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March 27, 2023

Credit Suisse USB Merger amid Bank Meltdown Preapproved by Fed as Collins on Comerica

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, March 19 – Alongside the larger flame-out of Silicon Valley Bank, Signature Bank too failed. Now on March 19 in Switzerland, the forced and subsidized marriage of USB and Credit Suisse. Both have US subsidiaries but from the Fed, this pre-approval:

 "The following statement was released by Secretary of the Treasury Janet L. Yellen and Federal Reserve Board Chair Jerome H. Powell:  'We welcome the announcements by the Swiss authorities today to support financial stability. The capital and liquidity positions of the U.S. banking system are strong, and the U.S. financial system is resilient. We have been in close contact with our international counterparts to support their implementation.'"

  Preapproval, like the entry of Goldman Sachs and Morgan Stanley into the banking system, with no comment period.

On Signature Bank's board of directors is not only Barney Frank (who after leaving Congress undermine his own Dodd Frank Act) but also former New York State Superintendent of Banks Derrick D. Cephas.

  Among those being reviewed by Moody, as simply the first example, former Federal Reserve Bank of Philadelphia and Cleveland bigwig Michael E. Collins is on the board of Comerica, the bank that abandoned Detroit for Dallas. The Administration is saying that people will be held accountable - but who?

Next up: PacWest and Western Alliance, Intrust, UMB and Zions. Watch this site.


March 20, 2023

Amid Bank Meltdown Former Fed Collins on Comerica Board Like Signature Frank & Cephas

by Matthew Russell Lee, Patreon Book Substack

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

  Among those being reviewed by Moody, as simply the first example, former Federal Reserve Bank of Philadelphia and Cleveland bigwig Michael E. Collins is on the board of Comerica, the bank that abandoned Detroit for Dallas. The Administration is saying that people will be held accountable - but who?

March 13, 2023

  Months after the Federal Reserve said it granted Inner City Press expedited processing of its FOIA request on the Fed's work / errors on crypto, and two months after Inner City Press answered a request for clarification, past 4 pm on Friday March 10, 2023, this: "Good afternoon Mr. Lee  Staff is still unclear about the scope of your request.  Referring to the initial clarification email below, the second part of your request still needs clarification.      “The second part of your request seems to concern other entities (Silvergate, Provident Bancorp Inc., Metropolitan Commercial Bank, Signature Bank, Customers Bancorp Inc.).  Please confirm the scope of this part of your request, did you intend to seek applications related information for these entities?  Clarifications are needed in order to conduct a search of Board records and process this portion of your request.”     I realize from your January 10 email response that you are seeking application submissions, Additional Information “AI”, and approval information.  However, it is unclear what application(s) you seek this information concerning.  Did you intend to seek applications for FTX to acquire or merge with Silvergate, FTX to acquire or merge with Provident Bancorp, Inc., or FTX to acquire or merge with Metropolitan Commercial Bank?  It is unclear the connection you intended for these institutions (other than media mentions) and as such conducting a search of Board records cannot be completed.  Did you intend to seek records that reference all of these institutions together?  Did you intend to seek applications records about each institution?  If this was your intent, we need a target institution ABC Bank and Provident, Signature Bank and XYZ Bank, for example.  From these examples alone, the interpretations are many.  It would be helpful if you could include the date the application was approved or announced in the H.2.  Doing so would allow us to search and review records more quickly, should they exist.      I realize that you responded in a timely manner to our last communication about this request, but your comments were not specific clarifications with respect to the named institutions in part 2 of your request that would enable staff to conduct a reasonable search.  If you have additional context, please provide it as soon as possible.  After which, staff may be able to make reasonable interpretations regarding the information you seek."

  Inner City Press again immediately responded and clarified, about FTX.  Watch this site.

March 6, 2023

BMO Harris BNP Got Fed OK Despite Peters Case With Climate Dismissed Now French Suit

By Matthew Russell Lee, Patreon Story

FED COURT / S Bronx, Feb 27 – Whether or not the U.S. Community Reinvestment Act will actually be enforced under the Administration and its regulators remains an open question, or one answered in the negative, at least by the Federal Reserve. Consider: Inner City Press immediately reported that BMO Harris' application to buy Bank of the West and its more than 500 branches from BNP would be a litmus test.

