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March
27, 2023
Credit Suisse USB Merger amid Bank Meltdown Preapproved by Fed as Collins on Comerica
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, March 19 – Alongside the
larger flame-out of Silicon
Valley Bank, Signature Bank
too failed. Now on March 19 in
Switzerland, the
forced and subsidized
marriage of USB and Credit
Suisse. Both have
US subsidiaries but from the
Fed, this pre-approval:
"The
following
statement was
released by
Secretary of
the Treasury
Janet L.
Yellen and
Federal
Reserve Board
Chair Jerome
H.
Powell:
'We welcome
the
announcements
by the Swiss
authorities
today to
support
financial
stability. The
capital and
liquidity
positions of
the U.S.
banking system
are strong,
and the U.S.
financial
system is
resilient. We
have been in
close contact
with our
international
counterparts
to support
their
implementation.'"
Preapproval,
like the entry
of Goldman
Sachs and
Morgan Stanley
into the
banking
system, with
no comment
period.
On Signature
Bank's board of directors is
not only Barney Frank (who
after leaving Congress
undermine his own Dodd Frank
Act) but also former New York
State Superintendent of Banks
Derrick D. Cephas.
Among those being reviewed
by Moody, as
simply the first example,
former
Federal Reserve Bank of
Philadelphia and Cleveland
bigwig
Michael E.
Collins is on
the board of
Comerica, the
bank that abandoned
Detroit
for Dallas. The
Administration is saying that
people will be held
accountable - but who?
Next up: PacWest and Western Alliance, Intrust, UMB and Zions. Watch this site.
March 20,
2023
Amid Bank Meltdown Former Fed Collins on Comerica Board Like Signature Frank & Cephas
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, March 14 – Alongside the
larger flame-out of Silicon
Valley Bank, over the weekend
Signature Bank too failed. On
Signature Bank's board of
directors is not only Barney
Frank (who after leaving
Congress undermine his own
Dodd Frank Act) but also
former New York State
Superintendent of Banks
Derrick D. Cephas.
March
13, 2023
Months after
the Federal Reserve
said it
granted Inner
City Press
expedited
processing of
its FOIA
request on the
Fed's work /
errors on
crypto, and
two months after
Inner City
Press answered
a request for
clarification,
past 4 pm on
Friday March
10, 2023,
this: "Good
afternoon Mr.
Lee
Staff is still
unclear about
the scope of
your
request.
Referring to
the initial
clarification
email below,
the second
part of your
request still
needs
clarification.
“The second
part of your
request seems
to concern
other entities
(Silvergate,
Provident
Bancorp Inc.,
Metropolitan
Commercial
Bank,
Signature
Bank,
Customers
Bancorp
Inc.).
Please confirm
the scope of
this part of
your request,
did you intend
to seek
applications
related
information
for these
entities?
Clarifications
are needed in
order to
conduct a
search of
Board records
and process
this portion
of your
request.”
I realize from
your January
10 email
response that
you are
seeking
application
submissions,
Additional
Information
“AI”, and
approval
information.
However, it is
unclear what
application(s)
you seek this
information
concerning.
Did you intend
to seek
applications
for FTX to
acquire or
merge with
Silvergate,
FTX to acquire
or merge with
Provident
Bancorp, Inc.,
or FTX to
acquire or
merge with
Metropolitan
Commercial
Bank? It
is unclear the
connection you
intended for
these
institutions
(other than
media
mentions) and
as such
conducting a
search of
Board records
cannot be
completed.
Did you intend
to seek
records that
reference all
of these
institutions
together?
Did you intend
to seek
applications
records about
each
institution?
If this was
your intent,
we need a
target
institution
ABC Bank and
Provident,
Signature Bank
and XYZ Bank,
for
example.
From these
examples
alone, the
interpretations
are
many. It
would be
helpful if you
could include
the date the
application
was approved
or announced
in the
H.2.
Doing so would
allow us to
search and
review records
more quickly,
should they
exist.
I realize that
you responded
in a timely
manner to our
last
communication
about this
request, but
your comments
were not
specific
clarifications
with respect
to the named
institutions
in part 2 of
your request
that would
enable staff
to conduct a
reasonable
search.
If you have
additional
context,
please provide
it as soon as
possible.
After which,
staff may be
able to make
reasonable
interpretations
regarding the
information
you seek."
Inner City
Press again
immediately
responded and
clarified, about
FTX.
Watch this
site.
March
6, 2023
BMO Harris BNP Got Fed OK Despite Peters Case With Climate Dismissed Now French Suit
By
Matthew Russell Lee, Patreon Story
FED
COURT / S Bronx, Feb 27 – Whether or not the
U.S. Community Reinvestment Act will actually be
enforced under the Administration and its
regulators remains an open question, or one
answered in the negative, at least by the
Federal Reserve. Consider: Inner City Press
immediately reported that BMO Harris'
application to buy Bank of the West and its more
than 500 branches from BNP would be a litmus
test.
Fair
Finance Watch noted, from Day 1, that in 2020
BMO Harris denied many more mortgage
applications from African Americans than it
approved: 509 denied versus only 223 loans made
to African Americans, nationwide. BMO's numbers
for whites were the reverse: 9270 loans made,
versus less then six thousand denials. As noted,
there are also climate and secrecy issues. Fair
Finance Watch and other raised branch closings.
February
27, 2023
The
Federal
Reserve's FOIA
responses
have hit
a new low; this
appeal has
been filed:
This is
a FOIA appeal
of the FRB's
total denial
of Inner City
Press' FOIA
request
regarding MVB
Bank's
February 7
additional
information
response, in
which MVB
answered each
and every
question with
referring to a
withheld,
"Confidential"
Exhibit. The
letter was and
is subject to
the Fed's ex
parte rules -
withholding
the entire
response,
including
after an
immediate FOIA
request, makes
the Fed's ex
parte rules
meaningless.
One of the
withheld
answers is
about pro
forma
organizational
chart, another
concerns
crypto, a
matter of
public import
on which the
Fed's record,
after the SF
Reserve Bank's
Farmington
State Bank /
FTX - Alameda
approval, is
ever more
questionable.
In
signing in to
the Fed's FOIA
site to obtain
this FOIA
denial, I
noticed that
the Fed lists
Inner City
Press' earlier
FOIA request
about
Farmington and
other Fed
crypto
approvals
(2023-178) as
"On Hold -
Need
Info/Clarification."
But on January
10, 2023 I
immediately
answered the
request for
clarification
/ narrowing.
What is
happening with
the Fed's FOIA
compliance?
What is
happening with
the crypto
FOIA request,
on which the
Fed purported
to grant
expedited
treatment?
These should
be dealt with,
on or in
parallel with
this appeal.
Thank
you for your
prompt
attention,
February
20, 2023
With
Lael Brainard
leaving, even
before
the CRA reg is
out, who's
next? With Governor
Bowman beating
the
drum for even
faster
and more
automatic merger
approvals, the
next Governors
better
be one that
stands up to
that...
February
13, 2023
Lakeland Bank DOJ Deal Left Disparities in NY So Protest Now Fed Questions to Provident Here
By
Matthew Russell Lee, Patreon Maxwell
book
SOUTH
BRONX NY, Feb 10 – When the US
Department of Justice sued and immediately
settled with Lakeland Bank for fair lending
violations, it announced a proposed merger with
Provident Bank.
As
if to sweep it under the carpet.
And
when Fair Finance Watch looked into it, it found
that the DOJ settlement did not address in any
way the banks' disparities in New York. So on
December 1, the FDIC's comment deadline, it
filed the below, with Inner City Press on the
FOIA.
We refer to the
application filed by Provident Financial
Services, Inc. (“Provident”), Jersey City, New
Jersey, for prior approval of the Board of
Governors of the Federal Reserve System (the
“Board”), pursuant to Section 3(a)(3) and
3(a)(5) of the Bank Holding Company Act of 1956,
as amended, and Section 225.15 of Regulation Y,
to acquire Lakeland Bancorp, Inc. (“Lakeland”),
Oak Ridge, New Jersey, and thereby indirectly
acquire Lakeland Bank, Newfoundland, New Jersey
(“Transaction”). Based on our review of the
current record, the following additional
information is requested. Please provide
responses to all the following items, including
those in the Confidential Annex. Supporting
documentation should be provided, as
appropriate. Convenience & Needs/Community
Reinvestment Act (“Act”) 1. Provident’s response
to Question 1 of the November 30 Request for
Additional Information (“November 30 AI
Request”) indicates that “[t]he combined company
will deliver an expanded set of products and
services to its customers and communities.”
Describe those products and services to be
offered by the combined organization that
Provident deems most beneficial to customers in
low- or moderate-income (“LMI”) geographies or
income levels. 2. Indicate whether any consumer
products or community development programs and
services of either bank are expected to be
discontinued as a result of the proposed
transaction, and whether any products, programs
or services that are not currently offered will
be made available in the combined organization’s
markets. 3. The application states “Provident
and Lakeland will determine through the
integration planning process how the Combined
Bank will continue the successful processes,
policies, procedures and technology platforms of
Provident and Lakeland to maintain a strong,
comprehensive and sustainable CRA program.”
Provide an update on these efforts. Mark J.
Menting, Esq. February 8, 2023 2 NONCONFIDENTIAL
// EXTERNAL Compliance Program 4. In the
response to Question 6(a) of the November 30 AI
Request, Provident stated that it anticipated
that its existing compliance risk management
program would “either be the successor policies
and procedures for the combined organization, or
that they may serve as a solid foundation for
revised policies and procedures going forward.”
If available, provide an update on the expected
compliance risk management program at the
combined organization. 5. Describe in greater
detail Provident Bank’s current fair lending
program and risk management controls with
respect to fair lending and discuss the
rationale behind the decision for the combined
organization to adopt the overall framework and
structure of Lakeland Bank’s fair lending
compliance program. To the extent not previously
addressed, include in your discussion any areas
of Lakeland Bank’s existing fair lending program
the combined organization intends to enhance, as
well as all efforts to ensure that the policies
and procedures adopted by the combined
organization will be adequate for the combined
organization to provide equal access to credit
to majority-minority communities in its
assessment area (“AA”). Branching 6. For
Provident Bank, Lakeland Bank, and the combined
organization, provide the number and percentage
of total branches that are or will be located in
LMI and/or majorityminority census tracts. 7. To
the extent not previously addressed, describe
the process by which Provident Bank currently
determines whether and where to open or close a
branch. Include in your discussion any fair
lending considerations the bank takes into
account in making such determinations. Indicate
whether the existing policies and procedures of
Provident Bank or Lakeland Bank will be
implemented at the combined organization.
Staffing 8. Discuss whether any existing staff
of Provident Bank or Lakeland Bank are under
consideration to be the combined organization’s
Chief Compliance Officer or Fair Banking
Officer. If so, identify those individuals and
provide an update regarding the timing and
content of the selection process, if available.
9. Confirm, if such is the case, that Lakeland
Bank’s current Community Development Officer
will continue in that role at the combined
organization. If not, indicate who will assume
that position at the combined organization, if
known. Mark J. Menting, Esq. February 8, 2023 3
NONCONFIDENTIAL // EXTERNAL 10. Provide an
update to the organizational chart provided in
response to question 6(b) of the November 30 AI
Request reflecting all compliance-related
positions at the combined organization. For
those positions where an individual has been
identified to fill the role, indicate that
individual’s name in the organizational chart.
Department of Justice (“DOJ”) Consent Order 11.
Under Section C of the Consent Order, Lakeland
Bank is required to take certain steps with
respect to fair lending training. Indicate
whether the combined organization intends to
continue to adhere to those training
requirements following the proposed acquisition.
If so, indicate whether they will apply to all
employees of the combined organization or only
those employees retained from Lakeland Bank. 12.
Provide an update on the timing of the opening
of the full-service branch in Newark, New
Jersey, as described in Paragraph 19 of the
Consent Order. In addition, provide an update on
the plans of Lakeland Bank or the combined
organization to open a second branch, if
available.
February
6, 2023
While the Fed
pretends to be
serious, now
on Custodia,
after allowing FTX
in through
Farmington
State Bank,
now they delegate
to a
(privately-owned)
Reserve Bank
the approval
for a bank
with a crypto
card and
other problems: "We
refer to the
Notice of
Change in Bank
Control (the
“Notice”)
submitted to
the Federal
Reserve Bank
of
Philadelphia
(“Reserve
Bank”) and the
Board of
Governors of
the Federal
Reserve System
(“Board”),
pursuant to
the Change in
Bank Control
Act of 1978,
as amended, by
(1) the Estate
of Steven B.
Schnall,
Sherri Silver
Schnall as
Preliminary
Executor, both
of New York,
New York, to
retain voting
shares of
Quontic Bank
Acquisition
Corp.
(“QBAC”), and
Quontic Bank
Holdings Corp.
(“QBHC”), and
thereby
indirectly
retain voting
shares of
Quontic Bank,
all of New
York, New
York; and (2)
the Schnall
Disclaimer
Trust A,
Sherri Silver
Schnall,
individually,
and as
co-trustee,
both of New
York, New
York, with
Amie Hoffman,
as co-trustee,
New Hope,
Pennsylvania;
and the Sherri
S. Schnall
Family
Irrevocable
Trust, Amie
Hoffman as
trustee, both
of New Hope,
Pennsylvania;
to acquire
voting shares
of QBAC, and
QBHC, and
thereby
indirectly
acquire voting
shares of
Quontic Bank.
Accordingly,
all
notificants in
the Notice to
become a group
acting in
concert. This
Reserve Bank,
acting under
authority
delegated by
the Board at
section
265.11(c)(5)(iv)
of its Rules
Regarding
Delegation of
Authority, has
determined not
to disapprove
the Notice."
We'll have
more on this.
January
30, 2023
Fed
Denies
Custodia Bank
After FTX
Wreck As
FOIAed on
Moonstone Bank
by Inner City
Press
By
Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, Jan 27 – Amid the prosecution
of Samuel Bankman-Fried on wire fraud, money
laundering and campaign finance violation
charges, the role of the Federal Reserve is
coming to the fore. Now it seeks to step
back from its brink by denying the application
of Custodia, with order still withheld. See
below.
Inner
City Press was unsurprised to learn of Fed
laxity as Alameda invested in Farmington State
Bank, renamed Moonstone Bank.
Inner
City Press submitted to the Federal Reserve a
Freedom of Information Act request including:
"This is a FOIA request for all record regarding
the FRS' approval for the application / request
for membership in the Federal Reserve System by
Farmington State Bank (giving rise to FRBSF
president Daly's approval on a delegated basis
in 2021), and the subsequent renaming of the
bank to Mooonstone and taking of a stake by
FTX/Alameda. Also, for Silvergate with its
FTX connections, record reflecting any review by
the FRS of Silvergate's (and Provident Bancorp
Inc., Metropolitan Commercial Bank, Signature
Bank, Customers Bancorp Inc.) of the banks'
connections with crypto-currency firms... This
is a request for expedited treatment, in light
of the indictment of FTX / Alameda's Sam
Bankman-Fried and Caroline Ellison
(cooperating), and an upcoming January 3, 2023
hearing."
The
Federal Reserve acknowledged receipt:
"Your request has been assigned number
FOIA-2023-00178. Please reference this number in
all future correspondence.
Request description: This is a FOIA
request for all record regarding the FRS'
approval for the application / request for
membership in the Federal Reserve System by
Farmington State Bank [also] any review by the
FRS of Silvergate's (and Provident Bancorp Inc.,
Metropolitan Commercial Bank, Signature Bank,
Customers Bancorp Inc.) of the banks'
connections with crypto-currency firms."
On
January 27, still withholding documents, the Fed
"announced its denial of the application by
Custodia Bank, Inc., Cheyenne, Wyoming, to
become a member of the Federal Reserve System.
The Board has concluded that the firm's
application as submitted is inconsistent with
the required factors under the law.
Custodia is a special purpose depository
institution, chartered by the state of Wyoming,
which does not have federal deposit insurance.
The firm proposed to engage in novel and
untested crypto activities that include issuing
a crypto asset on open, public and/or
decentralized networks. The firm's novel
business model and proposed focus on
crypto-assets presented significant safety and
soundness risks. The Board has previously made
clear that such crypto activities are highly
likely to be inconsistent with safe and sound
banking practices. The Board also found that
Custodia's risk management framework was
insufficient to address concerns regarding the
heightened risks associated with its proposed
crypto activities, including its ability to
mitigate money laundering and terrorism
financing risks. In light of these and
other concerns, the firm's application as
submitted was inconsistent with the factors the
Board is required to evaluate by law. The
Board's order will be released following a
review for confidential information."
January
23, 2023
Fed
speak - but no
live
questions:
"What: Federal
Reserve Bank
of Dallas
President
& CEO
Lorie Logan
will speak
about U.S.
economic
outlook and
monetary
policy at the
McCombs School
of Business at
The University
of Texas at
Austin. Logan
took office
last August,
and with this
speech she
will introduce
the monetary
policy
objectives
that will
guide her
tenure. When:
Wednesday,
Jan. 18, 2023
4-4:05 p.m.,
Texas McCombs
Dean Lillian
Mills, welcome
and
introduction.
4:05-4:30
p.m., Dallas
Fed President
& CEO
Lorie Logan.
4:30-4:45
p.m., Q&A
moderated by
Julia
Coronado,
Texas McCombs
clinical
associate
professor of
finance; time
will not allow
for live
questions"
January
16, 2023
NY Fed Dissolved TRO to Fire Unvaccinated Staff Now Fed Accuses Lawyer of Contacts
By
Matthew Russell Lee, Patreon Maxwell
Book
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Jan 13 – The Federal
Reserve Bank of New York wants to fire longtime
employees Lori Gardner-Alfred of The Bronx and
Jeanette Diaz of Bayonne, New Jersey for not
being vaccinated against COVID-19. And now it
may be able to.
The two women won a temporary restraining order
in New York State court. But the FRBNY removed
the case to Federal court and Friday argued to
dissolve the TRO and fire the women, saying that
their harm is not
irreparable.
On March 4, U.S. District Court for the Southern
District of New York Judge Lewis J. Liman held a
proceeding. Inner City Press covered
it.
FRBNY
in-house lawyer Alex Leonard argued the TRO
should be immediately lift. The women,
representing themselves, asked for time to
respond to the papers the Fed, their employer
for decades, had just given them.
Judge Liman to his credit did give them time, until Sunday to file their response to his chambers by email. Then, it should be docketed.
Jeanette Diaz
asked about the FRBNY's
definition and denial of
religious exemptions. Judge
Liman said perhaps Mr. Leonard
could answer. But he said no,
that would be getting in to
the merits and the Fed's focus
was getting the TRO dissolved
and presumably firing the
employees.
On March 7, Judge Liman heard from the parties
again. Inner City Press live tweeted here:
now
staffers the Federal Reserve Bank of NY wants to
fire for being unvaccinated are before SDNY
Judge Liman as they were Friday. FRBNY lawyer:
Now plaintiffs over the weekend make a a
Constitution argument. But the New York Fed is
not a government agency.
[Inner
City Press: Then how does NY Fed approve bank
mergers? See, FRBNY Approves Berkshire Bank With
NTI Rating, here
Judge
Liman: Even if discrimination were being
alleged, would an injunctions be issues? NY Fed
staffer's new/1st lawyer: The very pressure put
on these plaintiffs to abandoned their bona fide
religious beliefs is irreparable harm, per se
Judge
Liman: What do you say about the NY Fed not
being a state agency? Lawyer: They removed to
this court by saying that are an organ of the
Federal government... [And, the Fed Board
had this "non government agency," owned by
banks, approving bank mergers]
Lawyer:
On the merits we have this Federal Reserve
agency, now trying to revoke the religious
exemption based on their job titles. These jobs
could be performed remotely. Or, in the office a
few days a week.
Lawyer: The Fed has granted others an ongoing
exemption. That burden is on the Fed to offer up
some justification. Judge Liman: What about
irreparable harm?
Lawyer:
There's the Northern District of NY
case... Judge Liman: Citation? Lawyer: 17
F.4th 368, 370
NY
Fed's Leonard: He says we are forcing them to
violate their religious beliefs. But it is a
condition of employment. They got a temporary
accommodation, but there's no longer a
reasonable one. We understand that's difficult.
See, the Hawaii Airlines case.
NY
Fed's Leonard: They did not claim in their state
court submission any free exercise violation. NY
Fed is not a government agency. Judge
Liman: Authority for that? A: Uh, uh, NY Fed's
employment actions are not state action. Judge:
Cases? A: Nothing on point.
NY
Fed's Leonard: There is no irreparable harm.
Judge
Liman: I'm going to take this under advisement.
I will render a decision quite quickly. Expect
to hear from me soon. Plaintiffs' lawyer:
There's a case, Agricultural Bank of China, 2016
WL 27566661
NY
Fed's Leonard: US v. Wells Fargo case, while not
on point, the Federal Reserve Bank for the
purpose of emergency lending are government
agencies, but by implication, not as employers.
Plaintiffs' lawyer: 24 hours for an interlocutor
appeal? NY Fed: We object. ]
NY
Fed's Leonard: We are doing this in the middle
of pandemic. We shouldn't be restrained any
longer. Judge Liman: Do you want to dismiss the
complaint under 12(b)(6)? NY Fed: There's no
complaint, it's futile. Yes, dismiss. Judge
Liman: I'm asking about process.
NY
Fed's Leonard: We'll submit more papers in 2
weeks.
Judge
Liman: Reply by April 11. We are adjourned.
On March 11, this: "ORDER granting in part [7] Motion Emergency Motion to Dissolve Ex Parte Temporary Restraining Order and Dismiss . Accordingly, the TRO is dissolved as improperly issued under Rule 65. See Rabbi Jacob Joseph School v. Province of Mendoza, 342 F. Supp. 2d 124, 127 (E.D.N.Y. 2004) ("The temporary restraining order that was issued without notice to the attorney for the Defendant whose identity was known, without declaring in an affidavit or verified complaint that immediate and irreparable harm would result before the adverse party or his attorney could be heard in opposition, was plainly in violation of Fed.R.Civ.P. 65(b), and the temporary restraining order was vacated for the additional reason that it was improperly issued."); Dolan v. Portaro, 2015 WL 3444351, at *1 (N.D. Ohio May 28, 2015) ("Had Plaintiff Dolan initially filed this case in this Court, the TRO could not have been granted. When the motion for a TRO was first made in state court, Plaintiff's counsel did not provide the required certification as to what efforts were made to give notice and why notice should not be required. Nor did Plaintiff's counsel file such certification in this Court after removal. That deficiency alone justifies dissolving the TRO."). Moreover, "[o]n this motion to dissolve a temporary restraining order,... the party that obtained that order... bears the burden of justifying continued injunctive relief." Gardner v. Weisman, 2006 WL 2423376, at *1 (S.D.N.Y. Aug. 21, 2006) (internal quotation marks omitted) (quoting SC Cowen Sec. Corp. v. Messih, 2000 WL 663434, at *1 (S.D.N.Y. May 17, 2000)). The FRBNY argues that the evidence submitted by Plaintiffs does not satisfy that burden, because they have not shown irreparable harm, a likelihood of success, or a balance of hardships in their favor, as further set forth herein. Plaintiffs also have not demonstrated a likelihood of success on the merits of their claims; their operative pleadings are wholly conclusory, and their arguments regarding a likelihood of success on the merits again hinge entirely on the Free Exercise claims, Dkt. No. 14 at 5; once again, the operative pleadings assert no Free Exercise claims. As such, Plaintiffs have not carried their burden of justifying continued injunctive relief. For this additional reason, the TRO must be dissolved."
On March 21 the New York Fed filed a motion to
dismiss, leading that "the New York Fed - part
of the nation's central bank and a federal
instrumentality established pursuant to the
Federal Reserve Act of 1913 is not a state
agency whose decisions are subject to review
under Article 78."
On
June 21 Judge Liman held another proceeding. He
said he did not anticipate granting a motion to
dismiss, but also doubted in a preliminary
injunction, given that the staffers have already
been fired. (The Fed's lawyer slipped in that
the Fed doubts that the lead plaintiff's beliefs
are religious).
Judge
Liman told counsel to discuss with their clients
the option of an expedited hearing on a
permanent injunctions. A case management plan is
due July 8, with another conference set for July
18 at 2 pm.
Inner City Press covered the July 18 conference;
there was a request for a trial in January but a
decision to hold it in May. Then into the docket
this: "ORDER deferring ruling on [27] Motion for
Preliminary Injunction. Upon consent of the
parties at Dkt. No. 41, the hearing on
Plaintiffs' motion for a preliminary injunction
will be consolidated with a trial on the merits
pursuant to Federal Rule of Civil Procedure
65(a)(2). (HEREBY ORDERED by Judge Lewis J.
Liman)."
As
the weather grows colder, the plaintiffs' lawyer
seek to leave them. Judge Liman ruled: "ORDER:
On October 28, 2022, plaintiffs Jeanette Diaz
and Lori Gardner ("Plaintiffs") emailed the
Court asking if they could be represented by
counsel at the conference scheduled for
Thursday, November 3, 2022 at 2:00 p.m. The
Court has not granted Plaintiffs' counsel's
motion to withdraw. Accordingly, if Plaintiffs
wish to communicate with the Court, they should
do so through counsel and file the communication
on the docket on ECF. SO ORDERED. (Signed by
Judge Lewis J. Liman on 10/28/2022)."
On
January 13, 2023, Judge Liman held another
conference in the case, about discovery. But the
Federal Reserve's lawyer dropped a bombshell,
claiming that plaintiffs' counsel did not in
fact have any agreement with the clients to
actually produce discovery - and was
communicating through a New York Fed staffer,
William Christie. Even before the oral
bombshell, the Fed's January 11 letter to Judge
Liman roundly critiqued plaintiffs' counsel. We
aim to have more on this.
Inner
City Press will continue to cover the case and
the Fed.
January
9, 2023
The
Federal Reserve
under the
Change in Bank
Control Act -
the same one
use or misused
on its
watch for FTX
/ Alameda to
buy into Farmington
State Bank now
Moonstone
- has declined
to extend the
comment period
on: "Dear
Mr. Lee: This
concerns your
correspondence
dated December
6, 2022,
regarding the
notice filed
under the
Change in Bank
Control Act of
1978, as
amended (“CIBC
Act”), 1 by
(1) the Estate
of Steven B.
Schnall,
Sherri Silver
Schnall, as
Preliminary
Executor, both
of New York,
New York, to
retain voting
shares of
Quontic Bank
Acquisition
Corp. (“QBAC”)
and Quontic
Bank Holdings
Corp.
(“QBHC”), and
thereby retain
voting shares
of Quontic
Bank, all of
New York, New
York; and (2)
the Schnall
Disclaimer
Trust A,
Sherri Silver
Schnall,
individually
and as
co-trustee,
both of New
York, New
York, with
Amie Hoffman,
as co-trustee,
New Hope,
Pennsylvania;
and the Sherri
S. Schnall
Family
Irrevocable
Trust, Amie
Hoffman as
trustee, both
of New Hope,
Pennsylvania,
to acquire
voting shares
of QBAC and
QBHC, and
thereby
indirectly
acquire voting
shares of
Quontic Bank,
all of New
York, New
York. You
requested an
extension of
the comment
period for
this proposal.
Notices were
published in
the Federal
Register
(November 21,
2022) and in
the relevant
newspaper of
general
circulation
(the New York
Daily News
(October 31,
2022))
providing
commenters
until December
6, 2022, a
total of 36
days, to
submit their
views on all
aspects of the
proposal. This
period
provided
sufficient
time for
interested
persons to
prepare and
submit their
comments. The
Board provides
a public
comment period
for notices to
provide
interested
persons the
opportunity to
submit
information
and views
related to the
statutory
factors it 1
12 U.S.C. §
1817(j).
2 must
consider under
the CIBC Act.
The Board’s
Rules of
Procedure
(“Rules”)2
also establish
a framework,
based on the
schedules
followed by
many courts,
that limits
iterative
responses
between
applicants and
commenters.
The Rules
contemplate
that the
public comment
period will
not be
extended
absent a clear
demonstration
of hardship or
other
meritorious
reason for
seeking
additional
time. Your
request for
additional
time to
comment does
not identify
circumstances
that would
warrant an
extension of
the public
comment period
for this
proposal.
Based on all
the facts of
record,
including the
reasons
discussed
above, I have
determined,
acting
pursuant to
authority
delegated by
the Board (12
CFR
265.5(a)(2)),
not to extend
the public
comment
period. Any
comments
received on or
before
December 6,
2022, have
been made part
of the record
of the
proposal that
will be
reviewed by
the Board"
Watch this
site.
January
2, 2023
While Inner City
Press looks
into how the
Federal
Reserve
allowed FTX /
Alameda to buy
into
Farmington
State Bank /
Moonstone Bank,
it commented to
the Fed on
"Notice of
Change in Bank
Control (the
“Notice”) by
(i) the Estate
of Steven B.
Schnall,
Sherri Silver
Schnall as
Preliminary
Executor, both
of New York,
New York; to
retain voting
shares of
Quontic Bank
Acquisition
Corp., and
Quontic Bank
Holdings
Corp., all of
New York, New
York, and
(ii), the
Schnall
Disclaimer
Trust A,
Sherri Silver
Schnall,
individually,
and as
co-trustee,
both of New
York, New
York, with
Amie Hoffman,
as co-trustee,
New Hope,
Pennsylvania;
and the Sherri
S. Schnall
Family
Irrevocable
Trust, Amie
Hoffman as
trustee, of
New Hope,
Pennsylvania
(all parties
to (i) and
(ii) together,
the
“Notificants”);
to acquire
voting shares
of Quontic
Bank
Acquisition
Corp., and
Quontic Bank
Holdings
Corp., and
thereby
indirectly
acquire voting
shares of
Quontic Bank."
Note that
beyond its
crypto rewards
program,
Quontic "has
become the
latest of a
handful of
US-based
financial
institutions
to have agreed
to work with
the
cryptocurrency
sector... It
opened a
checking
account for an
unnamed
Bitcoin ATM
firm--its
first crypto
client--several
weeks ago, and
claims to be
in contract
negotiations
to open
accounts for
another new
cryptocurrency
company, which
was also
unnamed."
And
how did Quontic
respond to
Inner City
Press' comment? With
pure
arrogance.
We'll have
more on this.
Watch this
site.
And how did
Quontic,December
26, 2022
On FTX Wreck Federal Reserve FOIAed by on Moonstone Bank & Others By Inner City Press
By
Matthew Russell Lee, Patreon