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June
19, 2017
Regulators Said
Sterling's CRA Data Unreliable, ICP
on FOIA Games, Sterling
Response Here
By
Matthew R. Lee, New
Platform
June 12, 2017
On
Brazil Land
Grabs & CRA Flaws,
Fed Parrots
TIAA, Which
Alludes To
Confidential
Info
By Matthew Russell Lee
UNITED NATIONS, June 8 – The lack of seriousness in US bank regulation, the mechanical repeating of whatever a challanged bank says, is exemplified by the Federal Reserve Board's June 7 approval of TIAA's application to acquire Everbank of Florida, which Inner City Press / Fair Finance Watch on October 29, 2016 challenged. After Inner City Press' challenge, the Fed asked some questions, and TIAA defended its investments in land grabs in Brazil. On this, the Fed's approval order repeats word for word, apparently without inquiry, the bank's law firm's defense. The bank wrote: "We are grateful for this opportunity to respond to the comment letter filed by Inner City Press / Fair Finance Watch on 29 October 2016 regarding the application submitted by TCT Holdings, Inc., Teachers Insurance and Annuity Association of America (“TIAA”)... that TIAA has engaged in improper business practices in Brazil should be considered by the Federal Reserve Board as a factor when considering the managerial resources of the Applicants. The news article cited in the Comment Letter does not provide a complete or accurate portrayal of how TIAA conducts business in Brazil and other markets... TIAA is a signatory to the U.N. Principles for Responsible Investment." The Fed's approval order also cites these UN "principles." On June 1, just before the approval, TIAA's law firm David Polk wrote in: You have asked us to supplement our responses to certain allegations made in protests by Inner City Press/Fair Finance Watch regarding the lending practices of TIAA-CREF Trust Company, FSB (“TIAA FSB”) and EverBank. As you are aware, we have provided substantial information in response to the allegations. We have received the following information from TIAA FSB: While the allegation of discriminatory lending focuses on the St. Louis MSA by TIAA FSB, we wish to make three important points in response. First, the allegation, using HMDA data for the St. Louis MSA, focuses on a small number of loans made in the MSA. We do not think the small sample, when analyzed, demonstrates a pattern or practice of discrimination. Second, TIAA, FSB operates no brick and mortar branches in the St. Louis MSA. Its participation in the MSA primarily results from the use of internet offerings as well as other broader-based channels. To focus on the results in the St. Louis MSA where there are no physical locations does not fairly reflect the nature of TIAA, FSB’s business strategy or its overall record of non-discriminatory lending. Third, as reflected above, the TIAA FSB mortgage offerings are nationwide in scope using the internet and other broad-based distribution channels. Focusing on a single market, regardless of its location, does not fairly reflect or represent TIAA FSB’s business strategy or its overall record. On May 25, 2017, TIAA FSB received the results from its Fair Lending Examination by the OCC. While the results of that examination constitute confidential supervisory information, it would be useful for the Federal Reserve to obtain a copy of the results of the examination. If you wish, TIAA FSB would be pleased to seek approval to share the results of the examination with you." How cozy. We'll have more on this.June
5, 2017
Regulators
Said
Sterling's CRA Data
Unreliable, Fed
Expedites Now
Delays ICPs
FOIA, OCC
Cover Up
By Matthew R.
Lee, New
Platform
NEW YORK, June 3 – Sterling Bank, which is applying for approvals to acquire Astoria Bank, is known by its regulators to have filed unreliable Community Reinvestment Act data from at least 2014 through 2016, a documentobtained by Inner City Press shows. The story, and outrage, has been picked up by the American Banker newspaper here, by Paul Davis and Allison Prang, crediting Inner City Press - and Sterling Bank had no comment. Instead, Sterling's outside counsel Wachtel Lipton chose to snail-mail its response to the wrong address, and not e-mail it to Fair Finance Watch. Via here, with envelope re-submitted to Fed and OCC. This while the Federal Reserve has granted Inner City Press' request for expedited treatment of its FOIA request for all records, promising the responsive documents by June 1. But now the Fed, in a June 1 letter, has unilaterally extended its time to June 22: "Dear Mr. Lee, This correspondence is to provide you with an update on the status of your FOIA request. The search for records is being completed and staff is beginning to review the search results for responsiveness and releasability. We will continue to process your request as quickly as possible. Accordingly, the Board hopes to be able to respond to your request, or provide a status update, on or before June 22, 2017. Very truly yours, Jeanne M. McLaughlin Manager, Freedom of Information Office." Why expedite and then extend? Why did the OCC rush a cover-up "Satisfactory" rating? We'll have more on this. First Fed letter on Scribd, here.
May
29, 2017
After
Fair Finance
Watch
Protested
Synovus -
Cabela,
Federal
Reserve Asks
Synovus 7
Questions
By Matthew R. Lee
NEW YORK, May 22 – The Federal Reserve has asked Synovus more than a half dozen questions on May 22, on its (straw-man) application to acquire Cabela's World's Foremost Bank, the questions annexed on May 22 here. Two months after Inner City Press reported Capital One failing in its proposal to acquire this "World's Foremost Bank," a way to try to avoid the regulators and Capital One's Community Reinvestment Act record emerged. The scam involves Synovus buying the bank then passing one the credit card receivables to Capital One, while keeping the deposits, so Capital One wouldn't be reviewed under CRA. The Fair Finance Watch has now opposed this, in a filing to the Federal Reserve. NCRC has commented as well. We'll have more on this.
May
22, 2017
Regulators
Said
Sterling's CRA Data
Unreliable, Sterling
Mis-Sends
Response, Fed
Expedites ICPs
FOIA
By
Matthew R. Lee, New
Platform
NEW YORK, May 20 – Sterling Bank, which is applying for approvals to acquire Astoria Bank, is known by its regulators to have filed unreliable Community Reinvestment Act data from at least 2014 through 2016, a document obtained by Inner City Press shows. The story, and outrage, has been picked up by the American Banker newspaper here, by Paul Davis and Allison Prang, crediting Inner City Press - and Sterling Bank had no comment. Instead, Sterling's outside counsel Wachtel Lipton chose to snail-mail its response to the wrong address, and not e-mail it to Fair Finance Watch. Via here, with envelope re-submitted to Fed and OCC. This while the Federal Reserve has granted Inner City Press' request for expedited treatment of its FOIA request for all records, promising the responsive documents by June 1. Fed letter on Scribd, here.
Regulators Said Sterling's CRA Data Unreliable, Sterling Mis-Sends Response, Fed Expedites ICPs FOIA, Here by Matthew Russell Lee on Scribd
Fair Finance Watch has asked both the Fed and OCC to extend their comment periods past this date. Watch this site. Sterling has issued a press release ("covered" without any analysis by Reuters) that "the Federal Reserve inadvertently made public confidential supervisory information.. Because of the legal constraints relating to disclosure of confidential supervisory information, we are working closely with our regulators to craft a more detailed public response." Sterling is working WITH the regulators - the judges in this case - to spin its inaccurate data? After on its last acquisition, challenged by ICP, having to make a CRA compliance plan? Inner City Press has submitted Freedom of Information Act requests (a response here) and Fair Finance Watch has filed additional comments to the Federal Reserve and OCC, demanding public hearings into the unreliable data AND into how the regulators were dealing with (or covering up) the issue, in stealth. We'll have more on this: the US Federal Reserve denied Fair Finance Watch's request to extend the comment period on Sterling's application, in which even the Fed suspects there is incorrect CRA data.On
May 11, the Federal Reserve Bank of New York
along with questions about about branch closures
and a CRA plan required after Fair Finance
Watch's previous challenge to Sterling asked:
"In a letter dated December 23, 2016, from the
OCC to Sterling Bank regarding the OCC's data
integrity review, the OCC stated that Sterling
Bank's 2014-2016 CRA data is not reliable and
that Sterling Bank lacks an effective process
for collecting, verifying and reporting such
data. To the extent that any of the CRA data in
the notice is incorrect, submit the corrected
data. In addition, describe Sterling Bank's
efforts to address its CRA data compliance
management deficiencies."
May
15, 2017
Regulators
Said Sterling
Bank's CRA Data
Unreliable, ICP
Exposed It, FFW
Demands
Hearing
By
Matthew R. Lee, New
Platform
NEW
YORK, May 12 – Sterling Bank, which is applying
for approvals to acquire Astoria Bank, is known
by its regulators to have filed unreliable
Community Reinvestment Act data from at least
2014 through 2016, a document
obtained by Inner City Press shows. The story,
and outrage, has been picked
up by the American Banker newspaper here,
by Paul Davis and Allison Prang, crediting Inner
City Press - and Sterling Bank has "no comment."
