Inner City Press: Federal Reserve Beat (FOIA, FOMC, CRA, Predatory Finance)

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October 15, 2018

From a Fed approval order last week : "The HHI in this market would increase by 261 points, from 1604 to 1865."

October 8, 2018

Allan Kamensky
Synovus Financial Corporation
General Counsel & Secretary
1111 Bay Avenue, Suite 500
Columbus, Georgia 31901
Dear Mr. Kamensky:
This refers to the application by (1) Synovus Financial Corp., Columbus, Georgia to acquire
FCB Financial Holdings, Inc. and thereby acquire Florida Community Bank, N.A., both of
Weston, Florida (Bank), pursuant to section 3(a)(3) and 3(a)(5) of the Bank Holding Company
Act; and (2) Synovus Bank, Columbus, Georgia to merge with Bank, pursuant to section 18(c) of
the Federal Deposit Insurance Act. Enclosed is a copy of a letter received from Fair Finance
Watch and Inner City Press commenting on the application.
Neither the Bank Holding Company Act nor the Board's Regulation Y requires a response from
Applicant. However, if you wish to respond, your comments should be received by this Reserve
Bank within eight business days from the date of this letter.

October 1, 2018

Now

The Federal Reserve Board on Thursday announced the termination of the enforcement action listed below:

Presidential Holdings, Inc., Bethesda, Maryland
Supervisory Agreement, issued by the Office of Thrift Supervision, dated May 3, 2010 (PDF)
Terminated September 25, 2018

September 24, 2018

President Donald J. Trump today announced his intent to nominate the following individuals to key positions in his Administration:
Jean Nellie Liang of Illinois, to be a Member of the Board of Governors of the Federal Reserve System for the remainder of a 14-year term expiring January 31, 2024. Ms. Liang is a Senior Fellow in Economic Studies at the Brookings Institution and a Visiting Scholar at the International Monetary Fund’s Monetary and Capital Markets Department. Previously, Ms. Liang served as Director of the Division of Financial Stability at the Board of Governors of the Federal Reserve System. Ms. Liang is a member of the Congressional Budget Office’s Panel of Economic Advisors and was a lecturer at the Yale School of Management. She earned her B.A. in economics from the University of Notre Dame and Ph.D. from the University of Maryland.
She wrote about subprime...

September 17, 2018

The Federal Reserve is, for now, withholding CRA information under this statement, "Exhibit H include information not disclosed to the general public. Competitors of Applicant should not be allowed access to this information because Applicant cannot access its competitors' strategic practices. This information could provide competitors with valuable insights into Applicant's business focus and plan of operations." We'll have more on this.

September 10, 2018

From Fed Reserve Bank: If you seek any “confidential” information regarding the application under the Freedom of Information Act (“FOIA”), you must submit a request to the Board’s Freedom of Information Office.

Inner City Press: Thanks. While I'm thinking it's why you put quotation marks around "Confidential," we'd be seeking all information that the applicant mis-characterized as withholdable under FOIA. Does your Federve Bank review the propriety of the applicant's argument that portions are withholdable under FOIA, such as in this case "Confidential" Exhibits D and E in their entirety?

Fed: Dear Mr. Lee: Applications staff reviewed the exhibits designated as “confidential” by the applicant and considered these exhibits to contain nonpublic information. If you seek copies of confidential information under the Freedom of Information Act, you must submit a request to the Board’s Freedom of Information Office, as described in my earlier email.

"Contain"? So segregable information is not released? FOIA-lite?

September 3, 2018

So will the Federal Reserve end up following Joe Otting in trashing community reinvestment? Does the Fed remember how Otting gamed their system when his OneWest Bank was selling itself to CIT? We'll see.

August 27, 2018

Bloomberg says "Have U.S. companies gotten too big and too powerful? Does growing concentration -- more market share in fewer corporate hands -- explain why wage growth has stagnated, income inequality has gotten worse and investment and innovation have fallen behind? These are some of the hottest questions in economic circles these days, and the U.S. Federal Reserve is looking for answers. As central bankers start to meet in Jackson Hole, Wyoming, for the Federal Reserve Bank of Kansas City’s annual symposium, it will be the main topic." But the Fed has allowed and encouraged the "concentration" in the financial services sector...

