Click here to Search This
Site -- For or with more information, contact us.
May 16,
2022
Now
with two new
Governors,
what will
change at the
Fed? An RFI on
mergers? More
importantly,
an end to
rubberstamping?
We'll see.
May 9,
2022
The
Federal Reserve,
which
constructively
denies FOIA
request on
issues ranging
from branch
closings to crypto-currency,
pretends to be
transparent.
But why then
on its
page about
interactions
with the
public is
there nothing
on consumer
protection
since 2014? See
here.
May
2, 2022
With
Lisa Cook
delayed by
COVID among
those voting,
the Fed has
STILL not issued
the CRA
proposal for
comment, much
less a much
needed merger
review RFI.
Shameful.
April
25, 2022
That
even with two
new governors
coming, those
on the Board
haven't even
put out the
CRA proposal,
or an RFI on
merger review,
tells you all
you need to
know about
thatm...
April
18, 2022
On Branch Closures Federal Reserve Withholds Info and Tells Inner City Press No Closure List
By
Matthew Russell Lee, Patreon Maxwell
Book
BBC-Guardian
UK - Honduras
- ESPN NY
Mag
South
Bronx / SDNY, April 11 – Amid a wave of
bank branch closings in the US, particularly in
lower income areas, during the COVID-19
pandemic, Inner City Press in October 2020 filed
a Freedom of Information Act request with the
main US regulator, the Federal Reserve, for
information about branch closing.
Tellingly,
despite talk about improved community and
consumer protection regimes among the bank
regulators, the Federal Reserve after 17 months
on this FOIA request has told Inner City Press
it has only five pages that it will release,
about a single Wisconsin branch closure (even
then, redacted).
Worse,
the Federal Reserve, charged with reigning in
swaps and even crypto-currency fraud, says it
does not maintain a list of branch closings, as
even the OCC does. This is shameful, and must be
addressed by the two incoming Governors, and who
ever will replace Sarah Bloom Raskin as a Fed
nominee.
From
the Fed's April 2022 FOIA request to Inner City
Press / Fair Finance Watch:
"This
is in response to your electronic message dated
and received by the Board’s Information
Disclosure Section on October 20, 2020. Pursuant
to the Freedom of Information Act
(“FOIA”), 5 U.S.C. § 552, you seek: electronic
records concerning requests to the Federal
Reserve System about branch closings or
consolidations in low or moderate income
census tracts including request for public
meetings, from July 4, 2018 to the date of
your response. Your request included an
example of a notice by the Federal Reserve Bank
of Chicago (“Reserve Bank”) for a public
meeting concerning the notice by Johnson Bank,
Racine, Wisconsin to close its branch
located at 2729 18th Street, Kenosha, Wisconsin.
You
further noted that your request also includes:
all such meetings held, as well as requests for
meetings, direct or indirect, which were
denied, as well as all non-exempt portion
of FRS records reflecting considering and
decision making on such requests.1
1
In an email correspondence with Ms. Katrina
Allen Austin of the Board’s Legal Division
on March 23, 2021, seeking clarification
about the nature of your request, you noted that
“[t]he OCC, for example, publishes each
branch closing in its Weekly Bulletins” and you
subsequently sought FRS “records [of] when
public meetings have been requested on branch
closings, and when they have been granted
…[separate] out those in LMI communities and
where public meetings were requested and /
or granted.” 2
In
light of your March 23, 2021, email, staff
interpreted your request as seeking
records concerning “branch closings by
FRS-supervised institutions (state member
banks) … where public meetings were requested
and / or granted” from 2020.2 You may wish to
know that the Board does not publish a “list of
branch closings” as the OCC does. Staff
searched Board records and located information
responsive to your modified request.
This information is subject to withholding
and will be withheld from you pursuant to
exemptions 5 and 6 of the FOIA, 5 U.S.C.
§§ 552(b)(5) and (b)(6), respectively. I have
also determined that the information
should be withheld because it is reasonably
foreseeable that disclosure would harm an
interest protected by an exemption described in
subsection (b) of the FOIA, 5 U.S.C. §
552(b). The responsive documents have been
reviewed under the requirements of
subsection (b), and all reasonably segregable
nonexempt information will be provided to
you. Additionally, approximately 5 pages are
being withheld in full.