But Fair Finance Watch has filed additional
comments to the Federal Reserve and OCC,
demanding public hearings into the unreliable
data AND into how the regulators were dealing
with (or covering up) the issue, in stealth.
We'll have more on this: the US Federal Reserve
denied Fair Finance Watch's request to extend
the comment period on Sterling's application, in
which even the Fed suspects there is incorrect
CRA data.
On
May 11, the Federal Reserve Bank of New York
along with questions about about branch closures
and a CRA plan required after Fair Finance
Watch's previous challenge to Sterling asked:
"In a letter dated December 23, 2016, from the
OCC to Sterling Bank regarding the OCC's data
integrity review, the OCC stated that Sterling
Bank's 2014-2016 CRA data is not reliable and
that Sterling Bank lacks an effective process
for collecting, verifying and reporting such
data. To the extent that any of the CRA data in
the notice is incorrect, submit the corrected
data. In addition, describe Sterling Bank's
efforts to address its CRA data compliance
management deficiencies."
May 8,
2017
After
Capital
One Failed on
Cabela, Synovus Applies &
FFW Protests
to Federal
Reserve, Here
By Matthew R. Lee
NEW YORK, May 6 – Two months after Inner City Press reported Capital One failing in its proposal to acquire Cabela's "World's Foremost Bank," a way to try to avoid the regulators and Capital One's Community Reinvestment Act record emerged. The scam involves Synovus buying the bank then passing one the credit card receivables to Capital One, while keeping the deposits, so Capital One wouldn't be reviewed under CRA. The Fair Finance Watch has now opposed this, in a filing to the Federal Reserve: "On behalf of Inner City Press / Fair Finance Watch (FFW), this is a timely first comment opposing and requesting an extension of the FRS' public comment period on the Application by Synovus - and, we contend, CAPITAL ONE NA, to acquire the “WORLD'S FOREMOST BANK.”This comment is timely. For the record, there was initially filed with the OCC an application by Capital One to buy this “Foremost Bank.” When the compliance problems of that proposal became clear, this sham transaction was devised: for Synovus (also dubious) to make the initial acquistion, and then pass much of it on to Capital One, thereby evading review of Capital One, including but not limited to CRA review. This should not be countenanced. This applications is not even listed in the FRB's H2A, but only the H2, thusly: “* 18C Not applicable Synovus Bank, Columbus, Georgia, to acquire 05/19/2017 certain assets and to assume the deposits of World's Foremost Bank Sidney, Nebraska” It does not mention the role of Capital One. In the New York City MSA in 2015, the most recent year for which HMDA data is available, for conventional home purchase loans Capital One denied the applications of whites 23% of the time, while denying African Africans fully 45% of the time, and Latinos even more, 46% of the time. This is unacceptable.May 1,
2017
After
FFW Protest,
Fed Cites
Community Bank OCC
Deal &
Disparities,
Rubber-stamps
Merger
By Matthew R. Lee
NEW YORK, April 26 – At what point does bank executives' spin to investors and the media become more than misleading? Take Community Bank System (NYSE: CBU), which received on March 13 consumer lending questions on top of the nine earlier questions from the Federal Reserve on its proposal to acquire Merchants, after its CEO derided issues Fair Finance Watch raised about the proposal. Despite scanty responses and records, the Federal Reserve six weeks later on April 26 approved the application, reciting that "a commenter objected to the proposal on the basis of alleged disparities in the number of conventional home purchase loans, refinance home purchase loans, or home improvement loans offered to African American or Hispanic borrowers, as compared to white borrowers, by Community Bank in the Buffalo-Cheektowaga Niagara Falls, New York, Metropolitan Statistical Area (“Buffalo/Niagara MSA”) andApril
24, 2017
Better late than never: "The Federal Reserve on Thursday announced two enforcement actions against Deutsche Bank AG that will require the bank to pay a combined $156.6 million in civil money penalties."
April
17, 2017
Following the protest by Fair Finance Watch, the Federal Reserve has asked TIAA-CREF a fifth round of questions: "Provide an update on EverBank’s CRA activities since its last publicly available CRA Performance Evaluation. Your response should include any significant CRA initiatives undertaken, particularly with respect to credit and deposit products and retail banking services targeted toward low-to-moderate income geographies and individuals. In addition, provide information regarding community development lending, investments, and services in EverBank’s CRA assessment area since the last evaluation period, including the total number and dollar amount (except for community development services) and a brief description of the most significant community development loans, investments, and services." We'll have more on this.
April
10, 2017
How
sleazy is
today's
Federal
Reserve? After
they slipped a
major
reduction in
merger reviews
into a bank
merger
approval
order, when
Inner City
Press / Fair
Finance Watch
formally
challenged it
in a Request
for
Reconsideration,
the response
was a voice
mail that the
Board has
voted against
the request. A
phone call to
ask what that
meant was not
returned.
We'll have
more on this.
April
3, 2017
ICP
Timely
Requests
Reconsideration
of Federal
Reserve
Loosening
Merger Reviews
Without
Comment
By Matthew R. Lee
MAIN
STREET, March 27 – The US Federal Reserve Board,
which bears more than a little responsibility
for the global financial crash from 2008 due to
inattention to predatory lending including on
mergers, has now further reduced its scrutiny of
bank mergers, with little notice to date. Now
Fair Finance Watch and Inner City Press has
timely challenged the Federal Reserve's stealth
reduction of scrutiny, in a timely request for
reconsideration filed with the Federal Reserve
on the evening of March 27, below. FFW and
others including NCRC protested, and Inner City
Press has Freedom of Information Act requests
pending regarding, the application by People's
United to acquire Suffolk County National Bank.
FFW
showed that in the the New York City MSA,
"People's United made 82 home purchase loans to
whites and NONE to African Americans or Latinos.
This is redlining; this proposed acquisition
could not legitimately be approved and People's
United should be referred for prosecution for
redlining by the Department of Justice and
CFPB."
March
27, 2017
The Federal Reserve has chosen to make it nearly impossible to track open comment periods, still listing as pending such applications as that by NY Community Bank to acquire Astoria (since superseded by Sterling). We'll have more on this.
March
20, 2017
From
the Fed: "This
will
acknowledge
receipt of
your
electronic
message dated
and received
by the Board's
Freedom of
Information
Office on
March 7, 2017,
in which you
request,
pursuant to
the Freedom of
Information
Act (“FOIA”),
5 U.S.C. §
552, the
entirety of
the March 7,
2017
submission in
connection
with the
application by
Community Bank
System to
acquire
Merchants
Bank. The
Board makes
every effort
to fulfill
requests in a
timely manner;
however, there
may be delays
in fulfilling
complex
requests or
those that
require
consultation."
And
nothing since.
March
13, 2017
The
Federal
Reserve has
asked Simmons:
"1.
The preamble
to the
Agreement and
Plan of Merger
by and between
Simmons and
Hardeman dated
November 17,
2016
(“Agreement”),
provides that
certain
directors and
executive
officers of
Hardeman have
entered into
voting
agreements in
connection
with the
merger.
Provide copies
of the voting
agreements
referenced as
Exhibit A to
the
Agreement.
2.
Provide the
Target’s
Disclosure
Memorandum and
the Buyer’s
Disclosure
Memorandum as
referenced in
the Agreement.
3.
Page 1 of
Simmons’s
additional
information
response dated
February 22,
2017, provide
that, upon
consummation
of the holding
company
merger,
Messrs. Ed
Woodside,
Hunter
Simmons, Mike
McGregor, and
Kirk Goehring
would join the
Simmons
organization
as senior
management
officials.
Discuss
whether, upon
joining the
Simmons
organization,
any of these
individuals
would also
serve as a
director or
senior
management
official at
any other
banking
organization,
and if so,
indicate the
position(s)
and
organization(s)
at
which the
individual
would serve. "
March
6, 2017
We
note long time
Board
Secretary Robert
deV. Frierson,
with whom
Inner City
Press has
exchanged many
FOIA and
merger comment
letters, is
retiring -
enjoy and
Ann Misback
taking over
April 2, 2017.
The FOIAs and
comments will
continue!
After FFW
Protest, Fed Sends Community Bank System 9 Questions, CEO
Tryniski Trashes CRA
By Matthew R. Lee
NEW
YORK, March 2 – At what point does bank
executives' spin to investors and the media
become more than misleading? Take Community Bank
System (NYSE: CBU), which has now received nine
additional questions from the Federal
Reserve on its proposal to acquire Merchants,
after its CEO
derided issues Fair Finance Watch raised
about the proposal.