August 20, 2018

Last straw: The Federal Reserve has ended its "enforcement action" against HSBC for money laundering - which included for murderous drug gangs. Plus ca change...

August 13, 2018

From the Fed, Aug 10: "The Federal Reserve Board on Friday announced an $8.6 million fine against Citigroup for the improper execution of residential mortgage-related documents.

The $8.6 million penalty addresses the deficient execution and notarization of certain mortgage-related affidavits prepared by a subsidiary, CitiFinancial. The improper practices occurred in 2015 and were corrected. CitiFinancial exited the mortgage servicing business in 2017.

Also on Friday, the Board announced the termination of an enforcement action from 2011 against Citigroup and CitiFinancial related to residential mortgage loan servicing. The termination of this action was based on evidence of sustainable improvements." What improvements?

August 6, 2018

On August 3 the Fed went Finnish: "Nordea Bank Sweden has established controls and procedures for the proposed branch to
ensure compliance with U.S. law and for its operations in general, and these will be continued at Nordea Finland following the Merger.
Finland is a member of the Financial Action Task Force and subscribes to its recommendations on measures to combat money laundering and international terrorism. "

July 30, 2018

The Fed says, "The Federal Reserve recognizes that most banks want to serve all consumers and few
would intentionally choose to avoid minority areas. Nonetheless, some banks treat minority
neighborhoods less favorably.
For example, redlining risk may increase because of a failure to market products or locate
branches in the minority areas in the bank’s market, or because of changes in the bank’s
business model, such as through mergers, acquisitions, or new lending patterns. The Federal
Reserve conducts a risk-focused review of potential redlining risk, consistent with the
2009 Interagency Fair Lending Examination Procedures.5
Below are the key risk factors considered by the Federal Reserve in the redlining review as
well as some practical steps controls for mitigating risk.
Community Reinvestment Act (CRA) assessment area. Federal Reserve examiners
review whether the bank’s assessment areas appear to inappropriately exclude majority
minority census tracts.
Lending record. Federal Reserve examiners review whether the bank’s record of Home
Mortgage Disclosure Act (HMDA) mortgage lending and/or CRA small business lending
shows statistically significant disparities in majority minority census tracts when compared
with similar lenders.
Branching strategy. Federal Reserve examiners review whether the bank’s strategy for
branch or loan production office locations appears to exclude majority minority census
tracts. Marketing and outreach strategy. Federal Reserve examiners review whether the
bank’s marketing and outreach strategy appears to treat majority minority census tracts
less favorably.
Complaints. Federal Reserve examiners review whether any complaints by consumers
or consumer advocates raise concerns that the bank treats certain geographies differently
on a prohibited basis." we'll see...

July 23, 2018

On July 19, the Federal Reserve Board announced the termination of the enforcement action against Community Banks of Georgia, Inc., Jasper, Georgia...

July 16, 2018

Now the Fed has terminated its enforcement action against UNITED BANK LIMITED, Karachi, Pakistan and UNITED BANK LIMITED's NY branch.. Speaking of NY branches, see here...

July 9, 2018

So the Fed last week ended an enforcement against Amboy Bancorporation - from 2009...

July 2, 2018

Even the Federal Reserve had to admit that Deutsche Bank again failed the stress test. Now what - Commerzbank? Watch this site.

June 25, 2018

Check out the stress tests: https://www.federalreserve.gov/publications/files/2018-dfast-methodology-results-20180621.pdf

June 18, 2018

As Federal Reserve Rubber Stamps Merger By Ameris Jerome Powell Omits Regulatory Duties

