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By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, August 4 – Three years after Capital One Bank was sued for its overdraft fees on debit card transactions for which there were sufficient funds available in the customers' accounts, on June 25 the bank's motion for summary judgment was denied by U.S. District Court for the Southern District of New York Judge Lorna G. Schofield.   

  On July 29 Capital One belatedly disclosed that it was "compromised," including 140,000 social security numbers, 80,000 linked bank account numbers, and “personal information” from credit card applications from 2005 through early 2019. This hacking began on March 12, but Capital One didn’t do anything about it until 127 days later.  And where were and are the regulators, who approved Capital One's mergers rebuffing detailed Press comments?

By Matthew R. Lee, FOIA docs, BB&T denial

NEW YORK CITY, August 2 – When BB&T announced a $66 billion proposal to take over Suntrust Bank, to form a subsequently named Truist, many linked it to deregulatory moves in Washington. Then two days after Federal Reserve Governor Lael Brainard was asked by Inner City Press about the Fed's lax review of previous mergers, including WSFS on which the Fed still hasn't ruled on the bank's withholding of information after rubber stamping the deal, the Fed announced public hearings. But the fix it seems it still in. On April 18, conveniently, the Fed "announce[d] termination of enforcement action with BB&T Corporation" for money laundering. So there's a public comment period on the merger, but none on the Fed's dubious move while the application is pending. Meanwhile as Inner City Press has exclusively reported, BB&T has been named in connection with sleazy debt collections in a case in the SDNY - more on all this to come. On April 29, Inner City Press submitted a FOIA request about the dubious termination of enforcement action, and a comment to the Fed and FDIC, below.

 On August 2 the FDIC belatedly gave Inner City Press only the June 2019 Order ending without explanation the money laundering enforcement action against BB&T. The FDIC redacted John P. Henrie's signature as private information. What else are they withholding? Watch this site.

By Matthew R. Lee, FOIA docs, BB&T denial

NEW YORK CITY, July 20 – When BB&T announced a $66 billion proposal to take over Suntrust Bank, to form a subsequently named Truist, many linked it to deregulatory moves in Washington. Then two days after Federal Reserve Governor Lael Brainard was asked by Inner City Press about the Fed's lax review of previous mergers, including WSFS on which the Fed still hasn't ruled on the bank's withholding of information after rubber stamping the deal, the Fed announced public hearings. But the fix it seems it still in. On April 18, conveniently, the Fed "announce[d] termination of enforcement action with BB&T Corporation" for money laundering. So there's a public comment period on the merger, but none on the Fed's dubious move while the application is pending. Meanwhile as Inner City Press has exclusively reported, BB&T has been named in connection with sleazy debt collections in a case in the SDNY - more on all this to come. On April 29, Inner City Press submitted a FOIA request about the dubious termination of enforcement action, and a comment to the Fed and FDIC, below.

  On the afternoon of May 2, before seeking to close the comment period on BB&T - Suntrust on May 3, the Federal Reserve wrote to Inner City Press that only ONE PAGE about its BB&T money laundering enforcement termination would be provided, and 133 pages withheld in full, no even subject to the type of partial redaction that is required under FOIA. FRB 99% denial letter here.

By Matthew R. Lee, Video, 7/31 story

SOUTH BRONX, July 5 – Cadence Bancorporation which has a disparate lending record while apply to buy State Bank in Georgia and urging faster regulatory approvals, seemingly jumped the gun before having the required Federal Reserve Board approval. That was six months ago, when a letter that Cadence and its outside counsel, former Federal Reserve lawyer Patricia Robinson, were required to provide a copy to Inner City Press / Fair Finance Watch they on purpose only sent by mail (rather than e-mail), then delayed weeks in resending. Photo here.

By Matthew Russell Lee, Patreon

FEDERAL COURTHOUSE, June 29 – The Bangladeshi Central Bank which was hacked for $81 million in February 2016, on January 31 sued in the US District Court for the Southern District of New York. The first pre-trial conference in the case was held on May 21, see below.

  Back in March Inner City Press submitted a request under the US Freedom of Information Act to the US Federal Reserve about its role in and action on the Bangladesh Bank heist. After four months of delay from the Fed, and an appeal by Inner City Press of their constructive denial, the Fed finally ruled on June 27 - releasing only one page, a two paragraph cover letter.