On its last proposal, CBSI bad-mouthed a
Community Reinvestment Act protest even as it
had to delay its Oneida deal. First, CBSI's "Hal
Wentworth said
that Inner City Press is not a local group and
pointed out that letter was the only one filed
on the Oneida deal. 'This activist does not do
business with either Oneida or Community Bank,
but nonetheless made vague allegations regarding
Community,' Wentworth said. 'These allegations
were entirely without merit and will be fully
addressed by Community Bank and Oneida Savings
in the application process.'" Then the deal was
significantly delayed, with CBSI pushing the
date back.
More spin: CFO Scott Kingsley told
the media that FFW's protest "is not the sole
reason. We have other things that have to
sequentially happen to get to the technological
conversion in July. When we did not have a
definitive answer from the Fed or other parties
last week, that put the technological conversion
at risk, so we opted not to go ahead.”
February
27, 2017
The Federal
Reserve,
confronted
even with
court
settlements by
banks, says it
was without
admission of
guilt. From
February 24:
"FNB’s
overdraft
practices were
found to be
unfair trade
practices
resulting in
unjust
enrichment as
part of a
class-action
litigation,
Ord v. First
National Bank
of
Pennsylvania,
No.
2:12-cv-00766-AJS
(W.D. Pa.
dismissed June
21,
2013). The
case was
settled
without any
admission of
wrongdoing by
the parties.
Final Judgment
& Order of
Dismissal with
Prejudice at
4–5, Ord (No.
2:12-cv-00766-AJS).
" We'll have
more on this.
February
20, 2017
Coulda
shoultd woulda
will; the Fed
barely reviews
unless
comments
received.
So...
"First
Bancorp
(NASDAQ -
FBNC), the
parent company
of First Bank,
reports that
it has
received
notification
from the
Federal
Reserve Bank
of Richmond
that the
Company's
merger
application to
acquire
Carolina Bank
Holdings, Inc.
("Carolina
Bank
Holdings") has
been approved.
All regulatory
approvals have
now been
received, and
the holding
company merger
date is
expected to be
March 3,
2017."
February
13, 2017
Governor
Tarullo will
leave the Fed
by April 5.
And who will
take his
place? There
are still FOIA
improvements
needed...
February
6, 2017
The
Federal
Reserve has
asked United
Bankshares, on
its protested
application to
buy Cardinal,
"In
its January
13, 2017,
Letter
Responding to
the Request
for Additional
Information,
United
indicates
there are
currently two
pending
litigation
matters
against UB WV
in which
allegations
have been made
involving
consumer
protection
laws. Please
provide
additional
information
about these
matters,
including, at
a minimum, the
identity of
the parties,
the nature of
the claims,
the specific
consumer
protection
laws
implicated,
the current
posture of the
litigation,
and the
anticipated
time frame for
disposition."
January
30, 2017
The
Federal
Reserve's
anti-money
laundering
enforcement
action against
BB&T is
far to vague.
We'll have
more on this.
January
23, 2017
Among other
comments, Fair
Finance Watch
has filed
this:
On behalf of Inner City Press/Fair Finance Watch (ICP), this is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Application of Community Bank System to acquire Merchants Bancshares, Inc. and Merchants Bank. This first comment is timely:
Community Bank System proposes to acquire Merchants. But in the the Buffalo and Syracuse MSAs in 2015, the most recent year for which Home Mortgage Disclosure Act data is publicly available, Community Bank NA dramatically excluded people of color.
For conventional home purchase loans in the Buffalo MSA in 2015, Community Bank NA made 58 such loans to whites and NONE to African Americans. It denied the only application it received from an African American.
For refinance home purchase loans in the Buffalo MSA in 2015, Community Bank NA made 19 such loans to whites and NONE to African Americans or Latinos.
For home improvement loans in the Buffalo MSA in 2015, Community Bank NA made 100 such loans to whites and NONE to African Americans or Latinos.
This is outrageous.
In the Syracuse MSA in 2015, Community Bank NA made 155 conventional home purchase loans to whites and NONE to African Americans.
For refinance loans in the Syracuse MSA in 2015, Community Bank NA made 121 such loans to whites and NONE to African Americans. It denied the only application it received from an African American.
This is outrageous.
Also, “Vermont still has 6 other state-chartered banks, but they all serve small regions of the state.... The last state-chartered bank to merge with a federally-chartered bank was Chittenden Bank, which became part of the Connecticut-based People’s United Bank on Jan. 1, 2008.”
In this context, the comment period should be extended so that public evidentiary hearings can be held, and the application should be denied.
Nor should Community Bank Systems be permitted to acquire Northeast Retirement Services...
January
16, 2017
This
was some
questioning to
/ of the
Federal
Reserve...
January
9, 2017
The
Federal
Reserve has
asked, after
comments,
about branches
closings and
consolidations:
"In
response to
Question 10 of
the Bank
Merger Act
application,
United
indicates that
it anticipates
consolidating
six UBVA
branches into
six Cardinal
Bank branches
and six
Cardinal Bank
branches into
six UBVA
branches, and
is considering
consolidating
two additional
branches.
Exhibit L to
Form 2070
indicates that
United plans
to consolidate
six UBVA
branches into
six Cardinal
Bank branches
and seven
Cardinal Bank
branches into
seven UBVA
branches, and
is considering
consolidating
two additional
branches.
Please provide
clarification
as to the
number and
location of
branches to be
consolidated
or closed
following the
merger."
We'll
have more on
this.
January
2, 2017
After
Inner City
Press / Fair
Finance Watch
requested
TIAA's
withheld fair
lending
exhibits under
FOIA, the Fed
between
Christmas and
New Years
emailed a
document -
with the
entire fair
plan
redacted...
December
26, 2016
This
is
UNacceptable:
December
22, 2016
Mr. Matthew R.
Lee
Inner City
Press / Fair
Finance Watch
Re:
Freedom of
Information
Act Request
No.
F-2017-0058
Dear Mr. Lee,
This will
acknowledge
receipt of
your
electronic
message dated
December 10,
2016, and
received by
the Board's
Freedom of
Information
Office on
December 12,
in which you
request,
pursuant to
the Freedom of
Information
Act (“FOIA”),
5 U.S.C. §
552, the
entirety of
the December
9, 2016
submission in
connection
with the
Application by
TIAA et al to
acquire
EverBank.
The Board
makes every
effort to
fulfill
requests in a
timely manner;
however, there
may be delays
in fulfilling
complex
requests or
those that
require
consultation.
The
FFW-challenged
application is
still
pending...
December
19, 2016
These are ones to watch:
Federal
Reserve:
Chair: Janet
L. Yellen,
Term Expires
February 3,
2018 (as
Chair),
January 31,
2024 (as Gov.)
Vice Chair:
Stanley
Fischer, Term
Expires June
12, 2018 (as
Vice Chair),
January 31,
2020 (as Gov.)
Governor:
Daniel K.
Tarullo, Term
Expires
January 31,
2022
Governor:
Jerome H.
Powell, Term
Expires
January 31,
2028
Governor: Lael
Brainard, Term
Expires
January 31,
2026
2 Governor
Seats
Currently
Vacant
December
12, 2016
The TIAA fight
goes on - now
they are
trying to
withhold fair
lending
information,
which on
December 10 we
challeged:
or the entirety of the December 9, 2016 submission in connection with the Application by TIAA et al to acquire EverBank. As provided under the FRB's ex parte rules, the submission refers to “confidential” portions the withholding of which we are challenging with this FOIA request on, for example, “consumer compliance and fair lending compliance, as well as the Resultant Institution’s Fair and Responsible Practices Program.”
December
5, 2016
After ICP
Challenges TIAA-Everbank, Fed's 3d
Round of Qs, CRA Included
By Matthew
R. Lee
NEW YORK,
November 29 -- The lack of seriousness
in US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to
People's United Bank now trying to buy
Suffolk County National Bank while
barely lending to people of color in
New York.
Then there are
cross-industry proposals like TIAA's attempt to acquire Everbank
of Florida, which Inner City Press / Fair Finance Watch on
October 29 challenged, and attempts from overseas to buy
Genworth.