By Matthew R. Lee, Patreon

NEW YORK, June 14 – The bank with the worst record in the United States for gouging consumers with overdraft fees, Ameris, has nevertheless gotten a rubber stamp approval from the Federal Reserve Board, to buy Hamilton State Bancshares in Georgia. Fair Finance Watch submitted formal opposition with the Fed, citing the gouging, Ameris' disparate mortgage lending record in Atlanta, Georgia and Florida, and the Community Reinvestment Act. See below. Earlier this year Ameris admitted in a responses that one of its filed application was false when it said it would continue the CRA policies of Atlantic - see full response on Patreon, here, question 3. Still, the Fed's June 13 order blandly recites " a commenter objected to the proposal on the basis of alleged disparities in the number of home mortgage loans made by Ameris Bank to, and/or in the rate of denials for home mortgage applications from, African Americans and/or Hispanics, as compared to whites, in Atlanta, Georgia; Jacksonville, Florida; and Tallahassee, Florida, based on data reported under the Home Mortgage Disclosure Act of 1975 (“HMDA”). The commenter also alleged that Ameris Bank engaged in predatory collection of overdraft fees and expressed concern over Ameris’s recent record of mergers and acquisitions." The concerns continue to grow. Inner City Press requested records under the Freedom of Information Act - but the Fed these days can take months to respond. On June 13, alongside the Ameris approval, Fed chair Jerome Powell answered a pre-picked question that the Fed's job involves interest rates and maximum employment. He did not mention the Fed's bank regulatory responsibilities. Seems he thinks someone else is doing that - but that someone is no longer the Consumer Financial Protection Bureau, nor the OCC.

June 11, 2018

Now there's a 60 day comment period on what's called the "proposal to simplify and tailor 'Volcker rule,'" here.
June 4, 2018

Weakening of Volcker Rule Promoted By Fed's Powell and Quarles Without Wells Fargo Recusal

By Matthew R. Lee, Audio

NEW YORK, May 30 – The US Federal Reserve Board, with more than half of its seats vacant and one of its three Governors conflicted out on Wells Fargo now wants to weaken the so-called Volcker Rule, for the benefit of the largest banks. This is the same Federal Reserve which recently delayed for months in responding to Inner City Press' request under the Freedom of Information Act, and which has taken to rubber stamping mergers even by banks with interest rates described as usurious, like Ameris Bank. Fed Chair Jerome Powell said, "Firms that do more modest amounts of trading will face fewer requirements." Randal K. Quarles, the Governor ostensibly recused on Wells Fargo which has an interest in the Volcker Rule said "I view this proposal as an important milestone in comprehensive Volcker rule reform, but not the completion of our work." There is a commnt period, here. We'll have more on this. When the International Monetary Fund reviews developed countries' banking sectors, particularly in Europe, some banks' participation in predatory lending gets over looked. Consider Deutsche Bank, and the IMF's May 14 assessment of the Germany banking sector, which Inner City Press published below when it was just out from under embargo. Now consider the US Federal Reserve's solicitude, expressed by new Governor Randal Quarles: "Willingness by the United States to reconsider its calibration may prompt other jurisdictions to do the same, which could better the prospects of successful resolution for both foreign G-SIBs operating in the United States, and for U.S. G-SIBs operating abroad... Any such balance is likely to be improvable with experience, reflection, and debate. We are interested in views from the firms and the public on how the regimes can be improved." This while draft legislation pends that would allow global banks to low-ball their US holdings, and US Comptroller of the Currency Joseph Otting targets the Community Reinvestment Act of 1977. We'll have more on this. From the IMF on May 14 "The German banking and life insurance sectors should accelerate their restructuring to bolster profitability and reduce risks. In the banking sector, the regulatory capital ratio has increased, but the cost-to-income ratio and leverage remain high. The high cost structure, alongside low net interest margins, provisions for compliance violations, and the need to adjust to the new regulatory environment, continue to weigh on profitability. Restructuring is ongoing in the banking sector, but the process must be accelerated through faster implementation of restructuring plans, continued development of fee-based income, and further consolidation. In the life insurance sector, low interest rates have dented solvency ratios, and further progress is needed to reduce reliance on guaranteed return products. In this context, supervisory attention to interest rate risk and progress in implementing restructuring plans both in banking and insurance should continue." What about abuse of consumers, participation in predatory lending schemes and other abuses? What about Greece? What about Deutsche bank as the riskiest bank? May 28, 2018

We note that in Federal Reserve governor Brainard's speech on CRA there is no mention of enforcement of CRA, or of the word "merger" or "expansion" or "application" -- we'll have more on this. https://www.federalreserve.gov/newsevents/speech/brainard20180518a.htm

May 21, 2018

De-Regulation of Global Banks Pitched by Fed's Quarles After As IMF Ignores Predatory Deutsche

