Inner City Press' Community Reinvestment Reporter

  

     Welcome to Inner City Press’ CRA Report.  Our other Reporters cover the financial services industry, human rights, the Federal Reserve, and other beats.  ICP has published a book about the CRA-relevant topic of predatory lending - click here for sample chapters, a map, and ordering informationCBS MarketWatch of April 23, 2004, says the the novel has "some very funny moments," and that the non-fiction mixes "global statistics and first-person accounts."  The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters."  See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," City Limits, Oct. 2004.  The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site  Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere.

Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere. Click here for a recent BBC piece on Inner City Press' reporting from the United Nations. New: Follow us on TWITTER   BloggingHeads.tv  Click for March 1, 2011 BloggingHeads.tv re Libya, Sri Lanka, UN Corruption by Inner City Press. 2014: MRL on Beacon Reader  For or with more information, contact us. See, in November 2021, Inner City Press' book "Belt and Roadkill," here


December 23, 2024

On Capital One Discover OCC Doubled Down on FOIA Withholding Feb 18 Votes Astroturfing

by Matthew R. Lee

SOUTH BRONX, Dec 18 – 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 the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.

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.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.

Meanwhile Capitol One lobbying continues even now in mid December, for example in Pennsylvania, here

Without approvals, now the banks have set shareholders' votes for February 18, 2025.

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites.  It grew worse in the just-out 2023 data.

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site. 

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December 16, 2024

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Dec 12 – The Federal Reserve - both the Board of Governors in Washington and the FRBNY - have been sued by Banco San Juan International for the terminal of its master account(s).

On the motion to dismiss, oral arguments were held on December 12 before U.S. District Court for the Southern District of New York Judge John G. Koeltl. Inner City Press was there. Thread:

Fed's lawyers from Simpson Thacher law firm cite Custodia (crypto) case. Does this outside counsel rep raise conflicts of interest on mergers?

 Note: Simpson Thacher represents many banks applying to the Fed for merger approvals - why did the  Fed, which has many in house lawyers, have to hire them? And isn't there now a conflict of interest on the merger applications? Fed: The Reserve Banks are not govt

 Fed / Simpson Thacher: Congress has not provided these [edgy] banks any remedy. Anyway we've shown good faith in closing their master account. [Isn't this now a variant of the de-banking legislation in Congress?]

Fed / Simpson Thacher: The FRBNY, like me, is not subject to the 5th Amendment, as a private citizen.

FRBoard Joshua: We don't know why the Board is in this case. Judge: The plaintiff argues that the Board controlled the decision FRBoard: We're not responsible

Plaintiff: The banks is down to 10 accounts, with $20,000 in them. It is for all intents & purposes closed. We may appeal to the Supreme Court, now that deference to agencies [Chevron]. The court in Custodia denied the Fed's [Simpson Thacher's?] motion to dusmiss

Plaintiff: The Fed never closed the master accounts of Deutsche Bank, despite wrongdoing - and what about "Toronto Dominion, which pled guilty to money laundering"?

 [Note: TD's Leonardo Ayala is being prosecuted in the District of NJ]

 Inner City Press will stay on these cases.

This case is Banco San Juan Internacional, Inc. v. The Federal Reserve Bank of New York, et al., 1:23-cv-06414 (Koeltl) 

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December 9, 2024

On Capital One Discover OCC Doubled Down on FOIA Withholding Amid New Astroturfing

by Matthew R. Lee

SOUTH BRONX, Dec 6 – 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 the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.

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.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.

Meanwhile Capitol One lobbying continues even now in December, for example a New Hampshire "IT executive," here

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites.  It grew worse in the just-out 2023 data.

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site. 

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December 2, 2024

CRA Problems with ConnectOne Merger With First of Long Island Lead to Challenge & Delay

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Nov 25 –As ConnectOne Bank and First National Bank of Long Island congratulate themselves on a merger proposal, the preliminary review by Fair Finance Watch finds problems.

  ConnectOne, taking deposits in New York, New Jersey and Florida, in 2023 made only one mortgage loan to an African American applicant.  

  Meanwhile First National Bank of Long Island, after a weak and disparate lending performance in 2023, now lists on its website that mortgages are only offered through Rocket Mortgage. How do and would these two banks - which should be kept separate and not be allowed the merge, under the Community Reinvestment Act, serve communities. It appears that they don't.

 Inner City Press has now FOIA-ed and challenged the required applications for regulatory approval, on November 18 to the FDIC.

On November 25 the FDIC wrote to ConnectOne Bank  Frank S. Sorrentino, III – Chairman and CEO that Fair Finance Watch "raises issues regarding both bank’s records of lending to African American persons  in New York and nationwide, respectively.  The anticipated time and review required to  investigate these issues has necessitated the removal of the application from expedited processing." FDIC letter on Inner City Press' DocumentCloud here

Watch this site

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November 25, 2024

Stock Fraudster Sterling Bancorp Bid To Sell Bank with Weak CRA to Everbank Hit by FFW

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Nov 20 – Sterling Bancorp, which settled with DOJ on securities fraud, it trying to sell its Sterling Bank & Trust including in New York, where it has a need to improve CRA Investment Test rating to Everbank. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications

   This is a request for a full copy of, and a timely first comment on, the Applications of EverBank to acquire Sterling Bank & Trust (with a rare Needs to Improve CRA rating on Investment Test in New York), and not scandal plagued Sterling Bancorp.        Sterling Bancorp was recently prosecuted by DOJ; EverBank purports that by buying the bank portion it is not touched by the scandal. But what is the showing that the criminal conduct at the Bancorp was entirely insulated from the bank and those who work there, and its practices?      As a CRA matter, militating for a hearing, Sterling Bank has a rare Needs to Improve rating on the investment test in NY. The rest of that Performance Evaluation is not credit - it talks about and praises mortgage lending when the HMDA data show negligible volume.  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      FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings

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November 18, 2024

First Busey $1B Bid For CrossFirst Hit by Fair Finance Watch Info Hidden Now FOIA Delay

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Nov 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 - including contempt for CRA, 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."

Rather than provide the CRA info, First Busey's Monica L. Bowe, Executive Vice President & Chief Risk Officer of First Busey Corporation - and of the Risk Management Association- submitted a letter saying CRA conditions are never attached - false, and telling.

Inner City Press' FOIA request? The Fed on November 4 extended its time to reply - and unlike other less arrogant banks, First Busey has provided nothing. Watch this site.

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November 11, 2024

Fair Finance Watching Hit HomeStreet FirstSun On Lending Disparities Now Deal Dying

by Matthew Russell Lee

SOUTH BRONX, Nov 5 – As US bank regulators talk about working to increase the fairness of the financial system, and closely scrutinizing mergers and the spread of bad practices, banks continue to assume they can combine.

  Before the Capital One - Discover proposal, and ABA lawsuit against the Community Reinvestment Act regulation, there was  FirstSun Capital Bancorp of Denver and Dallas saying it will merge with Homestreet, Inc. and Homestreet Bank of Seattle, Washington. 

  On February 23 Fair Finance Watch with Inner City Press on the FOIA filed a protest: "FirstSun's flagship Sunflower Bank, in Texas in 2022, made 694 mortgage loans to whites, and only 41 to African Americans. Meanwhile it denied 12 applications from African Americans, and only 34 from whites.   This is disparate, and more disparate both than the aggregate in Texas. 

    Nationwide in 2022, Sunflower Bank made 3059 mortgage loans to whites, and only 194 to African Americans. Meanwhile it denied 49 applications from African Americans, and only 259 from whites. 

   For the record, on managerial resources and otherwise, note that on September 27, 2023, FirstSun Capital Bancorp, the parent company of Sunflower Bank, Guardian Mortgage and First National 1870 (collectively, “Sunflower”), filed a notice of data breach with the Attorney General of California... an unauthorized party likely took advantage of the flaw in the MOVEit software and downloaded copies of files [containing] personally identifiable information."

  Then FirstSun simply changed charters to try to get fast approval: FirstSun Capital Bancorp will switch to a Texas state charter rather than a national one as it continues to pursue its acquisition of HomeStreet, the bank announced last week: “In our discussions with the OCC in Washington, it became obvious that we would not gain near-term approval." What a scam.

 And it still didn't work - in early November the deal died, with the Fed and Texas regulators saying they will not approve. Watch this site.

November 4, 2024

In Virginia Disparate TowneBank Eyes Richmond Area via Village Bank But Challenge

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Nov 1 – In Virginia, a bank is trying to move into the Richmond 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 Application by TowneBank to acquire Village Bank & Trust.

  But consider ChoiceOne's disparate lending record:    

In Viginia in 2023 - in HMDA data not yet taken into account in any CRA exam - Towne Bank based on its marketing made 1282 mortgage loans to whites, and only 192 loans to African Americans. Meanwhile it denied 43 applications from African Americans, and only 64from whites. It should be referred to DOJ.  

In North Carolina in 2023 Towne Bank based on its marketing made 1107 loans to whites, and only 80 loans to African Americans. Meanwhile it denied 10 applications from African Americans, and only 92 from whites.

   In Maryland in 2023 Towne Bank based on its marketing made 1172 loans to whites, and only 366 loans to African Americans. Meanwhile it denied 30 applications from African Americans, and only 40 from whites.

The new Merger Guidance should be applied - that is a test case.

Why would regulators even consider approving this merger? Watch this site.

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October 28, 2024


Questioning Capital One Discover Merger NY AG Asks for Subpoena Now More Astroturf

by Matthew R. Lee

SOUTH BRONX, Oct 23 – 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.

On September 4, Fair Finance Watch and Inner City Press submitted supplemental opposition to the regulators, including about a newly filed class action that "demonstrates Capital One's outrageous, illegal, and widespread practice of disclosing—without consent—the Nonpublic Personal Information1 and Personally Identifiable Financial Information2 (together, “Personal and Financial Information”) of Plaintiffs and the proposed Class Members to third parties, including Meta, Google, Microsoft,  DoubleClick, NewRelic, Adobe, Everest, Skai/Kenshoo, Snowplow, BioCatch, Tealium, and possibly others."

Meanwhile Capital One's "Astro-turfing" continues - for example in California, here.

On October 23, while the Federal Reserve calls submissions of these abuses untimely, NY Attorney General Letitia James asked an NYS Judge to a subpoena against Capital One:

"Discover agreed to provide a waiver... Capital One declined to provide such a waiver. Instead, its counsel stated that it had been told by the OCC that issuing a voluntary waiver of federal confidentiality protections would contravene OCC regulations that restrict the ability of State law enforcement agencies to exercise “visitorial powers” over national banks.

27. Attorneys in the Attorney General’s Antitrust Bureau later spoke with attorneys at the OCC, who confirmed the OCC’s position."

What regulators. The case has yet to be assigned an index number.

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October 21, 2024

First Busey $1B Bid For CrossFirst Hit by Fair Finance Watch As Bowe Thumbs Nose at CRA

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Oct 15 – 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 - including contempt for CRA, 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."

Rather than provide the CRA info, First Busey's Monica L. Bowe, Executive Vice President & Chief Risk Officer of First Busey Corporation - and of the Risk Management Association- submitted a letter saying CRA conditions are never attached - false, and telling. Watch this site.

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October 14, 2024

UMB Bank Application for Heartland Hit on Disparties Now Info Withheld So FOIA Request

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, Oct 11 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger. Among them was UMB - a bank whose lending Inner City Press and Fair Finance Watch had been scrutinizing, and now challenge.

  UMB is asking its regulators to allow it to expand, buying Denver-based Heartland. The application, Fair Finance Watch on June 21 formally told the Fed, should not be approved.   In 2022, the most recent year for which Federal data is available, UMB Bank, N.A. made over 2000 mortgage loans to whites, and only 117 loans to African Americans.

 For every denial to an African American, it made only 2.02 loans. But for whites, for every denial it made 3.45 loans. It should be referred to DOJ.    

There is litigation, there is also this, reported at the time of Silicon Valley Bank's failure: "UMB Bank, a regional bank headquartered in Kansas City, Missouri, and with branches across the Midwest, Southwest, and Western United States, has total assets of $38 billion and deposits totaling $32 billion, according to the FDIC. However, only 16% of deposits fall under the $250,000 FDIC insurance threshold, leaving 74.11% (equivalent to $28.36 billion) vulnerable to potential losses."   

Why would regulators even consider approving its expansion? On June 21, Fair Finance Watch filed a formal Community Reinvestment Act challenge to UMB's application to the Federal Reserve, adding state by state data:

  UMB Bank in 2022 in Missouri made 842 mortgage loans to whites, and only 76 loans to African Americans. Meanwhile it denied 41 applications from African Americans, and only 257 from whites.

    UMB Bank in Colorado - in which it seeks to expand - in 2022 made 378 mortgage loans to whites, and only 13 loans to African Americans. Meanwhile it denied six applications from African Americans, and only 107 from whites.

   UMB Bank in 2022 in Texas made 78 mortgage loans to whites, and only six loans to African Americans. Meanwhile it denied two applications from African Americans, and only 27 from whites.   

  These disparities cry out for a referral to DOJ, and public hearings on, and denial of, UMB's major expansion application.

On October 11 UMB's outside counsel Davis Polk sent the Fed a response but withheld branch closing, subsidiary, fintech and crypto information from Fair Finance Watch - so Inner City Press cc-ed them on a FOIA request for:

This is a formal FOIA request for the withheld exhibits to UMB's October 11 submission to the Federal Reserve in connection with its protested application to acquire Heartland Financial, in particular "Confidential" Exhibits A and B, including about fintech and branch closings and all activities engaged in by corporate subsidiaries. This is presumptively public; if any is withheld, all reasonably segregable portions should be provided.

UMB recites and responds: 1. Provide a description of the activities conducted by the following UMB subsidiaries: a. UMBCDC, Inc., Kansas City, Missouri; b. UMB Financial Services, Inc., Kansas City, Missouri; c. UMB Management Equity Holdings Inc., Kansas City, Missouri; d. UMB Merchant LLC, Kansas City, Missouri; and e. UMB Asset Management, LLC, Kansas City, Missouri The requested information is included in AIR Confidential Exhibit A. Convenience and Needs 2. Provide an update on UMB Bank’s branch consolidation analysis and confirm whether any of the branches listed in Public Exhibit 3 of the Additional Information Response, dated August 5, 2024 (“August AI Response”) would be consolidated, following consummation of the proposed transaction. The requested information is included in AIR Confidential Exhibit B.  Discuss any plans to engage in crypto-asset-related activities or fintech partnerships. The requested information is included in AIR Confidential Exhibit A.   

Again, this is both important for the public to know and is presumptively public; if any is withheld, all reasonably segregable portions should be provided.

Watch this site.

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October 7, 2024

As First Tech and Digital Credit Unions Seek to Merge Disparate Lending Ignored by NCUA

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Oct 4 – Two tech-focused credit unions announced this week they intend to merge, if they get approval from the National Credit Union Association.

  Digital Federal Credit Union is based on the East Coast, and First Tech is on the West Coast, wanting to follow Microsoft into Atlanta, and Amazon into northern Virginia. 

 But what are their lending records?

According to 2023 Home Mortgage Disclosure Act data reviewed be Fair Finance Watch, nationwide in 2023, First Technology Credit Union  made 1532 mortgage loans to whites, and only 41 loans to African Americans. Meanwhile it denied only 368 applications from whites, and fully 37 from African Americans.     

  Digital Federal nationwide in 2023 made 2196 mortgage loans to whites, and only 178 loans to African Americans. Meanwhile it denied only 1122 applications from whites, and fully 261 from African Americans. 

   These disparities should result in the denial of the proposed merger. But credit unions are for now not subject to the Community Reinvestment Act, and NCUA refuses to consider such issues. Watch this site

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September 30, 2024

First Busey $1B Bid For CrossFirst Hit by CRA Challenge by Fair Finance Watch on Disparities

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Sept 27 – 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.

Why would regulators even consider approving this merger? Watch this site.

September 23, 2024

In Battleground Michigan Disparate ChoiceOne Eyes Detroit via State Bank Opaque HELOC

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Sept 20 – In the battleground state of Michigan, a bank is trying to move into suburban Detroit 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 ChoiceOne Financial Services, Inc., Sparta, Michigan; to merge with Fentura Financial, Inc., and thereby indirectly acquire The State Bank 

  Kelly Potes, ChoiceOne’s CEO said that the proposed "transaction will allow ChoiceOne to strengthen its presence in the suburbs of Detroit while adding the markets of Flint and Saginaw." But consider ChoiceOne's disparate lending record:      

Consider that ChoiceOne Bank in Michigan in 2023 - data not yet included in any CRA exam - made 759 mortgage loans to whites, and only TWENTY to African Americans. Meanwhile it denied only 246 applications from whites, while denying 10 of the applications that, based on its marketing, it received from African Americans. ChoiceOne should be referred to DOJ.   

Meanwhile The State Bank in Michigan in 2023 - data not yet included in any CRA exam - made 414 mortgage loans to whites, and only THREE to African Americans. Meanwhile it denied only 36 applications from whites, while denying one of the few applications that, based on its marketing, it received from African Americans. The State Bank should also be referred to DOJ.

On September 17, ChoiceOne calling itself COB wrote in, inter alia, that loans "denied were Home Equity Line of Credit loans, for which no denial reason is given. Reporting denial reasons for HELOCs is optional, rather than mandatory for COB, and COB opts not to report." This is far from a best practice - we'll have more on this.

Why would regulators even consider approving this merger? Watch this site.

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September 16, 2024

CRA Problems with ConnectOne Merger With First of Long Island Fair Finance Watch Finds

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Sept 8 –As ConnectOne Bank and First National Bank of Long Island congratulate themselves on a merger proposal, the preliminary review by Fair Finance Watch finds problems.

  ConnectOne, taking deposits in New York, New Jersey and Florida, in 2023 made only one mortgage loan to an African American applicant.  

  Meanwhile First National Bank of Long Island, after a weak and disparate lending performance in 2023, now lists on its website that mortgages are only offered through Rocket Mortgage. How do and would these two banks - which should be kept separate and not be allowed the merge, under the Community Reinvestment Act, serve communities. It appears that they don't.

 Inner City Press will be FOIA-ing the required applications for regulatory approval when they are filed. Watch this site

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September 9, 2024

Opposing Capital One Discover Fair Finance Watch Raises Case of Customer Info to Meta

by Matthew R. Lee

SOUTH BRONX, Sept 4 – 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.

On September 4, Fair Finance Watch and Inner City Press submitted supplemental opposition to the regulators, including about a newly filed class action that "demonstrates Capital One's outrageous, illegal, and widespread practice of disclosing—without consent—the Nonpublic Personal Information1 and Personally Identifiable Financial Information2 (together, “Personal and Financial Information”) of Plaintiffs and the proposed Class Members to third parties, including Meta, Google, Microsoft,  DoubleClick, NewRelic, Adobe, Everest, Skai/Kenshoo, Snowplow, BioCatch, Tealium, and possibly others."

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 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

  Inner City Press continues to dig through the records - and to prepare another FOIA appeal.

Back 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.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. When did the Fed start secret talks with Capital One?

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September 2, 2024

In Battleground Michigan Disparate ChoiceOne Eyes Detroit Area via State Bank But Challenge

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Aug 27 – In the battleground state of Michigan, a bank is trying to move into suburban Detroit 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 ChoiceOne Financial Services, Inc., Sparta, Michigan; to merge with Fentura Financial, Inc., and thereby indirectly acquire The State Bank 

  Kelly Potes, ChoiceOne’s CEO said that the proposed "transaction will allow ChoiceOne to strengthen its presence in the suburbs of Detroit while adding the markets of Flint and Saginaw." But consider ChoiceOne's disparate lending record:      

Consider that ChoiceOne Bank in Michigan in 2023 - data not yet included in any CRA exam - made 759 mortgage loans to whites, and only TWENTY to African Americans. Meanwhile it denied only 246 applications from whites, while denying 10 of the applications that, based on its marketing, it received from African Americans. ChoiceOne should be referred to DOJ.   

