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October 14, 2024

 On First Busey, Inner City Press has been granted expedited processing: "I have determined to grant your request for expedited processing because (1) you are primarily engaged in disseminating information, and (2) the application you seek is open for" comment...

October 7, 2024

First Busey $1B Bid For CrossFirst Hit by Fair Finance Watch As CRA Exhibits Withheld

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Oct 4 – In the Midwest, Busey Bank is trying to move into the Kansas City area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications

  Van Dukeman, First Busey's CEO called it a "great fit from a cultural perspective." But consider Busey Bank's culture, its disparate lending record:   

First Busey's Busey Bank in Illinois in 2023 - data not yet included in any CRA exam - made 1163 mortgage loans to whites, and only 772 loans to African Americans. Meanwhile it denied only 216 applications from whites, and fully 24 from African Americans. Busey Bank should be referred to DOJ. 

Busey Bank in Missouri in 2023 - data not yet included in any CRA exam - made 49 mortgage loans to whites, and onlyseven loans to African Americans. Meanwhile it denied only 21 applications from whites, and fully eight from African Americans 

Busey Bank in Indiana in 2023 - data not yet included in any CRA exam - made 22 mortgage loans to whites, and only two loans to African Americans.  

Busey Bank in Florida in 2023 - data not yet included in any CRA exam - made 80 mortgage loans to whites, and only ONE loan to an African American.     

There is litigation, for example under the FCRA, here - dropped without explanation, presumable settled, the FRB should ask First Busey about all outstanding consumer litigation. 

And there was the First Busey board member, Elisabeth Kimmel, caught in the college admissions scandal, here.

When the Fed provided the application, the banks had withheld their CRA data. So, "This is a formal FOIA request for the withheld exhibits to the First Busey / CrossFirst application, in particular "Confidential" Exhibits 9 ("First Busey Community Reinvestment Act Data") and 10 ("CrossFirst Community Reinvestment Act data"). This is presumptively public." Watch this site.

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September 30, 2024

The Fed has granted expedited processing, they say, to Inner City Press' SouthState FOIA - but still no documents...

September 23, 2024

SouthState Lending Disparities Triggered CRA Challenge Now after FOIA Withheld Exhibit 18

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, Sept 19 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger, banks whose lending Inner City Press and Fair Finance Watch had been scrutinizing, even more so that the 2023 data is out.

  This week Inner City Press filed with the Fed, a timely first comment on, the Applications of SouthState Corporation to merge with Independent Bank Group, Inc., and Independent Bank.  

  SouthState in South Carolina in 2023 - data not yet included in any CRA exam - made 5013 mortgage loans to whites, and only 228 loans to African Americans. Meanwhile it denied only 670 applications from whites, and fully 195 from African Americans. SouthState should be referred to DOJ.  

  SouthState in North Carolina in 2023 - data not yet included in any CRA exam - made 1334 mortgage loans to whites, and only FIFTY SEVEN loans to African Americans. Meanwhile it denied only 173 applications from whites, and fully 20 from African Americans. 

  SouthState in Georgia in 2023 - data not yet included in any CRA exam - made 1176 mortgage loans to whites, and only 318 loans to African Americans. Meanwhile it denied only 304 applications from whites, and fully 88 from African Americans.  

 Nationwide in 2023, SouthState made 7798 mortgage loans to whites, and only 947 loans to African Americans. Meanwhile it denied only 2491 applications from whites, and fully 558 from African Americans.  

  Why would regulators even consider approving its expansion? 

On August 9, SouthState submitted to the Fed a response - that deals only with Independent Bank.

On September 18, the Fed asked SouthState questions including "Confirm that no consumer products or community development programs or services offered by either organization will be discontinued by the combined organization as a result of the proposed transaction, other than those identified in Confidential Exhibit 18 to the application."

Inner City Press has submitted a FOIA request with the Fed for that obviously CRA-material Exhibits.

  No thanks to the Fed, Inner City Press got the exhibit - SouthState just withdrew its request for confidential treatment, of this: "CONFIDENTIAL  SouthState Bank, N.A. Independent Bank  Discontinued Independent Bank Products and Services  June 2024  SSC and IBTX currently plan on discontinuing Independent Bank’s mortgage warehouse program and selling its Shared National Credits (SNC) portfolio. Almost all purchased SNCs are in Independent Bank’s commercial loan portfolio, with the largest single industry concentration in energy."

 Inner City Press is requesting an extension of the public comment period, public / virtual evidentiary hearings and that, on the current record, the applications not be approved

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September 16, 2024

The Fed is a paper tiger? Not only still nothing on the Porticoes application - on September 11 the Fed issued an enforcement action against Fieldpoint, which immediately put out "“We have a strong partnership with our regulators,” said H. Russell Holland, President and CEO of Fieldpoint Private. "Private Holdings, Inc., is the holding company of Fieldpoint Private Bank & Trust, a boutique private banking firm headquartered in Greenwich, Connecticut, with offices in New York City, Atlanta and Orlando/Winter Park. Fieldpoint Private was established at the onset of the Great Financial Crisis by 31 individuals, including former Chairmen and CEOs of some of the most well-known and successful financial and consumer firms in America."

September 9, 2024

  More from the FRB Chicago, but from FRBNY, *still* nothing on the Porticoes application...

September 2, 2024

The Fed *still* hasn't sent the request Porticoes / "blank check" bank application. But from the FRB Chicago, this: "Pursuant to your email request, attached is the public portion of the below filing:      ChoiceOne Financial Services, Inc., Sparta, Michigan to merge with Fentura Financial, Inc., and thereby indirectly acquire The State Bank, both of Fenton, Michigan    Please confirm receipt of this email after verifying that the document could be opened." We confirmed; OOO

August 26, 2024

And SouthState's response - much of it confined to a "Confidential" exhibit:

Provide the IBTX Disclosure Schedule referenced in the Merger Agreement. A copy of the IBTX Disclosure Schedule is attached as Confidential Exhibit 1. 3. Describe in greater detail the purpose and activities of the various trusts held by SouthState and IBTX that are described in the application. Both SouthState and IBTX have formed or acquired statutory business trusts (the “Trusts”) for the purpose of issuing trust preferred securities to investors. These entities do not otherwise conduct any business activities. Each of the Trusts has issued capital and common securities and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (the “Debentures”) issued by either SouthState or IBTX. The interest rate payable on and the payment terms of the Debentures are the same as the distribution rate and payment terms of the respective issues of capital and common securities issued by the Trusts. The Debentures are subordinated and junior in right of payment to all present and future senior indebtedness. SouthState and IBTX have fully and unconditionally guaranteed the obligations of their respective Trusts with respect to the capital and common securities. Except under certain circumstances, the common securities issued to SouthState or IBTX by their respective Trusts possess sole voting rights with respect to matters involving those entities. Under certain circumstances, SouthState and IBTX may, from time to time, defer the debentures' interest payments, which would result in a deferral of distribution payments on the related trust preferred securities. The Debentures are callable after five years from the date of issuance, therefore all Debentures formed or acquired by SouthState and IBTX are callable as of June 30, 2024. SouthState and IBTX have $118.6 million and $57.3 million of Debentures, respectively, outstanding as of June 30, 2024. It is SouthState’s intent to assume all Trusts outstanding at IBTX and treat the Debentures as Tier 2 capital for regulatory capital purposes. 4. Indicate whether SouthState or any of its subsidiaries are subject to any state community reinvestment laws. If applicable, explain how the proposed transaction complies with such law(s). SouthState confirms that neither SouthState nor any of its subsidiaries are subject to any state community reinvestment laws. 5. Confidential Appendix. For our responses to the information requested in the Confidential Appendix of the AIR, please see the Confidential Annex, which also contains Confidential Exhibits 1 and 2.

August 19, 2024

The Fed has asked SouthState, "4. Indicate whether SouthState or any of its subsidiaries are subject to any state community reinvestment laws. If applicable, explain how the proposed transaction complies with such law(s)." That's it?

August 12, 2024

Back on June 26 on a smaller merger, Inner City Press requested records - and was granted expedited treatment, explicitly with reference to the July 25 expiration of the public comment period. But no records were given - and on July 26, this: "Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until August 9, 2024, in order to consult with two or more components of the Board having a substantial interest in the determination of the request." And no response to the timely request to exetnd the comment period...

But even on August 9 by 10 pm, no documents, nothing. Meanwhile the underlying bank urges delegated rubber stamp. This is today's Fed.

August 5, 2024

On July 26, after a FOIA appeal - and after closing the public comment period - the OCC belatedly gave Inner City Press documents showing Capital One briefed the OCC on a "big" deal in November 2023; it was code named "Project Sirius."

Then overly chummy texts from Andy Navarrete, who testified at the public meeting, and Pient Tran to the OCC's Marci Heppner and others.

For example, Andy to Marci, sorry for the late ping, if Richard wanted to call, could you do a 1:1 Zoom at 7:30 [pm]. But of course. That and more now on Inner City Press' DocumentCloud here

July 29, 2024

The Fed's FOIA scam is no limited to Capital One / Discovery. On June 26 on a smaller merger, Inner City Press requested records - and was granted expedited treatment, explicitly with reference to the July 25 expiration of the public comment period. But no records were given - and on July 26, this: "Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until August 9, 2024, in order to consult with two or more components of the Board having a substantial interest in the determination of the request." And no response to the timely request to exetnd the comment period...

July 22, 2024

From Testimony Opposing Capital One's Bid to Acquire Discover  July 18, 2024  

  The day the banks announced the proposed merger, Inner City Press submitted Freedom of Information Act requests to both the Federal Reserve and the Office of the Comptroller of the Currency.      The Fed, as has become a pattern, granted Inner City Press' FOIA request expedited treatment - and then did not provide any of the responsive documents, claiming it needed more time.

July 15, 2024

On Capital One Discover 3 Minutes Each OCC Withholds 185 Pages Inner City Press Appeals - Still Nothing from the Fed

by Matthew R. Lee

SOUTH BRONX, July 9 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20,  Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).

On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.

On June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.

At the July 19 public meeting, "each speaker will be allotted three minutes to speak at the meeting," the OCC and Fed on July 9 said.

July 8, 2024

  Now belatedly the Federal Reserve has fined Silvergate $43 million - previously,