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

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

February 27, 2023

The Federal Reserve's FOIA responses have hit a new low; this appeal has been filed:

This is a FOIA appeal of the FRB's total denial of Inner City Press' FOIA request regarding MVB Bank's February 7 additional information response, in which MVB answered each and every question with referring to a withheld, "Confidential" Exhibit. The letter was and is subject to the Fed's ex parte rules - withholding the entire response, including after an immediate FOIA request, makes the Fed's ex parte rules meaningless. One of the withheld answers is about pro forma organizational chart, another concerns crypto, a matter of public import on which the Fed's record, after the SF Reserve Bank's Farmington State Bank / FTX - Alameda approval, is ever more questionable.

  In signing in to the Fed's FOIA site to obtain this FOIA denial, I noticed that the Fed lists Inner City Press' earlier FOIA request about Farmington and other Fed crypto approvals (2023-178) as "On Hold - Need Info/Clarification." But on January 10, 2023 I immediately answered the request for clarification / narrowing. What is happening with the Fed's FOIA compliance? What is happening with the crypto FOIA request, on which the Fed purported to grant expedited treatment? These should be dealt with, on or in parallel with this appeal.

Thank you for your prompt attention,

Matthew R. Lee
Inner City Press / Fair Finance Watch

February 20, 2023

  With Lael Brainard leaving, even before the CRA reg is out, who's next? With Governor Bowman beating the drum for even faster and more automatic merger approvals, the next Governors better be one that stands up to that...

February 13, 2023

Lakeland Bank DOJ Deal Left Disparities in NY So Protest Now Fed Questions to Provident Here

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NY, Feb 10 – When the US Department of Justice sued and immediately settled with Lakeland Bank for fair lending violations, it announced a proposed merger with Provident Bank.

As if to sweep it under the carpet.

And when Fair Finance Watch looked into it, it found that the DOJ settlement did not address in any way the banks' disparities in New York. So on December 1, the FDIC's comment deadline, it filed the below, with Inner City Press on the FOIA.