Meanwhile The State Bank in Michigan in 2023 - data not yet included in any CRA exam - made 414 mortgage loans to whites, and only THREE to African Americans. Meanwhile it denied only 36 applications from whites, while denying one of the few applications that, based on its marketing, it received from African Americans. The State Bank should also be referred to DOJ.

Why would regulators even consider approving this merger? Watch this site.

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August 26, 2024

The scams and/of the regulators continue - still nothing from the FDIC, nor for a full day and coutning from the Federal Reserve: "This is a request for a copy of the application of Porticoes Capital LLC and Porticoes Investors, LLC;    to become bank holding companies by acquiring Porticoes National Bank (in formation), please confirm receipt & provide the documents - more than a day later, neither had been done...

August 19, 2024

  Can one start a bank that is just a "blank check" entity to buy other banks? The OCC has said yes to Porticoes National Bank and now the FDIC is considering it. Inner City Press / Fair Finance Watch, to give it full consideration, has requested from the FDIC a copy of the application. Twice. And a week after the first request, nothing...


August 12, 2024

SouthState Lending Disparities Triggered CRA Challenge Now Reply Only As To Independent

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, Aug 9 – 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 Florida in 2023 - data not yet included in any CRA exam - made 2755 mortgage loans to whites, and only 165 loans to African Americans. Meanwhile it denied only 958 applications from whites, and fully 69 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.  

  SouthState in Alabama in 2023 - data not yet included in any CRA exam - made 945 mortgage loans to whites, and only FIFTY ONE loans to African Americans. Meanwhile it denied only 87 applications from whites, and fully 17 from African Americans. SouthState should be referred to DOJ.   

 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? 

Even more so now: on August 9, SouthStreet submitted to the Fed a response - that deals only with Independent Bank.

 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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August 5, 2024

On Capital One Discover OCC In Nov 2023 Called It Big Project Sirius then Andy Texts

by Matthew R. Lee

SOUTH BRONX, July 26 – 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 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

  Inner City Press continues to dig through the records - and to prepare another FOIA appeal.

Back 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.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded. When did the Fed start secret talks with Capital One?

July 29, 2024

On Capital One Discover OCC Doubles Down on FOIA Withholding After Predatory Pledge

by Matthew R. Lee

SOUTH BRONX, July 24 – 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 the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.

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.

  On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.

Meanwhile Capitol One lobbying continues, for example with a Pennsylvania state legislator extolling Capital One's  subprime, here.

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites.  It grew worse in the just-out 2023 data.

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site. 

***

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July 22, 2024

On Capital One Discover Opposition by Fair Finance Watch with Inner City Press on FOIA

by Matthew R. Lee

SOUTH BRONX, July 19 – 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 the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans.

Fair Finance Watch testified, with Inner City Press on the FOIA:

This proposal is anticompetitive, and Capital One is making a mockery of the Community Reinvestment Act, with an absurdly small CRA assessment area and now, at the 11th hour, a cynical pledge that includes $75 billion in subprime, often predatory car lending. 

   How much of this last minute pledge would in fact be subprime? At what interest rates? The regulators should ask, today - and must extend the comment period.        You have and will hear from colleagues about the ongoing lending disparities. I want to focus in my three minutes on the lack of transparency, and the regulatory agencies' role in it.  

  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.    The OCC did at least respond to the FOIA request - but it withheld, in full, 193 out of 210 responsive pages.  

  From what was released, it shows three meetings with Capital One and the OCC in February and March, right before the start of the public comment period.  An OCC email says "the purpose of this meeting is to get everyone on the same page out of the gate" in response to an email from Capital One's lawyer. This is called regulatory capture. Can you say, What's in your wallet?     

 ...The Philadelphia National Bank case of the Supreme Court, unlike the Chevron deference relied on not yet overrule, stated that "a merger which produces a firm controlling an undue percentage share of the relevant market, and results in a significant increase in the concentration of firms in that market, is so inherently likely to lessen competition substantially that it must be enjoined in the absence of evidence clearly showing that the merger is not likely to have such anticompetitive effects." 374 U.S. 321 at 363.  

 Here, the presumption has not been rebutted - quite the contrary, given Capital One's rogue and predatory ways, going back to its acquisition of ING Direct and beyond.  On the current record, this proposed merger must be rejected. Capital One's application for regulatory approval must be denied.  

This concludes my remarks, but not my FOIA requests

July 15, 2024

CRA Challenge to Peoples Security Bank FNCB Results in FDIC Fair Lending Condition

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, July 12 – The FDIC on July 12 imposed a fair lending condition on banks Inner City Press / Fair Finance Watch challenged last November:

"Fair Finance Watch has been reviewing Peoples Security Bank and Trust Company and FNCB Bank including their 2022 HMDA data not taken into account in any CRA exam and finds it troubling.  In Pennsylvania in 2022, Peoples Security Bank and Trust Company made 532 HMDA-reported loans to whites - and only FOUR to African Americans, while denying five applications.   FNCB Bank in Pennsylvania in 2022 made 247 HMDA-reported loans to whites - and only ONE to an African Americans, while denying three applications. A referral should be made to the DOJ for fair lending violations."

At that time, the FDIC wrote: "Matthew Lee, Esquire Executive Director Inner City Press/Fair Finance Watch P.O. Box 20047 New York, New York 10017 Dear Mr. Lee: We received your e-mail dated November 10, 2023, regarding the application for Peoples Security Bank and Trust Company to merge with FNCB Bank. We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2(c) and 303.2(l), and we consider it a protest... Any future comments should be sent to the applicant and to this office."

 The bank's outside counsel Troutman Pepper responded. But now in July 2024: "Dear Mr. Lee:  We are writing to inform you that the FDIC approved Peoples Security Bank and Trust  Company’s application to merge with FNCB Bank.  As part of the application review process, we  investigated the issues you raised in your e-mail dated November 10, 2023, and after conducting  our own analysis, the FDIC approved the application with conditions... In the course of reviewing public input on the application, the FDIC received an adverse  comment from a protester that was considered a CRA protest.  The CRA protest was critical of  Peoples Security Bank and Trust Company’s and FNCB Bank’s home mortgage lending efforts  to Black applicants in Pennsylvania and asserted that the lack of lending was discriminatory and  should be referred to the Department of Justice... After a careful review of the concerns, the FDIC decided to approve the application with the  following condition.  This condition will help ensure Peoples Security Bank and Trust Company  meets the home mortgage lending needs of the Black population in its assessment areas.  Within 30 days of consummation, adopt a Fair Lending Action Plan deemed acceptable by the FDIC to  address low levels of home mortgage applications from, and lending to, Black applicants and borrowers,  and in majority-minority areas, and provide the New York Regional Office with quarterly, written updates  on its progress under the plan."

Watch this site.


July 8, 2024

On Capital One Discover OCC Withholds 185 Pages Inner City Press Appeals as PA Pol Spins

by Matthew R. Lee

SOUTH BRONX, July 5 – 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.

Meanwhile Capitol One lobbying continues, for example with a Pennsylvania state legislator extolling Capital One's work with subprime, here. Has he seen their predatory car lending?

  The OCC put part of its application in its reading room. And it is an outrage, Capital One gaming the CRA system. For example "the Proposed Transaction would result in CONA establishing a new assessment area in  Delaware, which will include all census tracts in Sussex County and seven contiguous census  tracts in Kent County."

That for a nationwide card and subprime auto lender...

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites. 

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site. 

***

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June 24, 2024

UMB Bank Application Buy Heartland Now Challenged on Disparties & As Shaky Regional

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, June 21 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger. Among them was UMB - a bank whose lending Inner City Press and Fair Finance Watch had been scrutinizing, and now challenge.

  UMB is asking its regulators to allow it to expand, buying Denver-based Heartland. The application, Fair Finance Watch on June 21 formally told the Fed, should not be approved.   In 2022, the most recent year for which Federal data is available, UMB Bank, N.A. made over 2000 mortgage loans to whites, and only 117 loans to African Americans.

 For every denial to an African American, it made only 2.02 loans. But for whites, for every denial it made 3.45 loans. It should be referred to DOJ.    

There is litigation, there is also this, reported at the time of Silicon Valley Bank's failure: "UMB Bank, a regional bank headquartered in Kansas City, Missouri, and with branches across the Midwest, Southwest, and Western United States, has total assets of $38 billion and deposits totaling $32 billion, according to the FDIC. However, only 16% of deposits fall under the $250,000 FDIC insurance threshold, leaving 74.11% (equivalent to $28.36 billion) vulnerable to potential losses."   

Why would regulators even consider approving its expansion? On June 21, Fair Finance Watch filed a formal Community Reinvestment Act challenge to UMB's application to the Federal Reserve, adding state by state data:

  UMB Bank in 2022 in Missouri made 842 mortgage loans to whites, and only 76 loans to African Americans. Meanwhile it denied 41 applications from African Americans, and only 257 from whites.

    UMB Bank in Colorado - in which it seeks to expand - in 2022 made 378 mortgage loans to whites, and only 13 loans to African Americans. Meanwhile it denied six applications from African Americans, and only 107 from whites.

   UMB Bank in 2022 in Texas made 78 mortgage loans to whites, and only six loans to African Americans. Meanwhile it denied two applications from African Americans, and only 27 from whites.   

  These disparities cry out for a referral to DOJ, and public hearings on, and denial of, UMB's major expansion application.

Watch this site.

***

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June 17, 2024

Capital One Should Discover Merger Dead But Brags of Access Before July 19 Public Meeting

by Matthew R. Lee

SOUTH BRONX, June 12 – 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. While they applied late March 20, as of 1 pm on March 22 there was no notice of the Federal Reserve's or OCC's websites. Inner City Press submitted second FOIA requests to each agency. Public hearings should be held, not only on antitrust but also lending disparities at both companies. 

 On April 24 the Fed extended its comment period to May 31 - without (yet?) granting public hearings, nor providing the FOIA documents.

  Yet on June 12, this: "June 11 (Reuters) - Capital One Financial Corp: * CAPITAL ONE EXEC SAYS IN CONVERSATION WITH U.S. FEDERAL RESERVE AND OFFICE OF COMPTROLLER OF CURRENCY ON DISCOVER DEAL - INVESTOR CONFERENCE." In conversation? With no documents provided to the opposed public? Inner City Press / Fair Finance Watch registered for the public meeting, in opposition.

On May 14 - still without providing FOIA documents - the Fed and OCC set a July 19 virtual public meeting. And already, pro merger lobbying had begun, for example here by a group previously identified in a Trenton NJ political quid pro quo scandal.

 Then an SC Astroturf piece, then going green.

Next a former NH Commissioner, and a "former Democratic campaign strategist in Southern Nevada." Unreal.  We'll have more on this.

  The OCC first put its application in its reading room. And it is an outrage, Capital One gaming the CRA system. For example "the Proposed Transaction would result in CONA establishing a new assessment area in  Delaware, which will include all census tracts in Sussex County and seven contiguous census  tracts in Kent County."

That for a nationwide card and subprime auto lender...

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites. 

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site. 
May 20, 2024

Supreme Court Upholds CFPB Structure 7-2 Amid Industry Attacks and Merger Proposals

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, May 16 –  The Texas Bankers Association and ABA managed to finagle a Federal court ruling allowing its and the ABA's members' non-compliance with the Consumer Financial Protection Bureau's small business data collection rules, pending Supreme Court decision on CFPB's structure and funding. Order here.

Now on May 16, 2024, the Supreme Court has found the CFPB's structure to be Constitutional, by a 7-2 vote. "Congress shielded the Bureau from the influence of the political branches,” Justice Clarence Thomas wrote in the majority opinion for the court.   “Under the Appropriations Clause, an appropriation is simply a law that authorizes expenditures from a specified source of public money for designated purposes. The statute that provides the Bureau’s funding meets these requirements.”

Back on August 11 the two credit union associations wrote it to get a stay - while they themselves try to merge - as Capital One and Discover are now. That should be denied. Watch this site.

May 13, 2024

Amid Attack on CRA FirstSun HomeStreet Bid Hit on Lending Disparities Now Charter Switch

by Matthew Russell Lee

SOUTH BRONX, May 8 – As US bank regulators talk about working to increase the fairness of the financial system, and closely scrutinizing mergers and the spread of bad practices, banks continue to assume they can combine.

  Before the Capital One - Discover proposal, and ABA lawsuit against the Community Reinvestment Act regulation, there was  FirstSun Capital Bancorp of Denver and Dallas saying it will merge with Homestreet, Inc. and Homestreet Bank of Seattle, Washington. 

  On February 23 Fair Finance Watch with Inner City Press on the FOIA filed a protest: "FirstSun's flagship Sunflower Bank, in Texas in 2022, made 694 mortgage loans to whites, and only 41 to African Americans. Meanwhile it denied 12 applications from African Americans, and only 34 from whites.   This is disparate, and more disparate both than the aggregate in Texas. 

    Nationwide in 2022, Sunflower Bank made 3059 mortgage loans to whites, and only 194 to African Americans. Meanwhile it denied 49 applications from African Americans, and only 259 from whites. 

   For the record, on managerial resources and otherwise, note that on September 27, 2023, FirstSun Capital Bancorp, the parent company of Sunflower Bank, Guardian Mortgage and First National 1870 (collectively, “Sunflower”), filed a notice of data breach with the Attorney General of California... an unauthorized party likely took advantage of the flaw in the MOVEit software and downloaded copies of files [containing] personally identifiable information."

  Now FirstSun is simply changing charters to try to get fast approval: FirstSun Capital Bancorp will switch to a Texas state charter rather than a national one as it continues to pursue its acquisition of HomeStreet, the bank announced last week: “In our discussions with the OCC in Washington, it became obvious that we would not gain near-term approval." What a scam.

     FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and so a timely request public hearings.

May 6, 2024

After Being IDed As Shaky Regional UMB Bank Wants to Buy Heartland But Disparities

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, May 1 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger. Among them was UMB - a bank whose lending Inner City Press and Fair Finance Watch had been scrutinizing. 

  Now UMB, paradoxically, is asking its regulators to allow it to expand, buying Denver-based Heartland. The application, Fair Finance Watch says, should not be approved.   In 2022, the most recent year for which Federal data is available, UMB Bank, N.A. made over 2000 mortgage loans to whites, and only 117 loans to African Americans.

 For every denial to an African American, it made only 2.02 loans. But for whites, for every denial it made 3.45 loans. It should be referred to DOJ.    

There is litigation, there is also this, reported at the time of Silicon Valley Bank's failure: "UMB Bank, a regional bank headquartered in Kansas City, Missouri, and with branches across the Midwest, Southwest, and Western United States, has total assets of $38 billion and deposits totaling $32 billion, according to the FDIC. However, only 16% of deposits fall under the $250,000 FDIC insurance threshold, leaving 74.11% (equivalent to $28.36 billion) vulnerable to potential losses."   

Why would regulators even consider approving its expansion? Watch this site.

***

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April 29, 2024

Capital One Should Discover Merger Dead FRB Extends to May 31 Inner City Press FOIAed Fed

by Matthew R. Lee

SOUTH BRONX, April 24 – 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. While they applied late March 20, as of 1 pm on March 22 there was no notice of the Federal Reserve's or OCC's websites. Inner City Press submitted second FOIA requests to each agency. Public hearings should be held, not only on antitrust but also lending disparities at both companies. 

 On April 24 the Fed extended its comment period to May 31 - without (yet?) granting public hearings, nor providing the FOIA documents.

On April 19  the Fed wrote to extended its time to respond to Inner City Press' February 19 FOIA to May 3

April 22, 2024

  As US bank regulations rubber stamp mergers, they withhold from the public even the applications they are approving. When the OCC put out for comment its FOIA regulations, Inner City Press commented:

April 19, 2024

RE: Docket ID OCC–2022–0008 - FOIA

Acting Comptroller Hsu and others at the OCC:

    Inner City Press, as an active FOIA requester to the OCC, timely comments on your pending regulation to demand that the OCC rule on the propriety of all requests for confidential treatment during the comment period on an application - or automatically extend the comment period.

  Too often, applicant national bank over-request confidential treatment, but benefit from it due to the OCC's slow processing of FOIA requests. Case in point is Capital One / Discover - Inner City Press on February 19 submitted a request for communications between the OCC and the banks. Still none of those records as of April 19, as the comment period is set to close. (We expect it to be extended, but this is not the case on most applications).

  Nor even on the application has the OCC ruled on the propriety of the requests for confidential treatment. This must be addressed by the OCC.

   There is other FOIA problems at the OCC - as well as some polite staffers, we note - but we emphasize the above to ensure consideration and action.

  Expectantly,

 

Matthew R. Lee, Esq., Executive Director
Inner City Press / Fair Finance Watch
Bronx, New York

April 15, 2024

Lakeland Bank DOJ Deal Left Disparities So Protest Now Fed Rubber Stamps Provident

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, NY, April 11– 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 a protest, with Inner City Press on the FOIA.

Jump cut to March 15, 2023, when Provident's Deputy General Counsel filed a letter with the New York Fed, cc-ing Rodgin Cohen - only on New Jersey, nothing on the disparities in New York.

On January 18 Provident asked two Board questions - by withholding the entire answers. Inner City Press immediately FOIAed: "The entire response is withheld, about fair lending compliance, including public commitments that are unfulfilled. This cannot stand; the information must be provided before the Board acts in any way on the application (other than denial.)"

Jump cut to mid-February: while still not providing the withheld past answer, the Fed asked more questions. Letter here.

On February 27 Provident provided spin, including that "under the consent order that it entered into with the U.S. Department of Justice.  These obligations require Lakeland Bank to, among other things, establish a $12  million loan subsidy fund to increase credit for consumers applying for loans in  majority-Black and Hispanic census tracts in a five-county area in and around  Newark, New Jersey" - but nothing where other disparities. Letter here.

On April 11, 2024, the Fed hauled off and approved, noting Inner City Press / Fair Finance Watch "objected to the proposal, alleging that in 2021, Provident Bank and Lakeland Bank made no home loans to African American individuals in New York State.30 30  The data cited by the commenter corresponds to publicly available 2021 data by Provident Bank and Lakeland Bank under HMDA. Following consummation of the proposed transaction, the combined organization will add to its assessment area Bronx and Kings counties, each of which includes a significant number of majority-minority and LMI communities... The Board also has considered the DOJ Consent Order, including Lakeland Bank’s efforts towards meeting its obligations under the DOJ Consent Order, and that the DOJ Consent Order binds Provident without further action by the Board." We'll see.

Watch this site.

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April 8, 2024

Amid Attack on CRA FirstSun HomeStreet Bid Hit on Disparities Now Belated Partial Response

by Matthew Russell Lee

SOUTH BRONX, April 1 – As US bank regulators talk about working to increase the fairness of the financial system, and closely scrutinizing mergers and the spread of bad practices, banks continue to assume they can combine.

  Before the Capital One - Discover proposal, and ABA lawsuit against the Community Reinvestment Act regulation, there was  FirstSun Capital Bancorp of Denver and Dallas saying it will merge with Homestreet, Inc. and Homestreet Bank of Seattle, Washington. 

  On February 23, 2024 Fair Finance Watch with Inner City Press on the FOIA filed with the Federal Reserve: "FirstSun's flagship Sunflower Bank, in Texas in 2022, made 694 mortgage loans to whites, and only 41 to African Americans. Meanwhile it denied 12 applications from African Americans, and only 34 from whites.   This is disparate, and more disparate both than the aggregate in Texas. 

    Nationwide in 2022, Sunflower Bank made 3059 mortgage loans to whites, and only 194 to African Americans. Meanwhile it denied 49 applications from African Americans, and only 259 from whites. 