The Federal Reserve has asked a
third round of questions of TIAA, which we publish here in full,
including one on CRA:
"In connection with the request for the Board’s prior approval pursuant to section 10(e)(1)(A)(iii) of the Home Owners’ Loan Act, as amended, 12 U.S.C. 1467a(e)(1)(A)(iii), and 12 CFR 238.11(e) by TIAA Board of Overseers, Teachers Insurance and Annuity Association of America (“TIAA”), and TCT Holdings, Inc., each of New York, New York, to acquire control of EverBank Financial Corp., a savings and loan holding company, and EverBank, a federal stock savings association, both of Jacksonville, Florida, the following information is requested. Supporting documentation should be provided as appropriate.
1. If the transaction is consummated as proposed, describe in detail any authority that the New York Department of Financial Services (“DFS”) or any other regulatory entity (apart from the Federal Reserve Board) may have to:
a. Prevent TIAA from down streaming funds or otherwise acting as a source of financial strength to a subsidiary, including a subsidiary depository institution;
b. Directly or indirectly prevent the Surviving Intermediate HoldCo (as that term is defined and used in the application) from down streaming funds or otherwise serving as a source of financial strength to the resultant subsidiary depository institution;
c. Directly or indirectly require Surviving Intermediate HoldCo to dividend or otherwise distribute funds to TIAA; or
d. Directly or indirectly require a subsidiary depository institution to dividend or otherwise distribute funds to TIAA. For each of the scenarios described above, include a detailed discussion of the circumstances in which the regulator could exercise such authority, and include citations as appropriate.
2. Indicate any dollar amount or percentage thresholds or limitations on transactions that TIAA may conduct with a subsidiary or affiliate, including with the Surviving Intermediate HoldCo, without prior approval of DFS, and provide any statutory or regulatory authority that addresses this limitation.
3. To the extent not previously disclosed in the application, and to the extent known with respect to EverBank, discuss any pending or recently resolved litigation with or investigations by regulators, including, but not limited to, those pertaining to consumer protection laws and regulations, against TIAA-CREF Trust Company, FSB (“TIAA FSB”) or EverBank.
4. Clarify the extent to which the
consumer compliance, fair lending compliance, and Community
Reinvestment Act programs of the resultant depository
institution will consist of the current programs of TIAA FSB or
EverBank. Discuss any aspects of these programs that differ from
those currently in place at TIAA FSB or EverBank."
Earlier, some of TIAA's answers were
provided to Inner City Press on November 10 and are published
here (here
and embedded below in full)
"We are grateful for this
opportunity to respond to the comment letter filed by Inner City
Press /Fair Finance Watch on 29 October 2016 (the “Comment
Letter”), regarding the application submitted by TCT Holdings,
Inc., Teachers Insurance and Annuity Association of America
(“TIAA”)... The Comment Letter makes a series of assertions
regarding the lending practices of TIAA-CREF Trust Company, FSB
(“TIAA FSB”) and EverBank by referencing certain Home Mortgage
Disclosure Act (“HMDA”) data for 2015. It also suggests that
TIAA does not satisfy the requisite managerial standards
consistent with approval. Finally, the Comment Letter requests
an extension of the public comment period and a public hearing
on the Application...
EverBank has advised the Applicants
that it has carefully evaluated and investigated the allegations
and it has provided the Applicants with information following
its manual review of each of the eight declined applications
underlying the data cited in the Comment Letter...
The commenter also suggests that
allegations in a dated news article that TIAA has engaged in
improper business practices in Brazil should be considered by
the Federal Reserve Board as a factor when considering the
managerial resources of the Applicants. The news article cited
in the Comment Letter does not provide a complete or accurate
portrayal of how TIAA conducts business in Brazil and other
markets... TIAA is a signatory to the U.N. Principles for
Responsible Investment."
November
28, 2016
Inner
City Press has
just filed:
"This is a
FOIA request
for the
entirety of
the November
22, 2016
submission in
connection
with the
Application by
TIAA et al to
acquire
EverBank. As
provided under
the FRB's ex
parte rules,
the submission
refers to
“confidential”
exhibits the
withholding of
which we are
challenging
with this FOIA
request for,
for example,
“Please see
Confidential
Exhibit 7 for
an explanation
of the
uncommitted
$300 million
credit line;”
“the Resultant
Institution
will continue
to satisfy the
QTL test under
prong (iv), as
demonstrated
in
Confidential
Exhibit 2;”"
etc...
November
21, 2016
Of
BOK, the Fed
said last week
of ICP's
comment, " a
commenter
objected to
the proposal
on the basis
of alleged
disparities in
the number of
residential
real estate
loans made to
minority
borrowers, as
compared to
white
borrowers, by
BOK Bank in
the Kansas
City,
Missouri-Kansas,
Metropolitan
Statistical
Area (“Kansas
City MSA”);
the Houston,
Texas, MSA
(“Houston
MSA”); and the
Phoenix,
Arizona, MSA
(“Phoenix
MSA”), as
reflected in
data reported
under the Home
Mortgage
Disclosure Act
(“HMDA”) for
2014.25 The
commenter
further
alleged that
BOK Bank
confined
African
American and
Hispanic
borrowers to
government
loan programs
instead of
conventional
loan products
in the
Kansas City
MSA. Also, the
commenter
criticized the
rate at which
BOK Bank
denied
applications
by African
Americans
and/or
Hispanics,
compared to
the rate of
denials for
whites, for
home refinance
loans in the
Houston and
Phoenix MSAs,
as reported
under HMDA for
2014. In
addition, the
commenter
generally
alleged that
BOK Bank has a
weak record of
lending to
people of
color and
low-income
individuals
and a weak
record of
consumer
compliance."
And we
maintain that
- and note the
Fed accepting
that "On
September 9,
2016, the
Securities and
Exchange
Commission
(“SEC”)
announced that
it had settled
charges
against BOK
regarding
allegations
that BOK
Bank’s
Corporate
Trust
Department,
primarily
through a
senior
executive,
concealed
problems and
red flags from
investors in
certain bond
offerings for
which BOK Bank
served as
indenture
trustee and
dissemination
agent between
2007 and 2015.
See BOK Bank,
SEC Order
Instituting
Cease-and-Desist
Proceedings,
File No.
3-17533
(September 9,
2016)"
November
14, 2016
After ICP
Challenges TIAA-Everbank, Defense of
Lending, Land Grabs
By Matthew
R. Lee
NEW YORK,
November 10 -- The lack of seriousness
in US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to
People's United Bank now trying to buy
Suffolk County National Bank while
barely lending to people of color in
New York.
Then there are
cross-industry proposals like TIAA's attempt to acquire Everbank
of Florida, which Inner City Press / Fair Finance Watch on
October 29 challenged, and attempts from overseas to buy
Genworth.
The Federal Reserve has asked
questions of TIAA, some of whose answers were provided to Inner
City Press on November 10 and are published here (here
and embedded below in full)
"We are grateful for this
opportunity to respond to the comment letter filed by Inner City
Press /Fair Finance Watch on 29 October 2016 (the “Comment
Letter”), regarding the application submitted by TCT Holdings,
Inc., Teachers Insurance and Annuity Association of America
(“TIAA”)... The Comment Letter makes a series of assertions
regarding the lending practices of TIAA-CREF Trust Company, FSB
(“TIAA FSB”) and EverBank by referencing certain Home Mortgage
Disclosure Act (“HMDA”) data for 2015. It also suggests that
TIAA does not satisfy the requisite managerial standards
consistent with approval. Finally, the Comment Letter requests
an extension of the public comment period and a public hearing
on the Application...
EverBank has advised the Applicants
that it has carefully evaluated and investigated the allegations
and it has provided the Applicants with information following
its manual review of each of the eight declined applications
underlying the data cited in the Comment Letter...
The commenter also suggests that
allegations in a dated news article that TIAA has engaged in
improper business practices in Brazil should be considered by
the Federal Reserve Board as a factor when considering the
managerial resources of the Applicants. The news article cited
in the Comment Letter does not provide a complete or accurate
portrayal of how TIAA conducts business in Brazil and other
markets... TIAA is a signatory to the U.N. Principles for
Responsible Investment."
Ah, the United Nations...
We'll have more on this.
After ICP Challenges TIAA-Everbank, Here's TIAA's Defense to Federal Reserve of Lending Disparities, Land G... by Matthew Russell Lee on Scribd
November
7, 2016
After ICP
Challenges People's United Bank's
Suffolk Bid, Fed Asks 13 More
Questions
By Matthew
R. Lee
NEW YORK,
October 31 -- The lack of seriousness
in US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to
People's United Bank now trying to buy
Suffolk County National Bank while
barely lending to people of color in
New York. Inner City Press /
Fair Finance Watch on August 13
challenged this application and
People's United, as it did Bancorp
South in 2014, which led to redlining
charges by the Department of Justice
and Consumer Financial Protection
Bureau.