We refer to the application filed by Provident Financial Services, Inc. (“Provident”), Jersey City, New Jersey, for prior approval of the Board of Governors of the Federal Reserve System (the “Board”), pursuant to Section 3(a)(3) and 3(a)(5) of the Bank Holding Company Act of 1956, as amended, and Section 225.15 of Regulation Y, to acquire Lakeland Bancorp, Inc. (“Lakeland”), Oak Ridge, New Jersey, and thereby indirectly acquire Lakeland Bank, Newfoundland, New Jersey (“Transaction”). Based on our review of the current record, the following additional information is requested. Please provide responses to all the following items, including those in the Confidential Annex. Supporting documentation should be provided, as appropriate. Convenience & Needs/Community Reinvestment Act (“Act”) 1. Provident’s response to Question 1 of the November 30 Request for Additional Information (“November 30 AI Request”) indicates that “[t]he combined company will deliver an expanded set of products and services to its customers and communities.” Describe those products and services to be offered by the combined organization that Provident deems most beneficial to customers in low- or moderate-income (“LMI”) geographies or income levels. 2. Indicate whether any consumer products or community development programs and services of either bank are expected to be discontinued as a result of the proposed transaction, and whether any products, programs or services that are not currently offered will be made available in the combined organization’s markets. 3. The application states “Provident and Lakeland will determine through the integration planning process how the Combined Bank will continue the successful processes, policies, procedures and technology platforms of Provident and Lakeland to maintain a strong, comprehensive and sustainable CRA program.” Provide an update on these efforts. Mark J. Menting, Esq. February 8, 2023 2 NONCONFIDENTIAL // EXTERNAL Compliance Program 4. In the response to Question 6(a) of the November 30 AI Request, Provident stated that it anticipated that its existing compliance risk management program would “either be the successor policies and procedures for the combined organization, or that they may serve as a solid foundation for revised policies and procedures going forward.” If available, provide an update on the expected compliance risk management program at the combined organization. 5. Describe in greater detail Provident Bank’s current fair lending program and risk management controls with respect to fair lending and discuss the rationale behind the decision for the combined organization to adopt the overall framework and structure of Lakeland Bank’s fair lending compliance program. To the extent not previously addressed, include in your discussion any areas of Lakeland Bank’s existing fair lending program the combined organization intends to enhance, as well as all efforts to ensure that the policies and procedures adopted by the combined organization will be adequate for the combined organization to provide equal access to credit to majority-minority communities in its assessment area (“AA”). Branching 6. For Provident Bank, Lakeland Bank, and the combined organization, provide the number and percentage of total branches that are or will be located in LMI and/or majorityminority census tracts. 7. To the extent not previously addressed, describe the process by which Provident Bank currently determines whether and where to open or close a branch. Include in your discussion any fair lending considerations the bank takes into account in making such determinations. Indicate whether the existing policies and procedures of Provident Bank or Lakeland Bank will be implemented at the combined organization. Staffing 8. Discuss whether any existing staff of Provident Bank or Lakeland Bank are under consideration to be the combined organization’s Chief Compliance Officer or Fair Banking Officer. If so, identify those individuals and provide an update regarding the timing and content of the selection process, if available. 9. Confirm, if such is the case, that Lakeland Bank’s current Community Development Officer will continue in that role at the combined organization. If not, indicate who will assume that position at the combined organization, if known. Mark J. Menting, Esq. February 8, 2023 3 NONCONFIDENTIAL // EXTERNAL 10. Provide an update to the organizational chart provided in response to question 6(b) of the November 30 AI Request reflecting all compliance-related positions at the combined organization. For those positions where an individual has been identified to fill the role, indicate that individual’s name in the organizational chart. Department of Justice (“DOJ”) Consent Order 11. Under Section C of the Consent Order, Lakeland Bank is required to take certain steps with respect to fair lending training. Indicate whether the combined organization intends to continue to adhere to those training requirements following the proposed acquisition. If so, indicate whether they will apply to all employees of the combined organization or only those employees retained from Lakeland Bank. 12. Provide an update on the timing of the opening of the full-service branch in Newark, New Jersey, as described in Paragraph 19 of the Consent Order. In addition, provide an update on the plans of Lakeland Bank or the combined organization to open a second branch, if available.

Tellingly, the banks' response on CRA to not only the lending disparities but even the rare DOJ discrimination settlements has been to attack the comments.

February 6, 2023

  While the Fed pretends to be serious, now on Custodia, after allowing FTX in through Farmington State Bank, now they delegate to a (privately-owned) Reserve Bank the approval for a bank with a crypto card and other problems: "We refer to the Notice of Change in Bank Control (the “Notice”) submitted to the Federal Reserve Bank of Philadelphia (“Reserve Bank”) and the Board of Governors of the Federal Reserve System (“Board”), pursuant to the Change in Bank Control Act of 1978, as amended, by (1) the Estate of Steven B. Schnall, Sherri Silver Schnall as Preliminary Executor, both of New York, New York, to retain voting shares of Quontic Bank Acquisition Corp. (“QBAC”), and Quontic Bank Holdings Corp. (“QBHC”), and thereby indirectly retain voting shares of Quontic Bank, all of New York, New York; and (2) the Schnall Disclaimer Trust A, Sherri Silver Schnall, individually, and as co-trustee, both of New York, New York, with Amie Hoffman, as co-trustee, New Hope, Pennsylvania; and the Sherri S. Schnall Family Irrevocable Trust, Amie Hoffman as trustee, both of New Hope, Pennsylvania; to acquire voting shares of QBAC, and QBHC, and thereby indirectly acquire voting shares of Quontic Bank. Accordingly, all notificants in the Notice to become a group acting in concert. This Reserve Bank, acting under authority delegated by the Board at section 265.11(c)(5)(iv) of its Rules Regarding Delegation of Authority, has determined not to disapprove the Notice." We'll have more on this.