   For the record, on managerial resources and otherwise, note that on September 27, 2023, FirstSun Capital Bancorp, the parent company of Sunflower Bank, Guardian Mortgage and First National 1870 (collectively, “Sunflower”), filed a notice of data breach with the Attorney General of California... an unauthorized party likely took advantage of the flaw in the MOVEit software and downloaded copies of files [containing] personally identifiable information."

   HomeStreet, meanwhile, is politely said to have had a "tough" 2023.

More than a month later, FirstSun emailed Fair Finance Watch and Inner City Press a response, referring to, but not providing copies of, letters of support it says it has procured. Nor has the Federal Reserve forwarded these along, or put them online. We'll have more on this.

     FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and so a timely request public hearings.


April 1, 2024

Prosperity Bank Hit by CRA Challenge to Lone Star Bank now FDIC Condition Reimposed

By Matthew Russell Lee, Patreon

FEDERAL COURT / S Bronx, March 29 – Whether or not the U.S. Community Reinvestment Act will be again enforced under this Administration and its regulators including under the incoming divided Congress is an open question.

   On November 25, 2022 Fair Finance Watch with Inner City Press on the FOIA filed comments with the Federal Deposit Insurance Corporation against the applications by Prosperity Bank in Texas. In April 2023, the FDIC imposed conditions on one - and in March 2024, on the other, Lone Star.

November 25, 2022 

Federal Deposit Insurance Corporation Attn: Chairman Martin J. Gruenberg Dallas Kristie K. Elmquist, Regional Director Julie V. Banfield, Deputy Regional Director Chris Finnegan

Re: Comment on Applications by Prosperity Bank, El Campo, Texas to acquire Lone Star Bank of West Texas and FirstCapital Bank of Texas, N.A. 

Dear Chairman Gruenberg, Regional Director Elmquist, Ass't Regional Director Finnegan and others at the FDIC:   This is a request for all information in the possession of the FDIC about, and a timely comment on, the Applications of Prosperity Bank, El Campo, Texas to acquire Lone Star Bank of West Texas and FirstCapital Bank of Texas, N.A. which appear on the FDIC website under "Applications In Process Subject to the CRA Report" with an initial comment periods running through December 16. This comment is timely.  

   The applicant Prosperity Bank in 2021 in Texas based on its disparate marketing made 5453 mortgage loans to whites -- while making only 188 loans to African Americans. Meanwhile it denied fully 94 applications from African Americans, versus only 1186 from whites. This is far out of keeping with the demographics, and others lenders, in Texas in particularly in Prosperity Bank's CRA assessment areas - this is outrageous.    

  The applicant Prosperity Bank in 2021 in Oklahoma based on its disparate marketing made 320 mortgage loans to whites -- while making only 38 loans to African Americans.  This is far out of keeping with the demographics, and others lenders, in Oklahoma in particularly in Prosperity Bank's CRA assessment areas - this is outrageous.   Very Truly Yours,     Matthew Lee, Esq.   Executive Director  Inner City Press/Fair Finance Watch

On April 6, 2024 sent April 10, the FDIC imposed this condition: "After a careful review of the concerns, the FDIC decided to approve the application with the following condition. This condition will help ensure the home mortgage lending needs of African American populations in Prosperity Bank’s assessment areas are met. Enhance the bank’s Fair Lending Action Plan (Plan) adopted by the Board of Directors of Prosperity Bank and submit changes to the FDIC for approval within 60 days of the application approval date. The Plan updates and revisions, as applicable, should provide strategies to improve the volume of home mortgage applications from, and originations to African American applicants within each of the designated assessment areas established in Texas. The Plan should also provide strategies to improve the volume of home mortgage applications from, and originations in majority-minority census tracts and majority-Hispanic tracts within designated assessment areas in Texas. The enhancements should be developed in the context of available demographic data, as well as safe and sound lending considerations, and provide for periodic review of the Bank's efforts, using measurable criteria, to assess actions and progress. The Bank will continue to provide quarterly updates to the FDIC's Dallas Regional Office detailing the Bank's progress under the Plan."

The condition was re-imposed in March 2024 when the FDIC approved the Lone Star Bank application. Watch this site.

Watch this site.

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March 25, 2024

FDIC Imposes CRA Condition After Mississippi Bank Merger Challenged by Fair Finance Watch

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, March 23 – While the US bank regulators purport to be cracking down on fair lending and other abuses of consumers, they continue to allow banks of all sizes to pass exams and merge when they apply, despite deep disparities.  

On December 9, Fair Finance Watch (with Inner City Press on the FOIA) commented to the FDIC: Merchants & Marine Bank to acquire Mississippi River Bank:

   The applicant Merchants & Marine Bank in 2022 in  Mississippi based on its disparate marketing made 148mortgage loans to whites -- while making only 10 loans to African Americans. This is far out of keeping with the demographics, and others lenders, in Mississippi in particularly in Merchants & Marine Bank's CRA assessment areas. 

  In Alabama it is worse. And it would get worse in Louisiana, into which the bank is apply to expand via Mississippi River Bank.

   The applicant Merchants & Marine Bank in 2022 in Alabama based on its disparate marketing made 26 mortgage loans to whites -- and NONE. to African Americans.

 This is far out of keeping with the demographics, and others lenders, in Alabama in particularly in Merchants & Marine Bank's CRA assessment areas - this is outrageous. 

  There are other issues.... Fair Finance Watch is requesting an extension of the public comment period, evidentiary hearings and that, on the current record, the applications not be approved.

On March 19, 2024, the FDIC recounted Fair Finance Watch / Inner City Press' CRA protest and imposed a condition, to develop a plan to serve African American borrowers, we've uploaded it on DocumentCloud here.

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March 18, 2024

NYCB Was Gifted Signature Bank Now Otting Cash as CEO by Mnuchin Thumbs Nose at CRA

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX / SDNY, March 16– With no public comment period, New York Community Bank was handed the 40 branches of Signature Bank, to re-open them as braches of Flagstar, which NYCB bought in a proceeding delayed by fair lending problems.

  Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed.

  So, a fair lending rogue benefited from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors.

 Jump cut to early February 2024 and NYCB's stock price fell by 60%, Valley National down too.

On February 29, NYCB's long time CEO Thomas Cangemi was out and NYCB said it had "identified material weaknesses." Why didn't the regulators identify them, as Fair Finance Watch protested Flagstar, and on Signature?

Now the kicker: Steve Mnuchin invests, and taps as CEO of NYCB Joseph Otting, who led attacks on the Community Reinvestment Act, and scammed the CRA comment process when last he headed a bank.

 New York Community Bank CEO Joseph Otting will receive an annual base salary of $1.25 million, the bank disclosed in a Securities and Exchange Commission filing Friday.  Otting will also be eligible for an annual cash bonus with a target value of $2.25 million, but that amount could balloon to $4.5 million, according to the filing.  Otting is receiving a one-time, 10-year stock option award covering 15 million shares at $2 per share, NYCB said The options will vest over three years in equal quarterly installments, unless there’s a change in control of the bank. In that case, they’d vest immediately, the bank said.

So Otting may sell, or preside over the failure, of another bank, like OneWest.

We'll have more on this.

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March 4, 2024

Capital One Should Discover Merger Dead as FTC Hits Kroger & Inner City Press FOIAs Fed

by Matthew R. Lee

SOUTH BRONX, Feb 26 – Capital One will apply to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. Public hearings should be held, not only on antitrust but also lending disparities at both companies. 

  On February 20 Capital One CEO Rich Fairbanks bragged about communications he's had with the regulators, then referred to "customary regulatory approvals." Inner City Press immediately submitted Freedom of Information Act requests to the Federal Reserve and OCC for all such communications. Both agencies confirmed receipt. The Fed wrote grandly that "You have provided facts regarding your qualification as a representative of the news media."

 But still no records as of March 2, when the FTC came out against Kroger's proposed $24.6B purchase of Albertsons, saying it "threatens shoppers & workers." So how could Capital One / Discover be approved?

February 26, 2024

Capital One Should Discover Merger Dead CEO Brags to Zombies Inner City Press FOIAs Fed

by Matthew R. Lee

SOUTH BRONX, Feb 20 – Capital One will apply to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. Public hearings should be held, not only on antitrust but also lending disparities at both companies. 

  On February 20 Capital One CEO Rich Fairbanks bragged about communications he's had with the regulators, then referred to "customary regulatory approvals." Inner City Press immediately submitted Freedom of Information Act requests to the Federal Reserve and OCC for all such communications. Both agencies confirmed receipt.

 The call, a transcript of which was not posted hours later, consisted of largely craven questions from Capital One's stable of "analysts," including Goldman Sachs' Ryan Nash, TD Cohen's Moshe Orenbuch, from Citi an Aaron sitting in for Jill Shea, and finally JPMorgan's Rich Shane, who said "I'm not big on saying this on calls, but... congratulations." Really.

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites. 

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site. 

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February 19, 2024

As JPMorgan Chase Seeks to Grab More Money in Affluent Areas Fair Finance Watch Protests

by Matthew R. Lee

South Bronx, Feb 17 -- The monopolization of banking in the US has seen JPMorgan Chase grow well beyond the 10% of nationwide deposit cap that Congress purported to set, as Chase was awarded First Republic and parts of other failed banks. 

  Now Chase proposes to gobble up even more deposits, this time by opening hundreds of branches, in affluent and disproportionately non-diverse communities. 

  Chase in applying to its purported regulator the Office of the Comptroller of the Currency or OCC has chosen not to include the street addresses of the branches it proposes to open.

So on February 17 Fair Finance Watch, with Inner City Press on the FOIA, submitted a sample first comment to the OCC, Acting Comptroller Michael J. Hsu and others, comparing branches Chase proposes to close and open in this instance, February 2 and February 6, in Ohio:  

  On February 2, 2024 the OCC received a filing from Chase to close Eastgate Wyler Park    867 WYLER PARK DRIVE         CINCINNATI    OH    45245    Hamilton    080223A  

On February 6, 2024, the OCC received an application from Chase to open Maineville Town Center    NWC of OH Hwy 48 and US Hwy 22         Maineville    OH    45039    Warren    217362A  

Now, because Chase chooses to list its proposed branch openings not by street address (which information it has) but instead by street-corner (apparently, even if not on a corner), we will herebelow compare the zip codes. [The OCC should henceforth require Chase and others to including street address and census tract in applications.]  

 In Zip Code 45245 where Chase is closing, there are 388 African American residents and 17,817 whites - significantly more diverse than Zip Code 45039 where Chase proposes to open (21,702 whites and only 191 African Americans).   

   In Zip Code 45245 where Chase is closing, fully 21% of households make less than $30,000, and 16% make between $30,000 and $50,000 - significantly lower income than Zip Code 45039 where Chase proposes to open (only 9% of households below $30,000 and only 12% between $30,000 and $50,000). 

  This comparison is troubling; the OCC should require Chase to (re) apply listing street addresses and census tracts, and should make its own comparisons, as this new Chase proposed strategy is rolled out.    

   Fair Finance Watch and Inner City Press are hereby opposing these applications / proposal (including proposed closings) and are requesting public hearing on this issue.

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February 12, 2024

ABA of Large Banks Sue CRA Reg on Day FNB Settles on Fair Lending after CRA Protest

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, NY Feb 5 – On the day a bank that has been permitted several mergers even as it engaged in discrimination settled those charges, on February 5 "The American Bankers Association, the U.S. Chamber of Commerce, Independent Community Bankers of America, Texas Bankers Association, Independent Bankers Association of Texas, Amarillo Chamber of Commerce and Longview Chamber of Commerce filed a lawsuit in the Northern District of Texas against the Federal Reserve, FDIC and OCC."

  Beyond venue shopping, the largest banks in the US are responsible for the ABA lawsuit - they are hypocrites, on which we'll have more.

Consider: First National Bank of Pennsylvania applied to the Federal Reserve to buy Yadkin bank in North Carolina, Fair Finance Watch challenged it on Community Reinvestment Act and fair lending grounds.  

 The Federal Reserve, as usually, rubber stamped the merger.   Now in February 2024 the Justice Department had sued and settled with FNB on fair lending grounds.

Inner City Press had wanted to ask DOJ about the Fed (including in its recent Patriot Bank action), but has been unable so far.  Watch this site

February 5, 2024

As OCC Proposes to End Automatic Approvals It Withheld under FOIA US Bank Letter it Used

By Matthew Russell Lee, Patreon

SOUTH BRONX NYC, Jan 29  – How untransparent and pro-bank are today's regulators, including the Office of the Comptroller of the Currency?

  We ask as the OCC on January 29, 2024 announced a proposal for what it pitched as more transparency in merger reviews. The proposal, they said, "detail[s] the types of deals that would typically secure approval and the issues that could complicate or derail transactions," Michael Hsu, the acting comptroller, said. The end of so-called automatic approvals is overplayed; a database would help. But too some, this appears to be a sop to the banks, not communities or consumers. Consider:

Back on February 10, 2023 came the OCC's denial in full of Inner City Press' Freedom of Information Act request about its approval of U.S. Bank's application to acquire Union Bank, which Fair Finance Watch and others challenged under the Community Reinvestment Act. 

 Inner City Press submitted the request in November 2022, and immediately clarified and narrowed the request after an OCC inquiry.

On February 10, 2023, the OCC responded - and withheld 16 pages in full

On February 14, Inner City Press filed its appeal.

On March 16, 2023, OCC Deputy General Counsel Patricia S. Grady denied the appeal in full - the bank's commitment letter the OCC based its approval all it totally secret. Letter on Inner City Press' DocumentCloud here. This is unacceptable. Will it be addressed?

  Watch this site.

January 29, 2029

  What is happening to the Federal Reserve? Beyond misrating Patriot Bank just before its DOJ redlining settlement, how the Fed is withholding info about its inquiry into Lakeland Bank's discrimination deal. Ten days ago - with no documents yet - Inner City Press / Fair Finance Watch FOIA-ed the Fed: "This is a formal FOIA request for the two exhibits withheld in full by Provident Financial Services, Inc., Jersey City, New Jersey in its January 18, 2024 Additional Information response in connection its pending application  to acquire Lakeland Bancorp, Inc., Oak Ridge, New Jersey, and thereby indirectly acquire Lakeland Bank, which recently settled lending discrimination charges with DOJ   The January 18 response recites then states: Provide an update to all action items included in the Consent Order, reflecting those items which have been completed and any other pertinent updates, including, but not limited to, the status of any deliverables required under the Consent Order that have not yet been completed. Please refer to the attached Confidential Exhibit 1 for a response to this Item.   The entire response is withheld, about fair lending compliance, including public commitments that are unfulfilled. This cannot stand; the information must be provided before the Board acts in any way on the application (other than denial.)


January 22, 2024


Patriot Bank Settled on Redlining After CRA Satisfactory Rating from Federal Reserve

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Jan 20 – Patriot Bank in Tennessee settled redlining discrimination charges with DOJ on January 17, 2024.

But the Federal Reserve in 2022 gave Patriot Bank a "Satisfactory" rating under the Community Reinvestment Act, stating that "no evidence of discriminatory or other illegal  credit practices inconsistent with helping to meet community credit needs was identified." 

 So the Federal Reserve, at least its CRA exams and merger reviews, is not credible.

And DOJ? Settling for less than $2 million?

 Inner City Press has submitted a FOIA request to the Fed, on behalf of Fair Finance Watch, about another recent DOJ lending discrimiantion case and FRB merger, Provident / Lakeland - watch this site

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January 15, 2024

Disparate Hudson Valley Credit Union Wants to Gobble Up a Bank Removing it from CRA

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Jan 12 – The trend of credit unions buying banks is growing - and credit unions are not subject to the Community Reinvestment Act. Nor do some of them respect the fair lending laws.

  Take, this week, the proposed acquisition in New York of Catskill Hudson Bancorp by Hudson Valley Credit Union.

   Home Mortgage Disclosure Act data for 2022, reviewed by Inner City Press / Fair Finance Watch, show that Hudson Valley Credit Union made 141 loans to African Americans while denying more applications, 164, from African Americans. By contrast it made fully 2583 loans to white, which less than half than number of denials: 1128.

HVCU should be referred to the Justice Department for prosecution. But it will not be under the Community Reinvestment Act. This loophole must be closed.

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January 8, 2024

Truist Moving to Close 72 Bank Branches Amid Merger Fallout Covered Up by US Regulators

By Matthew R. Lee, FOIA docs

NEW YORK CITY, Jan 5 – Back when BB&T announced a $66 billion proposal to take over Suntrust Bank, they said they would close an undisclosed number of branches.

Then after Federal Reserve Governor Lael Brainard was asked by Inner City Press / Fair Finance Watch about the Fed's lax review of previous mergers, conveniently, the Fed "announce[d] termination of enforcement action with BB&T Corporation" for money laundering.

  Now in January 2024, the re-named Truist says it will close 72 branches by March. Nine branches are set to close in North Carolina and seven in the DC metropolitan area; also in Alabama, Georgia (8), Kentucky, Maryland and West Virginia. This is the result of the mergers the regulators allow, then don't follow up on.

We'll have more on this - watch this site. 

January 1, 2024

Old National Bank Bid for CapStar Protested After 2021 Settlement 2022 Lending Disparities

by Matthew Russell Lee

SOUTH BRONX, Dec 27 – As US bank regulators talk about working to increase the fairness of the financial system, banks with striking histories of discrimination, even histories acknowledged by settlement, blithely apply for approval to buy other banks. 

 So it is with Old National, which settled lending discrimination charges in 2021, but remained disparate after that - and now seeks to buy CapStar Bank in Nashville.   On December 27, Fair Finance Watch with Inner City Press on the FOIA filed comments with the Office of the Comptroller of the Currency:  "This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Old National to acquire CapStar.   As the OCC must know, Old National was the subject of fair lending discrimination charges and settled them in 2021. See, e.g., "Old National Bank preventing loan access to Black borrowers could be illegal, experts say"...    

But still in 2022, Old National in Indiana based on its disparate marketing made 2609 mortgage loans to whites, with 791 denials to whites -- while making only 114 loans to African Americans, with fully 97 denials.  This is unacceptable.  In 2022 in Minnesota, based on its disparate marketing, Old National made 850 loans to whites, with 223 denial and only 9 loans to African American, with just as many denials to African Americans: nine. This is totally unacceptable.      CapStar in Tennessee in 2022 made 1522 loans to whites with 125 denials, while making only 49 loans to African American, with ten denials. In North Carolina in 2022, CapStar made five loans to whites, and NONE to African Americans.    There is no public benefit to this proposal. 

   Fair Finance Watch and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners. We timely request public hearings. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved

December 25, 2023

Sleazy as can be: U.S. Bank will pay $36 million over allegations the company illegally blocked out-of-work consumers from accessing unemployment benefits during the coronavirus pandemic, top federal banking regulators announced on Tuesday.  At the onset of the COVID-19 pandemic, U.S. Bank had contracts with at least 19 states and the District of Columbia to deliver unemployment benefits to millions of newly out-of-work Americans through its prepaid card.  But due to expanded antifraud controls, the nation's fifth-largest lender froze tens of thousands of prepaid card accounts without leaving users a way to regain access, according to the U.S. Office of the Comptroller of the Currency and U.S. Consumer Financial Protection Bureau.

December 18, 2023

  Fair Finance Watch's CRA filing in Mississippi has been deemed by the FDIC to "constitute a protest for purposes of this application:

Dear Mr. Lee,  This letter is to acknowledge receipt of your correspondence on December 9, 2023, concerning  an application filed by Merchants & Marine Bank, Pascagoula, Mississippi, to merge with  Mississippi River Bank, Belle Chasse, Louisiana.  We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2  (c) and (1) and consider it to constitute a protest for purposes of this application. A determination on the request for a hearing has not yet been made and the FDIC will provide information regarding that request in subsequent correspondence.  cc: Merchants & Marine Bank CEO Clayton Legear

December 11, 2023

Amid FDIC Questions Disparate Mississippi Bank Merger Challenged by Fair Finance Watch

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Dec 9 – While the US bank regulators purport to be cracking down on fair lending and other abuses of consumers, they continue to allow banks of all sizes to pass exams and merge when they apply, despite deep disparities.  