October
31, 2016
Challenge
to TIAA's Attempt To Buy Everbank,
Citing Landgrab in Brazil
By Matthew
R. Lee
NEW YORK,
October 29 -- The lack of seriousness
in US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to
People's United Bank now trying to buy
Suffolk County National Bank while
barely lending to people of color in
New York.
Then there are
cross-industry proposals like TIAA's attempt to acquire Everbank
of Florida, which Inner City Press / Fair Finance Watch on
October 29 has challenged. Inner City Press / Fair
Finance Watch has written to the Federal Reserve:
On behalf of Inner City Press/Fair Finance Watch (ICP), this is a timely first comment opposing and requesting public hearings and an extension of the FRB's public comment period on the Applications of TCT Holdings Inc., Teachers Insurance and Annuity Association of America and TIAA Board of Overseers, all of New York, New York; to acquire EverBank Financial Corp and thereby indirectly acquire EverBank. This first comment is timely.
This is in essence a proposal for a major cross-industry acquisition, in which TIAA (accused among other things of land grabs in Brazil, see below), which has limited experience in banking and a limited and highly disparate record in mortgage lending, seeks to acquire the largest Florida-based bank, with its own issues. Public hearings are needed.
In the St. Louis MSA, TIAA-CREF Trust in 2015, the most recent year for which Home Mortgage Disclosure Act data is available, reported data but lent only to whites.
Meanwhile Everbank, in the Miami MSA in 2015 for home mortgage loans in HMDA Table 4-1 had a 77% denial rate for African Americans, versus a 36% denial rate for whites. In Tampa for Table 4-1 it had a 100% denial rate for African Americans. Public hearings are required.
For the record, under the Managerial Resources and integrity factors, consider this:
“TIAA-CREF, U.S. Investment Giant, Accused of Land Grabs in Brazil NOV. 16, 2015
SÃO PAULO, Brazil — As an American investment giant that manages the retirement savings of millions of university administrators, public school teachers and others, TIAA-CREF prides itself on upholding socially responsible values, even celebrating its role in drafting United Nations principles for buying farmland that promote transparency, environmental sustainability and respect for land rights.
But documents show that TIAA-CREF’s forays into the Brazilian agricultural frontier may have gone in another direction.
The American financial giant and its Brazilian partners have plowed hundreds of millions of dollars into farmland deals in the cerrado, a huge region on the edge of the Amazon rain forest where wooded savannas are being razed to make way for agricultural expansion, fueling environmental concerns.
In a labyrinthine endeavor, the American financial group and its partners amassed vast new holdings of farmland despite a move by Brazil’s government in 2010 to effectively ban such large-scale deals by foreigners.”
For obvious reasons anticipating regulatory push-back against this proposal, TIAA got a clause to withdraw if too much questions are asked or restrictions proposed.
What is the public benefit? The fact that TIAA is run by a former FRB vice chairman militates even more strongly for the requested public hearings."October
24, 2016
Lending
Discrimination Kills Mergers as
BancorpSouth Withdraws, ICP Proceeds
on People's United
By Matthew
R. Lee
NEW YORK,
October 22 -- The lack of seriousness
in US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to
People's United Bank now trying to buy
Suffolk County National Bank while
barely lending to people of color in
New York. Inner City Press /
Fair Finance Watch on August 13
challenged this application and
People's United, as it did
BancorpSouth in 2014, which led to
redlining charges by the Department of
Justice and Consumer Financial
Protection Bureau.
After
BancorpSouth settled the redlining
charges, Inner City Press / Fair
Finance Watch immediately wrote to the
Federal Reserve urging that its
pending merger applications be denied
or withdrawn. Now the latter has
happened. The Fed has informed Inner
City Press of the formal withdrawal of
BancorpSouth's application; we've published
the letter here, and will stay
on this, to December 2017, as long as
it takes.
As to
People's United, using the
just-released 2015 Home Mortgage
Disclosure Act data. Inner City Press
has now commented to the Federal
Reserve:
"in 2015 in the New York City MSA, People's United made 110 home purchase loans to whites and only ONE to an African American and only four to Latinos... In 2015, for refinance loans in the New York City MSA, People's United made 103 loans to whites, only five to African Americans and only two to Hispanics.
People's United record is scarcely
better on Long Island, where it
snapped up Bank of Smithtown and
Citizen's Bank as it now proposes to
do to Suffolk County National Bank. In
2015 for home purchase loans on Long
Island People's United made 49 home
purchase loans to whites, only four to
African Americans and only four to
Latinos. For refinance loans it mad 70
loans to whties, only one to an
African American and only four to
Latinos. Again, this is systematic
redlining; this proposed acquisition
could not legitimately be approved and
People's United should be referred for
prosecution for redlining by the
Department of Justice and CFPB."
October
17, 2016
ICP
Challenges FNB's Reach into the
Carolinas for Yadkin Bank, Disparities
in Baltimore & Ohio, Insiders
By Matthew
R. Lee
NEW YORK,
October 15 -- The lack of seriousness
in US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to FNB
/ First National Bank of Pennsylvania
now trying to buy Yadkin Bank in the
Carolinas while barely lending to
people of color in Baltimore,
Cleveland or Akron.
Inner
City Press / Fair Finance Watch on
October 15 challenged this application
and FNB, as it did Bancorp South in
2014, which led to redlining charges
by the Department of Justice and
Consumer Financial Protection Bureau.
Using the
just-released 2015 Home Mortgage
Disclosure Act data, Inner City Press
has commented to the Federal Reserve
in Washington and Cleveland:
"On behalf of Inner City Press/Fair Finance Watch (ICP), this is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Application of F.N.B. Corporation to acquire Yadkin Financial and Yadkin Bank. This first comment is timely.
F.N.B. Corporation's lead bank, First National Bank of PA, has a disparate record of lending, for example in the Baltimore and Cleveland MSAs, below. Yadkin is an amalgam of banks slapped together by private equity investors, who would be the primary beneficiaries of this proposed deal. But what is the public benefit?October
10, 2016
After ICP
Challenges Its Suffolk Bid, People's
United 2015 Data Even Worse
By Matthew
R. Lee
NEW YORK,
October 5 -- The lack of seriousness
in US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to
People's United Bank now trying to buy
Suffolk County National Bank while
barely lending to people of color in
New York. Inner City Press /
Fair Finance Watch on August 13
challenged this application and
People's United, as it did Bancorp
South in 2014, which led to redlining
charges by the Department of Justice
and Consumer Financial Protection
Bureau.
This is
even more true upon review of the
just-released 2015 Home Mortgage
Disclosure Act data. Inner City Press
has now commented to the Federal
Reserve:
"in 2015 in the New York City MSA, People's United made 110 home purchase loans to whites and only ONE to an African American and only four to Latinos... In 2015, for refinance loans in the New York City MSA, People's United made 103 loans to whites, only five to African Americans and only two to Hispanics.
People's United record is scarcely
better on Long Island, where it
snapped up Bank of Smithtown and
Citizen's Bank as it now proposes to
do to Suffolk County National Bank. In
2015 for home purchase loans on Long
Island People's United made 49 home
purchase loans to whites, only four to
African Americans and only four to
Latinos. For refinance loans it mad 70
loans to whties, only one to an
African American and only four to
Latinos. Again, this is systematic
redlining; this proposed acquisition
could not legitimately be approved and
People's United should be referred for
prosecution for redlining by the
Department of Justice and CFPB."
October
3, 2016
The
Fed on
September 30
said, "Of the
42 proposals
withdrawn in
the first half
of 2016, 20
proposals were
withdrawn at
the initiative
of the
applicant. The
remainder were
withdrawn
after
consultation
with staff for
technical or
procedural
reasons or
because the
proposals
raised
significant
issues
regarding the
statutory
factors that
must be
considered by
the Federal
Reserve.
Specifically,
13 of these
proposals
raised
financial and
managerial
issues as well
as regulatory
compliance and
CRA and fair
lending
issues."
So what
about
BancorpSouth?
Or a Spanish
bank down the
pike?The Fed
on September
30 said, "Of
the 42
proposals
withdrawn in
the first half
of 2016, 20
proposals were
withdrawn at
the initiative
of the
applicant. The
remainder were
withdrawn
after
consultation
with staff for
technical or
procedural
reasons or
because the
proposals
raised
significant
issues
regarding the
statutory
factors that
must be
considered by
the Federal
Reserve.