January 30, 2023


Fed Denies Custodia Bank After FTX Wreck As FOIAed on Moonstone Bank by Inner City Press

By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Jan 27  – Amid the prosecution of Samuel Bankman-Fried on wire fraud, money laundering and campaign finance violation charges, the role of the Federal Reserve is coming to the fore.  Now it seeks to step back from its brink by denying the application of Custodia, with order still withheld. See below.

 Inner City Press was unsurprised to learn of Fed laxity as Alameda invested in Farmington State Bank, renamed Moonstone Bank.

Inner City Press submitted to the Federal Reserve a Freedom of Information Act request including: "This is a FOIA request for all record regarding the FRS' approval for the application / request for membership in the Federal Reserve System by Farmington State Bank (giving rise to FRBSF president Daly's approval on a delegated basis in 2021), and the subsequent renaming of the bank to Mooonstone and taking of a stake by FTX/Alameda.  Also, for Silvergate with its FTX connections, record reflecting any review by the FRS of Silvergate's (and Provident Bancorp Inc., Metropolitan Commercial Bank, Signature Bank, Customers Bancorp Inc.) of the banks' connections with crypto-currency firms... This is a request for expedited treatment, in light of the indictment of FTX / Alameda's Sam Bankman-Fried and Caroline Ellison (cooperating), and an upcoming January 3, 2023 hearing."

The Federal Reserve  acknowledged receipt: "Your request has been assigned number FOIA-2023-00178. Please reference this number in all future correspondence.    Request description:  This is a FOIA request for all record regarding the FRS' approval for the application / request for membership in the Federal Reserve System by Farmington State Bank [also] any review by the FRS of Silvergate's (and Provident Bancorp Inc., Metropolitan Commercial Bank, Signature Bank, Customers Bancorp Inc.) of the banks' connections with crypto-currency firms."

On January 27, still withholding documents, the Fed "announced its denial of the application by Custodia Bank, Inc., Cheyenne, Wyoming, to become a member of the Federal Reserve System. The Board has concluded that the firm's application as submitted is inconsistent with the required factors under the law.  Custodia is a special purpose depository institution, chartered by the state of Wyoming, which does not have federal deposit insurance. The firm proposed to engage in novel and untested crypto activities that include issuing a crypto asset on open, public and/or decentralized networks.  The firm's novel business model and proposed focus on crypto-assets presented significant safety and soundness risks. The Board has previously made clear that such crypto activities are highly likely to be inconsistent with safe and sound banking practices. The Board also found that Custodia's risk management framework was insufficient to address concerns regarding the heightened risks associated with its proposed crypto activities, including its ability to mitigate money laundering and terrorism financing risks.  In light of these and other concerns, the firm's application as submitted was inconsistent with the factors the Board is required to evaluate by law. The Board's order will be released following a review for confidential information."

And when will that be? And when the FOIA response on the promised expedited timeline?

January 23, 2023

Fed speak - but no live questions: "What: Federal Reserve Bank of Dallas President & CEO Lorie Logan will speak about U.S. economic outlook and monetary policy at the McCombs School of Business at The University of Texas at Austin. Logan took office last August, and with this speech she will introduce the monetary policy objectives that will guide her tenure. When: Wednesday, Jan. 18, 2023 4-4:05 p.m., Texas McCombs Dean Lillian Mills, welcome and introduction. 4:05-4:30 p.m., Dallas Fed President & CEO Lorie Logan. 4:30-4:45 p.m., Q&A moderated by Julia Coronado, Texas McCombs clinical associate professor of finance; time will not allow for live questions"

January 16, 2023

NY Fed Dissolved TRO to Fire Unvaccinated Staff Now Fed Accuses Lawyer of Contacts

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

SDNY COURTHOUSE, Jan 13 – The Federal Reserve Bank of New York wants to fire longtime employees Lori Gardner-Alfred of The Bronx and Jeanette Diaz of Bayonne, New Jersey for not being vaccinated against COVID-19. And now it may be able to.