  This is the opposite of transparency. Inner City Press on June 29 submitted an appeal: "Dear Governor in charge of FOIA Appeals:  On behalf of Inner City Press / Fair Finance Watch (ICP), this is a near immediate FOIA appeal of FRB absurd denial by providing only one page, a two paragraph cover letter, in response to Inner City Press' FOIA request four months ago regarding the Federal Reserve's role in and action on the Bangladesh Bank heist      As you must know, agencies are request to provided all reasonably segregable information and are not allow mass withhold, as here. Beyond the Bangladesh Bank, to withhold in full records about the oversight by the Board over the Reserve Bank is an outrage. See also Inner City Press' timely comments on the FRB's current proposals to modify - and weaken - its FOIA responsibilities.   

By Matthew Russell Lee

SOUTH BRONX, SDNY COURT, June 15 – The U.S. Federal Reserve Board, while still withholding documents about the Bangladeshi Central Bank hack and its role in it requested months ago by Inner City Press under the Freedom of Information Act, has put out for comment a proposal to further weaken its duties under FOIA. The proposal does not even address an obvious disrespect by the Fed to public commenters which Inner City Press raised to a Fed Governor earlier this year. Now as a first comment, this has been submitted:

June 15, 2019 

Via e-mail to regs.comments [at] federalreserve [dot] gov 

Board of Governors of the Federal Reserve System Attn: Governors, Ann E. Misback, Secretary 20th Street and Constitution Avenue NW Washington, DC 20551 
Re: First Comment on Docket No. R–1665 and RIN No. 7100 AF 51 

Dear Governors and Ann E. Misback, Secretary:     

On behalf of Inner City Press, a frequent requester to the Federal Reserve Board (FRB) and other agencies under the Freedom of Information Act (FOIA), and in my personal capacity, this is a first comment on the proposed revisions to the FRB's proposed rulemaking (proposal) that would amend the Board’s Rules Regarding Availability of Information (Board’s Rules).    

As a practitioner what is most disappointing about this rulemaking is that the FRB has not even proposed to address a major problem raised to it, including to Governor Lael Brainard earlier this year: that the FRB routinely delays responding to FOIA requests and even frivolous requests for confidential treatment by applicants for regulator approval under AFTER the Board has approved contested merger applications.     As Inner City Press asked Governor Brainard, how does this FRB failure not incentivize applicant banks to make overbroad requests for confidential treatment of their applications, responses to public comment and response to FRB Additional Information requests, knowing that there is no repercussion nor commitment by the FRB to address the overbroad withholding request until after their applications are approved?    Given the FRB's legal duty to consider public comments on mergers, including comments informed by what the applicant banks actually submit, the FRB must address this problem in this rulemaking.  

 Overall, the FRB not only denied expedited processing of Inner City Press' request for FRB records concerning its actions and role in the Bangladesh Bank hack and case - it has refused to respond to an appeal of its constructive denial of access to any records, after months, see below incorporated herein by reference. This too must be addressed.     For now, we also note the potential abuse, shown most recently by the FRB's sister agency the OCC, that allowing the agency to do nothing to begin collecting records as long as it disputes a fee waiver request. The OCC is still disputing a fee waiver request for the submissions of WSFS for approval to acquire Beneficial in Philadelphia, long after the OCC (like the FRB) approved the Application.     We may have further comment but wished the raise the above at the earliest possible time in the process to ensure that the FRB belatedly address the issue(s).    

Thank you for your attention.  Matthew Lee, Executive Director Inner City Press / Fair Finance Watch

Incorporated by reference along with underlying request(s) in the FRB's possession: 

From: Matthew R. Lee, Inner City Press Date: Tue, May 21, 2019 at 2:05 PM Subject: FOIA appeal of FRB's constructive denial of Feb 17 FOIA request about Bangladesh Bank, nothing since April 2, SDNY today

May 21, 2019 

FRB Governor covering FOIA appeals: Information Disclosure Section, Board of Governors of the Federal Reserve 20th & Constitution Avenue, NW, Washington, DC 20551  FOIA APPEAL of constructive denial of FOIA Request No. F-2019-00095  Dear FRB Governor covering FOIA appeals:   This is an appeal of what is now the constructive denial of Inner City Press' and my Feb 17, 2019 FOIA request for "records regarding the Federal Reserve System's [role] including the FRBNY's role in what is known as the Bangladesh Bank hack or cyber heist and assistance provided to Bangladesh Bank and investigative authorities since the heist, including but limited to in connection with the SDNY case Bangladesh Bank v Rizal Commercial Banking Corp et al, U.S. District Court, Southern District of New York, No. 19-00983."    First, the FRB denied the request for expedited processing, finding no threat of physical harm (??) and also reciting and presumably denying under this standard:     "[t]he requester is a representative of the news media ... and there is urgency to inform the public concerning actual or alleged Board activity.”    Still, the Fed in further extending its time said there would be response by April 2. There has been none, nothing at all.   Today in the SDNY counsel for Bangladesh Bank directly referred to the Federal Reserve. The Fed's delay, contrasted to the fast if bad faith turn around on Inner City Press' BB&T money laundering enforcement action termination FOIA, is in this context unacceptable, even a cover up.    This is an appeal. The FRB should provide an explanation of nothing since April 2, and the long ago requested documents.  Please confirm receipt, thank you in advance, 