April
11, 2022
Fed and Citizens Bank Thumbed Noses At CRA On Investors Bank, Govs Refuse to Reconsider
By
Matthew Russell Lee, Patreon Story Order
BBC
- Guardian
UK - Honduras
- ESPN
FEDERAL
COURT / S Bronx, April 5 – Whether or not the
U.S. Community Reinvestment Act will be again
enforced under the current Administration and
its regulators is an open question still -
though the answer is more and more No. The
proposed acquisition of Investors Bank by
Citizens Bank was a litmus test, one that both
Citizens and the Fed have failed.
Investors Bank is one of the most disparate
banks in New York State, where in 2020 it made
only three mortgage loans to African Americans,
while denying fully seven applications from
African Americans. By contrast, it made 164
loans to whites while denying only 76
applications from whites.
Inner City Press raised the 2019 disparities to
the FDIC - and on July 30 was contacted by the
FDIC that it imposed rare conditions on
Investors. Letter here.
This was raised on Citizens' applications: "be
aware that based on Fair Finance Watch's
comments to the FDIC about Investors, it
recently imposed a condition on Investors.
Investors has yet to meaningfully implement the
required improvements; this application should
not be approved, much less at this
time. The FDIC wrote:
"Matthew
Lee, Esquire Executive Director Inner City
Press/Fair Finance Watch Dear Mr. Lee: We
are writing to inform you that the FDIC approved
Investors Bank’s application to acquire eight
branches from Berkshire Bank. As part of the
application review process, we investigated the
issues you raised in your e-mail dated January
19, 2019... The Bank will develop and Board
approve an Action Plan within 60 days of
the effective date of this Order to ensure
that its home mortgage lending adequately
addresses the credit needs of all segments of
its market areas. The Action Plan should
include, at a minimum, the following: a. The
Bank will regularly monitor application and
origination activity of home mortgage
loans in majority-minority census tracts and
from Blacks throughout the Bank’s
assessment areas. b. The Bank will ensure
marketing and outreach efforts are inclusive of
all communities, including minority
communities within all the Bank’s assessment
areas. The marketing and outreach efforts
should focus on home mortgage product
awareness. Marketing activities should use
materials and media that reflect the racial and
ethnic composition of the targeted
communities. The Bank should also have
specific advertising and outreach goals,
and the results of these efforts should be
documented, monitored, and evaluated for
effectiveness. 5. Upon Board approval of
this Order, the Bank will provide a copy of the
signed Order to the FDIC's New York
Regional Office within 30 days. 6. Upon
Board approval of such Action Plan, the Bank
will provide a copy of the Plan to the
FDIC’s New York Regional Office. 7. The Bank
will provide the FDIC’s New York Regional Office
with quarterly updates detailing its
progress in meeting the goals listed in the
Action Plan."
But in response to this, Citizens only said
dismissively that the record of the acquiree
doesn't matter. So they could buy OneCoin? It is
major law firm making this argument. It is an
embarrassment. And the Federal Reserve's
question letter of October 22 does not address
it, and Citizens' law firm late provided its
"answer" and two responses to the Fed.
Nevertheless
on March 22 the Federal Reserve Board, with
Sarah Bloom Raskin blocked from joining and two
others yet to arrived, rubber stamped Citizens'
application. It stated that "The commenter also
alleged that, as a result of disparate
marketing, Investors Bank made
disproportionately fewer home loans in the
states of New Jersey and New York to African
American individuals as compared to white
individuals based on 2020 HMDA data. In
addition, the commenter noted that the FDIC had
imposed a condition in connection with a
previous branch acquisition that Investors Bank
develop an action plan to ensure that its home
mortgage lending adequately addresses the credit
needs of all segments of its market areas. The
commenter asserted that Investors Bank has yet
to meaningfully implement the required
improvements and that the proposal should not be
approved at this time."