Specifically,
13 of these
proposals
raised
financial and
managerial
issues as well
as regulatory
compliance and
CRA and fair
lending
issues."
So what
about
BancorpSouth?
Or a Spanish
bank down the
pike?
The
Federal
Reserve has
responded to
Inner City
Press' FOIA
request about
BNC - but has,
tellingly,
redacted
everything
about
"Enforcement
Actions." We
are not
convinced.
September
26, 2016
And now more
questions from
the Fed to
BNC:
"on Bank of
North
Carolina,
Thomasville,
North Carolina
(“BNC Bank”),
to acquire
High Point
Bank
Corporation
(“HPBC”),
parent of High
Point Bank and
Trust Company
(“High Point
Bank”), both
of High Point,
North
Carolina,
pursuant to
section
3(a)(5) of the
Bank Holding
Company Act of
1956, as
amended (“BHC
Act”), the
following
additional
information,
including the
information in
the
confidential
appendix, is
requested.
Supporting
documentation
should be
provided as
appropriate.
1. Given BNC’s
rapid
expansion,
describe in
detail BNC’s
merger and
acquisition
processes for
targeting,
acquiring, and
integrating
acquired
businesses.
Include the
level of board
and senior
management
oversight and
reporting, due
diligence
activities,
audit
coverage, and
the
involvement of
risk control
groups as
appropriate.
2. Describe
how BNC
governs
significant
project
activities and
whether there
is an
independent
oversight
function that
oversees
project
changes that
occur when BNC
makes an
acquisition.
3. Regarding
BNC’s current
enterprise
risk
management,
respond to the
following:
a. Discuss the
impact that
the
integration of
Southcoast has
had to BNC’s
risk
management
framework.
b. Indicate
whether risk
reporting
includes
information
regarding
integration
activities. If
so, describe
how this
information
could be used
by senior
management to
allocate the
necessary
resources to
address
integration
concerns,
should any
arise.
c. Describe
how BNC’s risk
management
framework
would change
upon
consummation
of the
proposed
transaction.
4. Provide a
pro forma list
of
shareholders
who will own,
control, or
hold with the
power to vote
5 percent or
more of the
voting shares
of BNC upon
consummation
of the
proposed
transaction.
Your response
should
indicate
whether any
identified
shareholder is
a bank or bank
holding
company. In
calculating
the voting
ownership,
include any
warrants,
options, and
other
convertible
instruments,
and show all
levels of
ownership on
both a fully
diluted and on
an
individually
diluted basis.
Aggregate the
interests of
any related
shareholders."September
19, 2016
So
Bank of
Oklahoma,
after Inner
City Press'
protest, was
asked by the
OCC in what
markets it
will improve.
It has now
named cities
in six states.
But will the
Federal
Reserve even
take note of
this? Watch
this site.
September
12, 2016
The
Fed wrote to
ICP: "Please
see the
attached
letter and
non-confidential
enclosure
submitted to
the Federal
Reserve by
BancorpSouth,
Inc., Tupelo,
Mississippi,
as additional
information
related to its
applications
to acquire,
through
merger,
Ouachita
Bancshares
Corporation,
Monroe,
Louisiana, and
Central
Community
Corporation,
Temple,
Texas.
This
information is
being provided
to you in
accordance
with the
Federal
Reserve’s
policies on ex
parte
communications."
ICP
replied: "We
contest
whether some
of the
withheld
information is
not subject to
the ex parte
rules / exempt
from
disclosure
under FOIA" -
and after
being so
directed,
filed a FOIA
request. Watch
this site....
September
5, 2016
Now Bank of New Carolina has acknowledged to the Fed being below average in fair lending in, for example, Charleston - but then cites to still-withheld Compliance Plan and Supplement. This is a scam.
ICP
Protested BNC - High Point, Now Fed
Asks Questions, Here
By Matthew
R. Lee
NEW YORK,
August 24 -- The lack of seriousness
in US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to
Bank of North Carolina (BNC), whose
proposed acquisition of High Point
Bank Corporation Inner City Press has
challenged and the Federal Reserve has
asked questions on, and BancorpSouth,
which Inner City Press protested for
discrimination in 2014, and has now
been charged by the Department of
Justice and CFPB.
On the
evening of August 24, the Federal
Reserve asked BNC questions about
Inner City Press' protest, including:
"The public
comment submitted on the proposed
merger includes assertions that Home
Mortgage Disclosure Act data from
several metropolitan areas indicate
that both BNC Bank and High Point Bank
had unfavorable levels of mortgage
lending to African American and
Hispanic individuals as compared to
white individuals.
-Directly
address the assertions of unfavorable
levels of mortgage lending to those
population segments identified by the
commenter in each relevant geographic
area referenced in the comments;
-Discuss in
detail the outreach and marketing
activities by BNC Bank and High Point
Bank, including any contemplated
changes to those activities after
consummation of the proposal; and
-Describe
in detail the fair lending risk
management policies and procedures of
BNC Bank and High Point Bank,
including any contemplated changes to
these policies and procedures after
consummation of the proposal...
Discuss
any plans to open, close, or
consolidate any bank branches in
connection with the proposal, or
separately from the proposal,
particularly in low- and
moderate-income (“LMI”) areas. To the
extent that any branches in LMI areas
would be closed, discuss management’s
plans to mitigate the impact of such
closures on the affected communities."
On BNC,
Inner City Press / Fair Finance Watch
has raised to the Federal Reserve:
In the Charleston MSA in 2014 for
conventional home purchase loans, BNC
made 173 such loans to whites and only
SIX to African Americans, and none to
Latinos. For refinance loans, it made
68 loans to whites and only ONE to an
African American, while denying the
applications of African Americans 3.94
times more frequently than those of
whites.
Southcoast in the Charleston
MSA in 2014 for conventional home
purchase loans made 136 such loans to
whites and NONE to African Americans.
For refinance loans, Southcase made 35
loans to whites and only TWO to
African Americans. To combine these
two banks would make them worse.
In the Greenville MSA in 2013
for home purchase loans, BNC made 117
such loans to whites and only SIX to
African Americans, and only seven to
Latinos. For refinance loans, it
made 31 loans to whites and only one
to an African Americans and none to
Latinos.
BNC admits, as it must, that it
is below-market in lending to African
Americans, but paradoxically tries to
use that the fact that it is subject
to a compliance order as its defense
to the Fed.
To Fair Finance Watch, too. FFW
asked to see, in writing, what are
BNC's CRA plans going forward. BNC
replied that it is "unable to share
this with you. It is an internal
document that is only shared with our
Board of Directors and the FDIC (under
the Order)."
August
22, 2016
How inattentive
is the Fed?
Well in its end
of the week Form H2A
listing
pending
application,
it simply jammed
five
applications,
not in alphabetical
order, at the
top.
But this same
Fed takes
Goldman Sachs'
telephone
calls on
Sunday, to
expedite its
applications...
August 15,
2016
Citing
Redlining, ICP Challenges People's
United Bid For Suffolk County National
Bank
By Matthew
R. Lee
NEW YORK,
August 8 -- The lack of seriousness in
US bank regulation grows from the
relatively smaller to the largest
banks like Goldman Sachs - down to
People's United Bank now trying to buy
Suffolk County National Bank while
barely lending to people of color in
New York. Inner City Press /
Fair Finance Watch has now challenged
this application and People's United,
as it did Bancorp South in 2014, which
led to redlining charges by the
Department of Justice and Consumer
Financial Protection Bureau.
Inner City Press / Fair Finance Watch
has filed with the US Office of the
Comptroller of the Currency:
"a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by People's United to buy The Suffolk County National Bank of Riverhead, NY. The newspaper notice says the comment period runs at least through August 16; this comment is timely.
People's United proposes to buy Suffolk County National Bank and its 27 branches in New York. But in the the New York City MSA in 2014, the most recent year for which Home Mortgage Disclosure Act data is publicly available, People's United made 82 home purchase loans to whites and NONE to African Americans or Latinos. This is redlining; this proposed acquisition could not legitimately be approved and People's United should be referred for prosecution for redlining by the Department of Justice and CFPB.August
8, 2016
After
Taking Goldman Sachs Calls on Sunday,
Fed Fines It $36M, Denies FOIA
By Matthew
R. Lee
NEW YORK,
August 3 -- The lack of seriousness in
US bank regulation grows from the
largest banks like Goldman Sachs -
which gets weekend service from the
Federal Reserve's top lawyer - down to
the Bank of North Carolina, for which
it hides the "compliance plan" that
ostensibly rebuts Fair Finance Watch.