  The two women won a temporary restraining order in New York State court. But the FRBNY removed the case to Federal court and Friday argued to dissolve the TRO and fire the women, saying that their harm is not irreparable.      

       On March 4, U.S. District Court for the Southern District of New York Judge Lewis J. Liman held a proceeding. Inner City Press covered it.  

 FRBNY in-house lawyer Alex Leonard argued the TRO should be immediately lift. The women, representing themselves, asked for time to respond to the papers the Fed, their employer for decades, had just given them.

  Judge Liman to his credit did give them time, until Sunday to file their response to his chambers by email. Then, it should be docketed.

   Jeanette Diaz asked about the FRBNY's definition and denial of religious exemptions. Judge Liman said perhaps Mr. Leonard could answer. But he said no, that would be getting in to the merits and the Fed's focus was getting the TRO dissolved and presumably firing the employees.

  On March 7, Judge Liman heard from the parties again. Inner City Press live tweeted here:

now staffers the Federal Reserve Bank of NY wants to fire for being unvaccinated are before SDNY Judge Liman as they were Friday. FRBNY lawyer: Now plaintiffs over the weekend make a a Constitution argument. But the New York Fed is not a government agency.

[Inner City Press: Then how does NY Fed approve bank mergers? See, FRBNY Approves Berkshire Bank With NTI Rating, here

Judge Liman: Even if discrimination were being alleged, would an injunctions be issues? NY Fed staffer's new/1st lawyer: The very pressure put on these plaintiffs to abandoned their bona fide religious beliefs is irreparable harm, per se

Judge Liman: What do you say about the NY Fed not being a state agency? Lawyer: They removed to this court by saying that are an organ of the Federal government...  [And, the Fed Board had this "non government agency," owned by banks, approving bank mergers]

 Lawyer: On the merits we have this Federal Reserve agency, now trying to revoke the religious exemption based on their job titles. These jobs could be performed remotely. Or, in the office a few days a week.


Lawyer: The Fed has granted others an ongoing exemption. That burden is on the Fed to offer up some justification. Judge Liman: What about irreparable harm?

Lawyer: There's the Northern District of NY case...  Judge Liman: Citation? Lawyer: 17 F.4th 368, 370

 NY Fed's Leonard: He says we are forcing them to violate their religious beliefs. But it is a condition of employment. They got a temporary accommodation, but there's no longer a reasonable one. We understand that's difficult. See, the Hawaii Airlines case.

 NY Fed's Leonard: They did not claim in their state court submission any free exercise violation. NY Fed is not a government agency.  Judge Liman: Authority for that? A: Uh, uh, NY Fed's employment actions are not state action. Judge: Cases? A: Nothing on point.

NY Fed's Leonard: There is no irreparable harm.

Judge Liman: I'm going to take this under advisement. I will render a decision quite quickly. Expect to hear from me soon. Plaintiffs' lawyer: There's a case, Agricultural Bank of China, 2016 WL 27566661

 NY Fed's Leonard: US v. Wells Fargo case, while not on point, the Federal Reserve Bank for the purpose of emergency lending are government agencies, but by implication, not as employers. Plaintiffs' lawyer: 24 hours for an interlocutor appeal? NY Fed: We object. ]

NY Fed's Leonard: We are doing this in the middle of pandemic. We shouldn't be restrained any longer. Judge Liman: Do you want to dismiss the complaint under 12(b)(6)? NY Fed: There's no complaint, it's futile. Yes, dismiss. Judge Liman: I'm asking about process.

 NY Fed's Leonard: We'll submit more papers in 2 weeks.

Judge Liman: Reply by April 11. We are adjourned.