The
Fed gave its March 22 approval despite Investors
having done very little or nothing. This as Fair
Finance Watch has raised another moribund
condition, by Oakwood Bank in Dallas, to
the FDIC. What do these conditions mean?
Inner
City Press filed a timely request for
reconsideration: "This is a timely request for
reconsideration of the Board's approval of the
Applications by Citizens Financial Group's
application to acquire Investors Bancorp noting
but not addressing Investor's weakness which
gave rise to FDIC condition.
This is a new low for the FRB. This was a
condition imposed by one of the two other
Federal bank regulators. If the Board won't even
inquire into and take a written position on a
merger partner's performance under a written
condition imposed by another regulators, these
conditions are meaningless.
Fair Finance Watch timely put into record before
the Board: The FDIC wrote: "Matthew Lee,
Esquire Executive Director Inner City Press/Fair
Finance Watch Dear Mr. Lee: We are writing
to inform you that the FDIC approved Investors
Bank’s application to acquire eight branches
from Berkshire Bank. As part of the application
review process, we investigated the issues you
raised in your e-mail dated January 19,
2019... The Bank will develop and Board
approve an Action Plan within 60 days of
the effective date of this Order to ensure
that its home mortgage lending adequately
addresses the credit needs of all segments of
its market areas. The Action Plan should
include, at a minimum, the following: a. The
Bank will regularly monitor application and
origination activity of home mortgage
loans in majority-minority census tracts and
from Blacks throughout the Bank’s
assessment areas. b. The Bank will ensure
marketing and outreach efforts are inclusive of
all communities, including minority
communities within all the Bank’s assessment
areas. The marketing and outreach efforts
should focus on home mortgage product
awareness. Marketing activities should use
materials and media that reflect the racial and
ethnic composition of the targeted
communities. The Bank should also have
specific advertising and outreach goals,
and the results of these efforts should be
documented, monitored, and evaluated for
effectiveness. 5. Upon Board approval of
this Order, the Bank will provide a copy of the
signed Order to the FDIC's New York
Regional Office within 30 days. 6. Upon
Board approval of such Action Plan, the Bank
will provide a copy of the Plan to the
FDIC’s New York Regional Office. 7. The Bank
will provide the FDIC’s New York Regional Office
with quarterly updates detailing its
progress in meeting the goals listed in the
Action Plan." The
Board in its approval merely recited this,
without addressing it: "the commenter noted that
the FDIC had imposed a condition in connection
with a previous branch acquisition that
Investors Bank develop an action plan to ensure
that its home mortgage lending adequately
addresses the credit needs of all segments of
its market areas. The commenter asserted that
Investors Bank has yet to meaningfully implement
the required improvements and that the proposal
should not be approved at this
time." Has Investors
meaningfully implemented these requirements? The
Fed with all its resources does not address it.
The Order makes a mockery of the regulators' way
to approve an otherwise unapprovable merger like
Investors. The Order should be
reconsidered, by each current government and
those incoming, before this proposal is
consummated - the Order should be stayed for
that purpose."
April
4, 2022
With Sarah
Bloom Raskin
out of the
running, who
will the
Administration
nominate for
the Federal Reserve
seat? Some
are talking about
existing
Fed personalities.
But if they
meant well on
CRA, we would
have known.
Others are
talking about
the AFL-CIO
economist, or
someone
(bipartisan)
to represent rural
America. Watch
this site.
March
28,2022
Fed and Citizens Bank Thumb Noses At CRA On Investors Bank FDIC Conditions, Rubber Stamp
By
Matthew Russell Lee, Patreon Story Order
BBC
- Guardian
UK - Honduras
- ESPN
FEDERAL
COURT / S Bronx, March 22 – Whether or not the
U.S. Community Reinvestment Act will be again
enforced under the current Administration and
its regulators is an open question still -
though the answer is more and more No. The
proposed acquisition of Investors Bank by
Citizens Bank was a litmus test, one that both
Citizens and the Fed have failed.
Investors Bank is one of the most disparate
banks in New York State, where in 2020 it made
only three mortgage loans to African Americans,
while denying fully seven applications from
African Americans. By contrast, it made 164
loans to whites while denying only 76
applications from whites.