On August 3
after earlier in the year doling out
an approval for Goldman Sachs on GE,
the Fed announced it has
"ordered
Goldman Sachs Group to pay a $36.3
million civil money penalty for its
unauthorized use and disclosure of
confidential supervisory information
and to implement an enhanced program
to ensure the proper use of
confidential supervisory information.
Additionally, the Board announced that
it is instituting enforcement
proceedings against Joseph Jiampietro,
a former managing director at Goldman
Sachs, seeking to impose a fine and
permanently bar him from the banking
industry."
Goldman
Sachs on January 14, 2016 withheld
basic information from the response it
was required to send to Inner City
Press, see below.
But on
March 21, after the Fed was notified
of extensive irregularities in its
processing of the Goldman Sachs - GE
application, the Board hauled off and
approved it, saying, in footnote 49,
that
"Two
commenters express concerns about GS
Bank’s use of the Board’s prefiling
process, suggesting that commenters
could not participate in the
resolution of substantive issues
raised by the proposal because these
issues were resolved before the filing
of this application. One of these
commenters withdrew its comments in
full following its discussions with GS
Bank.
The Federal Reserve has
established a prefiling process to
provide potential applicants with
information about the procedural
requirements, such as timing and the
applicable forms, associated with a
proposal. See SR Letter 12-12. This
process also helps to identify
information that may be needed in
connection with issues that the Board
typically considers in connection with
a particular type of application or
notice, such as
competition or financial stability.
The prefiling process is not used, and
was not used in this case, to resolve
or predetermine the outcome of any
substantive issues. As in every case,
the substantive issues involved in
this case were considered and resolved
as part ofthe processing of GS Bank’s
formal application. In doing so, the
Board considered all public comments
on the proposal.
Voting for this action: Chair Yellen,
Vice Chairman Fischer, and Governors
Tarullo, Powell, and Brainard."
August
1, 2016
Here is
the fraud of
US Community
Reinvestment
Act "enforcement"
- detailed
challenges are
deemed
rebutted by
"Compliance
Plans" a bank
submits --
which are then
deemed
confidential in
full, no
reasonably segregable information,
under FOIA
exemption 8.
This is from
the FDIC this
week, but
concerns the
Federal Reserve:
Dear
Mr. Lee:
This is our
final response
to your July
8, 2016
Freedom of
Information
Act (FOIA) request
for
information
that you
described as
follows:
This is a
request for
the Bank of
North Carolina
submission to
the FDIC in connection
with Inner
City Press /
Fair Finance
Watch's CRA
protest,
referred to
(and relied
on) by the
Federal
Reserve in
this order:
"BNC
further
represents
that BNC Bank
is committed
to continually
improving its performance
in the
Greenville and
Charleston
MSAs and to
meeting the
needs of
all members of
the
communities.
BNC notes that
the commenter
filed similar comments
with the FDIC
on an
application
for an
unrelated
acquisition,
which was
approved on
the condition
that BNC Bank
develop and
submit a
supplement to
its existing
compliance
plan that
would
strengthen the
bank’s fair
lending compliance
program. BNC
asserts that
the supplement
to BNC Bank’s compliance
plan, which
has been
approved by
the FDIC and
implemented by
the
bank,
adequately
addresses the
concerns
raised by the
commenter on
this proposal."
ICP's
June 18, 2016
comments on
Bank of North
Carolina's
application to
acquire High
Point Bank and
Trust
requested this
plan. The FDIC
extended the
comment period
to July 8 -
but still,
none of the
plan has been
received.
Hence this
formalFOIA
request (and
request for
further
extension of
the BNC - High
Point Bank and
Trust comment
period).
Our
records search
has been
completed, and
the record
that you
requested
(Record) was
located. We
have
determined
that the
Record does
not contain
any reasonably
segregable
non-exempt information.
Therefore,
your FOIA
request is
being denied.
The
Record is
exempt from
disclosure in
its entirety
under FOIA
Exemptions 4
and 8, 5
U.S.C. §552(b)(4)
and (b)(8),
and is being
withheld in
full.
Exemption 4
permits the
withholding of trade
secrets, and
confidential
or privileged
commercial or
financial
information
obtained from
a person.
Exemption 8
permits the
withholding of
information
contained in,
or related to,
the examination,
operating, or
condition
reports
prepared by,
on behalf of,
or for the use
of the FDIC in
its regulation
or supervision
of financial
institutions.
This completes
the processing
of your
request.
We'll have more on this.
July
25, 2016
In January
of this year, Inner City Press
submitted a protest to the Federal
Reserve to NYCB's application to
acquire Astoria, see below. Now on
July 20, the Fed has asked NYCB this:
"Based on
staff’s review of the current record,
the following additional information
is requested. Supporting
documentation, as appropriate, should
be provided.
"In its
February 13, 2016, comment on the
proposal, Inner City Press/Fair
Finance Watch (“ICP”) alleges that New
York Community Bank’s and Astoria’s
branch patterns disproportionately
exclude Upper Manhattan and
particularly the Bronx, which ICP
states is the most predominately
minority and low-income community in
the state of New York. Please respond
to these allegations. Please provide a
copy of the public portion of your
response directly to Matthew Lee of
ICP. Any information for which you
desire confidential treatment should
be so labeled and separately bound in
accordance with section 261.15 of the
Board’s Rules Regarding Availability
of Information"
We'll
see - is this like on a recent merger
where the Fed withheld its FOIA
response until the day before they
approved the merger? This is a
scam....
July
18, 2016
Wanna get to know you: The Federal Reserve has asked, "Please provide summaries of the existing business activities of BOK (including BOKF, National Association) and MBT (including MBT Bank). Your response should include a description of the geographic areas in which the banking organizations engage in their respective activities and the products and services that each organization currently provides. Regarding BOK, please also include details about the various banking organization acquisitions that BOK has made over the years and the subsequent consolidation of each acquired banking organization into BOKF, National Association."
July
11, 2016
The Fed
has asked on
Chemical -
Talmer this,
about branches:
"demonstrate
that Talmer
B&T is
using the
branch primarily
for the
business of
banking. Your
answer should
include the
following, if
a. Date on
which the
branch was
acquired or
opened by
Talmer
B&T.
b. Explanation
for the low
branch
occupancy
percentage at
the branch
location
c. Description
of any plans
of Chemical to
increase
occupancy of
the property
d. Description
of the
revenues and
deposits
associated
with the
branch
relative
e. Description
of any
features of
the branch
that make it a
marquee
location of
f. Discussion
of whether
Talmer
B&T’s
ownership of
the property
housing
Branches for
which
information is
requested:
? Boardman
Financial
Center, 724
Boardman-Poland
Road,
Boardman, Ohio
? Dublin
Financial
Center, 6033
Perimeter
Drive, Dublin,
Ohio
? Elyria –
Downtown, 200
Middle Avenue,
Elyria, Ohio
? Muskegon,
281 Seminole
Road, Norton
Shores,
Michigan
? Port Huron
Round, 525
Water Street,
Port Huron,
Michigan
? Portage, 800
East Milham,
Portage,
Michigan
? Ravenna
Financial
Center, 999
East Main
Street,
Ravenna Ohio"
July
4, 2016
The Fed
says Bank of
the Ozarks'
(or BOTO's)
overdraft fees don't
have to be considered
because
the Bank says
they changed
them after
being sued....
June
27, 2016
After Brexit, the Fed on June 24 announced "The Federal Reserve is carefully monitoring developments in global financial markets, in cooperation with other central banks, following the results of the U.K. referendum on membership in the European Union. The Federal Reserve is prepared to provide dollar liquidity through its existing swap lines with central banks, as necessary, to address pressures in global funding markets, which could have adverse implications for the U.S. economy."
June
20, 2016
And now
this:
"Huntington
seeks to
exclude
certain
collateralized
public funds
from the
competitive assessment
that are
booked to
headquarters
offices in two
markets,
Akron, OH and
Canton, OH."
Then a bunch
of redactions
that the Fed
must rule on,
it cannot
require a FOIA
request of the
type the Fed
now leaves
unresponded to
...
June
13, 2016
And
this from the
Fed, under the
ex-parte
rules:
In
connection
with the
application
submitted by
Huntington
Bancshares
Incorporated (“Huntington”),
Columbus, to
acquire all
the voting
shares of, and
to merge with, FirstMerit
Corporation
and thereby
indirectly
acquire
FirstMerit
Bank, N.A.,
both of Akron,
all of
Ohio, pursuant
to section 3
of the Bank
Holding
Company Act of
1956 (“BHC
Act”), as amended,
the following
information is
requested.