By Matthew R. Lee, Audio

NEW YORK, May 14 – When the International Monetary Fund reviews developed countries' banking sectors, particularly in Europe, some banks' participation in predatory lending gets over looked. Consider Deutsche Bank, and the IMF's May 14 assessment of the Germany banking sector, which Inner City Press published below when it was just out from under embargo. Now consider the US Federal Reserve's solicitude, expressed by new Governor Randal Quarles: "Willingness by the United States to reconsider its calibration may prompt other jurisdictions to do the same, which could better the prospects of successful resolution for both foreign G-SIBs operating in the United States, and for U.S. G-SIBs operating abroad... Any such balance is likely to be improvable with experience, reflection, and debate. We are interested in views from the firms and the public on how the regimes can be improved." This while draft legislation pends that would allow global banks to low-ball their US holdings, and US Comptroller of the Currency Joseph Otting targets the Community Reinvestment Act of 1977. We'll have more on this. From the IMF on May 14 "The German banking and life insurance sectors should accelerate their restructuring to bolster profitability and reduce risks. In the banking sector, the regulatory capital ratio has increased, but the cost-to-income ratio and leverage remain high. The high cost structure, alongside low net interest margins, provisions for compliance violations, and the need to adjust to the new regulatory environment, continue to weigh on profitability. Restructuring is ongoing in the banking sector, but the process must be accelerated through faster implementation of restructuring plans, continued development of fee-based income, and further consolidation. In the life insurance sector, low interest rates have dented solvency ratios, and further progress is needed to reduce reliance on guaranteed return products. In this context, supervisory attention to interest rate risk and progress in implementing restructuring plans both in banking and insurance should continue." What about abuse of consumers, participation in predatory lending schemes and other abuses? What about Greece? What about Deutsche bank as the riskiest bank? May 14, 2018

On Ameris, the Fed recited "a commenter objected to the proposal on the basis of alleged disparities in the number of home mortgage loans to and/or in the rate of denials for home mortgage applications from African Americans and/or Hispanics, as compared to whites,
in Atlanta, Georgia; Jacksonville, Florida; and Tallahassee, Florida, based on data reported under the Home Mortgage Disclosure Act of 1975. The commenter also alleged that Ameris Bank engaged in predatory collection of overdraft fees and expressed concern over Ameris’s recent record of mergers and acquisitions and planned branch closures." That's right - and we'll stay on this.

May 7, 2018

On May 1, the Fed announced " Federal Reserve Board on Tuesday announced that it has fined The Goldman Sachs Group, Inc., $54.75 million for the firm's unsafe and unsound practices in its foreign exchange (FX) trading business." Sounds more like April 1, April Fool's Day - Goldman doesn't even flinch at this size of fine...

April 30, 2018

The Treasury Department recommends that the Federal Reserve (and FDIC) follow the OCC is removing one of the only teeth the CRA, denying applications after a needs to improve CRA rating. The Fed better not...

April 23, 2017

A Fed proposal introduces a stress capital buffer (SCB) a concept designed to produce capital requirements for large banking organizations that are firm-specific and risk-sensitive. “Our regulatory measures are most effective when they are as simple and transparent as possible, and this proposal significantly simplifies our capital regime while maintaining its strength,” the Fed’s Vice Chairman for Supervision Randal Quarles said. “It is a good example of how our work can be done more efficiently and effectively, and in a way that bolsters the resiliency of the financial system.” Quarles has recused himself from decisions on Wells Fargo...

April 16, 2018

The Federal Reserve Bank of Atlanta has asked some questions of Ameris, on Hamilton - without addressing or acting on Ameris' false statements in the other still pending proceeding. We'll have more on this.

April 9, 2018

At NY Fed, Dudley Replaced By SF's Williams, Who Oversaw Wells Fargo's Many Frauds

By Matthew R. Lee, Patreon

NEW YORK, April 3 – After much focus on who at the Federal Reserve Bank of New York should replace outgoing William Dudley, on April 3 the Fed did the expected, picking insider John Williams from the San Fransisco Fed who oversaw Wells Fargo's many frauds. We'll have more on this. This comes days after Dudley himself on March 30 misrepresented the bill S.2155 as offering relief to "small banks" -- actually, it's banks up to $250 billion in assets, and foreign mega-banks larger than that. Dudley's misleading comment came on the New York public radio show of Brian Lehrer, who erroneously said that the bill has been enacted "by Congress" when it has only passed the Senate. Meanwhile everyone from Mayor Bill de Blasio to Senator Kirsten Gillibrand has been saying the Fed's process for naming the President of its Reserve Bank is not transparent enough. Now that the expected Williams has been picked, what next?

April 1, 2018

... Collusion between payday lenders and national banks has been invited by US Comptroller of the Currency Joseph Otting, under whose watch OneWest Bank generated fake public comments urging approval of its merger with CIT. Otting has lifted the 2002 consent order prohibiting ACE Cash Express from "partnering" with national banks. Speaking earlier in, where else, Las Vegas Otting said, "We think there’s a big market there that’s underserved, that really has the ability to be served by capital going forward." When he was selling off OneWest, those whose e-mail addresses and identities were stolen in order to promote the merger were thanked by David Finnegan of the OCC Otting now runs. Finnegan then asked OneWest's and Otting's lawyer Stephen M. Salley at Sullivan & Cromwell to explain. We'll have more on this - there's a lot of explaining to do. On March 14 as what was presented as a community bank regulatory relief bill was passed in the U.S. Senate 67-31 as S.2155, along with undercutting fair lending enforcement the bill would provide particular benefit to the US subsidiaries of some of the largest global banks. These include at least one which helped evade North Korea sanctions: Bank of Tokyo - Mitsubishi...

March 26, 2018

Fed-speak / Fed - spun “A commenter objected to the proposal alleging that, based on data reported under the Home Mortgage Disclosure Act of 1975 (“HMDA”), Charles Schwab Bank lent only to white borrowers with incomes above 120 percent of the area median income in the Reno, Nevada, Metropolitan Statistical Area..The commenter also criticized the workplace benefit plans of Charles Schwab, noting that employees of Charles Schwab had filed a lawsuit alleging that the 401(k) plans of Charles Schwab have expensive fees and poor performance that have benefited Charles Schwab at the expense of its employees. See Severson v. Charles Schwab Corp., No. 4:17-cv-00285-CW (N.D. Cal. 2017). Charles Schwab has denied any wrongdoing. The allegations regarding the performance of 401(k) plans and fees charged by plan sponsors are matters that are reviewed under the Employee Retirement Income Security Act of 1974. See 29 U.S.C. § 1001 et seq. The allegations are currently under review in the appropriate legal forum, and action on this proposal would not interfere with the court’s ability to resolve the pending litigation. See Natcom Bancshares Inc., FRB Order No. 2017-37 at 6 n.18 (December 18, 2017); M&P Community Bancshares, Inc., 92 Federal Reserve Bulletin C156, C156 n.7 (2006).”

March 19, 2018

Tthe bank with the worst record in the United States for gouging consumers with overdraft fees, Ameris, has applied to the Federal Reserve to buy Hamilton State Bancshares - which, in the Atlanta MSA in 2016 for home purchase loans received 52 applications from whites, originated 37 of those as loans, denying only 12 applications. But for African Americans for home purchase loans, Hamilton State Bank denied every single on of the five applications that, based on its disparate marketing, it received or acknowledged. This is outrageous as is Ameris' record, and mis-statements. Ameris when it applied to buy Atlantic Coast Financial Corporation, and thereby directly acquire shares of Atlantic Coast Bank, falsely stated in its application that it would continue the CRA policies of Atlantic - see response to AI question 3, incorporated herein by reference. On the current record, public evidentiary hearings are needed on Ameris' Hamilton (and Atlanic) applications....

March 12, 2018

All you need in a crazen headline "Federal Reserve Board announces it will not object to the capital plan resubmitted by Capital One Financial Corporation"

March 5, 2018

So new Fed chairman Jay Powell was questioned about the Community Reinvestment Act in the House Financial Services Committee last week - as if he were coming in fresh, and hadn't for some time been rubber-stamping contested mergers and denying FOIA appeals to get more information...

February 26, 2018

After ICP Protest to Ameris Bank Merger With Atlantic Coast, Ameris Admits Application False

By Matthew R. Lee, Patreon

NEW YORK, February 24 – The bank with the worst record in the United States for gouging consumers with overdraft fees, Ameris, has applied to the Federal Reserve to buy Atlantic Coast Bank in Florida, and thereafter Hamilton State Bancshares. On January 29, Fair Finance Watch filed formal opposition to both with the Federal Reserve, citing the gouging, Ameris' disparate mortgage lending record in Atlanta, Georgia and Florida, and the Community Reinvestment Act. See below. It turns out, from Ameris' response, that its application was false when it said it would continue the CRA policies of Atlantic - see full response on Patreon, here, question 3. Inner City Press has requested records under the Freedom of Information Act. Now the Federal Reserve has asked Ameris a series of question, full copy here on Patreon

February 19, 2018

US Bancorp Slapped by Federal Reserve for Money Laundering, Fee Gouger Ameris Still Silent

By Matthew R. Lee

NEW YORK, February 15 – Less than a week after the Federal Reserve capped Wells Fargo's growth for compliance violations, on February 15 the Fed and DOJ hit US Bancorp: "The Federal Reserve Board on Thursday ordered Minneapolis-based US Bancorp to improve risk management and oversight of its banking subsidiaries' compliance with U.S. economic sanctions, and Bank Secrecy Act and anti-money-laundering requirements. The Board also required US Bancorp to ensure that firm personnel make timely and complete disclosures to regulatory authorities and imposed a $15 million penalty. Under the terms of the Board's consent cease and desist order, US Bancorp must strengthen oversight of firmwide risk-management and compliance programs for preventing violations of anti-money-laundering and U.S. sanctions laws and put in place procedures to ensure it provides adequate and complete responses to examiner inquiries. In a separate action, the U.S. Department of Justice announced the execution of a deferred prosecution agreement with US Bancorp for violations of the Bank Secrecy Act that occurred at its national bank subsidiary. The deferred prosecution agreement provides for a $528 million forfeiture by US Bancorp. In addition, the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network announced penalties of $75 million and $185 million respectively against U.S. Bancorp's national bank subsidiary for violations of the Bank Secrecy Act." Unsaid in the Fed's press release: US Bancorp processed transactions for disgraced payday lending mogul Scott Tucker...

February 12, 2018

Something remains wrong with the Federal Reserve's website https://www.federalreserve.gov/apps/h2a/h2a.aspx - when searched by end of comment period, as of February 10 the most recent end is February 6. This hides applications and excludes the public. Inner City Press wrote to the Fed, without response or improvement. We'll have more on this.

February 5, 2018

After US OCC Apologized to Wells Fargo, Fed Imposes Cap on Growth For Abusing Consumers

By Matthew R. Lee

NEW YORK, February 2 – More than ten months after Wells Fargo Bank's Community Reinvestment Act rating was dropped two levels to "Needs to Improve," barring it from acquisitions, on February 2 the Federal Reserve said this: "Responding to recent and widespread consumer abuses and other compliance breakdowns by Wells Fargo, the Federal Reserve Board on Friday announced that it would restrict the growth of the firm until it sufficiently improves its governance and controls.. Until the firm makes sufficient improvements, it will be restricted from growing any larger than its total asset size as of the end of 2017." By contrast the Office of the Comptroller of the Currency has quietly said, in a footnote to a Bulletin issued on October 12, that "The OCC’s policy is not to lower a bank’s CRA composite or component rating by more than one rating level." See here, footnote 8. So when did this become the OCC's policy, after it dropped Wells by two levels? Call it a stealth sop to Wells Fargo - and seemingly a violation of the Administrative Procedures Act. We'll have more on this

January 29. 2018

Fed Asks Schwab About Community Reinvestment Act After Fair Finance Watch Protest

By Matthew R. Lee

WASHINGTON, January 24 – Earlier this month Inner City Press / Fair Finance Watch filed with the Federal Reserve for evidentiary hearings on the application by Charles Schwab Corporation to set up Charles Schwab Trust Bank in Henderson, Nevada, noting that Schwab has been sued by its own employees, about 401k plans. See, e.g., Severson v. Charles Schwab Corp. , N.D. Cal., No. 3:17-cv-00285-JCS, complaint filed 1/19/17. It is also noteworthy that, Inner City Press wrote to the Fed, despite the issues there, Schwab reportedly held merger talks with SoFi earlier this year. Now the Federal Reserve has written to Schwab, on January 24, with these three questions: "Provide a summary regarding the current status of litigation in Severson v. Charles Schwab Corp., No. 4:17-cv-00285-CW (N.D. Cal. 2017). 2. Provide the “home state” of CSC as that term is defined in section 10(e)(7)(B)(iv) of
HOLA, 12 U.S.C. § 1467a(e)(7)(B)(iv). 3. Provide an update on Charles Schwab Bank’s and Charles Schwab Signature Bank’s
CRA activities since each institution’s prior Community Reinvestment Act public
evaluation." We'll have more on this. Fair Finance Watch also reviewed, in Nevada, Charles Schwab Bank's lending in the Reno MSA. For home purchase loans, all of the loans were to whites (none to Latinos or African Americans), all to applicants over 120% of MSA median income. The same is true of refinance lending. On the current record, these applications should not be approved." We'll have more on this.

January 22, 2018

The Federal Reserve Board last week took up the application of Huron Community Bank (“Huron Bank”), the state member bank subsidiary of Huron Community Financial Services, Inc. (“Huron Financial”), both of East Tawas, Michigan, has requested the Board’s approval under section 18(c) of the Federal Deposit Insurance Act (“Bank Merger Act”)1 to acquire certain assets and assume certain liabilities of a branch of First Federal of Northern Michigan. Don't blame it on CRA...

January 15, 2018

In DC, Fed Ends Enforcement Actions on 10 Including Citi & Chase After Micro-Fine of GS

By Matthew R. Lee

NEW YORK, January 12 – After the Federal Reserve let Goldman Sachs set up a bank, without any public comment, during the financial meltdown, today the Fed has announced it has fined Goldman Sachs Bank USA for violating the National Flood Insurance Act. But the fine is for only $90,000. Some wondered about this announcement - and then two minutes later, perhaps explaining, this: "The Federal Reserve Board on Friday announced the termination of enforcement actions related to residential mortgage loan servicing and foreclosure processing issued in 2011 and 2012 against 10 banking organizations: Ally Financial Inc.; Bank of America Corporation; CIT Group, Inc. (as successor to IMB HoldCo LLC); The Goldman Sachs Group, Inc.; HSBC North America Holdings, Inc.; JPMorgan Chase & Co.; Morgan Stanley; The PNC Financial Services Group, Inc.; SunTrust Banks, Inc.; and U.S. Bancorp." Wag the dog. In the battle for the US Consumer Financial Protection Bureau, on January 10 US District Judge Timothy Kelly ruled that Leandra English lacks a likelihood of success on the merits in removing Mick Mulvaney as acting director. Meanwhile Mulvaney is putting under “strictest review” the CFPB's fund to compensate victims of fraud. And fraud is more and more pervasive. Last week Inner City Press / Fair Finance Watch filed with the Federal Reserve for evidentiary hearings on the application by Charles Schwab Corporation to set up Charles Schwab Trust Bank in Henderson, Nevada. It has been reported that this bank would “focus on Schwab’s workplace benefit plan clients, such as employers who offer 401k plans, and the intermediaries who serve them.” But Schwab has been sued by its own employees, about 401k plans. See, e.g., Severson v. Charles Schwab Corp. , N.D. Cal., No. 3:17-cv-00285-JCS, complaint filed 1/19/17 ). Schwab “larded” its own 401(k) plan with expensive and poorly performing investment funds and services that earned fees for the company at the expense of workers’ retirement savings, according to the new lawsuit, filed Jan. 19. The lawsuit also targets the performance of Schwab’s stable value fund and claims that Schwab executives allowed the plan’s trustee to profit from the unallocated plan assets it held. It is also noteworthy that, Inner City Press wrote to the Fed, despite the issues there, Schwab reportedly held merger talks with SoFi earlier this year. Fair Finance Watch has also reviewed, in Nevada, Charles Schwab Bank's lending in the Reno MSA. For home purchase loans, all of the loans were to whites (none to Latinos or African Americans), all to applicants over 120% of MSA median income. The same is true of refinance lending. On the current record, these applications should not be approved." We'll have more on this.

January 8, 2018

Something to watch: "The