Inner City Press raised the 2019 disparities to
the FDIC - and on July 30 was contacted by the
FDIC that it imposed rare conditions on
Investors. Letter here.
This was raised on Citizens' applications: "be
aware that based on Fair Finance Watch's
comments to the FDIC about Investors, it
recently imposed a condition on Investors.
Investors has yet to meaningfully implement the
required improvements; this application should
not be approved, much less at this
time. The FDIC wrote:
"Matthew
Lee, Esquire Executive Director Inner City
Press/Fair Finance Watch Dear Mr. Lee: We
are writing to inform you that the FDIC approved
Investors Bank’s application to acquire eight
branches from Berkshire Bank. As part of the
application review process, we investigated the
issues you raised in your e-mail dated January
19, 2019... The Bank will develop and Board
approve an Action Plan within 60 days of
the effective date of this Order to ensure
that its home mortgage lending adequately
addresses the credit needs of all segments of
its market areas. The Action Plan should
include, at a minimum, the following: a. The
Bank will regularly monitor application and
origination activity of home mortgage
loans in majority-minority census tracts and
from Blacks throughout the Bank’s
assessment areas. b. The Bank will ensure
marketing and outreach efforts are inclusive of
all communities, including minority
communities within all the Bank’s assessment
areas. The marketing and outreach efforts
should focus on home mortgage product
awareness. Marketing activities should use
materials and media that reflect the racial and
ethnic composition of the targeted
communities. The Bank should also have
specific advertising and outreach goals,
and the results of these efforts should be
documented, monitored, and evaluated for
effectiveness. 5. Upon Board approval of
this Order, the Bank will provide a copy of the
signed Order to the FDIC's New York
Regional Office within 30 days. 6. Upon
Board approval of such Action Plan, the Bank
will provide a copy of the Plan to the
FDIC’s New York Regional Office. 7. The Bank
will provide the FDIC’s New York Regional Office
with quarterly updates detailing its
progress in meeting the goals listed in the
Action Plan."
But in response to this, Citizens only said
dismissively that the record of the acquiree
doesn't matter. So they could buy OneCoin? It is
major law firm making this argument. It is an
embarrassment. And the Federal Reserve's
question letter of October 22 does not address
it, and Citizens' law firm late provided its
"answer" and two responses to the Fed.
Nevertheless
on March 22 the Federal Reserve Board, with
Sarah Bloom Raskin blocked from joining and two
others yet to arrived, rubber stamped Citizens'
application. It stated that "The commenter also
alleged that, as a result of disparate
marketing, Investors Bank made
disproportionately fewer home loans in the
states of New Jersey and New York to African
American individuals as compared to white
individuals based on 2020 HMDA data. In
addition, the commenter noted that the FDIC had
imposed a condition in connection with a
previous branch acquisition that Investors Bank
develop an action plan to ensure that its home
mortgage lending adequately addresses the credit
needs of all segments of its market areas. The
commenter asserted that Investors Bank has yet
to meaningfully implement the required
improvements and that the proposal should not be
approved at this time."
March
21, 2022
After Fed Disses Community Reinvestment Act Raskin Blocked By Manchin Cook 12-12 Tie
By
Matthew Russell Lee, Patreon Maxwell
Book
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURT, March 16 – When the US
bank regulators and Administration say they are
taking the Community Reinvestment Act more
seriously, it does not appear to be true.
Case
in point: the Federal Reserve Bank of New York
on February 28, on Berkshire Bank which got a
rare Needs to Improve CRA rating in New York
State, gave out an approval on a delegated
basis. The FRBNY cannot, as a matter of law and
as an entity owned by private banks, deny or
even condition an approval. This is a new low.
So to the blocking of Sarah Bloom Raskin, after
which this: Jay Powell advanced through the
Senate Banking Committee with Elizabeth Warren
opposing. Lael Brainard was backed in a 16-8
vote for the Fed vice chair, Phil Jefferson won
unanimous support and Lisa Cook moved forward to
the full Senate on a 12-12 tie. But will the Fed
just keep rubber-stamping?