Supporting
documentation,
as
appropriate, should
be provided.
Further
information
may be
required as
staff
continues its
review of the proposal.
1. As provided
in the
Introductory
Statement and
Memorandum on
Competitive Considerations,
Huntington
seeks to
exclude
certain public
funds from the
assessment of
competitive
considerations
in the Akron
and Canton,
Ohio, banking
markets. For
the public-fund
exclusions
sought in each
market,
provide the
dollar amount
of the
deposits to
be excluded
that were
deposited by
public
entities
located in the
respective
markets. Show
the
calculations
made to
compute the
dollar amount,
and provide
the data used
to determine
whether a
public entity
is located
inside a
banking market
(e.g.,
depositor zip codes).
Watch this
site.
June
6, 2016
Federal
Reserve Gives BNC An Approval Based on
Secret Compliance Plan - and doesn't
call ICP/FFW until the next day
By Matthew
R. Lee
NEW YORK,
June 2 -- The lack of seriousness in
US bank regulation expends from the
relatively smaller of mid-sized to the
largest banks, with Goldman Sachs the
most recent example.
A
mid-sized bank Inner City Press / Fair
Finance Watch is scrutinizing, based
on its records, is BNC
Bancorp, seeking to acquire
Southcoast Financial in South
Carolina and, after that, High Point
Bank & Trust.
On June 2
after a long delay, including delay in
providing basic information to Inner
City Press, the Federal Reserve
approved the Southcoast deal. But the
Fed didn't even call ICP/FFW until the
next day: it's come to this. The Fed
approval over said, "In this case, the
Board received comments from a
commenter who objects to the proposal
on the basis of alleged disparities in
the number of conventional home
purchase loans made to African
Americans and Hispanics, as compared
to whites, by BNC Bank."
Then
the Fed says, "BNC further represents
that BNC Bank is committed to
continually improving its performance
in the Greenville and Charleston MSAs
and to meeting the needs of all
members of the communities. BNC notes
that the commenter
filed similar comments with the FDIC
on an application for an unrelated
acquisition, which was approved on the
condition that BNC Bank develop and
submit a supplement to its existing
compliance plan that would strengthen
the bank’s fair lending compliance
program. BNC asserts that the
supplement to BNC Bank’s compliance
plan, which has been approved by the
FDIC and implemented by the bank,
adequately addresses the concerns
raised by the commenter on this
proposal."
But that's been withheld. We'll have
more on this.
On
March 1 the Federal Reserve e-mailed
Inner City Press a memo about a
meeting it had with BNC Bank's highest
executives, under the Fed's rules on
Ex Parte contacts, avoiding the fair
lending and Community Reinvestment Act
issues which Inner City Press has
raised. We are publishing
the Federal Reserve memo online
here.
But
as Inner City Press immediately
replied, including to the Fed's Office
of the Secretary, why did the Fed wait
until March 1 to send a memo of a
January 28, 2016 meeting -- more than
a month? Does that comply with any
meaningful rule on Ex Parte
communications? We'll have more on
this.
There's a problem with this
acquisitiveness: BNC is subject to to
Compliance Order with the FDIC, which
is rare, based on its fair lending
record. But after Fair Finance Watch
protested the deal, and the Fed told
BNC to send it a copy of the bank's
response, the response was provided
six days later with with the entirety
of the Community Reinvestment Act
response withheld. See
here.
May 30,
2016
May 23,
2016
How can it
be, that the
Fed has STILL
not provided
the documents
long ago
requested under
FOIA about
Huntington - FirstMerit?
Things are
getting
worse...
May
16, 2016
Last week
Inner City
Press asked an
economist from
UN DESA about
the likelihood
of a Fed rate
hike in June,
here:
https://youtu.be/HjmZSDhHjF4
May 9,
2016
The Fed
on Republic ruled
that Inner
City Press / Fair Finance Watch
"contends that
Republic
Bank’s past
tax refund
anticipation
loan product
is an example
of problems
with Republic
Bank’s lending record....
Through
partnerships
with tax
preparers and
tax software
preparation
companies, Republic
Bank offered
tax refund
anticipation
loans whereby
the bank
extended tax
refund
advances to
taxpayers
shortly after
they filed
their tax
returns. The
advances were secured
by the
taxpayers’
refunds. In
response to
safety and
soundness and
consumer
compliance
concerns
raised by the
FDIC regarding
this tax
refund
anticipation
loan product
offered by
Republic Bank,
the product
was
discontinued
in 2012
pursuant to an
agreement
between the
FDIC and
Republic Bank.
Republic Bank
recently
launched a new
product that
offers
advances of
taxpayers’
refunds;
however, as
discussed in
more
detail below,
Republic
represents
that the new
product has
significantly
different
terms and
protections
that address
the FDIC’s
concerns
regarding the
prior product."
We'll
have more on
this...
May
2, 2016
Inner
City Press /
Fair Finance
Watch has
asked the Fed
this:
"We
note that the
FRB of
Chicago, until
Reserve Banks
in New York,
Philadelphia,
Cleveland,
Richmond and
Atlanta, does
not list an
email address
for comments -
this should be
acted on and
improved."
April
25, 2016
ICP Awaits
Fed's FOIA Response on Huntington -
FirstMerit, May 16 New Date
By Matthew
R. Lee
NEW YORK,
April 22 -- The lack of seriousness in
US bank regulation grows from the
relatively smaller to the largest
banks, more Fed-favored banks like
Goldman Sachs - through those in the
upper bulge like Huntington, seeking
to buy First Merit and close more than
100 branches.
Inner
City Press / Fair Finance Watch on
March 19 filed with the Federal
Reserve a challenge to Huntington's
application to acquire First Merit and
close 107 branches. On April 16, Inner
City Press made a third filing, for an
extension of the comment period.
On
April 22, a week after Inner City
Press' request but a day after
Huntington CEO Steve Steinour
downplayed the branch closures to his
shareholders, the Federal Reserve
called Inner City Press and said the
comment period will now run to May 16.
Later this was put online.
While
appreciated, will this help keep
branches open? We'll see - for now,
the Fed has extended its time to
respond to Inner City Press' long
pending Freedom of Information Act
request:
April
18, 2016
Inner
City Press has
filed: This is
a timely third
comment
opposing,
reiterating
ICP's March 20
FOIA request
on, and
requesting an
extension of
the FRB's
public comment
period on the
Application by
Huntington
Bancshares to
acquire
FirstMerit
Corporation.
The
Board has
STILL not
responded to
ICP's FOIA
request and
the comment
period must be
extended on
that ground
alone.
This proposed
merger would,
if approved,
result in the
closure or
“consolidation,”
see below, of
more than 100
branches --
nearly 50 are
in the
Cleveland,
Akron and
Canton areas.
Huntington's
lending in two
of these areas
was analyzed
in ICP's first
comment;
FirstMerit is
initially
reviewed here.
More will
follow. These
closures and
“consolidations”
would cause
harm; what
would be the
countervailing
public
benefit?
Public
hearings are
needed.
In its most
recently
submission,
Huntington
states that
“the Board
published
notice of the
Application in
the Federal
Register on
March 17,
2016, inviting
the public to
comment on the
Application
through April
15,
2016.
Therefore, the
current
comment period
on the
Application is
36 days and it
remains open
to provide
interested
members of the
public and
ample time to
comment on the
Application.”
Inner
City Press is
informed that
Huntington has
represented
that it will
not oppose, in
fact will
support, an
extension of
the comment
period. Yet it
is 4:50 pm on
April 15 and
nothing has
been
announced.
Therefore this
submission,
requesting an
extension of
the comment
period.
April 11, 2016
So 107 prospective
branch
closures by Huntington,
and not only no
Fed public
hearing - no
extension of
the comment
period to
consider this
near-unprecedented level of
closure? Pathetic...
April
4, 2016
Goldman
Sachs ultimately on March 21 obtained
Federal Reserve approval to buy $16
billion in insured deposits from GE
Capital, and the Fed, documents
released to Inner City Press under the
Freedom of Information Act (FOIA)
show, is inappropriately bent on
helping, including by closing its
comment period... The Federal
Reserve has belatedly responded to
Inner City Press / Fair Finance
Watch's September 2 FOIA request, with
some of its internal documents, many
heavily redacted. FOIA
letter here; FOIA
documents released to ICP here,
and embedded below.
On
April 2, Inner City Press submitted a
timely request for reconsideration: