally Identifiable Financial Information2 (together, “Personal and Financial Information”) of Plaintiffs and the proposed Class Members to third parties, including Meta, Google, Microsoft,  DoubleClick, NewRelic, Adobe, Everest, Skai/Kenshoo, Snowplow, BioCatch, Tealium, and possibly others."

After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On July 26, after a FOIA appeal - and after closing the public comment period - the OCC belatedly gave Inner City Press documents showing Capital One briefed the OCC on a "big" deal in November 2023; it was code named "Project Sirius."

Then overly chummy texts from Andy Navarrete, who testified at the public meeting, and Pient Tran to the OCC's Marci Heppner and others.

For example, Andy to Marci, sorry for the late ping, if Richard wanted to call, could you do a 1:1 Zoom at 7:30 [pm]. But of course. That and more now on Inner City Press' DocumentCloud here

  Inner City Press continues to dig through the records - and to prepare another FOIA appeal.

Back on June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. When did the Fed start secret talks with Capital One?

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September 2, 2024

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

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Aug 27 – In the battleground state of Michigan, a bank is trying to move into suburban Detroit via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications ChoiceOne Financial Services, Inc., Sparta, Michigan; to merge with Fentura Financial, Inc., and thereby indirectly acquire The State Bank 

  Kelly Potes, ChoiceOne’s CEO said that the proposed "transaction will allow ChoiceOne to strengthen its presence in the suburbs of Detroit while adding the markets of Flint and Saginaw." But consider ChoiceOne's disparate lending record:      

Consider that ChoiceOne Bank in Michigan in 2023 - data not yet included in any CRA exam - made 759 mortgage loans to whites, and only TWENTY to African Americans. Meanwhile it denied only 246 applications from whites, while denying 10 of the applications that, based on its marketing, it received from African Americans. ChoiceOne should be referred to DOJ.   

Meanwhile The State Bank in Michigan in 2023 - data not yet included in any CRA exam - made 414 mortgage loans to whites, and only THREE to African Americans. Meanwhile it denied only 36 applications from whites, while denying one of the few applications that, based on its marketing, it received from African Americans. The State Bank should also be referred to DOJ.

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

***

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August 26, 2024

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

August 19, 2024

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


August 12, 2024

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

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, Aug 9 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger, banks whose lending Inner City Press and Fair Finance Watch had been scrutinizing, even more so that the 2023 data is out.

  This week Inner City Press filed with the Fed, a timely first comment on, the Applications of SouthState Corporation to merge with Independent Bank Group, Inc., and Independent Bank.  

  SouthState in South Carolina in 2023 - data not yet included in any CRA exam - made 5013 mortgage loans to whites, and only 228 loans to African Americans. Meanwhile it denied only 670 applications from whites, and fully 195 from African Americans. SouthState should be referred to DOJ.  

  SouthState in North Carolina in 2023 - data not yet included in any CRA exam - made 1334 mortgage loans to whites, and only FIFTY SEVEN loans to African Americans. Meanwhile it denied only 173 applications from whites, and fully 20 from African Americans. 

   SouthState in Florida in 2023 - data not yet included in any CRA exam - made 2755 mortgage loans to whites, and only 165 loans to African Americans. Meanwhile it denied only 958 applications from whites, and fully 69 from African Americans.  

  SouthState in Georgia in 2023 - data not yet included in any CRA exam - made 1176 mortgage loans to whites, and only 318 loans to African Americans. Meanwhile it denied only 304 applications from whites, and fully 88 from African Americans.  

  SouthState in Alabama in 2023 - data not yet included in any CRA exam - made 945 mortgage loans to whites, and only FIFTY ONE loans to African Americans. Meanwhile it denied only 87 applications from whites, and fully 17 from African Americans. SouthState should be referred to DOJ.   

 Nationwide in 2023, SouthState made 7798 mortgage loans to whites, and only 947 loans to African Americans. Meanwhile it denied only 2491 applications from whites, and fully 558 from African Americans.  

  Why would regulators even consider approving its expansion? 

Even more so now: on August 9, SouthStreet submitted to the Fed a response - that deals only with Independent Bank.

 Inner City Press is requesting an extension of the public comment period, public / virtual evidentiary hearings and that, on the current record, the applications not be approved

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August 5, 2024

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

by Matthew R. Lee

SOUTH BRONX, July 26 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On July 26, after a FOIA appeal - and after closing the public comment period - the OCC belatedly gave Inner City Press documents showing Capital One briefed the OCC on a "big" deal in November 2023; it was code named "Project Sirius."

Then overly chummy texts from Andy Navarrete, who testified at the public meeting, and Pient Tran to the OCC's Marci Heppner and others.

For example, Andy to Marci, sorry for the late ping, if Richard wanted to call, could you do a 1:1 Zoom at 7:30 [pm]. But of course. That and more now on Inner City Press' DocumentCloud here

  Inner City Press continues to dig through the records - and to prepare another FOIA appeal.

Back on June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded. When did the Fed start secret talks with Capital One?

July 29, 2024

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

by Matthew R. Lee

SOUTH BRONX, July 24 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.

On the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.

On June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.

Meanwhile Capitol One lobbying continues, for example with a Pennsylvania state legislator extolling Capital One's  subprime, here.

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites.  It grew worse in the just-out 2023 data.

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site. 

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July 22, 2024

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

by Matthew R. Lee

SOUTH BRONX, July 19 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.

On the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans.

Fair Finance Watch testified, with Inner City Press on the FOIA:

This proposal is anticompetitive, and Capital One is making a mockery of the Community Reinvestment Act, with an absurdly small CRA assessment area and now, at the 11th hour, a cynical pledge that includes $75 billion in subprime, often predatory car lending. 

   How much of this last minute pledge would in fact be subprime? At what interest rates? The regulators should ask, today - and must extend the comment period.        You have and will hear from colleagues about the ongoing lending disparities. I want to focus in my three minutes on the lack of transparency, and the regulatory agencies' role in it.  

  The day the banks announced the proposed merger, Inner City Press submitted Freedom of Information Act requests to both the Federal Reserve and the Office of the Comptroller of the Currency.   

  The Fed, as has become a pattern, granted Inner City Press' FOIA request expedited treatment - and then did not provide any of the responsive documents, claiming it needed more time.    The OCC did at least respond to the FOIA request - but it withheld, in full, 193 out of 210 responsive pages.  

  From what was released, it shows three meetings with Capital One and the OCC in February and March, right before the start of the public comment period.  An OCC email says "the purpose of this meeting is to get everyone on the same page out of the gate" in response to an email from Capital One's lawyer. This is called regulatory capture. Can you say, What's in your wallet?     

 ...The Philadelphia National Bank case of the Supreme Court, unlike the Chevron deference relied on not yet overrule, stated that "a merger which produces a firm controlling an undue percentage share of the relevant market, and results in a significant increase in the concentration of firms in that market, is so inherently likely to lessen competition substantially that it must be enjoined in the absence of evidence clearly showing that the merger is not likely to have such anticompetitive effects." 374 U.S. 321 at 363.  

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

This concludes my remarks, but not my FOIA requests

July 15, 2024

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

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, July 12 – The FDIC on July 12 imposed a fair lending condition on banks Inner City Press / Fair Finance Watch challenged last November:

"Fair Finance Watch has been reviewing Peoples Security Bank and Trust Company and FNCB Bank including their 2022 HMDA data not taken into account in any CRA exam and finds it troubling.  In Pennsylvania in 2022, Peoples Security Bank and Trust Company made 532 HMDA-reported loans to whites - and only FOUR to African Americans, while denying five applications.   FNCB Bank in Pennsylvania in 2022 made 247 HMDA-reported loans to whites - and only ONE to an African Americans, while denying three applications. A referral should be made to the DOJ for fair lending violations."

At that time, the FDIC wrote: "Matthew Lee, Esquire Executive Director Inner City Press/Fair Finance Watch P.O. Box 20047 New York, New York 10017 Dear Mr. Lee: We received your e-mail dated November 10, 2023, regarding the application for Peoples Security Bank and Trust Company to merge with FNCB Bank. We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2(c) and 303.2(l), and we consider it a protest... Any future comments should be sent to the applicant and to this office."

 The bank's outside counsel Troutman Pepper responded. But now in July 2024: "Dear Mr. Lee:  We are writing to inform you that the FDIC approved Peoples Security Bank and Trust  Company’s application to merge with FNCB Bank.  As part of the application review process, we  investigated the issues you raised in your e-mail dated November 10, 2023, and after conducting  our own analysis, the FDIC approved the application with conditions... In the course of reviewing public input on the application, the FDIC received an adverse  comment from a protester that was considered a CRA protest.  The CRA protest was critical of  Peoples Security Bank and Trust Company’s and FNCB Bank’s home mortgage lending efforts  to Black applicants in Pennsylvania and asserted that the lack of lending was discriminatory and  should be referred to the Department of Justice... After a careful review of the concerns, the FDIC decided to approve the application with the  following condition.  This condition will help ensure Peoples Security Bank and Trust Company  meets the home mortgage lending needs of the Black population in its assessment areas.  Within 30 days of consummation, adopt a Fair Lending Action Plan deemed acceptable by the FDIC to  address low levels of home mortgage applications from, and lending to, Black applicants and borrowers,  and in majority-minority areas, and provide the New York Regional Office with quarterly, written updates  on its progress under the plan."

Watch this site.


July 8, 2024

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

by Matthew R. Lee

SOUTH BRONX, July 5 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.

On June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

Meanwhile Capitol One lobbying continues, for example with a Pennsylvania state legislator extolling Capital One's work with subprime, here. Has he seen their predatory car lending?

  The OCC put part of its application in its reading room. And it is an outrage, Capital One gaming the CRA system. For example "the Proposed Transaction would result in CONA establishing a new assessment area in  Delaware, which will include all census tracts in Sussex County and seven contiguous census  tracts in Kent County."

That for a nationwide card and subprime auto lender...

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites. 

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site. 

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June 24, 2024

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

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, June 21 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger. Among them was UMB - a bank whose lending Inner City Press and Fair Finance Watch had been scrutinizing, and now challenge.

  UMB is asking its regulators to allow it to expand, buying Denver-based Heartland. The application, Fair Finance Watch on June 21 formally told the Fed, should not be approved.   In 2022, the most recent year for which Federal da