Fair
Finance Watch, with Inner City Press on the
FOIA, which commented to the Fed on January 8,
has immediately filed a petition for review
saying it should be reviewed by each current,
and all Administration-nominated Governors:
Dear
Chair Powell, Secretary Misback and others in
the FRS: This is a timely petition to
review the decision today by the FRBNY to
approve - on a delegated basis -- the
Applications of TBB Investments LLC and TBB
Intermediate LLC to become bank holding
companies by acquiring Berkshire Bancorp, Inc
and Berkshire Bank -- which got a rare Needs to
Improve CRA rating in New York.
Significantly - and we think, disposively and
requiring review by the full Board and each
member, and the nominated members - Berkshire
Bank received a “Needs to Improve” rating in the
New York state assessment area during its May 7,
2019, CRA Performance Evaluation.
How
could the Reserve Bank, which has no authority
to deny or even condition approval on
applications, deign to rubber stamp this
application? This is a new low, and shows the
FRS is not complying with its and the
Administration's public statements about CRA and
fair lending...
See
also: "Reclusive landlord Moses Marx resigns as
Berkshire chairman, see here.
FFW
and Inner City Press are now even more deeply
concerned about the rush by the Federal
Reserve's to rubber-stamp mergers by redliners
and predatory lenders. This has been killing the
Community Reinvestment Act. This
bogus delegated approval must be stayed and
reviewed by each Governor and nominated
Governor.
Very
Truly Yours, Matthew
Lee, Esq. Executive Director
Inner City Press/Fair Finance Watch
This
was sent to the FDIC (Frank Hughes), NYSDFS, and
the bank lawyers at Stoock.
In a letter dated March 9 emailed to Inner City
Press / Fair Finance Watch on March 10, Federal
Reserve Board Secretary Ann E. Misback wrote,
"Your petition for review was presented to the
Board, and no member of the Board requested
review of the Reserve Bank’s action.
Accordingly, your request that the Board review
the Reserve Bank’s action on the Application is
denied." These Governors are: Chair Jerome H.
Powell, Michelle W. Bowman, Christopher J.
Waller and, yes, Lael Brainard."
They say that a privately
owned Federal Reserve Bank,
which has not authority to
disapprove any application,
can approve an application by
a bank with a Needs to Improve
CRA rating. We'll have more on
this.
March
14, 2022
Fed Governors Diss Community Reinvestment Act As FRBNY Approves Berkshire Bank With NTI Rating
By
Matthew Russell Lee, Patreon Maxwell
Book
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURT, March 10 – When the US
bank regulators and Administration say they are
taking the Community Reinvestment Act more
seriously, it does not appear to be true.
Case
in point: the Federal Reserve Bank of New York
on February 28, on Berkshire Bank which got a
rare Needs to Improve CRA rating in New York
State, gave out an approval on a delegated
basis. The FRBNY cannot, as a matter of law and
as an entity owned by private banks, deny or
even condition an approval. This is a new low.
Fair
Finance Watch, with Inner City Press on the
FOIA, which commented to the Fed on January 8,
has immediately filed a petition for review
saying it should be reviewed by each current,
and all Administration-nominated Governors:
Dear
Chair Powell, Secretary Misback and others in
the FRS: This is a timely petition to
review the decision today by the FRBNY to
approve - on a delegated basis -- the
Applications of TBB Investments LLC and TBB
Intermediate LLC to become bank holding
companies by acquiring Berkshire Bancorp, Inc
and Berkshire Bank -- which got a rare Needs to
Improve CRA rating in New York.
Significantly - and we think, disposively and
requiring review by the full Board and each
member, and the nominated members - Berkshire
Bank received a “Needs to Improve” rating in the
New York state assessment area during its May 7,
2019, CRA Performance Evaluation.
How
could the Reserve Bank, which has no authority
to deny or even condition approval on
applications, deign to rubber stamp this
application? This is a new low, and shows the
FRS is not complying with its and the
Administration's public statements about CRA and
fair lending...
See
also: "Reclusive landlord Moses Marx resigns as
Berkshire chairman, see here.
FFW
and Inner City Press are now even more deeply
concerned about the rush by the Federal
Reserve's to rubber-stamp mergers by redliners
and predatory lenders. This has been killing the
Community Reinvestment Act. This
bogus delegated approval must be stayed and
reviewed by each Governor and nominated
Governor.
Very
Truly Yours, Matthew
Lee, Esq. Executive Director
Inner City Press/Fair Finance Watch
This
was sent to the FDIC (Frank Hughes), NYSDFS, and
the bank lawyers at Stoock.
In a letter dated March 9 emailed to Inner City
Press / Fair Finance Watch on March 10, Federal
Reserve Board Secretary Ann E. Misback wrote,
"Your petition for review was presented to the
Board, and no member of the Board requested
review of the Reserve Bank’s action.
Accordingly, your request that the Board review
the Reserve Bank’s action on the Application is
denied." These Governors are: Chair Jerome H.
Powell, Michelle W. Bowman, Christopher J.
Waller and, yes, Lael Brainard."
They say that a privately
owned Federal Reserve Bank,
which has not authority to
disapprove any application,
can approve an application by
a bank with a Needs to Improve
CRA rating. We'll have more on
this.
March
7, 2022
Fed Scam on Community Reinvestment Act As FRBNY Approves Berkshire Bank With NTI Rating
By
Matthew Russell Lee, Patreon Maxwell
Book
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURT, Feb 28 – When the US
bank regulators and Administration say they are
taking the Community Reinvestment Act more
seriously, it does not appear to be true.
Case
in point: the Federal Reserve Bank of New York
on February 28, on Berkshire Bank which got a
rare Needs to Improve CRA rating in New York
State, gave out an approval on a delegated
basis. The FRBNY cannot, as a matter of law and
as an entity owned by private banks, deny or
even condition an approval. This is a new low.
Fair
Finance Watch, with Inner City Press on the
FOIA, which commented to the Fed on January 8,
has immediately filed a petition for review
saying it should be reviewed by each current,
and all Administration-nominated Governors:
Dear
Chair Powell, Secretary Misback and others in
the FRS: This is a timely petition to
review the decision today by the FRBNY to
approve - on a delegated basis -- the
Applications of TBB Investments LLC and TBB
Intermediate LLC to become bank holding
companies by acquiring Berkshire Bancorp, Inc
and Berkshire Bank -- which got a rare Needs to
Improve CRA rating in New York.
Significantly - and we think, disposively and
requiring review by the full Board and each
member, and the nominated members - Berkshire
Bank received a “Needs to Improve” rating in the
New York state assessment area during its May 7,
2019, CRA Performance Evaluation.
How
could the Reserve Bank, which has no authority
to deny or even condition approval on
applications, deign to rubber stamp this
application? This is a new low, and shows the
FRS is not complying with its and the
Administration's public statements about CRA and
fair lending.
As
we timely noted, on January 8, Fair Finance
Watch has been tracking Berkshire Bank, and has
found its lending patterns troubling. Berkshire
Bank in 2020 in New York State based on its
disparate marketing made 335 mortgage loans to
whites, with only 129 denials to whites -- while
making only TWO loans to African Americans, and
denying three applications from African
Americans. This is outrageous.
Also:
"Reclusive landlord Moses Marx resigns as
Berkshire chairman, see
https://www.crainsnewyork.com/commercial-real-estate/reclusive-landlord-moses-marx-resigns-berkshire-chairman
FFW
and Inner City Press are now even more deeply
concerned about the rush by the Federal
Reserve's to rubber-stamp mergers by redliners
and predatory lenders. This has been killing the
Community Reinvestment Act. This
bogus delegated approval must be stayed and
reviewed by each Governor and nominated
Governor.
Very
Truly Yours, Matthew
Lee, Esq. Executive Director
Inner City Press/Fair Finance Watch
This
has also been sent to the FDIC (Frank Hughes),
NYSDFS, and the bank lawyers at Stoock
February 28, 2022
After Investors Bank Hit With Conditions, Fed Rubber Stamps Home BancShares Texas Entry
By
Matthew Russell Lee, Patreon Story Order
BBC
- Guardian
UK - <