On March 11, this: "ORDER granting in part [7] Motion Emergency Motion to Dissolve Ex Parte Temporary Restraining Order and Dismiss . Accordingly, the TRO is dissolved as improperly issued under Rule 65. See Rabbi Jacob Joseph School v. Province of Mendoza, 342 F. Supp. 2d 124, 127 (E.D.N.Y. 2004) ("The temporary restraining order that was issued without notice to the attorney for the Defendant whose identity was known, without declaring in an affidavit or verified complaint that immediate and irreparable harm would result before the adverse party or his attorney could be heard in opposition, was plainly in violation of Fed.R.Civ.P. 65(b), and the temporary restraining order was vacated for the additional reason that it was improperly issued."); Dolan v. Portaro, 2015 WL 3444351, at *1 (N.D. Ohio May 28, 2015) ("Had Plaintiff Dolan initially filed this case in this Court, the TRO could not have been granted. When the motion for a TRO was first made in state court, Plaintiff's counsel did not provide the required certification as to what efforts were made to give notice and why notice should not be required. Nor did Plaintiff's counsel file such certification in this Court after removal. That deficiency alone justifies dissolving the TRO."). Moreover, "[o]n this motion to dissolve a temporary restraining order,... the party that obtained that order... bears the burden of justifying continued injunctive relief." Gardner v. Weisman, 2006 WL 2423376, at *1 (S.D.N.Y. Aug. 21, 2006) (internal quotation marks omitted) (quoting SC Cowen Sec. Corp. v. Messih, 2000 WL 663434, at *1 (S.D.N.Y. May 17, 2000)). The FRBNY argues that the evidence submitted by Plaintiffs does not satisfy that burden, because they have not shown irreparable harm, a likelihood of success, or a balance of hardships in their favor, as further set forth herein. Plaintiffs also have not demonstrated a likelihood of success on the merits of their claims; their operative pleadings are wholly conclusory, and their arguments regarding a likelihood of success on the merits again hinge entirely on the Free Exercise claims, Dkt. No. 14 at 5; once again, the operative pleadings assert no Free Exercise claims. As such, Plaintiffs have not carried their burden of justifying continued injunctive relief. For this additional reason, the TRO must be dissolved."

  On March 21 the New York Fed filed a motion to dismiss, leading that "the New York Fed - part of the nation's central bank and a federal instrumentality established pursuant to the Federal Reserve Act of 1913 is not a state agency whose decisions are subject to review under Article 78."

On June 21 Judge Liman held another proceeding. He said he did not anticipate granting a motion to dismiss, but also doubted in a preliminary injunction, given that the staffers have already been fired. (The Fed's lawyer slipped in that the Fed doubts that the lead plaintiff's beliefs are religious).

Judge Liman told counsel to discuss with their clients the option of an expedited hearing on a permanent injunctions. A case management plan is due July 8, with another conference set for July 18 at 2 pm. 

  Inner City Press covered the July 18 conference; there was a request for a trial in January but a decision to hold it in May. Then into the docket this: "ORDER deferring ruling on [27] Motion for Preliminary Injunction. Upon consent of the parties at Dkt. No. 41, the hearing on Plaintiffs' motion for a preliminary injunction will be consolidated with a trial on the merits pursuant to Federal Rule of Civil Procedure 65(a)(2). (HEREBY ORDERED by Judge Lewis J. Liman)."

As the weather grows colder, the plaintiffs' lawyer seek to leave them. Judge Liman ruled: "ORDER: On October 28, 2022, plaintiffs Jeanette Diaz and Lori Gardner ("Plaintiffs") emailed the Court asking if they could be represented by counsel at the conference scheduled for Thursday, November 3, 2022 at 2:00 p.m. The Court has not granted Plaintiffs' counsel's motion to withdraw. Accordingly, if Plaintiffs wish to communicate with the Court, they should do so through counsel and file the communication on the docket on ECF. SO ORDERED. (Signed by Judge Lewis J. Liman on 10/28/2022)."

On January 13, 2023, Judge Liman held another conference in the case, about discovery. But the Federal Reserve's lawyer dropped a bombshell, claiming that plaintiffs' counsel did not in fact have any agreement with the clients to actually produce discovery - and was communicating through a New York Fed staffer, William Christie. Even before the oral bombshell, the Fed's January 11 letter to Judge Liman roundly critiqued plaintiffs' counsel. We aim to have more on this.

Inner City Press will continue to cover the case and the Fed.