On December 9, Fair Finance Watch (with Inner City Press on the FOIA) commented to the FDIC: Merchants & Marine Bank to acquire Mississippi River Bank:

   The applicant Merchants & Marine Bank in 2022 in  Mississippi based on its disparate marketing made 148mortgage loans to whites -- while making only 10 loans to African Americans. This is far out of keeping with the demographics, and others lenders, in Mississippi in particularly in Merchants & Marine Bank's CRA assessment areas. 

  In Alabama it is worse. And it would get worse in Louisiana, into which the bank is apply to expand via Mississippi River Bank.

   The applicant Merchants & Marine Bank in 2022 in Alabama based on its disparate marketing made 26 mortgage loans to whites -- and NONE. to African Americans.

 This is far out of keeping with the demographics, and others lenders, in Alabama in particularly in Merchants & Marine Bank's CRA assessment areas - this is outrageous. 

  There are other issues.... Fair Finance Watch is requesting an extension of the public comment period, evidentiary hearings and that, on the current record, the applications not be approved. Watch this site.

***

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December 4, 2023

PA Merger Partner FNCB Admits Disparities As Link Was Hit by Fair Finance Watch Now Plan

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Dec 1 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

 In October, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

On November 10, Fair Finance Watch commented on an even more disparate combination, Peoples Security Bank and Trust Company bid to acquire and merge with FNCB Bank, noting that on Pennsylvania in 2022, Peoples Security Bank and Trust Company made 532 HMDA-reported loans to whites - and only FOUR to African Americans, while denying five applications.   FNCB Bank in Pennsylvania in 2022 made 247 HMDA-reported loans to whites - and only ONE to an African Americans, while denying three applications. A referral should be made to the DOJ for fair lending violations.

  Now the banks have admitted to the FDIC: "FNCB Bank’s preliminary HMDA data from the first three quarters of 2023 reveals a significant decrease in loan volume due to an unexpected and unplanned change in FNCB Bank’s mortgage processing system. In early 2022, FNCB Bank partnered with a third party, Promontory MortgagePath (“PMP”), to provide mortgage fulfillment services. However, in October 2022, PMP  Deputy Regional Director Scott D. Strockoz Federal Deposit Insurance Corporation December 1, 2023 Page 6  unexpectedly announced closure of the company due to the unprecedented and rapid deterioration of the mortgage market. PMP did not provide FNCB Bank with advance notice of its decision. In order to continue to serve the needs of its communities during 2023, FNCB Bank brokered residential mortgage loan applications to a third-party lender pending the establishment of a new processing system. Consequently, FNCB Bank recorded a total of 42 brokered loan applications through September 30, 2023, which resulted in 32 loans originated by its third-party lender partner. Because these brokered loans were not closed in FNCB Bank’s name, the loans are not included in FNCB Bank’s 2023 HMDA data. Accordingly, a review of FNCB Bank’s preliminary 2023 HMDA data will indicate that it did not meet 2022 peer benchmarks for loan originations in MMCTs and loan applications generated in LMI tracts when reviewed in FNCB Bank’s assessment areas (which, for peer comparison, includes only those institutions in its assessment area with an application volume between 50% and 200% of FNCB Bank’s). Due to PMP’s withdrawal from its partnership with FNCB Bank, the following trends are evident based on a total of 45 mortgage applications and 33 originations reported by FNCB Bank as HMDA loans during this period: • Applications from MMCTs were 2.22% of total applications. • Majority-Minority loan originations were 0%." Zero. Watch this site.

If the regulators at the FDIC means what they claim, this application should be denied. Watch this site.

November 27, 2023

CRA Challenged to Burke & Herbert on Summit Is Deemed Protest by FDIC despite Bogus Reply

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Nov 20 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank. Despite a showing of disparities at Burke & Herbert even worse than at Linkbank, which the FDIC imposed a condition on, Burke on November 15 issued a vacuous response. They drop an ad-hominen footnote which ignores that the evidence put forward in a litigation survives the suit's withdrawal.

On November 20, the FDIC overruled Burke & Herbert's position: "
Matthew Lee, Esquire Executive Director Inner City Press/Fair Finance Watch P.O. Box 20047 New York, New York 10017 Dear Mr. Lee: We received your e-mail dated November 10, 2023, regarding the application for Peoples Security Bank and Trust Company to merge with FNCB Bank. We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2(c) and 303.2(l), and we consider it a protest... Any future comments should be sent to the applicant and to this office."

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.  

November 20, 2023

CRA Response by Burke & Herbert on Summit Merger Ignores FDIC Conditioning Linkbank

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Nov 15 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank. Despite a showing of disparities at Burke & Herbert even worse than at Linkbank, which the FDIC imposed a condition on, Burke on November 15 issued a vacuous response. They drop an ad-hominen footnote which ignores that the evidence put forward in a litigation survives the suit's withdrawal.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.   

  Summit Community Bank is also of concern. In West Virginia in 2022 it made 403 mortgage loans to whites, and only EIGHT to African Americans. Meanwhile it denied 3 applications from African Americans, and only 97 from whites (compared to 403 originations).  This is disparate, and more disparate both than the aggregate in West Virginia. 

  And that's not even getting into Burke & Herbert's overdraft fee abuses. More on that to follow - more than conditions, this application should be denied.

 In October, after a similar challenge by Fair Finance Watch on data and complaints not even as bad, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.


If the regulators at the FDIC means what they claim, including in the new CRA regulation, this application should be denied. Watch this site.

November 13, 2023

Fair lending beat, filed in the Pennsylvania edition: " Fair Finance Watch has been reviewing Peoples Security Bank and Trust Company and FNCB Bank including their 2022 HMDA data not taken into account in any CRA exam and finds it troubling.  In Pennsylvania in 2022, Peoples Security Bank and Trust Company made 532 HMDA-reported loans to whites - and only FOUR to African Americans, while denying five applications. A referral should be made to the DOJ for fair lending violations.    FNCB Bank in Pennsylvania in 2022 made 247 HMDA-reported loans to whites - and only ONE to an African Americans, while denying three applications. A referral should be made to the DOJ for fair lending violations."

November 6, 2023

Atlantic Union CRA Protested on American National Replies 2.4 Disparities Is Fine

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX NY, Nov 4 –  Two of 2023's largest US proposed bank mergers were announced this summer: Atlantic Union applying to buy Atlantic National in Virginia, and Banc of California to buy PacWest.    Fair Finance Watch had been monitoring the banks, and on September 25 commented to the Federal Reserve on and against Atlantic Union - American National, below.

On October 6, mailed October 11, Atlantic Union's counsel claims that it's fine that Atlantic Union, in Virginia in 2022, made 2819 mortgage loans to whites, and only 197 to African Americans. Meanwhile it denied 159 applications from African Americans, and only 944 from whites.

  Atlantic Union has told the Federal Reserve that's fine.

 That is to say, beyond the 2.4 denial rate disparate, American Union made fully 14 mortgage loans to whites for every loan to an African American.  Statewide in Virginia for the aggregate, the ratio was five to one. 

This is outrageous; again, American Union should be referred by the FRB to the Department of Justice.

   FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings. 

   We'll have more on this.

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October 30, 2023

CRA Challenge to Burke & Herbert Summit Merger After Linkbank Conditioned by FDIC

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 28 – Virginia and Delaware portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed acquisition by Viriginia-based Burke & Herbert Bank & Trust Company of Summit Community Bank.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on October 28 they filed a Community Reinvestment Act challenge with the FDIC:

"In Virginia in 2022, Burke & Herbert Bank & Trust Company made 104 mortgage loans to whites, but only 12 to African Americans. This is out of keeping with the demographics of its footprint, and its competitors.  

 Beyond Virginia, Burke & Herbert Bank & Trust Company is scarcely better. In 2022, Burke & Herbert Bank & Trust Company overall made 119 mortgage loans to whites, but only 16 to African Americans.   

  Summit Community Bank is also of concern. In West Virginia in 2022 it made 403 mortgage loans to whites, and only EIGHT to African Americans. Meanwhile it denied 3 applications from African Americans, and only 97 from whites (compared to 403 originations).  This is disparate, and more disparate both than the aggregate in West Virginia. 

  See also, as to proposed acquirer Burke & Herbert, this "civil action seeking monetary damages, restitution and declaratory relief from Defendant Burke & Herbert Bank & Trust Company (“Burke & Herbert”), arising from the unfair and unconscionable assessment and collection of “overdraft fees” (“OD Fees”) on accounts that were never actually overdrawn. 2. This practice breaches contract promises made in Burke & Herbert’s adhesion contracts. 3. In plain, clear, and simple language, the checking account contract documents discussing OD Fees promise that Burke & Herbert will only charge OD Fees or Non-Sufficient Funds Fees (“NSF Fees”) on transactions where there are insufficient funds to cover them. 4. As happened to Plaintiff, however, Burke & Herbert charges OD Fees even when there are sufficient funds to cover a debit card transaction," citation, etc.

 Earlier in October, after a similar challenge by Fair Finance Watch on data and complaints not even as bad, the FDIC required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.


If the regulators at the FDIC means what they claim, including in the new CRA regulation, this application should be denied. Watch this site.

October 23, 2023

Linkbankcorp Bid To Buy Partners Bancorp Conditioned by FDIC Now Linkbank Spins

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 21 – Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

  Now in October, the FDIC has required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

But Link keeps spinning, issuing a press release about these partial approvals without mentioning the condition, and concluding it "remains subject to the approval of the Board of Governors of the Federal Reserve System and other customary closing conditions. LINK anticipates closing the Merger in the fourth quarter of 2023." How do they know?

* * *

   The ABA's Rob Nichols, formerly of the Treasury Department, has attacked the reporting of demographics in small business lending, saying it will be painting “an incomplete and potentially misleading picture of small business lending to underserved groups." Then there are the lawsuit trying to stop any reporting. Because, apparently, no picture is better than a supposedly incomplete one. Mean while the ABA is an investor: the "American Bankers Association, a trade group for U.S. banks, said on Friday that [it] had joined a $30 million investment round in Finxact, a startup." How does that work?

October 16, 2023

   Who can get into banking in the USA? Well, bunq is trying, despite being fined in Benelux for using AI as their anti money laundering screen. And how would that work for fair lending? Watch this site.

October 9, 2023

Link Bank Bid To Buy Partners Bancorp Was Hit by Fair Finance Watch Now Plan Required

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Oct 7 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the FDIC and Federal Reserve.

  Now in October, the FDIC has required from LINKBANK a plan to improve its lending to African Americans, which Inner City Press has published on its DocumentCloud here.

October 2, 2023

Deutsche Bank Fined for Greenwashing Scam, Next Should Be Fine for False CRA Claims

By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, Sept 25 – Deutsche Bank was sued for their enabling of Jeffrey Epstein, in lawsuits filed on Thanksgiving 2022 in the U.S. District Court for the Southern District of New York, where Inner City Press found them in the docket.

  On September 25, 2023 Deutsche Bank was belatedly fined $25 million for greenwashing. The SEC said that despite marketing itself as an ESG leader, from August 2018 until late 2021 DWS failed to implement certain provisions of its global ESG integration policy "as it had led clients and investors to believe it would. Investment advisers must ensure that their actions conform to their words," said Sanjay Wadhwa, deputy director of the SEC's division of enforcement and head of its climate and ESG task force.    "Here, DWS advertised that ESG was in its DNA, but, as the SEC's order finds, its investment professionals failed to follow the ESG investment processes that it marketed."

This logic should be applied to false CRA claims like KeyCorp's - and others'....

September 25, 2023

CRA Challenge to Atlantic Union - American National Proposed Merger on Loan Disparities

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX NY, Sept 23 –  Two of 2023's largest US proposed bank mergers were announced this summer: Atlantic Union applying to buy Atlantic National in Virginia, and Banc of California to buy PacWest.    Fair Finance Watch had been monitoring the banks, and on September 25 commented to the Federal Reserve on and against Atlantic Union - American National: 

Dear Chair Powell, Secretary Misback and others in the FRS:  This is a timely first comment on, the Applications of Atlantic Union Bankshares Corporation to acquire American National Bankshares.

  Atlantic Union, in Virginia in 2022, made 2819 mortgage loans to whites, and only 197 to African Americans. Meanwhile it denied 159 applications from African Americans, and only 944 from whites.

  This is disparate, and more disparate both than the aggregate in Virginia, and than American National Bank and Trust.

 That is to say, beyond the 2.4 denial rate disparate, American Union made fully 14 mortgage loans to whites for every loan to an African American.  Statewide in Virginia for the aggregate, the ratio was five to one. 

This is outrageous; American Union should be referred by the FRB to the Department of Justice.

 In Maryland in 2022, American Union denied the applications of African Americans 4.31 times more frequently than those of whites.

In North Carolina in 2022, American Union made 17 loans to whites for every loan to an African American. Again, this is outrageous; American Union should be referred by the FRB to the Department of Justice.    

We also note the issues in the overdraft class action that Atlantic Union settled, but on information and belief did not fully address, in 2021. See, MARTY HINTON, individually and on behalf of all others similarly situated, Plaintiff, v. ATLANTIC UNION BANK, Defendant. Civil Action No. 3:20-cv-651-JAG  (Complaint) and (Order denying Atlantic Union's motion to dismiss)  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  

   FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings. 

   We'll have more on this.

September 18, 2023

  Citigroup has been rightly targeted with protest for years (see for example Predatory Bender) - but last week the ongoing lending protest turned environmental, and a Citigroup staffer showed the bank's attitude, pushing and yelling and it seems splashing coffee, video here. More next week, after UNGA...

September 11, 2023

Schwab Moved Bank and CRA Duty to Desert SW After TD Ameritrade Buy, Now Challenge

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Sept 8 – There are largely non-bank company which buy or charter a bank to serve them, but barely if at all comply with the Community Reinvestment Act.

On September 8, 2023, Fair Finance Watch called out Charles Schwab's two banks, to the Federal Reserve:

On behalf of Fair Finance Watch, this is a timely comment on the CRA performance and plans of Charles Schwab, including as impacted by the TD Ameritrade acquisition.

   That acquisition raised a number of issues adverse for consumers, but there was not FRB comment period.    However, this is a timely comment on the CRA PE of the two Charles Schwab banks, Charles Schwab Bank, SSB and Charles Schwab Premier Bank, SSB, which have in connection with the acquisition moved their headquarters to Texas, with an amorphous additional service area of "the desert Southwest."  

Significantly, looking at the top 100 banks regulated by the Federal Reserve, Charles Schwab has the lowest ratio of CRA lending and investments as a % of total assets.    It cannot pass its CRA exam, and its CRA plan cannot continue to be accepted or approved, on this basis.  

The FRB should convene a public hearing, and should reach out to groups through Schwab's (actual) service area.   Watch this site.

September 4, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound has More Fed CRA Questions

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Sept 1 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve.

On September 1, the Fed belated asked: "Describe how Applicant intends to  evaluate whether the products and services provided by the resultant institution will meet the needs  of LMI individuals. Further, if any legacy products or services should change in the future,  describe how Applicant will ensure that the needs of LMI individuals in its AAs continue to be  met. Please provide your response addressed to the undersigned within eight business days of the date of this  letter." Watch this site.

August 28, 2023

Lakeland Bank DOJ Deal Left Disparities in NY So Protest now Fed Asks of DOJ Settlement

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, NY, Aug 26– 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 a protest, with Inner City Press on the FOIA.

Jump cut to March 15, 2023, when Provident's Deputy General Counsel filed a letter with the New York Fed, cc-ing Rodgin Cohen - only on New Jersey, nothing on the disparities in New York.

On August 22, the Fed asked the banks: "Department of Justice Consent Order (“Consent Order”) 1. Provide an update to all action items included in the Consent Order, reflecting those items which have been completed and any other pertinent updates." As of August 26, no response received from these banks...

Watch this site.

***

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August 21, 2023

Credit Union Associations Demand Stay of CFPB 1071 Rule As They Also Move to Merge

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, August 14 –  The Texas Bankers Association and ABA managed to finagle a Federal court ruling allowing its and the ABA's members' non-compliance with the Consumer Financial Protection Bureau's small business data collection rules, pending Supreme Court decision on CFPB's structure and funding. Order here.

On August 3, the ABA wrote to demand the CFPB extend the stay to its non-members, here.

On August 11 the two credit union associations wrote it to get a stay - while they themselves try to merger. The letter was signed by NAFCU Vice President of Regulatory Affairs Ann Petros and CUNA Deputy Chief Advocacy Officer and Managing Counsel Alexander Monterrubio.

There will be fightback.

August 14, 2023

Banks Downgraded as Regulators Encourage Mergers But Link Bid To Buy Partners is Litmus

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Aug 8–  Regional banks are being downgraded, by Moody's and others; the US bank regulators are encouraging mergers. But will they uphold the Community Reinvestment Act as they have, of late, not been? See below.

ecf Moody's cut ratings of 10 banks on Monday. Here's the list of banks downgraded:  Commerce Bancshares BOK Financial Corporation  M&T Bank Corporation Old National Bancorp  Prosperity Bancshares Amarillo National Bancorp Webster Financial Corporation Fulton Financial Corporation  Pinnacle Financial Partners Associated Banc-Corp 

Moody's also said it placed six large banks under review for possible downgrades. They are:  Bank of New York Mellon Corporation Northern Trust Corporation State Street Corporation Cullen/Frost Bankers Truist Financial Corporation  U.S. Bancorp

Moody's also said it shifted the outlook of 11 banks from stable to negative. They are:  PNC Financial Services Group Capital One Financial Corporation Citizens Financial Group Fifth Third Bancorp  Huntington Bancshares  Regions Financial Corporation  Cadence Bank F.N.B. Corporation Simmons First National Corporation Ally Financial  Bank OZK

   Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve

August 7, 2023

ABA Demands Stay of CFPB 1071 Rule As Regulators Triggered PacWest Merger Proposal

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, August 3 –  The Texas Bankers Association and ABA managed to finagle a Federal court ruling allowing its and the ABA's members' non-compliance with the Consumer Financial Protection Bureau's small business data collection rules, pending Supreme Court decision on CFPB's structure and funding. Order here.

On August 3, the ABA wrote to demand the CFPB extend the stay to its non-members, here. There will be fightback.

 Meanwhile, Pennsylvania, California, Delaware and Virginia are portrayed as diverse and even progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve, below.

On July 25, amid winks from the US bank regulators about approving such mergers, PacWest is rushing to combine with Banc of California. Will the regulators throw out the window their claims of renewed vigor, to encourage yet more mergers? Watch this site.

July 31, 2023

Regulatory Double Talk Triggers PacWest Merger Proposal Like Link Bank Doomed Bid

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, July 25 –  Pennsylvania, California, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve, below.

Now on July 25, amid winks from the US bank regulators about approving such mergers, PacWest is rushing to combine with Banc of California. Will the regulators throw out the window their claims of renewed vigor, to encourage yet more mergers? Watch this site.

July 23, 2023

Link Bank In Bid To Buy Partners Bancorp On the Ocean Rebound Misrepresented to FDIC

By Matthew Russell Lee, Patreon

SOUTH BRONX, July 22 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsider.

On July 12, the FRBP asked Link questions, including "5. Discuss whether a compliance committee or any fair lending or CRA-related committees  have been established by Applicant or LinkBank. If so, provide the minutes. If not,  provide any minutes of the board of either Applicant or LinkBank since the March 22,  2021, Consumer Affairs Report of Examination discussing consumer compliance, fair  lending, and/or CRA matters. 6. Provide LinkBank’s most recent consumer compliance risk assessment."

On July 19, Link admitted it has misspoken to the FDIC and tried to amend it: "Dear Ms. Goñi: On behalf of LINKBANK, Camp Hill, Pennsylvania, a Pennsylvania chartered commercial bank, we would like to revise LINKBANK’s responses to comments received ... as follows: Subsidiaries and Affiliates 1. Describe ownership details for the two subsidiaries partially owned by the Virginia Partners Bank (Johnson Mortgage Company) and the Bank of Delmarva (FBW LLC) and what will happen to these subsidiaries and all the other subsidiaries of each bank as part of the merger transactions. LINKBANK would like to retract the following statement made in LINKBANK’s response to comment 1, “The parties expect to dissolve all of the subsidiaries of TBOD and VPB at or following consummation of the closing of the Transaction with the exception of Johnson Mortgage and 410 William Street, LLC.”  LINKBANK will acquire all of the current subsidiaries of TBOD and VPB in the Bank Mergers and none of these subsidiaries will be dissolved at or prior to the consummation of the transaction. Prior to dissolving any subsidiaries post-closing, LINKBANK will conduct an analysis pursuant to 12 U.S.C. 1828(c)(1)(A) and contact FDIC staff to confirm whether any notice or application is necessary."

If the regulators at the Fed and FDIC mean what they claim, this application should be denied. Watch this site.

July 17, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound Protested Inaction on Bad Exam

By Matthew Russell Lee, Patreon

SOUTH BRONX, July 15 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsider.

On July 12, the FRBP asked Link questions, including "5. Discuss whether a compliance committee or any fair lending or CRA-related committees  have been established by Applicant or LinkBank. If so, provide the minutes. If not,  provide any minutes of the board of either Applicant or LinkBank since the March 22,  2021, Consumer Affairs Report of Examination discussing consumer compliance, fair  lending, and/or CRA matters. 6. Provide LinkBank’s most recent consumer compliance risk assessment."

If the regulators at the Fed and FDIC mean what they claim, this application should be denied. Watch this site.

July 10, 2023

Oakwood Bank Was Protested on MapleMark Bank Merger Now Both Downgraded on CRA

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, July 8 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question.

  This has become even more true in 2023, with regulators under fire for misregulation of the failing banks, and of handing them over to mega banks like JPM  Chase. Hence Janet Yellen has promised "openness" to mergers of midsized (and presumably small) banks. Let the rubber stamping begin!

This perhaps explains the industry press hand-wringing about the failure of some mergers subject to CRA protest, largely by Fair Finance Watch. In May 2023, there's MVB bank, here.

Sometimes a CRA protest presage / precedes a downgrade.

Back in August 2022: "Matthew Lee, Esq. Fair Finance Watch P.O. Box 20047 New York City, New York 10017 Re: MapleMark Bank’s Application to Acquire Oakwood Bank Dear Mr. Lee, We are writing to inform you that MapleMark Bank, Dallas, Texas, withdrew its application to acquire and merge with Oakwood Bank, Dallas, Texas. Please note that we will perform any necessary follow-up of the concerns you raised as part of our consumer compliance and Community Reinvestment Act examination programs. We appreciate your concerns and value community input into the application process." Yeah.

   Fair Finance Watch with Inner City Press on the FOIA  filed comments with the Federal Deposit Insurance Company to a proposed merger involving a bank subject to a rare CRA condition: Oakwood Bank in Dallas, and MapleMark Bank:

"March 21, 2022  Dear Regional Director Elmquist, Ass't Regional Director Finnegan and others at the FDIC:   This is a request for all information in the possession of the FDIC about, and a timely comment on, the Applications of Oakwood Bank to merge with MapleBank Bank, both of Dallas, Texas.  

The FDIC publicly imposed a CRA / fair lending condition on Oakwood for its underperformance in Dallas, see, e.g., FDIC required Oakwood Bank to "develop plans to equitably lend to low- and moderate-income borrowers in predominately minority parts of Southern Dallas... [and] action plans to improve small business lending in census tracts in majority-minority, and low- to moderate-income areas. Those action plans have to be adopted by the banks' board of directors and submitted to the FDIC, which is also requiring regular updates on the banks' progress." 

 There is a long history here. See, e.g., American Banker, "Oakwood's CRA Problems Continue."  

 Inner City Press has submitted a FOIA request to the FDIC for All records reflecting and regarding the fair lending / Community Reinvestment Act condition publicly imposed by the FDIC on Oakwood Bank in Dallas, Texas, including all non exempt portions of reports purporting to show performance  

This is a matter of public interest, as it MapleMark's engagement with fintech(s), see, e.g., MapleMark Bank is utilizing German fintech in a partnership  Jun 9, 2021 — A Dallas-based bank funded by local family offices is partnering with a German fintech.. Very Truly Yours,     Matthew Lee, Esq.   Executive Director  Inner City Press/Fair Finance Watch

  Since then, both banks have received rare Needs to Improve CRA ratings...


July 3, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound Evasively Answers on Lehman

By Matthew Russell Lee, Patreon

SOUTH BRONX, June 28 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsider.

On June 14, LINKBANK through counsel answered the Federal Reserve's questions including:

"The proposed acquisitions will increase LINKBANK’s size by approximately 150
percent and will increase its presence from one state (Pennsylvania) to five (with the
addition of Delaware, Maryland, New Jersey, and Virginia). Please explain your
plan to ensure continued satisfactory oversight of consumer compliance, CRA, and
fair lending matters, including any changes to staffing and committees.
LINK acknowledges that the increase in scale and geographic scope resulting from the
proposed transaction necessitates confirmation of a compliance management framework
that ensures sufficient oversight of bank activities, particularly with respect to consumer
compliance, CRA and fair lending matters.
LINK’s executive management team has significant experience leading larger community
banking institutions, ranging in asset size from $3 billion to $18 billion. Accordingly, as
LINK has developed and executed its growth strategy, it has placed a high priority on
building the infrastructure, including policies, procedures and systems, as well as the
senior management talent, necessary to support a significantly larger and more complex
organization, including early investments in compliance and related functions. For
example, LINK’s management team includes a legal, compliance and risk management
structure comparable to much larger institutions, including seasoned professionals in the
roles of Chief Risk Officer, General Counsel, Chief Compliance Officer and Senior Risk
Officer, which is robust for an institution the size of LINK. These individuals, together
with LINKBANK’s President, Chief Consumer Banking Officer, Director of Training
and Development, and senior leaders from deposit, lending and branch operations
functions, comprise LINK’s management Compliance Committee" -

 who ARE these people?

On June 28, LINK BANK regurgitated this empty answer to the FDIC, which also asked "5. Clarify or provide support for the responses to merger application question 8 regarding the pro forma financial statements: a. Explain the difference between the goodwill impact amounts of $43.934 million and $28.993 million. Please see Confidential Exhibit A. 2. Provide a narrative description of how the transaction affects and is affected by the chain banking organization to which the target banks belong, whether the target banks have engaged in any transactions with the other members of the chain banking organization in connection with the proposed mergers, and indicate whether Ken Lehman will have a continuing role in the combined entities. The parties respectfully submit that the proposed merger transaction will not have a significant impact on, and is not significantly affected by, the chain banking organization to which the target banks belong. The target banks have not engaged in any transactions with other members of the chain banking organization in connection with the proposed merger transaction. As described in more detail in the response to Question 8 in the Interagency Bank Merger Application for both TBOD and VPB, following the proposed merger transaction, Mr. Lehman will serve as a director of LINKBANK and LINKBANCORP but will not serve as Chairman, Vice Chairman or an executive officer of these combined entities."

These are the people?

June 26, 2023

Key Bank Amid Data Breach Lawsuits Brags of Goodwill Grant As Engages In Disparate Loans

By Matthew Russell Lee, Patreon

SOUTH BRONX, June 21 - Key Bank is in decline, both in consumer compliance and in fair lending.

  Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation - in February 2023 to the Northern District of Georgia, to the Honorable Steven D. Grimberg.

  Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.

 It should be sued by the Department of Justice, and many others.

  In amateur response, KeyBank on June 20 bragged about a grant to Goodwill Industries of Michiana, Inc. Seth Keirns, KeyBank Northern Indiana Market President, gushed that "At Key, we’re passionate about removing barriers" - just not barriers to fair lending and fair housing.

 How do these grants compare to the lending promises Key made, and broke?  Watch this site.

June 19, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound Has Nameless CRA Answers

By Matthew Russell Lee, Patreon

SOUTH BRONX, June 17 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsider.

On June 14, LINKBANK through counsel answered the Federal Reserve's questions including:

"The proposed acquisitions will increase LINKBANK’s size by approximately 150
percent and will increase its presence from one state (Pennsylvania) to five (with the
addition of Delaware, Maryland, New Jersey, and Virginia). Please explain your
plan to ensure continued satisfactory oversight of consumer compliance, CRA, and
fair lending matters, including any changes to staffing and committees.
LINK acknowledges that the increase in scale and geographic scope resulting from the
proposed transaction necessitates confirmation of a compliance management framework
that ensures sufficient oversight of bank activities, particularly with respect to consumer
compliance, CRA and fair lending matters. LINK’s executive management team has significant experience leading larger community
banking institutions, ranging in asset size from $3 billion to $18 billion. Accordingly, as
LINK has developed and executed its growth strategy, it has placed a high priority on
building the infrastructure, including policies, procedures and systems, as well as the
senior management talent, necessary to support a significantly larger and more complex
organization, including early investments in compliance and related functions. For
example, LINK’s management team includes a legal, compliance and risk management
structure comparable to much larger institutions, including seasoned professionals in the
roles of Chief Risk Officer, General Counsel, Chief Compliance Officer and Senior Risk
Officer, which is robust for an institution the size of LINK. These individuals, together
with LINKBANK’s President, Chief Consumer Banking Officer, Director of Training
and Development, and senior leaders from deposit, lending and branch operations
functions, comprise LINK’s management Compliance Committee" -

 who ARE these people?

June 12, 2023

Link Bank Bid To Buy Partners Bancorp On the Ocean Rebound Has CRA Contemptuous Reply

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, June 7 –  Pennsylvania, Delaware and Virginia are portrayed as diverse and ever progressive places. But their banks, not so much. 

 Consider for example the proposed merger on the rebound between New York-based Link Bank and Partners Bancorp, which recently broke off its proposed deal with OceanFirst.

Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on May 6 they filed a Community Reinvestment Act challenge with the Federal Reserve:

 This is a timely first comment on the Applications of LINKBANCORP, Inc. Camphill, Pennsylvania; to acquire Partners Bancorp, Salisbury, Maryland, and thereby indirectly acquire The Bank of Delmarva, Seaford, Delaware, and Virginia Partners Bank, Fredericksburg, VA "and more."

Since Partners Bancorp's attempt to sell itself to Ocean Bancorp died amid reports of regulator concern, documents in that regard should be provided (and made part of the record on this application), too.

Fair Finance Watch has been reviewing LinkBank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.

 In Pennsylvania in 2021, Link Bank made 49 HMDA-reported loans to whites - and only TWO to African Americans, worse that its peers.  When one expands the review to include loans beyond Pennsylvania, Link Bank's loans in 2021 to whites increase to 53, but to African Americans remains the same insufficient TWO.  

 Virginia Partners Bank is only slightly better. In 2021 it made 48 HMDA reported loans and only THREE to African Americans. While insufficient, that is still more than Link Bank's TWO. A terrible bank would be acquiring a bad bank, and making it even worse.

  After Inner City Press' comments were filed, LINKBANK's outside counsel Luse Gorman PC by Agata S. Troy and Benjamin Azoff rather than addressing the disparities argued that they have no merit, including lying to the Federal Reserve that the FDIC considered them substantive, then urging the FDIC to reconsidering. This should not be countenanced - rather than conditional approval, denial is called for.

On June 10, Inner City Press sumbitted a reply to the FDIC: Since Fair Finance Watch's inital comment in May, LINKBANK has submitted a response contemptuous of the Community Reinvestment Act process, rather than address the disparities in its lending record.    To remind, the disparity in 2021 for LINKBANK was 49 (or 53) HMDA-reported loans to whites versus TWO to whites. LINKBANK responds by attacking the comment and commenter, and claiming that comment says it lends "only" to whites - as if the two loans, compared at 53, are fine with it.     The FDIC is aware of the conditions it has imposed on applicants less disparate than this one, even if LINKBANK and/or its counsel are unaware.  These applications should be denied

If the regulators at the Fed and FDIC mean what they claim, this application should be denied. Watch this site.

June 5 2023

First Republic Given to JPM Chase amid Dimon Epstein Link now Closes 21 Branches Cites Cars

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, June 2 – After the failures of Silicon Valley Bank and Signature Bank in New York, now it's First Republic Bank.

  At 3 am Eastern time on May 1, the First Republic (and $13 billion) was given to JPMorgan Chase, which is already over the "maximum" 10% of US deposits threshold - and whose CEO Jamie Dimon has been ordered deposed about his knowledge of, and link to, the pedophile conspiracy of Jeffrey Epstein. It's come to this.

   The JPM Chase complaint is on Patreon, here.

 On June 1, it was reported that JPMorgan Chase will shut 21 branches of First Republic Bank by the end of the year as it integrates the failed lender into its operations, a JPMorgan spokesperson said. 'These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,' the spokesperson said." Of course, in urban areas underserved by Chase, most people don't have cars...

On March 20, 2023 U.S. District Court for the Southern District of New York Judge Jed S. Rakoff in a bottom line order dismissed some but not all claims, in the Epstein-related cases against JPMC and Deutsche Bank.

Inner City Press,, which reports daily on the SDNY (and the Community Reinvestment Act evasions of Chase and other banks like KeyCorp) put the order on its DocumentCloud here.

  April 30, 2023 piece on JPM Chasing First Republic amid WHCA glitz and the E. Jean Carroll v. Trump trial, on Substack here

  There was no public input into the sell-off, including into how many of First Republic's 84 branches for example in New York City will be closed.

  Back on April 18, after a telephone conference without transcription, Judge Rakoff ordered: "Jamie Dimon should be set aside two days for his deposition. On the first day, plaintiffs will have the opportunity to depose Mr. Dimon for a combined total of five hours. Mr. Staley will have the opportunity to depose Mr. Dimon for two hours. If, at the end of the first day, any party believes that it needs more time to depose Mr. Dimon, it must convene a joint call to Chambers by no later than 5:00 PM to explain why. The Court will then rule as to whether Mr. Dimons deposition should continue for a second day and, if so, for how long."

Will that call be open to the press and public?

More on Substack here.

***

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May 29, 2023

After SBA Fraud Trial of Shin Noah Bank Got Bank of Princeton To Buy It Despite Ongoing Issues

By Matthew Russell Lee, Video, Alamy photos

Federal Court / S Bronx, May 21 – Noah Bank's Edward Shin was on arrested for defrauding the U.S. Small Business Administration on May 29, 2019 and would, it was said, be presented later on May 29 before Magistrate Judge James L. Cott in the U.S. District Court for the Southern District of New York.

  Inner City Press after reporting the arrest went the SDNY Magistrate's Courtroom 5A and was told Shin would be presented at some undefined later hours. But with the door to 5A locked at 4:30 pm, Inner City Press was told Shin "has not been presented, there are no conditions agreed to."

  Jump cut to April 25, 2022. The case was re-assigned to Judge John P. Cronan, who has set trial for April 26. On the eve of it the US put in SBA documents about loans to produce companies, offering to redact some.

On October 6, 2022, Judge Cronan sentenced Shin to 14 months "in prison for his role in defrauding a Pennsylvania-based bank (the “Bank”) while serving as its CEO.  SHIN was convicted after a three-week trial before U.S. District Judge John P. Cronan on all counts, which charged SHIN with taking bribes in connection with the Bank’s issuance of loans that were guaranteed by the United States Small Business Administration Judge Cronan sentenced SHIN to three years of supervised release and ordered SHIN to pay forfeiture in the amount of $5,506,050 and a $600 special assessment fee."

On October 14, the US Attorney's Office wrote to Judge Cronan "to inform the Court that that Government has consulted with Noah Bank; the Bank is no longer seeking restitution in light of its settlement with the defendant."

Just after that, Noah reached an agreement to sell itself to The Bank of Princeton. It is hard to believe that the troubling compliance issues seen in the trial have been resolved. But the regulators, who have failed on Silicon Valley Bank, Signature Bank and First Republic (so far) approved the merger (saying they "do not consider the issues raised therein to constitute a protest for the purposes of this application") and spread Noah's rot further

May 22, 2023

Amid Bank Meltdowns Yellen Says Bring on the Mergers But Silent on CRA and Public Input

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, March 14 – Alongside the flame-out of Silicon Valley Bank, New York-based Signature Bank too failed. On Signature Bank's board of directors were 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.

  Now after the failure (and give-away to JPMorgan Chase) of First Republic, at the G7 Janet Yellen has said, "I anticipate regulators to be open to increased mergers among regional banks in current banking environment."

  It is not mere speculation - Yellen is the boss of the Treasury's Office of the Comptroller of the Currency, and of the Administration's appointees at the Fed and FDIC.  So, bringing on the mergers - with Community Reinvestment Act review and public input be damned!

  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?

Oakwood Bank Was Protested on MapleMark Bank Merger Proposal & Withdrew now Interest

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, May 13 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question.

  This has become even more true in t 2023, with regulators under fire for misregulation of the failing banks, and of handing them over to mega banks like JPM  Chase. Hence Janet Yellen has promised "openness" to mergers of midsized (and presumably small) banks. Let the rubber stamping begin!

This perhaps explains the industry press hand-wringing about the failure of some mergers subject to CRA protest, largely by Fair Finance Watch. In May 2023, there's MVB bank, here.

Back in August 22: "Matthew Lee, Esq. Fair Finance Watch P.O. Box 20047 New York City, New York 10017 Re: MapleMark Bank’s Application to Acquire Oakwood Bank Dear Mr. Lee, We are writing to inform you that MapleMark Bank, Dallas, Texas, withdrew its application to acquire and merge with Oakwood Bank, Dallas, Texas. Please note that we will perform any necessary follow-up of the concerns you raised as part of our consumer compliance and Community Reinvestment Act examination programs. We appreciate your concerns and value community input into the application process." Yeah.

   Fair Finance Watch with Inner City Press on the FOIA  filed comments with the Federal Deposit Insurance Company to a proposed merger involving a bank subject to a rare CRA condition: Oakwood Bank in Dallas, and MapleMark Bank

May 15, 2023

Protest of MBV Leads To Merger Failure and Uncorrected Lies about Activist Investor

By Matthew Russell Lee, Patreon MVB File

SOUTH BRONX NY, May 13 – Alongside the wrongdoing by big banks from JPMorgan Chase to KeyCorp, there are other also dubious proposed merger by smaller banks and predators.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and filed this sample on MVB Bank:

Dear Chair Powell, Secretary Misback and others in the FRS:    This is a request for a full copy of, and a timely first comment on, the Applications of MVB Financial Corp., Fairmont, West Virginia; to acquire Integrated Financial Holdings, Inc., Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust, North Riverside, Illinois, and acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, "and more." 

Fair Finance Watch has been reviewing West Town Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling. FFW in looking into MVB Bank find its offers of banking for gaming, but for CRA questions, not even an email address, only a snail mail address. This is not a best practice, far from it. 

   In terms of HMDA data, in 2021, West Town Bank made 319 mortgage loans to whites with seven denials. Meanwhile to African Americans it made only TWENTY FIVE loans, while denying five applications. A referral should be made to the DOJ for fair lending violations.     MVB, proposing to buy West Town Bank including its hemp lending, is engaged in gaming lending, fintechs - but has not put its CRA file online or even available by emailing."

  Since filing, MVB provided Fair Finance Watch with what it calls its 271-page CRA file (for some reason, only "as of April 2022") which we put on DocumentCloud here to make it public as all CRA files should be, and the Fed has now informed Inner City Press that MVB withdrew its application.

MVB was quoted, lying, that it was because of "an activist investor" challenging the CRA rating: "Larry Mazza, CEO of the $3.6 billion-asset MVB Financial, said in an interview Wednesday that "a activist investor in IFHI had challenged the company's Community Reinvestment Act rating. With regulators exceptionally busy managing the regional bank failures, MVB and IFHI determined it could prove difficult to resolve that matter efficiently." The publication never fact-checked Mezza. We'll have more on this.

***

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May 8, 2023

First Republic Given to JPM Chase by FDIC Despite Antitrust and Dimon Epstein Link

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, May 1 – After the failures of Silicon Valley Bank and Signature Bank in New York, now it's First Republic Bank.

  At 3 am Eastern time on May 1, the First Republic (and $13 billion) was given to JPMorgan Chase, which is already over the "maximum" 10% of US deposits threshold - and whose CEO Jamie Dimon has been ordered deposed about his knowledge of, and link to, the pedophile conspiracy of Jeffrey Epstein. It's come to this.

   The JPM Chase complaint is on Patreon, here.

On March 20, 2023 U.S. District Court for the Southern District of New York Judge Jed S. Rakoff in a bottom line order dismissed some but not all claims, in the Epstein-related cases against JPMC and Deutsche Bank.

Inner City Press,, which reports daily on the SDNY (and the Community Reinvestment Act evasions of Chase and other banks like KeyCorp) put the order on its DocumentCloud here.

  April 30, 2023 piece on JPM Chasing First Republic amid WHCA glitz and the E. Jean Carroll v. Trump trial, on Substack here

  There was no public input into the sell-off, including into how many of First Republic's 84 branches for example in New York City will be closed.

  Back on April 18, after a telephone conference without transcription, Judge Rakoff ordered: "Jamie Dimon should be set aside two days for his deposition. On the first day, plaintiffs will have the opportunity to depose Mr. Dimon for a combined total of five hours. Mr. Staley will have the opportunity to depose Mr. Dimon for two hours. If, at the end of the first day, any party believes that it needs more time to depose Mr. Dimon, it must convene a joint call to Chambers by no later than 5:00 PM to explain why. The Court will then rule as to whether Mr. Dimons deposition should continue for a second day and, if so, for how long."

Will that call be open to the press and public?

More on Substack here.

***

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May 1, 2023

First Republic Searches For Savior But KeyCorp Can't Get a Handout for Disinvestment

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, April 26 – Key Bank is in decline, in consumer compliance and in fair lending - and now, in deposits and stock price.

  Faring worse, at least for now, is First Republic. The talk is of a bailout or forced sale. But to whom?

   With the US bank regulators giving away troubled banks, Silicon Valley Bank to First Citizens, and Signature Bank to NYCB, it is imperative they know the Key Bank cannot be given any more branches, any more communities to take advantage of. Already, Key has government contract to distribute benefits, and garnish wages.

   Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.   It should be sued by the Department of Justice, and many others - just ask NCRC.

  Key Bank is, Fair Finance Watch now says, the Key to Disinvestment. It is the redlining bank.

Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation - in February 2023 to the Northern District of Georgia, to the Honorable Steven D. Grimberg. 

   In amateur response, KeyBank on February 7 bragged on the for-pay CSR Wire about grants it is giving out. But how do they compare to the lending promises Key made, and broke?  Watch this site 

***

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April 24, 2023

Key Falls So As US Banks Being Handed Out KeyCorp Can't Get a Handout for Disinvestment

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, April 20 – Key Bank is in decline, in consumer compliance and in fair lending - and now, in deposits and stock price.

  On April 20 KeyCorp underperformed the estimate, with deposits down year on year; its price fell. If only investors knew how much worse it is.

   With the US bank regulators giving away troubled banks, Silicon Valley Bank to First Citizens, and Signature Bank to NYCB, it is imperative they know the Key Bank cannot be given any more branches, any more communities to take advantage of. Already, Key has government contract to distribute benefits, and garnish wages.

   Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.   It should be sued by the Department of Justice, and many others - just ask NCRC.

  Key Bank is, Fair Finance Watch now says, the Key to Disinvestment. It is the redlining bank.

Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation - in February 2023 to the Northern District of Georgia, to the Honorable Steven D. Grimberg. 

   In amateur response, KeyBank on February 7 bragged on the for-pay CSR Wire about grants it is giving out. But how do they compare to the lending promises Key made, and broke?  Watch this site 

***

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April 17, 2023

Prosperity Bank Hit by CRA Challenge to FirstCapital Bank now FDIC Condition Imposed

By Matthew Russell Lee, Patreon

FEDERAL COURT / S Bronx, April 10 – Whether or not the U.S. Community Reinvestment Act will be again enforced under this Administration and its regulators including under the incoming divided Congress is an open question.

   On November 25, 2022 Fair Finance Watch with Inner City Press on the FOIA filed comments with the Federal Deposit Insurance Corporation against the applications by Prosperity Bank in Texas. In April 2023, the FDIC imposed conditions, see below.

November 25, 2022 

Federal Deposit Insurance Corporation Attn: Chairman Martin J. Gruenberg Dallas Kristie K. Elmquist, Regional Director Julie V. Banfield, Deputy Regional Director Chris Finnegan, Assistant Regional Director (Consumer Protection) 1601 Bryan Street, 38th Floor Dallas, Texas 75201-4586 

Re: Comment on Applications by Prosperity Bank, El Campo, Texas to acquire Lone Star Bank of West Texas and FirstCapital Bank of Texas, N.A. 

Dear Chairman Gruenberg, Regional Director Elmquist, Ass't Regional Director Finnegan and others at the FDIC:   This is a request for all information in the possession of the FDIC about, and a timely comment on, the Applications of Prosperity Bank, El Campo, Texas to acquire Lone Star Bank of West Texas and FirstCapital Bank of Texas, N.A. which appear on the FDIC website under "Applications In Process Subject to the CRA Report" with an initial comment periods running through December 16. This comment is timely.  

   The applicant Prosperity Bank in 2021 in Texas based on its disparate marketing made 5453 mortgage loans to whites -- while making only 188 loans to African Americans. Meanwhile it denied fully 94 applications from African Americans, versus only 1186 from whites. This is far out of keeping with the demographics, and others lenders, in Texas in particularly in Prosperity Bank's CRA assessment areas - this is outrageous.    

  The applicant Prosperity Bank in 2021 in Oklahoma based on its disparate marketing made 320 mortgage loans to whites -- while making only 38 loans to African Americans.  This is far out of keeping with the demographics, and others lenders, in Oklahoma in particularly in Prosperity Bank's CRA assessment areas - this is outrageous.   Very Truly Yours,     Matthew Lee, Esq.   Executive Director  Inner City Press/Fair Finance Watch

On April 6, sent April 10, the FDIC imposed this condition: "After a careful review of the concerns, the FDIC decided to approve the application with the following condition. This condition will help ensure the home mortgage lending needs of African American populations in Prosperity Bank’s assessment areas are met. Enhance the bank’s Fair Lending Action Plan (Plan) adopted by the Board of Directors of Prosperity Bank and submit changes to the FDIC for approval within 60 days of the application approval date. The Plan updates and revisions, as applicable, should provide strategies to improve the volume of home mortgage applications from, and originations to African American applicants within each of the designated assessment areas established in Texas. The Plan should also provide strategies to improve the volume of home mortgage applications from, and originations in majority-minority census tracts and majority-Hispanic tracts within designated assessment areas in Texas. The enhancements should be developed in the context of available demographic data, as well as safe and sound lending considerations, and provide for periodic review of the Bank's efforts, using measurable criteria, to assess actions and progress. The Bank will continue to provide quarterly updates to the FDIC's Dallas Regional Office detailing the Bank's progress under the Plan."

Watch this site.

April 10, 2023

FRB Claims No Review of Signature Crypto So FOIA Appeal Citing Gov Barr on Transparency

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, April 8 – Alongside the larger flame-out of Silicon Valley Bank, Signature Bank too failed.

  Now the Federal Reserve in belated response to Inner City Press' FOIA request says it has no record of reviewing Signature and crypto, nor any "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."

  Federal Reserve letter to Inner City Press here

 The Fed did, however, belatedly give Inner City Press the Farmington State Bank application it approved, with 100% ownership by Bahamas based Jean Chalopin. It's now on Inner City Press' DocumentCloud here.

On April 8, Inner City Press filed a FOIA appeal with the Fed: "This is an appeal of the FRB's denial and delayed and untransparent processing of and determinations on Inner City Press' December 22, 2022 FOIA request... After more than three months, all the FRB provided was the public portion of Farmington State Bank's application - this while FRB Governor Barr just told Congress that the Fed wants to be transparent, including to outside reviews.     Most cynically, the Denial claims that "confidential information is not responsive" - basing that on its interpretation of a first request for clarification, a misinterpretation that all Inner City Press was request was previously public information - information which even then the Fed did not provide for eleven weeks.  We wanted and want the records reflecting the FRS' review of Farmington State Bank's application, and the records about the Fed's review of crypto and the names firms: 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).

   Does the Fed as Governor Barr said want to be transparent or not?

We'll have more on this.

April 3, 2023

With US Banks Being Handed Out Key Bank Cannot Get a Handout As Key to Disinvestment

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURTHOUSE, March 29 – Key Bank is in decline, both in consumer compliance and in fair lending.   

   Now with the US bank regulators giving away troubled banks, Silicon Valley Bank to First Citizens, and Signature Bank to NYCB, it is imperative they know the Key Bank cannot be given any more branches, any more communities to take advantage of. Already, Key has government contract to distribute benefits, and garnish wages.

   Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.   It should be sued by the Department of Justice, and many others - just ask NCRC.

  Key Bank is, Fair Finance Watch now says, the Key to Disinvestment. It is the redlining bank.

Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation - in February 2023 to the Northern District of Georgia, to the Honorable Steven D. Grimberg. 

   In amateur response, KeyBank on February 7 bragged on the for-pay CSR Wire about grants it is giving out. But how do they compare to the lending promises Key made, and broke?  Watch this site

March 27, 2023

Signature Bank Handed to NYCB Fair Lending Rogue as Barney Frank & Cephas on Board

By Matthew Russell Lee, Patreon

SOUTH BRONX / SDNY, March 19 – Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed, see below.

But now, erasing history, it is announced that New York Community Bank has agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal, the Federal Deposit Insurance Corp. said late Sunday.  The 40 branches of Signature Bank will become Flagstar Bank, starting Monday. Flagstar is one of New York Community Bank’s subsidiaries. The deal will include the purchase of $38.4 billion in Signature Bank’s assets, a little more than a third of Signature’s total when the bank failed a week ago.

  So, a fair lending rogue benefits from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors? We'll have more on this.

  Fair Finance Watch found that in 2019 Flagstar made 60,982 mortgage loans to whites, with 13,963 denial to whites - while making only 3799 loans to African Americans with fully 1777 denials to African American. This was significantly worse than other lenders.

  New York Community Bank's record as an enabler of and profiteer off slumlords led Inner City Press file a Community Reinvestment Act challenge to its then-proposed merger with Astoria Bank, which fell apart.

Now a year a half later, the proposed merger is still not done and the extended deadline is approaching, amid talk of, as we predicted, fair lending action. Both companies' stock prices are down. CRA and fair lending sometimes do have an impact. Watch this site.

 Watch this site.

CRA Protest to Gaming MVB Bank Bid On Hemp Lender West Town Bank Yields More Questions

By Matthew Russell Lee, Patreon MVB File
BBC - Honduras - CIA Trial book - NY Mag

SOUTH BRONX NY, March 23 – Amid the focus on big mergers like Bank of Montreal Harris - BNP Paribas and the stalled Flagstar / NYCB, there are other also dubious smaller merger proposals.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and filed this:

Dear Chair Powell, Secretary Misback and others in the FRS:    This is a request for a full copy of, and a timely first comment on, the Applications of MVB Financial Corp., Fairmont, West Virginia; to acquire Integrated Financial Holdings, Inc., Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust, North Riverside, Illinois, and acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, "and more." 

Fair Finance Watch has been reviewing West Town Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling. FFW in looking into MVB Bank find its offers of banking for gaming, but for CRA questions, not even an email address, only a snail mail address. This is not a best practice, far from it. 

   In terms of HMDA data, in 2021, West Town Bank made 319 mortgage loans to whites with seven denials. Meanwhile to African Americans it made only TWENTY FIVE loans, while denying five applications. A referral should be made to the DOJ for fair lending violations.     MVB, proposing to buy West Town Bank including its hemp lending, is engaged in gaming lending, fintechs - but has not put its CRA file online or even available by emailing."

  First after the filing, MVB provided Fair Finance Watch with what it calls its 271-page CRA file (for some reason, only "as of April 2022") which we've put on DocumentCloud here to make it public as all CRA files should be.

On March 23, 2023 - with no reference to SVB or Signature, Fed questions including

"MVB has agreed to sell its Chartwell Compliance subsidiary to the consulting firm, Ankura. a. Update the pro forma organizational chart provided in Confidential Exhibit A of the Additional Information Response, dated February 7, 2023, to reflect the sale of this subsidiary. b. Discuss whether MVB will retain any personnel associated with its Chartwell Compliance subsidiary following consummation of its sale to Ankura. c. Describe any anticipated changes to MVB’s compliance function, as a result of the proposed sale of Chartwell Compliance. d. Provide the date the transaction is expected to close. 2. Provide an update on the status of IFHI’s sale of and the dissolution of West Town Insurance Agency, Inc. Confirm whether any other IFHI subsidiaries have been or are expected to be sold or disposed of prior to consummation of the proposed transaction. If yes, identify each such subsidiary and provide the status of the sale or disposition. 3. In addition to data conversion, discuss proposed integration steps to incorporate West Town Bank & Trust with and into MVB Bank, Inc. (“MVB Bank”), Fairmont, West Virginia. INTERNAL FR/OFFICIAL USE // SECURE EXTERNAL 4. On page 21 of the FR Y-3, MVB states that MVB Bank is in the process of reviewing the products and services of West Town Bank. The additional information submitted on November 30, 2022, stated that that review was still ongoing and was expected to be completed in early 2023. Assuming that analysis is now completed, explain whether any products and services offered by either MVB Bank or West Town Bank would be discontinued after consummation of the proposed transaction. Additionally, discuss whether there would be any changes to the terms or provision of the products and services currently provided, including fees.

March 20, 2023

OCC Withheld US Bank CEO Letter It Used To Approve Union Bank Merger now Denies Appeal

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NYC, March 18  – How untransparent and pro-bank are today's regulators, including the Office of the Comptroller of the Currency?

The example on February 10, 2023 was the OCC's denial in full of Inner City Press' Freedom of Information Act request about its approval of U.S. Bank's application to acquire Union Bank, which Fair Finance Watch and others challenged under the Community Reinvestment Act. 

 Inner City Press submitted the request in November 2022, and immediately clarified and narrowed the request after an OCC inquiry.

On February 10, 2023, the OCC responded - and withholds 16 pages in full, providing no information at all. This on the day the OCC holds a symposium about mergers - with speakers from corporate law firms.

Here's from the OCC's letter:

"Your request for the October 10, 2022 letter from Andrew Cecere and records related or directly referenced in the October 10, 2022 is denied.

We have withheld 16 pages..."

On February 14, Inner City Press filed its appeal...

On March 16, 2023, OCC Deputy General Counsel Patricia S. Grady denied the appeal in full - the bank's commitment letter the OCC based its approval all it totally secret. This while banks are failing. She wrote: "The October 10 letter is a communication between the Bank and the supervisory office
responsible for the examination of the Bank, related to commitments made by the Bank that are
matters of supervisory concern and related to the examination of the Bank. Likewise, the related
information is connected to the OCC’s exercise of its regulatory responsibilities over the Bank
and to the examination of the Bank. Therefore, the requested information is covered by the
broad scope of Exemption 8. Accordingly, I find that these records were properly withheld
under Exemption 8." Full letter now on Inner City Press' DocumentCloud here. This is unacceptable.

  Watch this site.

March 13, 2023

First Bank Wanting To Sell to  Credit Union Not Subject to Community Reinvestment Act Draws Protest

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, March 11 – There is a trend of credit unions buying banks, throughout the United States. But credit unions are not subject to the Community Reinvestment Act, despite being insured by the public - and therefore the effect is to undermine the CRA.

 Now in March 2023 Fair Finance Watch with Inner City Press on the FOIA has commented on one:

"Dear Director Gruenberg, Tom Dujenski, Regional Director, Susan Janson & Rick Packard, Dana English, Ms Patton and others in the FDIC:   This is a request for a full copy of, and a timely first comment on, the Applications by Alabama ONE Credit Union to buy First Bank, Wadley, AL.    This application is listed on the FDIC's website of application subject to CRA comment, with a comment period running through at least March 11, 2023. https://cra.fdic.gov/cram02?inApplNb=20230117&inApplType=MERGER This comment is timely.  As an initial matter, this is a request that the FDIC immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment. Fair Finance Watch has been reviewing Alabama ONE Credit Union including its 2021 HMDA data and finds it troubling.   In terms of HMDA data, in 2021 in Alabama, Alabama ONE Credit Union made 390 mortgage loans to whites with only 18 denials. Meanwhile to African Americans it made only SIXTY ONE loans, while denying fully 13 applications. A referral should be made to the DOJ for fair lending violations.    Public evidentiary hearings are needed, particularly given the trend of less regulated credit union buying FDIC-insured banks."

And in the application to the FDIC, this: "As a credit union, Alabama ONE is not subject to the Community Reinvestment Act." The FDIC has told Fair Finance Watch it is studying the comment, which was sent to Director Gruenberg. Watch this site.

March 6, 2023

Park National Bank Settled Redlining Case with DOJ As Federal Reserve Rubber Stamps Mergers

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX, March 1 – Park National Bank discriminates, the Department of Justice has belatedly concluded, and fined the bank $9 million. Too little, too late.

  The Federal Reserve and other regulators have rubber stamped mergers by this bank, and others like it.

In 2015, Inner City Press / Fair Finance Watch told the Federal Reserve and other regulators about the problems at City National Bank. And the Fed(s) did nothing.  Here's from that time:


Royal Bank of Canada and affluent-focused Los Angeles-based City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch.

Back on April 11, Inner City Press submitted a Freedom of Information Act (FOIA) request to the Federal Reserve for it communication with and about RBC and City National. Only on September 30, more than five MONTHS later, did the Fed response. In the spirit of transparency, we are putting the FOIA response online here.

  It shows among many other things that RBC was meeting with the Federal Reserve well before the public announcement of its City National proposal; it has many redactions which we will be appealing, for example “When you have a chance, please put a note in our files indicating that we asked Charles Fleet about [REDACTED] (b)(5) . Thanks.”

FOIA: On Royal Bank of Canada-CNB, Here's Federal Reserve's Response to ICP On FOIA Five Months Ago by Matthew Russell Lee


February 27, 2023

NBT Bank Bid To Combines Its Disparities With Salisbury Is a CRA Litmus Test for the OCC

By Matthew Russell Lee, Patreon Maxwell Book

SOUTH BRONX, Feb 24 –  New York and Connecticut are portrayed as diverse and progressive places. But their banks, not so much. 

 Consider for example the proposed merger between New York-based NBT Bank NA and Salisbury Bank & Trust with branches in Connecticut and New York, where it is closing one in Poughkeepsie. 

New York-based Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on February 24 they filed a Community Reinvestment Act challenge with the Office of the Comptroller of the Currency:

This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by NBT Bank NA to acquire Salisbury Bank & Trust.       The applicant NBT Bank NA in 2021 based on its disparate marketing made 1813 mortgage loans to whites, with 666 denials to whites -- while making only TWENTY THREE loans to African Americans, with fully 21 denials. This is far out of keeping with the demographics, and others lenders, in NYS and beyond - this is outrageous.    NBT is in fact worse in New York State, where in 2021 it made 1332 mortgage loans to whites, with 508 denials to whites -- while making only 12 loans to African Americans, with fully 18 denials. This is even more outrageous.     A combination with Salisbury would be toxic. In Connecticut in 2021, Salisburn made 125 mortgage loans to whites with 7 denied - and NO loans to African Americans. Notably, in preparation for this proposed transction, Salisbury is engage in branch closing: SALISBURY BANK AND TRUST COMPANY 5 Bissell Street, Lakeville, CT 06039  Notice of intention to close branch office at 2064 New Hackensack Road, Town of Poughkeepsie, Dutchess County, New York 12603    There is no public benefit to this proposal.     FFW and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners, contrary to its rhetoric. We timely request public hearings.

If the regulators at the OCC mean what they claim, this application should be denied. Watch this site.

February 20, 2023

OCC Withheld US Bank CEO Letter It Used To Approve Union Bank Merger Now Appeal Filed

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NYC, Feb 14 – How untransparent and pro-bank are today's regulators, including the Office of the Comptroller of the Currency?

The example on February 10, 2023 was the OCC's denial in full of Inner City Press' Freedom of Information Act request about its approval of U.S. Bank's application to acquire Union Bank, which Fair Finance Watch and others challenged under the Community Reinvestment Act. 

 Inner City Press submitted the request in November 2022, and immediately clarified and narrowed the request after an OCC inquiry.

On February 10, 2023, the OCC responded - and withholds 16 pages in full, providing no information at all. This on the day the OCC holds a symposium about mergers - with speakers from corporate law firms.

Here's from the OCC's letter:

"Your request for the October 10, 2022 letter from Andrew Cecere and records related or directly referenced in the October 10, 2022 is denied.

We have withheld 16 pages..."

On February 14, Inner City Press filed its appeal:

"This is a FOIA appeal of the OCC's denial in full of the FOIA request I submitted on November 23, 2022 on behalf of Inner City Press and in my personal capacity, which the OCC summarized: "You requested the OCC's U.S. Bank - Union Bank merger approval order, including any conditions and any and all records related to the basis for the conditions, and approval. By PAL message dated December 7, 2022, you clarified that you are seeking the October 10, 2022 letter from Andrew Cecere to OCC as referenced in the approval order and records related or directly referenced in the October 10, 2022 letter (Date Range for Record Search: From 01/01/2022 To 11/23/2022)." 


 On February 10, 2023 -- eleven weeks after the request -- the OCC denied the narrowed request in full, providing not a single line or portion of the letter on which the OCC conditioned its merger approval. This is outrageous, and is hereby (within days, not weeks) appealed. 

  FOIA expressly mandates that any "reasonably segregable portion" of a record must be disclosed to a requester after the redaction (the deletion of part of a document to prevent disclosure of material covered by an exemption) of the parts which are exempt. 5 U.S.C. § 552(b). And see, Trans-Pac. Policing Agreement v. U.S. Customs Serv., 177 F.3d 1022,1028 (D.C.Cir. 1999) and PHE, Inc. v. Dep’t. of Justice, 983 F.2d 248,252 (D.C.Cir. 1993). 


 The OCC's approval order said:  "The Resulting Bank shall comply with the commitments contained in the letter from Andrew Cecere, Chairman, President and Chief Executive Officer, U.S. Bank National Association, to Tanya Smith, Deputy Comptroller for Large Bank Supervision, dated October 10, 2022." 

  The public and community groups have a right to know about, assess and act on the regulation and supervision activities of the OCC, which purport to protect and assist consumers. But to say that the approval is based on "commitments" by the bank - with its own compliance problems - while keeping those commitments entirely secret from the public undermines this principle, and the credibility of the OCC. It is inconsistent with the Administration's and Acting Controller's claims. The denial should be immediately reverse, and the letter provided."


 Watch this site.

February 13, 2023

OCC Withholds US Bank CEO Letter It Used To Approve Union Bank Merger, Corporate Capture

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NYC, Feb 10 – How untransparent and pro-bank are today's regulators, including the Office of the Comptroller of the Currency?

Today's example is the OCC's denial in full of Inner City Press' Freedom of Information Act request about its approval of U.S. Bank's application to acquire Union Bank, which Fair Finance Watch and others challenged under the Community Reinvestment Act. 

 Inner City Press submitted the request in November 2022, and immediately clarified and narrowed the request after an OCC inquiry.

Now on February 10, 2023, the OCC responds - and withholds 16 pages in full, providing no information at all. This on the day the OCC holds a symposium about mergers - with speakers from corporate law firms.

Here's from the OCC's letter:

"You requested the OCC's U.S. Bank - Union Bank merger approval order, including any conditions and any and all records related to the basis for the conditions, and approval. By PAL message dated December 7, 2022, you clarified that you are seeking the October 10, 2022 letter from Andrew Cecere to OCC as referenced in the approval order and records related or directly referenced in the October 10, 2022 letter (Date Range for Record Search: From 01/01/2022 To 11/23/2022). By PAL message dated December 7, 2022, we provided you a link to the OCC's approval order on OCC's website.

Your request for the October 10, 2022 letter from Andrew Cecere and records related or directly referenced in the October 10, 2022 is denied.

We have withheld 16 pages by the authority of U.S.C. 552(b)(4) and 12 C.F.R. 4.12(b)(4), trade secrets and commercial or financial information obtained from a person and privileged or confidential; and 5 U.S.C. 552 (b)(8) and 12 C.F.R. 4.12(b)(8), relating to records contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an agency responsible for the regulation or supervision of financial institutions. We have reviewed the information protected by the cited exemption(s) under a presumption of openness but have determined that it is reasonably foreseeable that the disclosure of the information would harm an interest protected by the applicable exemption(s).    

And what is that interest? Watch this site.

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February 6, 2023

Protest of Predatory TAB Bank Leads to CRA Downgrade amid Hemp Lender West Town Docs

By Matthew Russell Lee, Patreon MVB File

SOUTH BRONX NY, Feb 3 – Alongside the wrongdoing by big banks from JPMorgan Chase to KeyCorp, there are other also dubious proposed merger by smaller banks and predators.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and filed the sample on MVB Bank, below. On February 3, 2023 the FDIC issued a rare Needs to Improve rating under the Community Reinvestment Act to Transportation Alliance Bank d/b/a TAB Bank: "The FDIC lowered the CRA rating from “Satisfactory” to “Needs to Improve” due to an illegal credit practice present during the review period for this CRA evaluation."

 Note that "TAB has six strategic partners to offer consumer loans and credit cards: EasyPay Finance: EasyPay offers unsecured, closed-end, subprime consumer loans. Loans are originated through a network of merchants, primarily for retail products and services, such as automotive services, furniture, and pets. • Mission Lane: Mission Lane offers subprime credit card program for borrowers working to rebuild credit. • Snap Finance, Sunbit, FlexLending (new): FlexLending offers POS, closed-end loans to consumers purchasing tires. FlexLending also recently began offering a new direct-to-consumer loan program. • Integra (new): Integra offers unsecured, closed-end, subprime consumer loans." #PredatoryBedner. We'll have more on this. And on this, which we filed:

Dear Chair Powell, Secretary Misback and others in the FRS:    This is a request for a full copy of, and a timely first comment on, the Applications of MVB Financial Corp., Fairmont, West Virginia; to acquire Integrated Financial Holdings, Inc., Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust, North Riverside, Illinois, and acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, "and more." 

Fair Finance Watch has been reviewing West Town Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling. FFW in looking into MVB Bank find its offers of banking for gaming, but for CRA questions, not even an email address, only a snail mail address. This is not a best practice, far from it.

January 30, 2023

Lakeland Bank DOJ Deal Left Disparities in NY Now Provident Pitches Tech Musical Chairs

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NY, Jan 24 – 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.

In January 2023, Provident's public face is to brag about musical chairs in its tech department, with no mention of the glaring fair lending issues: "Over the past year, Provident Bank in Iselin, New Jersey, has been rethinking how it defines top tech leadership roles as it prepares to double in size in a pending merger.  The bank filled three high-level technology positions in the last six months. Although none of these positions are new, some of the roles have been expanded and redefined. For example, Ravi Vakacherla succeeded the retired chief information officer of the bank at the end of August — but his role became chief digital and innovation officer. Damiano Tulipani was appointed chief information security in September. Most recently, Scott Hurlbert joined Provident in January as digital channels director, which encompasses channels that may not traditionally be seen as digital, such as the customer contact center and debit card services.  Redefining certain roles was part of a vision by CEO Anthony Labozzetta to advance innovation at the bank, a unit of the $13.6 billion-asset Provident Financial Services. The new appointments largely predate the bank's announcement that it would acquire Lakeland Bancorp in Oak Ridge, New Jersey — which will roughly double the bank's asset size if the merger closes as planned in the second quarter."

  As planned?? And what will the Federal Reserve do? Deck chairs on the Titanic....

January 23, 2023

BMO Harris BNP Gets Fed OK Despite Peters Case With Climate and Job Loss Dismissed

By Matthew Russell Lee, Patreon Story

FED COURT / S Bronx, Jan 17 – 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.

On October 14, the banks' counsel sent Fair Finance Watch what purported to be a copy of its submission to the Fed under the Ex Parte Rules -- but the entire thing was withheld, under this cover message: "Attached is the public portion of the BMO response to the Federal Reserve Bank of Chicago’s request for additional information received on October 3, 2022.      Please feel free to reach out to me with any questions.     Best,  Ro     Ro Spaziani Wachtell, Lipton, Rosen & Katz."  No substance was attached, just a request for confidential treatment

This was outrageous. The Fed itself should make these exhibits public.

On January 17, the Fed approved the merger, without the word "ponzi" appearing in the order, but these did appear: " The potential for job losses resulting from a merger is outside of the limited statutory factors that the Board is authorized to consider when reviewing an application or notice under the BHC Act. See Western Bancshares, Inc. v. Board of Governors, 480 F.2d 749 (10th Cir. 1973); see also U.S. Bancorp, FRB Order No. 2022-22 (October 14, 2022); BB&T Corp., FRB Order No. 2019-16 (November 19, 2019); KeyCorp, FRB Order No. 2016-12 (July 12, 2016); Community Bank System, Inc., FRB Order No. 2015-34 (November 18, 2015); Wells Fargo & Co., 82 Federal Reserve Bulletin 445 (1996);" and

"Some commenters expressed concerns regarding the amount of funding that BNP Paribas and Bank of Montreal have provided to fossil-fuel companies, while one commenter requested that the combined organization publish annual disclosures related to environmental issues. In addition, one commenter expressed concern that BOTW had not disclosed information regarding the diversity of its employees. These comments concern matters that are outside the scope of the limited statutory factors that the Board is authorized to consider when reviewing an application under the BHC Act. See Western Bancshares, Inc. v. Board of Governors, 480 F.2d 749 (10th Cir. 1973)."

The Fed sure loves that 1973 case. It's time to amend the BHC Act and CRA to provide a private right of action and of judicial review.

January 16, 2023

City National Bank Settled Redlining Case with DOJ After Federal Reserve Ignored FFW Proof

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX, Jan 12 – City National Bank discriminates, the Department of Justice has belatedly concluded, and fined the bank - owned by Royal Bank of Canada - $31 million. Too little, too late.

In 2015, Inner City Press / Fair Finance Watch told the Federal Reserve and other regulators about the problems at City National Bank. And the Fed(s) did nothing.  Here's from that time:


Royal Bank of Canada and affluent-focused Los Angeles-based City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch.

Back on April 11, Inner City Press submitted a Freedom of Information Act (FOIA) request to the Federal Reserve for it communication with and about RBC and City National. Only on September 30, more than five MONTHS later, did the Fed response. In the spirit of transparency, we are putting the FOIA response online here.

  It shows among many other things that RBC was meeting with the Federal Reserve well before the public announcement of its City National proposal; it has many redactions which we will be appealing, for example “When you have a chance, please put a note in our files indicating that we asked Charles Fleet about [REDACTED] (b)(5) . Thanks.”

FOIA: On Royal Bank of Canada-CNB, Here's Federal Reserve's Response to ICP On FOIA Five Months Ago by Matthew Russell Lee

January 9, 2023

On a application by a redliner involved in crypto, Fair Finance Watch filed a challenge citing lending disparities (and the CRA) under the Change in Bank Control Act: "Fair Finance Watch has been reviewing Quontic Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling.   In terms of HMDA data, in 2021 in New York State, Quontic Bank made 594 mortgage loans to whites with 39denials. Meanwhile to African Americans it made only 73 loans, while denying 11 applications. This is more disparate that other banks in NYS. A referral should be made to the DOJ for fair lending violations.    Quontic is being sued, active case: 22-cv-7188 (SDNY).    An evidentiary hearing is necessary. This comment is timely" 

Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington, DC 20551-0001,  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., and thereby indirectly retain voting shares of Quontic Bank, all of New York, New York.  In addition, 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; the Sherri S. Schnall Family Irrevocable Trust, Amie Hoffman as trustee, both of New Hope, Pennsylvania;  to acquire voting shares of Quontic Bank Acquisition Corp., and Quontic Bank Holdings Corp., and thereby indirectly acquire voting shares of Quontic Bank. Accordingly, all notificants in this notice to become a group acting in concert. 

  Public evidentiary hearings are needed.      FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp smaller applications by these sized redliners. We timely request public hearings."

 The Fed denied any extension of the comment period, and Quontic says CRA and fair lending have nothing to do with their application. Watch this site.

January 2, 2023

Lakeland Bank DOJ Deal Left Disparities in NY Glaring Now Provident Let 'em Eat Cake Reply

By Matthew Russell Lee, Patreon Maxwell book

SOUTH BRONX NY, Dec 28 – 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.

Tellingly, the banks' response to not only the lending disparities but even the rare DOJ discrimination settlements is to attack the comments. Provident Bank's Deputy General Counsel Bennett MacDougall writes that Inner City Press / Fair Finance Watch (the Commenter)

"notes three points: (1) Lakeland Bank recently entered into a consent order with the U.S. Department of Justice (the “DOJ”) to resolve certain fair lending-related allegations (the “DOJ Consent Order”); (2) Lakeland allegedly engages in “disparate marketing” in New York; and (3) in 2021, Lakeland made 27 mortgage loans to white borrowers in New York and no mortgage loans to African American borrowers in New York. None of these three points, however, can be considered substantive: 1. It is true that Lakeland Bank entered into the DOJ Consent Order on September 27, 2022. By its terms, however, the DOJ Consent Order has no bearing on Lakeland’s activities in New York. Both the claims made in the DOJ complaint resolved by the DOJ Consent Order (the “DOJ Complaint”) and the actions required of Lakeland Bank under the DOJ Consent Order were expressly limited to five counties in New Jersey. The DOJ Complaint and the DOJ Consent Order only mention New York in passing, noting that Lakeland Bank has a single branch in the state. It is also important to note that the DOJ Complaint and the DOJ Consent Order represent the culmination of a DOJ investigation into Lakeland Bank—and that the investigation resulted in no claims being made against Lakeland Bank related to any unlawful practices in New York.4 The DOJ Consent Order is irrelevant to 3 The Comment Letter also requests “an extension of the comment period” and “evidentiary hearings” without providing any reason or justification whatsoever for either. 4 To the extent that the Commenter seeks to argue that the DOJ Consent Order should have addressed Lakeland Bank’s mortgage lending activities in New York, we submit that an implied Eileen K. Banko Federal Reserve Bank of New York -4- the Commenter’s stated concern regarding Lakeland’s mortgage lending activities in New York. This allegation relating to the DOJ Consent Order therefore does not “relate to a statutory factor” or matters that “otherwise warrant action by the Board.” 2. The Commenter states that Lakeland engages in “disparate marketing” in New York. The Commenter, however, provides nothing to substantiate this statement, other than this conclusory allegation. This allegation relating to a purported violation of law by Lakeland is therefore “without any supporting evidence” and does not “otherwise warrant action by the Board.” 3. The Commenter notes that, as reported in Lakeland Bank’s reported Home Mortgage Disclosure Act (“HMDA”) data for 2021, the bank made 27 mortgage loans in New York to white borrowers and concludes, based on the selective information, that Lakeland Bank made no mortgage loans to African American borrowers in New York in 2021. However, the Commenter fails to note that the HMDA data reflects that Lakeland originated a total of 46 mortgage loans in New York in 2021. The 19 loans the Commenter failed to mention were to borrowers whose race was reported as Asian or Joint or whose race was not available in the HMDA data, and therefore cannot be known. The suggestion in the Comment Letter that Lakeland originates mortgages in New York only to white borrowers is wrong and the Commenter fails to provide important and readily available facts.5 This allegation relating to a purported violation of law by Lakeland is therefore “without any supporting evidence” and does not “otherwise warrant action by the Board.” The Commenter’s apparent concerns with Provident’s mortgage lending activities in New York are similarly baseless. The principal support that the Commenter provides for this concern is that, in 2021, Provident made 20 mortgage loans to white borrowers in New York and none to African Americans. As with Lakeland, the claim that another agency, in this case the DOJ, did not act responsibly does not constitute a “substantive” protest. Furthermore, the Commenter provides no facts that could plausibly support a conclusion that, notwithstanding the results of the DOJ’s investigation, which the Commenter was not privy to, the DOJ Consent Order should have had a broader scope. 5 The Commenter also does not mention that New York is only a minimal geography for Lakeland’s mortgage lending activities. Lakeland’s 46 mortgage loans originated in the state in 2021 represent less than 3% of all mortgage loans originated by the bank in 2021. Eileen K. Banko Federal Reserve Bank of New York -5- Commenter’s suggestion that Provident only originates mortgages to white borrowers omits crucial facts: the Commenter does not mention that, in addition to these 20 mortgage loans, Provident originated 11 others in New York in 2021 for which the borrower’s race is not available in the HMDA data.6 The Commenter’s allegation relating to a purported violation of law by Provident is therefore “without any supporting evidence” and does not “otherwise warrant action by the Board.” The Commenter also notes that the Transaction is the subject of two lawsuits filed in the U.S. District Court for the Southern District of New York (the “Transaction Litigation”). The Transaction Litigation, which is of a type that frequently accompanies bank (and other) mergers, has no relation whatsoever to the Commenter’s purported concern about fair lending or any other CRA-related issues.7 The Transaction Litigation is entirely irrelevant to Lakeland’s or Provident’s mortgage lending activities..
Instead, the Commenter’s assertions are so clearly “make weight” that the Commenter’s purpose in the Comment Letter is to delay timely processing of the Application and to express general dissatisfaction with the Board’s processing of bank acquisition applications."

These two banks are corrupt, and that they think this type of response will get the ear of the Fed reflects badly on the Fed (as does the Fed's attractiveness to fraudsters like FTX / Alameda Research through Farmington State Bank / Moonstone Bank, and Silvergate) - watch this site.

December 26, 2022

Key Bank Amid Data Breach Lawsuits Engages In Disparate Loans Regulators Asleep at Switch

By Matthew Russell Lee, Patreon

SOUTH BRONX, Dec 19 -  Key Bank is in decline, both in consumer compliance and in fair lending.

  Reporting from and on the Federal courts, Inner City Press has noticed a slew of data breach cases filed against KeyCorp, since August 2022, now moving toward a multi-district consolidation. 

  Fair Finance Watch, looking at Key Bank's 2021 lending at first in New York State, notes that while Key Bank made 7916 mortgage loans to whites, with 1733 denials, it made only 266 loans to African Americans, with fully 140 denial.

 It should be sued by the Department of Justice, and many others - watch this site.

December 17, 2022

Brookline Bank Bid To Bring Disparities To NY By Buying PCSB Bank Rubber Stamped by Fed

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SOUTH BRONX, Dec 15 –  New York and Massachusetts are portrayed as diverse and progressive places. But their banks, not so much. 

 Consider for example the proposed and today FRB approved merger between Brookline Bank in Massachusetts and PCSB Bank in New York, with branches in Mount Vernon, Eastchester and elsewhere.  

