Click here to Search This
Site -- For or with more information, contact us.
November
29, 2021
As Biden Taps Jay Powell for 2d Term at Fed, CRA Protests of Home BancCorp, Citizens & South State Pend
By
Matthew Russell Lee, Patreon Story
BBC
- Guardian
UK - Honduras
- ESPN
FEDERAL
COURT / S Bronx, Nov 22 – Whether or not the
U.S. Community Reinvestment Act will be again
enforced until the new Administration and its
regulators remains an open question.
November
22, 2021
How
sleazy are
some banks,
and how sleaze
does the
Federal
Reserve let
them be? Inner
City Press is
a challenger
to Webster -
Sterling. The
Fed asked the
banks
questions; the
banks
were supposed
to send Inner
City Press copy of
their answer.
But not only
did Webster's
corporate
counsel withhold
information
about branch
closing - the
letter making
the request to
withhold
that was not
emailed to
Inner City
Press but
instead sent by snail mail,
to an old
address Inner
City Press
never used in its
challenge to
this merger.
Hide the
ball...
November
15, 2021
Citizens Bank Gets Pot & Lending Qs from Fed After Investors Bank Hit With FDIC Conditions
By
Matthew Russell Lee, Patreon Story Order
BBC
- Guardian
UK - Honduras
- ESPN
FEDERAL
COURT / S Bronx, Nov 10 – Whether or not the
U.S. Community Reinvestment Act will be again
enforced until the new Administration and its
regulators is an open question. And the proposed
acquisition of Investors Bank by Citizens Bank
NA is litmus test.
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 ha been raised on Citizens'
application, to the Fed and OCC, below.
November
8, 2021
Fed Qs on Protested Webster Merger As Sterling National Bank Is Sued SDNY For China Wires
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- CJR -
PFT
SOUTH
BRONX / SDNY, Nov 5 – The proposed merger of
Webster Financial Corp. and Sterling Bancorp has
been challenged, on disparate lending and
regulatory evasions, first to the Federal
Reserve and the OCC.
On June 25, the Fed asked the banks a series of
questions, below and full letter on Patreon here
Now Inner City Press can report that on November
5, it was sent a copy of the Federal Reserve's
additional letter to Webster and its (ex-Fed)
outside counsel: "November 5, 2021 Dear Ms.
Patricia A. Robinson, This letter refers to the
application filed by Webster Financial
Corporation, Waterbury, Connecticut (“Webster”),
for the prior approval of the Board of Governors
of the Federal Reserve System (the
“Board”), to acquire Sterling Bancorp
(“Sterling”), and thereby indirectly
acquire Sterling National Bank. Based on staff’s
review of the current record, the following
additional information is requested.
Please provide your responses to the items
listed below. Supporting documentation should
be provided as appropriate.
1.
You have indicated that Sterling Bank and
Webster Bank do not have any current plans
to consolidate, relocate or close any branches
before consummation of, or otherwise
unrelated to, the proposed transaction. Confirm
if that is still the case and confirm that
any anticipated branch closures, consolidations,
or relocations that may occur following
the merger will be conducted in a manner
consistent with Webster Bank’s branch
closing policies and procedures and the
branch closing requirements contained in section
42 of the Federal Deposit Insurance Act
(12 U.S.C. § 1831r-1). If not, discuss why not.
Your response should include a copy of any
applicable policies and procedures, to the
extent not already provided.
November
1, 2021
NY Federal Reserve Makes Settlement Secret After It Fired Ex FBI Agent Sama 69 Years Old
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Oct 28 – Robert N. Sama, 69, was
terminated by the Federal Reserve Bank of New
York on February 19, 2020. He had worked there
since 2007.
He
filed a lawsuit in the U.S. District Court for
the Southern District of New York on December
10, 2020 - Inner City Press reported it that
same day. And now on October 27,
2021, the move to settle with no transparency,
see below.
From
the complaint we learn that "each FRS Bank
maintains an on-site law enforcement commad
called a Law Enforcement Unit."
Sama
was Vice President of the FRBNY's LEU. He had
previously been with the FBI for 29
years.
After
Sama's "escorted ejection," his job was given to
LEU Captain Ronald Porter, who was "jumped three
level" to handle Sama's LEU responsibilities. Here
is Sama in a Fed report, as Vice President,
Federal Reserve Law Enforcement. Law, indeed.
His
complaint has been assigned to SDNY Judge
Valerie E. Caproni, and Magistrate Stewart D.
Aaron.
On
February 9, the FRBNY filed an answer via an
outside law firm, arguing among other things
that the SDNY "lacks subject matter
jurisdiction," that Sama "failed to mitigate his
alleged damages" and that State and City claims
are "preempted by federal law."
Similarly,
the Federal Reserve says that the FRBNY and
other Reserve Banks are not subject to FOIA. Why
then can they approve bank mergers? Inner City
Press has FOIA requests pending.
On
October 27, amid a scandal about conflicted
stock trading by Federal Reserve Bank presidents
and others, the FRBNY's outside counsel filed a
letter to Judge Caproni that "the parties have
reach an agreement to settle this matter and are
in the process of finalizing the settlement
agreement."
And
on October 28, it was nailed down: "ORDER:
WHEREAS on October 27, 2021 (Dkt. 28), the
parties notified the Court that they have
reached an agreement in principle resolving all
issues; IT IS HEREBY ORDERED THAT all previously
scheduled conferences and other deadlines are
CANCELLED. IT IS FURTHER ORDERED that this case
is DISMISSED with prejudice and without costs
(including attorneys fees) to either party. The
Clerk of Court is respectfully directed to
terminate all open motions and to CLOSE the
case. Within 30 days of this order, the parties
may apply to reopen this case. Any such
application must show good cause for holding the
case open in light of the parties settlement and
must be filed within 30 days. Any request filed
after 30 days or without a showing of good cause
may be denied solely on that basis.
Additionally, if the parties wish for the Court
to retain jurisdiction to enforce their
settlement agreement, they must submit within
the same 30-day period: (1) their settlement
agreement to the Court in accordance with Rule
6.A of the Courts Individual Practices and (2) a
request that the Court issue an order expressly
retaining jurisdiction to enforce the settlement
agreement. See Hendrickson v. United States, 791
F.3d 354 (2d Cir. 2015). SO ORDERED. (Signed by
Judge Valerie E. Caproni on 10/28/2021)."
But what are the terms of the settlement? If
company are pushed to disclose this, how much
more so the Fed? Uh, Congress?
The case is Sama v. Federal Reserve Bank of New York, 20-cv-10450 (Caproni)
***
October
25, 2021
Horse
already out of
the barn:
"Reserve Bank
presidents now
will be
required to
publicly
disclose
financial
transactions
within 30
days, as Board
Members and
senior staff
currently
do. The
Board and the
Reserve Banks
will
incorporate
these new
restrictions
into the
appropriate
Federal
Reserve rules
and policies
over the
coming
months."
October
18, 2021
despite
an October 2
request, only
on October 15
did the Fed
provide the
"public
portion" of
the Stock
Yards -
Commonwealth
application,
and even then
with portions
inappropriately
withheld at
Stock Yards'
request. This
is a litmus
test that is
being failed.
October
11, 2021
For
this time Oct
7, 2022,
S&P
Global,
"Politics
likely at play
in First
Citizens, CIT
deal delay,"
by Lauren
Seay, "Matthew
Lee, executive
director of
Inner City
Press said:
"at the Fed
under Chair
Jay Powell CRA
is not given
the weight
that it should
be, so I don't
think it's the
reason here."
The delay may
also be an
attempt by
Powell to
"seem more
serious on
merger review.
They send a
message if
they want to
send one by
delaying. But
what's the
point of a
message if
nobody knows?
The ball is in
their court to
say why," Lee
said. here
October
4, 2021
Amid Protest to Fed of Citizens Bid for Investors Bank 2 Reserve Bank Presidents Out 4 Investing
By
Matthew Russell Lee, Patreon Story Order
BBC
- Guardian
UK - Honduras
- ESPN
FEDERAL
COURT / S Bronx, Sept 29 – Whether or not the
U.S. Community Reinvestment Act will be again
enforced until the new Administration and its
regulators, particularly the Federal Reserve
which already in essence runs the OCC and has
its chair position in competition, is an open
question.
And now, after reports of trading improprieties that remain unaddressed by the Governors including Chair Jay Powell, Robert Kaplan, president of the Federal Reserve Bank of Dallas, has resigned, immediately after - and with slightly more transparency than - the Boston Fed's Rosengren. That's not saying much.
September
27, 2021
After CRA Protest of South State's Atlantic Capital Bid Fed Asks Questions & Gives 8 Days
By
Matthew Russell Lee, Patreon Story
BBC
- Guardian
UK - Honduras
- ESPN
FEDERAL
COURT / S Bronx, Sept 23 – Whether or not the
U.S. Community Reinvestment Act will be again
enforced until the new Administration and its
regulators is an open question.
Now
the proposed acquisition by South State of
Atlantic Capital Bank in Georgia will be a
litmus test. South State is so disparate that in
South Carolina in 2020 for mortgage loans to
African Americans it had more denials (147) than
loans made (133) - while making six loans to
whites for every denial to a white applicant.
On
August 17, Fair Finance Watch and Inner City
Press on the FOIA) filed a comment with the
Federal Reserve Board, below.
On
September 4, Fair Finance Watch commented to the
Office of the Comptroller Currency, which some
say has changed for the better. We'll see - now
on September 7, South State has written to Fair
Finance Watch, cc-ing the OCC and Fed: "Dear Mr.
Lee... In the matter regarding the concerns of
the Bank’s disparate marketing, the Bank is
committed to providing equal access to credit
throughout our footprint. The Bank takes a
multi-layered approach to ensure that marketing
of credit products reach all communities within
the Bank’s Assessment Area and each application
is underwritten without consideration of a
prohibited basis. The Bank has undergone reviews
by independent audit firms with reports dated
June 30, 2020 and June 30, 2019 where marketing
efforts have been reviewed. The reviews did not
yield any fair lending concerns."
Then
something is very wrong with those audits.
The
Fed briefly extended the comment period - but
then on September 23 asked this of South State:
"This correspondence relates to the application
filed by South State Corporation, Winter Haven,
Florida (“South State”), parent of South State
Bank, National Association (“South State Bank”),
to merge with Atlantic Capital Bancshares, Inc.
(“Atlantic Capital”), and thereby acquire its
subsidiary, Atlantic Capital Bank, National
Association (“Atlantic Capital Bank”), both of
Atlanta, Georgia, pursuant to sections 3(a)(3)
and 3(a)(5) of the Bank Holding Company Act of
1956, as amended (“BHC Act Application”). Please
respond in full to the following additional
information items, including those listed in the
confidential annex, and provide supporting
documentation as appropriate. ASSET
QUALITY 1. Provide the following classified
asset information, as of June 30, 2021, for
South State Bank, Atlantic Capital Bank, and the
pro forma institution. a. The amount of
internally classified assets, comprised of the
separate categories of substandard, doubtful,
and loss, with relevant components of other real
estate owned separately identified in each
category. b. Detail for the calculation of the
classified assets ratio, including the level of
classified assets compared to the total amount
of tier 1 capital and allowance for loan loss
reserves. INTEGRATION RISK 2. Given South
State’s significant and recent merger with
CenterState Bank Corporation in June 2020,
describe the status of integration of the two
companies, including whether South State’s key
resources have the bandwidth to successfully
execute and integrate the proposed merger with
Atlantic Capital. OTHER INFORMATION 3.
Clarify whether Atlantic Capital has elected to
be treated as a financial holding company under
the Bank Holding Company Act of 1956, as
amended. Section 3.1 of the Agreement and Plan
of Merger between South State Corporation and
Atlantic Capital Bancshares, Inc. indicates that
Atlantic Capital has not made this election,
while the response to question 1 of the Form FR
Y-3 indicates that Atlantic Capital is “a
designated financial holding company.” 4.
Provide the following: a. Pro forma
organizational charts of South State, including
South State Bank, following consummation. b.
Update on the status of all other agency
filings. c. Copy of the Form S-4 filed with the
Securities and Exchange Commission in connection
with the proposed transaction. Request for
Additional Information South State Corporation
September 23, 2021 Page 2 of 2
Please address your response to Mr. Erien O.
Terry and submit within eight business days."
But that's after the close of the ("extended")
comment period...
As
to the Fed, which denies FOIA requests after
five months, here,
on August 25, this strange response: "Dear Mr.
Lee, This is to
acknowledge receipt of your email to the Office
of the Secretary for the Board of Governors of
the Federal Reserve System (Board) dated August
17, 2021, regarding the proposal of South State
Corporation to merge with Atlantic Capital
Bancshares, Inc., and thereby indirectly acquire
Atlantic Capital Bank, NA. To date, South
State Corporation has not filed an application
with the Federal Reserve System.
Currently, the public comment period for the
proposal will end on September 20, 2021.
If an application is filed within the next three
months from the date your comment was sent, your
correspondence will be made part of the record,
and the Board will evaluate your comment.
We will also send a copy of the public portions
of the application as soon as possible after the
application is received.
Sincerely, Jennifer
Snow Senior Examiner Supervision,
Regulation, and Credit Federal Reserve
Bank of Atlanta
Integrity. Excellence. Respect."
How
can there be a comment period with expiration
date, if there is no application? Inner City
Press asked, and on August 26 is told:
"Our
procedures provide that advance notice in the
Federal Register may be requested in advance of
a filing. The comment period end date applies to
the Federal Register notice, which was filed in
advance of the application being filed."
September
20, 2021
Talk
about a scam:
"By electronic
message dated
March 10,
2021, and
received by
IDS on March
11,
you submitted
a request
seeking:
all records in
the possession
or control of
the FRS, from
the past three
years,
regarding
Wirecard,
including but
not reference
to the bank’s
collapse’s
implications
for the FRS’
view of German
bank
regulation
under FBSEA
[and] all
records the
FRS has, in
the past three
years,
regarding
[Gilbert]
Armenta, Ruja
Ignatova, Mark
Scott and/or
OneCoin, and
also regarding
marijuana
banking,
central to the
case(s).
On August 31,
2021, the
Deputy
Secretary
denied your
request for
information.
You
subsequently
appealed that
decision and
requested
expedited
processing of
your appeal.1
Pursuant to
the Board’s
Rules
Regarding
Availability
of Information
(“Board’s
Rules”), as a
member of the
news media you
are required
to
demonstrate
that there is
“[a]n urgency
to inform the
public about
an actual or
alleged
Federal
Government
activity[.]”2
In support of
your request
forexpedited
treatment, you
allege that
“[t]hese are
serious
criminal
issues, and
the
Fed would
explanation
took five
months on the
initial
request, to
provide not a
single
document[.]”
However, you
have not set
forth facts
demonstrating
an
urgent need to
inform the
public of
Board
activity.
Rather, you
provided only
a
conclusory
statement that
you believe
there are
“serious
criminal
issues.”
Moreover,
neither the
amount of time
the Board took
to respond to
your initial
request, nor
the volume of
information
provided in
response to
your request,
has any
bearing on
whether the
records you
requested are
urgently
needed.
Thus, I have
determined
that your
request does
not comply
with the
criteria for
expedited
processing
because you
have not set
forth facts
demonstrating
an
urgency to
inform the
public
concerning
actual or
alleged Board
activity.3
Your request
for expedited
processing,
therefore, is
denied without
prejudice to
your filing a
new request
providing
additional
information
that meets the
requirements
of
the Board’s
Rules for
expedited
processing.
Accordingly,
your appeal is
being
processed
under the
Board’s normal
FOIA
procedures."
September
13, 2021
FOIA
request
acknowledged -
but still no
records: "Your
request has
been assigned
number
APP-2021-00016.
Please
reference this
number in all
future
correspondence.
Request
description:
This is a FOIA
appeal of the
Deputy
Secretary's
August 31,
2021 denial in
full of my and
Inner City
Press' March
10, 2021 FOIA
request
for "all
records in the
possession or
control of the
FRS, from the
past three
years,
regarding
Wirecard,
including but
not reference
to the bank’s
collapse’s
implications
for the FRS’
view of German
bank
regulation
under FBSEA
[and] all
records the
FRS has, in
the past three
years,
regarding
[Gilbert]
Armenta, Ruja
Ignatova, Mark
Scott and/or
OneCoin, and
also regarding
marijuana
banking,
central to the
case(s)"
September
6, 2021
Federal
Reserve on
OneCoin &
Wirecard FOIA
Takes 5 Month
to Deny, Inner
City Press
Appeal
By
Matthew Russell Lee, Patreon FOIA
Denial
BBC
- Guardian
UK - Honduras
-