We will have more on this. The case is Gardner-Alfred, et al. v. Federal Reserve Bank of NY, 22-cv-1585 (Liman)

January 9, 2023

The Federal Reserve under the Change in Bank Control Act - the same one use or misused on its watch for FTX / Alameda to buy into Farmington State Bank now Moonstone - has declined to extend the comment period on: "Dear Mr. Lee: This concerns your correspondence dated December 6, 2022, regarding the notice filed under the Change in Bank Control Act of 1978, as amended (“CIBC Act”), 1 by (1) the Estate of Steven B. Schnall, Sherri Silver Schnall, as Preliminary Executor, both of New York, New York, to retain voting shares of Quontic Bank Acquisition Corp. (“QBAC”) and Quontic Bank Holdings Corp. (“QBHC”), and thereby retain voting shares of Quontic Bank, all of New York, New York; and (2) the Schnall Disclaimer Trust A, Sherri Silver Schnall, individually and as co-trustee, both of New York, New York, with Amie Hoffman, as co-trustee, New Hope, Pennsylvania; and the Sherri S. Schnall Family Irrevocable Trust, Amie Hoffman as trustee, both of New Hope, Pennsylvania, to acquire voting shares of QBAC and QBHC, and thereby indirectly acquire voting shares of Quontic Bank, all of New York, New York. You requested an extension of the comment period for this proposal. Notices were published in the Federal Register (November 21, 2022) and in the relevant newspaper of general circulation (the New York Daily News (October 31, 2022)) providing commenters until December 6, 2022, a total of 36 days, to submit their views on all aspects of the proposal. This period provided sufficient time for interested persons to prepare and submit their comments. The Board provides a public comment period for notices to provide interested persons the opportunity to submit information and views related to the statutory factors it 1 12 U.S.C. § 1817(j).  2  must consider under the CIBC Act. The Board’s Rules of Procedure (“Rules”)2 also establish a framework, based on the schedules followed by many courts, that limits iterative responses between applicants and commenters. The Rules contemplate that the public comment period will not be extended absent a clear demonstration of hardship or other meritorious reason for seeking additional time. Your request for additional time to comment does not identify circumstances that would warrant an extension of the public comment period for this proposal. Based on all the facts of record, including the reasons discussed above, I have determined, acting pursuant to authority delegated by the Board (12 CFR 265.5(a)(2)), not to extend the public comment period. Any comments received on or before December 6, 2022, have been made part of the record of the proposal that will be reviewed by the Board" Watch this site.

January 2, 2023

  While Inner City Press looks into how the Federal Reserve allowed FTX / Alameda to buy into Farmington State Bank / Moonstone Bank, it commented to the Fed on "Notice of Change in Bank Control (the “Notice”) by (i) the Estate of Steven B. Schnall, Sherri Silver Schnall as Preliminary Executor, both of New York, New York; to retain voting shares of Quontic Bank Acquisition Corp., and Quontic Bank Holdings Corp., all of New York, New York, and (ii), the Schnall Disclaimer Trust A, Sherri Silver Schnall, individually, and as co-trustee, both of New York, New York, with Amie Hoffman, as co-trustee, New Hope, Pennsylvania; and the Sherri S. Schnall Family Irrevocable Trust, Amie Hoffman as trustee, of New Hope, Pennsylvania (all parties to (i) and (ii) together, the “Notificants”); to acquire voting shares of Quontic Bank Acquisition Corp., and Quontic Bank Holdings Corp., and thereby indirectly acquire voting shares of Quontic Bank."

  Note that beyond its crypto rewards program, Quontic "has become the latest of a handful of US-based financial institutions to have agreed to work with the cryptocurrency sector... It opened a checking account for an unnamed Bitcoin ATM firm--its first crypto client--several weeks ago, and claims to be in contract negotiations to open accounts for another new cryptocurrency company, which was also unnamed."

 And how did Quontic respond to Inner City Press' comment? With pure arrogance. We'll have more on this. Watch this site.

  And how did Quontic,December 26, 2022

On FTX Wreck Federal Reserve FOIAed by on Moonstone Bank & Others By Inner City Press

By Matthew Russell Lee, Patreon