Matthew Lee, Inner City Press/Fair Finance Watch"

By Matthew R. Lee, Patreon

NEW YORK CITY, May 30 – Barclays applied to the U.S. Federal Reserve in early 2018 for regulatory approval for a Cayman Islands holding company to become the parent of its U.S. bank. Inner City Press / Fair Finance Watch, as dubious then as now about such moves, requested documents and a delay or denial of the proposal.

 Now on May 29, 2019, fifteen months later, the Federal Reserve has informed Inner City Press that Barclays has "withdrawn" its Cayman Islands application.  Federal Reserve's May 29 Barclays letter and more on Patreon, here.

By Matthew Russell Lee, Patreon

FEDERAL COURTHOUSE, May 21 – The Bangladeshi Central Bank which was hacked for $81 million in February 2016, on January 31 sued in the US District Court for the Southern District of New York. The first pre-trial conference in the case was held on May 21, and at it SDNY Judge Lorna G. Schofield expressed serious concern if she has subject matter jurisdiction.

  Judge Schofield encouraged the defendants to jointly file two briefs supporting a motion to dismiss by June 14. The first is to be on subject matter jurisdiction, the second on "forum non conveniens." 

  Rizal Commercial Banking Corp (RCBC), through its counsel Tai-Heng Cheng of Sidley Austin on May 21 marveled that Bangladesh Bank has still not succeeded with service of process of the complaint - actually handing the document to those charged, in essence - for example failing to use a sheriff under provisions of Philippines law.

  There also remain questions about service on the other named defendants, one of whom (Mr. Go) is now deceased. The others include: "MAIA SANTOS DEGUITO, ANGELA RUTH TORRES, LORENZO V. TAN, RAUL VICTOR B. TAN, ISMAEL S. REYES, BRIGITTE R. CAPIÑA, NESTOR O. PINEDA, ROMUALDO S. AGARRADO, PHILREM SERVICE CORP., SALUD BAUTISTA, MICHAEL BAUTISTA, CENTURYTEX TRADING, WILLIAM SO GO, BLOOMBERRY RESORTS AND HOTELS, INC. D/B/A SOLAIRE RESORT & CASINO [represented on May 21 by Daniel M. Perry of Milbank], EASTERN HAWAII LEISURE COMPANY, LTD. D/B/A MIDAS HOTEL & CASINO, KAM SIN WONG A/K/A KIM WONG, WEIKANG XU, DING ZHIZE, GAO SHUHUA, and JOHN DOES 1-25." 

  Judge Schofield encouraged Bangladesh Bank to try to perfect service, but remained focused on whether she and the SDNY court havesubject matter jurisdiction. She asked, as to the RICO claim in the complaint, when the alleged conspiracy began and ended. Bangladesh Bank's response referred to US government complaints, including in the U.S. District Court for the District of Central California, against North Korea for the SONY hack in 2014.

   Afterward Inner City Press asked Bangladesh Bank's lead lawyer, John J. Sullivan of Cozen O'Connor, if he had been surprised by Judge Schofield's approach. He said he had expected it, and argued that the judge is considering whether the case is best placed in Federal court or New York State Supreme Court on the other side of Pearl Street. 

  Inner City Press asked him, Doesn't forum non conveniens in this case point to the Philippines? And why hasn't Bangladesh Bank also sued North Korea? Sullivan said he was not at liberty to answer. We'll have more on this - for now, more on Patreon, here.    Inner City Press has appealed the Fed's constructive denial of its FOIA request on this - without response...

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX,  May 2 – Federal Reserve Board chairman Jay Powell told Congress he will run transparent reviews of mergers like BB&T - Suntrust, and announced two public hearings as if to prove it. But on February 27 while still not acting on Inner City Press' Freedom of Information Act request for withheld information, his Fed Board rubber stamped the application by WSFS to buy Beneficial and close at least 25 branches. Until May 2 the Fed has directly portended to become even more of a rubber stamp, with the now withdrawn nomination to the Board of Stephen Moore, even after his characterization as "armpits" of  Cleveland - host to the Federal Reserve Bank of Cleveland - and Cincinnati. Moore said it was due to stress on is family but earlier on May 2 was bragging to finance reporters that he would go forward. No more. (No Moore).

  But the Federal Reserve remains problematic. It has only today an hour after Moore's nomination ended produced only a single page of the "all records" Inner City Press has requested under the Freedom of Information Act about the Fed's dubious decision to terminate its money laundering enforcement order against BB&T just before the comment period on its proposed merger with Suntrust is set to expire on May 3. We'll have more on this.

  Nomination post-mortem: apparently in an attempt to keep his candidacy alive, Moore appeared without taking audience questions on the Brian Lehrer radio show on WNYC in New York on Sunday APril 28 appeared on ABC This Week. He was not asked about his substantive anti-CRA views, but was asked about his writing on gender and the closing the pay gap might be disruptive to the family. His evasive answer was about the current economy. Will it work? Senator Susan Collins was cited. We'll have more on this.

By Matthew R. Lee, FOIA docs

NEW YORK CITY, April 19 – When BB&T announced a $66 billion proposal to take over Suntrust Bank, which would close a still undisclosed number of branches and extend BB&T disparate lending patterns, many linked it to deregulatory moves in Washington. Then two days after Federal Reserve Governor Lael Brainard was asked by Inner City Press about the Fed's lax review of previous mergers, including WSFS on which the Fed still hasn't ruled on the bank's withholding of information after rubber stamping the deal, the Fed announced public hearings. But the fix it seems it still in. On April 18, conveniently, the Fed "announce[d] termination of enforcement action with BB&T Corporation" for money laundering. So there's a public comment period on the merger, but none on the Fed's dubious move while the application is pending. Meanwhile as Inner City Press has exclusively reported, BB&T has been named in connection with sleazy debt collections in a case in the SDNY - more on all this to come.

By Matthew R. Lee, Video, story, FOIA docs

By Matthew R. Lee, Video, story, FOIA docs

By Matthew Russell Lee

FEDERAL COURTHOUSE, March 23 – The Bangladeshi Central Bank which was hacked for $81 million in February 2016, on January 31 sued in the US District Court for the Southern District of New York. Now the first pre-trial conference in the case has been set, for 2 April 2019 before SDNY Judge Lorna G. Schofield. Inner City Press will be there.

To the Federal Reserve, Inner City Press requested records relating to the Fed's role with response officially due in 20 working days. But now this from the Federal Reserve: "Re:       Freedom of Information Act Request No. F-2019-00095     Dear Mr. Lee,     On February 19, 2019, the Board of Governors (“Board”) received your electronic message dated February 17, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, for records regarding the Federal Reserve System's [role] including the FRBNY's role in what is known as the Bangladesh Bank hack or cyber heist and assistance provided to Bangladesh Bank and investigative authorities since the heist, including but limited to in connection with the SDNY case Bangladesh Bank v Rizal Commercial Banking Corp et al, U.S. District Court, Southern District of New York, No. 19-00983.      Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until April 2, 2019, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.     If a determination can be made before April 2, 2019, we will respond to you promptly. It is our policy to process FOIA requests as quickly as possible while ensuring that we disclose the requested information to the fullest extent of the law." And April 2 is the day of the SDNY hearing. We'll have more on this.

In Dhaka, the Criminal Investigation Department which failed to submit its probe report into the heist on time has now been ordered by Metropolitan Magistrate Sadbir Yasir Ahsan Chowdhury to do so by March 13 in Bangladesh Bank cyber heist case.

In the U.S. District Court for Central California, the unsealed criminal complaint against Park Jin Hyuk lists four email addresses involved in spear-phishing Bangladesh Bank and among others an unnamed "African Bank;" one of these addresses is said to also have communicated with an individual in Australia about importing commodities to North Korea in violations of UN sanctions.

By Matthew R. Lee, FOIA docs

SOUTH BRONX, March 6 – When BB&T announced a $66 billion proposal to take over Suntrust Bank, which would close a still undisclosed number of branches and extend BB&T disparate lending patterns, many linked it to deregulatory moves in Washington. These include an assault on the Community Reinvestment Act, being led by Comptroller of the Currency Joseph Otting, who while at OneWest Bank led a false commenting process to push through a merger with CIT Group. (Otting is trying to change the OCC's practices on FOIA fee waivers and is even refusing to consider comments on some Business Combinations. But this BB&T proposal will go to the Fed whose Jerome Powell has vowed, credibly or not, to conduct a full review. And so consider this:  BB&T has been ordered to return $5.2 million to investors, according to the Securities and Exchange Commission, over charges it it acquired misled clients about the cost of advisory services.  The SEC said the firm that BB&T acquired with Susquehanna Bancshares, known then as Valley Forge Asset Management, misled about 1,200 clients into believing they were receiving full service brokerage services at a discount. We'll have more on this.

 Fair Finance Watch, which has been tracking BB&T as well as Otting's and the Federal Reserve's anti-CRA moves, finds that for example in the Atlanta Metropolitan Statistical Area in 2017 BB&T denied the home purchase mortgage applications of African Americans 2.2 times more frequently than whites, while making only 50 such loans to African Americans, and 23 to Latinos, compared to 458 to whites, all more disparate that other lenders in the market.

By Matthew R. Lee, Video, story, FOIA docs

By Matthew R. Lee, Video, 7/31 story

By Matthew R. Lee, Video, story, FOIA docs

Amid Targeting of Community Reinvestment Act Centerstate Bank NCC Takeover and Withholding Challenged on Disparate Lending

By Matthew R. Lee, Video, story, FOIA docs

January 7, 2019

As Federal Reserve Chair Powell Says Would Not Resign If Asked Contrast to FOIA Denials and Merger Rubber Stamping

By Matthew R. Lee, Video, story, FOIA docs

December 31, 2018

To Federal Reserve Cadence Bank Redacts 80% of Letter Urging Fast Approval and Withholds from Inner City Press

By Matthew R. Lee, Video, 7/31 story

December 24, 2018

An absurdity, or contempt by the Fed for the public and process: AFTER the Fed on Dec 7 approved Synovus' application, this:

Re:       Freedom of Information Act Request No. F-2019-00031

Dear Mr. Lee,

On November 13, 2018, the Board of Governors (“Board”) received your electronic message dated November 10, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, for all withheld portions of the applications and applications additional information submitted by Synovus to acquire FCB Financil including but not limited to presumptively mis-labeled “Confidential” exhibits as “Confidential” Exhibit 1 to Synovus' October 31 response, which appears to be personnel to be integrated into fair lending, while Synovus discloses its own staff's names, and for all records reflecting FRS communications with Synovus or FCB Financial or their affiliates for the past twelve (12) months.

Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until December 27, 2018, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.

If a determination can be made before December 27, 2018, we will respond to you promptly. It is our policy to process FOIA requests as quickly as possible while ensuring that we disclose the requested information to the fullest extent of the law.

  Yeah, the law...

 December 17, 2018

Targeting of Community Reinvestment Act by Otting Includes Excluding Comment on 25 Branch Closings by WSFS

By Matthew R. Lee, Video, story, FOIA docs

December 3, 2018

The Federal Reserve, it seems, doesn't review banks' requests for confidential treatment. So "This is a FOIA request for the all withheld portions of the applications by WSFS to acquire Beneficial, including but not limited to presumptively mis-labeled “Confidential” exhibits about WSFS's CRA program (“Confidential” Exhibit 9), (Beneficial's subsidiaries (“Confidential” Exhibit 3), Board of Directors resolutions, due diligence (“Confidential” Exhibit 10), operating economy / cost savings (there are branch closings projected), names of prospective managers (ages, requested on application, apparently not provided)"

November 26, 2018

Cadence Bank Urges OCC To Speed Regulatory Approvals While Withholding Info on State Bank in Georgia

By Matthew R. Lee, Video, 7/31 story

November 19, 2018

Step by step from the Fed on Synovus: "In connection with the application filed under Section 3 of the Bank Holding Company Act by Synovus Financial Corp., Columbus, Georgia, to merge with FCB Financial Holdings, Inc. and thereby indirectly acquire Florida Community Bank, N.A., both of Weston, Florida, and the application filed under section 18(c) of the Federal Deposit Insurance Act by Synovus Bank, Columbus, Georgia, to merge with Florida Community Bank, please respond to the additional question below.

Provide updated pro forma consolidated financial statements and capital ratios as of September 30, 2018.

In accordance with the Board’s procedures regarding ex parte communications, a copy of the attached request will be sent to the commenters in this case.  Please provide a copy of the public portion of your response (together with any attachments) directly to the commenters.  Any information for which you desire confidential treatment should be so labeled and separately bound in accordance with the Board’s rules regarding confidential treatment of information at 12 CFR 261.15. "
November 12, 2018

  Inner City Press has had to FOIA the Fed: "This is a FOIA request for the all withheld portions of the applications and applications additional information submitted by Synovus to acquire FCB Financil including but not limited to presumptively mis-labeled “Confidential” exhibits as as “Confidential” Exhibit 1 to Synovus' October 31 response, which appears to be personnel to be integrated into fair lending, while Synovus discloses its own staff's names..". This is scam.

November 5, 2018