The Federal Reserve, while withholding beyond the comment period even the public portion of the application involving Lakeland Bank, with settled lending discrimination charges recently with DOJ, on December 15 rubber stamped Brookline's application, with this line: "The commenter objected to the proposal, alleging that in 2021, Brookline Bank made fewer home loans to African American individuals as compared to white individuals." They don't name the commenter - Inner City Press / FFW.

Bronx-based Inner City Press has long exposed redlining. Along with Fair Finance Watch it finds that in 2020, the most recent year for which Home Mortgage Disclosure Act data is publicly available, PCSB Bank in New York State made 79 loans to whites - and only seven to African America. The dollar volume difference is even worse, a twenty to one disparity.  

So what is the lending record in Massachusetts of Brookline Bank, the proposed acquirer of PCSB?

Well, Brookline Bank in 2020 made 456 loans to whites and only FOUR to African Americans. Meanwhile it denied fully 11 applications from African Americans, and only 93 from whites. 

December 12, 2022

Lakeland Bank DOJ Settlement Left Disparities in NY Unaddressed But Fed Slow on the Draw

By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag

SOUTH BRONX NY, Dec 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 with the FDIC, with Inner City Press on the FOIA.

On December 9, Inner City Press filed with the Federal Reserve, in both NY and DC, asking for a copy of the application that day. As of December 10, none has been provided. This is unacceptable - what this site.

Federal Deposit Insurance Corporation Attn: Chairman Martin J. Gruenberg, Frank Hughes 350 Fifth Avenue, Suite 1200 New York, NY 10118-0110  Re: Comment on Applications by Provident Bank to merge with Lakeland Bank 

Dear Chairman Gruenberg, Regional Director Hughes and others at the FDIC:   This is a timely comment on, the Application of Provident Bank to merge with Lakeland Bank which appears on the FDIC website under "Applications In Process Subject to the CRA Report" with an initial comment periods running through December 1. This comment is timely. And as set forth below, the FDIC should extend its comment period, at least until December 15 to coincide with the Federal Reserve comment period on the proposed holding company merger.   

  Lakeland was sued by DOJ and settled, just before this proposed merger was announced. See here "The DOJ said that all of Lakeland’s branches were located in majority-white neighborhoods and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods...  Lakeland, a community bank, operates 68 branches in northern New Jersey and in New York’s Hudson Valley." 


  Notably, the settlement does not address in any way Lakeland's redlining in New York.

December 5, 2022

Lakeland Bank DOJ Settlement Left Disparities in NY Unaddressed so CRA Merger Challenge

By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag

SOUTH BRONX NY, Dec 3 – 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:

Federal Deposit Insurance Corporation Attn: Chairman Martin J. Gruenberg, Frank Hughes 350 Fifth Avenue, Suite 1200 New York, NY 10118-0110  Re: Comment on Applications by Provident Bank to merge with Lakeland Bank 

Dear Chairman Gruenberg, Regional Director Hughes and others at the FDIC:   This is a timely comment on, the Application of Provident Bank to merge with Lakeland Bank which appears on the FDIC website under "Applications In Process Subject to the CRA Report" with an initial comment periods running through December 1. This comment is timely. And as set forth below, the FDIC should extend its comment period, at least until December 15 to coincide with the Federal Reserve comment period on the proposed holding company merger.   

  Lakeland was sued by DOJ and settled, just before this proposed merger was announced. See here "The DOJ said that all of Lakeland’s branches were located in majority-white neighborhoods and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods...  Lakeland, a community bank, operates 68 branches in northern New Jersey and in New York’s Hudson Valley." 


  Notably, the settlement does not address in any way Lakeland's redlining in New York.

   But consider, for the record: in 2021 in New York based on its disparate marketing Lakeland made 27 mortgage loans to whites -- while making NO loans to African Americans. None. Zero. Zip. This must be addressed.  

And it would not be addressed by Provident, which in New York in 2021 made 20 mortgage loans to whites -- while making NO loans to African Americans. None. Zero. Zip. This merger should be denied.

   Note also that in the U.S. District Court for the Southern District of New York, this proposed merger is already the subject of two lawsuits: 22-cv-9946 and 22-cv-9980. 

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      FFW and Inner City Press have been deeply concerned about the rush by the FDIC's to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings.  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.

Watch this site.



November 28, 2022

Prosperity Bank Faces CRA Challenge to Lone Star State Bank and FirstCapital Bank in Texas

By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag

FEDERAL COURT / S Bronx, Nov 25 – Whether or not the U.S. Community Reinvestment Act will be again enforced under this Administration and its regulators including under the incoming divided Congress is an open question.

   Now Fair Finance Watch with Inner City Press on the FOIA has filed comments with the Federal Deposit Insurance Corporation against the applications by Prosperity Bank in Texas:

November 25, 2022 

Federal Deposit Insurance Corporation Attn: Chairman Martin J. Gruenberg Dallas Kristie K. Elmquist, Regional Director Julie V. Banfield, Deputy Regional Director Chris Finnegan, Assistant Regional Director (Consumer Protection) 1601 Bryan Street, 38th Floor Dallas, Texas 75201-4586 

Re: Comment on Applications by Prosperity Bank, El Campo, Texas to acquire Lone Star Bank of West Texas and FirstCapital Bank of Texas, N.A. 

Dear Chairman Gruenberg, Regional Director Elmquist, Ass't Regional Director Finnegan and others at the FDIC:   This is a request for all information in the possession of the FDIC about, and a timely comment on, the Applications of Prosperity Bank, El Campo, Texas to acquire Lone Star Bank of West Texas and FirstCapital Bank of Texas, N.A. which appear on the FDIC website under "Applications In Process Subject to the CRA Report" with an initial comment periods running through December 16. This comment is timely.  

   The applicant Prosperity Bank in 2021 in Texas based on its disparate marketing made 5453 mortgage loans to whites -- while making only 188 loans to African Americans. Meanwhile it denied fully 94 applications from African Americans, versus only 1186 from whites. This is far out of keeping with the demographics, and others lenders, in Texas in particularly in Prosperity Bank's CRA assessment areas - this is outrageous.    

  The applicant Prosperity Bank in 2021 in Oklahoma based on its disparate marketing made 320 mortgage loans to whites -- while making only 38 loans to African Americans.  This is far out of keeping with the demographics, and others lenders, in Oklahoma in particularly in Prosperity Bank's CRA assessment areas - this is outrageous. 

Beyond these disparities, there is the question of possible service reductions. Already, for the record, consider this:   "I was with Prosperity Bank in Cleveland, Texas and my I was with Prosperity Bank in Cleveland, Texas and my account was scammed and I lost 2 of my Social Security checks and the cash I had in the bNK. tHEY PAID MY BILLS IN NOVEMBER AND NOW THEY SAY i HAVE TO PAY THEM $1013 after they didn't protect my account and I lost over $2,828 and had nothing to live on. I paid on a plan with Noeton Security and they got my debit card number and took all my money and the bank says I gave Noeton permission to get American Express gift cards. What can I do about this? Yes I did speak with the manager of Prosperity Bank in Cleveland, Texas.... The bank says they will turn me in for collection and the BBB and I will never be able to open another bank account 

  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

November 21, 2022

CRA Protest to Gaming MVB Bank Bid On Hemp Lender West Town Bank Yields Questions

By Matthew Russell Lee, Patreon MVB File
BBC - Honduras - CIA Trial book - NY Mag

SOUTH BRONX NY, Nov 17 – Amid the focus on big mergers like Bank of Montreal Harris - BNP Paribas and the stalled Flagstar / NYCB, there are other also dubious smaller merger proposals.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and filed this:

Dear Chair Powell, Secretary Misback and others in the FRS:    This is a request for a full copy of, and a timely first comment on, the Applications of MVB Financial Corp., Fairmont, West Virginia; to acquire Integrated Financial Holdings, Inc., Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust, North Riverside, Illinois, and acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, "and more." 

Fair Finance Watch has been reviewing West Town Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling. FFW in looking into MVB Bank find its offers of banking for gaming, but for CRA questions, not even an email address, only a snail mail address. This is not a best practice, far from it. 

   In terms of HMDA data, in 2021, West Town Bank made 319 mortgage loans to whites with seven denials. Meanwhile to African Americans it made only TWENTY FIVE loans, while denying five applications. A referral should be made to the DOJ for fair lending violations.     MVB, proposing to buy West Town Bank including its hemp lending, is engaged in gaming lending, fintechs - but has not put its CRA file online or even available by emailing."

  First after the filing, MVB provided Fair Finance Watch with what it calls its 271-page CRA file (for some reason, only "as of April 2022") which we've put on DocumentCloud here to make it public as all CRA files should be.

Now on November 17, Fed questions including

"This correspondence relates to the application filed by MVB Financial Corp. (“MVB”), Fairmont, West Virginia, to acquire Integrated Financial Holdings, Inc. (“IFHI”), Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust (“West Town Bank”), North Riverside, Illinois, pursuant to sections 3(a)(3) and 3(a)(5) of the Bank Holding Company (“BHC”) Act, and to indirectly acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, pursuant to sections 4(c)(8) and 4(j) of the BHC Act. Based on Federal Reserve staff’s review of the current record, the following additional information is requested. Please provide responses to the following items, including those in the Confidential Annex. Supporting documentation should be provided as appropriate: 1. Provide a revised page 1 of the FR Y-3 Application to Become a Bank Holding Company and/or Acquire an Additional Bank or Bank Holding Company (“FR Y-3”) form to state that MVB’s application is submitted pursuant to both sections 3(a)(3) and 3(a)(5) of the BHC Act. 2. In response to Question 20 of the FR Y-3, MVB represents, “No existing branches will be closed or consolidated as a result of the Proposed Transaction.” However, Exhibit A of the Agreement and Plan of Merger of West Town Bank with and into MVB Bank does not include West Town Bank’s North Riverside, Illinois branch in the list of surviving bank branch locations. Confirm, if such is the case, that MVB does not intend to close any existing branches of either West Town Bank or MVB Bank, Inc. (“MVB Bank”), Fairmont, West Virginia, in connection with the proposed transaction. 3. MVB represents that the following IFHI’s wholly-owned nonbank subsidiaries are anticipated to be sold or dissolved prior to consummation of the proposed transaction: (1) SBA Loan Documentation Services, LLC, (2) West Town Insurance Agency, Inc., (3) Glenwood Structured Finance, LLC, and (4) Patriarch, LLC. For each subsidiary: a. Provide a status update on the dissolution or sale of the subsidiary; b. For any subsidiary that has not yet been dissolved or sold, provide an estimated date by which the dissolution or sale is expected to be completed; and c. Confirm, if such is the case, that the subsidiary would not be acquired or operated by MVB following consummation of the proposed transaction. 

  4. Confirm MVB intends to maintain an ownership interest in VeriLeaf, Inc. and Dogwood State Bank, following consummation of the proposed transaction. 5. The FR Y-3 and Agreement and Plan of Merger and Reorganization dated as of August  12, 2022, between IFHI and MVB indicate that IFHI provides services to marijuana- related businesses (“MRBs”). Indicate whether MVB anticipates continuing to provide  services to MRB customers following consummation of the proposed transaction. If not, describe how and when the combined organization would terminate that business line. If yes, describe the nature and scope of IFHI’s current activities with MRB customers and the combined organization’s anticipated activities with MRB customers. The response should summarize product or services offerings and the size and scope of the business line. In addition, the response should describe the criteria or system for identifying and classifying MRB customers and the combined organization’s definition of MRB customer, if any. 6. Discuss the due diligence process MVB undertook relating to IFHI’s servicing of MRB customers. In addition, summarize any due diligence findings relating to that business line, including whether the due diligence identified any risks, weaknesses, or concerns at IFHI and how the combined organization intends to address them following consummation of the proposed transaction. 7. If applicable, provide an overview of the laws, regulations, orders, or other requirements or guidance that impact IFHI’s and the combined organization’s provision of services to MRB customers. The response should: a. Discuss how the combined organization would manage and mitigate risks associated with servicing MRB customers and ensure compliance with any statutes, regulations, or guidance in each jurisdiction in which the combined organization would service MRB customers. b. Indicate how the combined organization would monitor potential changes to applicable laws concerning providing services to MRB customers in the future. c. Discuss existing policies and procedures as well as any contemplated changes at the combined organization to ensure compliance with applicable law and the 2014 Financial Crime Enforcement Network guidance titled “BSA Expectations Regarding Marijuana-Related Businesses.”  8. Discuss MVB and/or MVB Bank’s record of compliance with the West Virginia Community Reinvestment Act, W. Va. Code §§ 31A-8B-1 to 5, including the date of MVB and/or MVB Bank’s most recent evaluation and rating, as applicable. 9. In the FR Y-3, MVB states that the proposed transaction would create benefits for clients of West Town Bank by enabling them to take advantage of a larger branch and ATM network. Describe in greater detail how the clients of West Town Bank, whose only branch is located in Illinois, would benefit from access to the MVB Bank’s branch and ATM network, which is located in West Virginia and Virginia. 10. Provide a copy of the most recent version of the CRA Strategic Plan that is expected to become effective in January 2023.  NONCONFIDENTIAL // EXTERNAL  11. On page 21 of the FR Y-3, MVB states that MVB Bank is in the process of reviewing the products and services of West Town Bank. Indicate when that review is expected to be completed. If already completed, explain whether any products and services offered by either MVB Bank or West Town Bank would be discontinued after consummation of the proposed transaction. Additionally, discuss whether there would be any changes to the terms or provision of the products and services currently provided, including fees. 12. Confirm whether the consumer compliance program of the merged bank would be MVB Bank’s current program. Describe any modifications to the consumer compliance risk management program that are planned as a result of the proposed transaction. 13. Discuss any enhancements that would be made to MVB Bank’s consumer compliance risk management system to accommodate the proposed additional and expanded activities described in the strategic business plan in Confidential Exhibit E." Full letter on Patreon here.

Watch this site.

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November 14, 2022

Predatory Lender Republic Bank & Trust Faces CRA Challenge to CBank Merger Application

By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag

FEDERAL COURT / S Bronx, Nov 11 – Whether or not the U.S. Community Reinvestment Act will be again enforced under this Administration and its regulators including under the incoming Congress is an open question. The same is the case about predatory lending.

   Now Fair Finance Watch with Inner City Press on the FOIA has filed comments with the Federal Deposit Insurance Corporation against the application by notorious predatory lender Republic Bank & Trust to buy CBank:

November 11, 2022
FDIC Chairman Martin J. Gruenberg FDIC - Chicago Regional Director, John Conneely Deputy Regional Director, Teresa Sabanty
 
Re: Timely Comment opposition and requesting an extension of the comment period on the application by high-cost lender Republic Bank & Trust to acquire CBank and Commercial Industrial Finance, Inc.

Dear Chairman Gruenberg, Regional Director Conneely, Deputy Regional Director Sabanty:  

 On behalf of Fair Finance Watch and Inner City Press and in my personal capacity, this is a timely comment opposing and requesting an extension of the comment period on the application by high-cost lender Republic Bank & Trust to merge with CBank and its wholly-owned subsidiary, Commercial Industrial Finance, Inc. which "provides equipment leasing and financing to businesses nationwide." 

 Republic is a notorious high-cost lender. "Non-bank payday lenders try to get in on the action by putting a bank’s name on the loan, allowing them the pre-emption protection. One company engaged in this is Elevate Financial. Its line-of-credit product, Elastic, uses Republic Bank, which is chartered in Kentucky, to make the loans. Elevate supplies the underwriting software and therefore controls who gets a loan. Republic Bank holds onto the loans, but then sells a 90 percent “participation interest” to an affiliate of Elevate. Functionally speaking, Elevate issues and effectively owns the loans, but it has a legal fig leaf that enables it to point to Republic Bank as the actual lender. This enables Elevate to sell Elastic, which its financial disclosures say carries an annual percentage rate of 109 percent, in states like Minnesota, Montana, and Oregon, which cap interest rates at 36 percent. It also allows Elevate to sell what is effectively a payday lending/installment loan product called Rise in states where payday lending has been banned, like Arizona."

Note for the record on this application, subject to CRA, that Republic Bank and Trust enables Enova, which operates payday and installment lender CashNetUSA, to make NetCredit- branded installment loans at rates up to 99.99% APR.

  In terms of HMDA data, in 2021, Republic Bank and Trust in Kentucky made 2429 mortgage loans to whites with 162 denials. Meanwhile to African Americans it made 303 loans, while denying fully 51 applications.

  In Ohio in 2021, Republic Bank and Trust
made 72 mortgage loans to whites with seven denials. Meanwhile to African Americans it made ten loans, while denying four applications.  

  In Florida in 2021, Republic Bank and Trust made 260 mortgage loans to whites with 45 denials. Meanwhile to African Americans it made eleven loans, while denying six applications.    Public evidentiary hearings are needed.   

 FFW and Inner City Press have been deeply concerned about the rush by the FDIC to rubber-stamp smaller mergers by these sized redliners. This has been killing the Community Reinvestment Act and we timely request public hearings. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.     Very Truly Yours,     Matthew Lee, Esq.   Executive Director  Inner City Press/Fair Finance Watch

Watch this site.

November 7, 2022

CRA Protest to Gaming MVB Bank Bid For Redlining Hemp Lender West Town Bank Yields Docs

By Matthew Russell Lee, Patreon MVB File
BBC - Honduras - CIA Trial book - NY Mag

SOUTH BRONX NY, Oct 31 –   Amid the focus on big mergers like Bank of Montreal Harris - BNP Paribas and the stalled Flagstar / NYCB, there are other also dubious smaller merger proposals.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and filed the below.  Since filing, MVB provided Fair Finance Watch with what it calls its 271-page CRA file (for some reason, only "as of April 2022") which we've put on DocumentCloud here to make it public as all CRA files should be, and the Fed has provided portions of the application, including that target "IFHI owns a 30.5% interest in VeriLeaf, Inc., a Delaware corporation with its main office in Austin, Texas, which is a start-up company that provides automated software solutions and related compliance and risk management services to assist banks with enhanced due diligence needed for higher-risk customer bases, such as hemp businesses." Watch this site.


October 31, 2022

CRA Challenge to Gaming MVB Bank Bid For Redlining Hemp Lending West Town Bank

By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag

SOUTH BRONX NY, Oct 25 –   Amid the focus on big mergers like Bank of Montreal Harris - BNP Paribas and the stalled Flagstar / NYCB, there are other also dubious smaller merger proposals.

Fair Finance Watch is on the lookout, with Inner City Press on the FOIA, and just filed this:

Dear Chair Powell, Secretary Misback and others in the FRS:    This is a request for a full copy of, and a timely first comment on, the Applications of MVB Financial Corp., Fairmont, West Virginia; to acquire Integrated Financial Holdings, Inc., Raleigh, North Carolina, and thereby indirectly acquire West Town Bank & Trust, North Riverside, Illinois, and acquire voting shares of West Town Payments, LLC, Raleigh, North Carolina, "and more." 

Fair Finance Watch has been reviewing West Town Bank including its 2021 HMDA data not taken into account in any CRA exam and finds it troubling. FFW in looking into MVB Bank find its offers of banking for gaming, but for CRA questions, not even an email address, only a snail mail address. This is not a best practice, far from it. 

   In terms of HMDA data, in 2021, West Town Bank made 319 mortgage loans to whites with seven denials. Meanwhile to African Americans it made only TWENTY FIVE loans, while denying five applications. A referral should be made to the DOJ for fair lending violations.     MVB, proposing to buy West Town Bank including its hemp lending, is engaged in gaming lending, fintechs - but has not put its CRA file online or even available by emailing.     Public evidentiary hearings are needed.    

  FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp smaller mergers by these sized redliners. This has been killing the Community Reinvestment Act and we timely request public hearings.  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.  

The Fed, through the FRB of Richmond, has replied: "October 25, 2022 Mr. Matthew Lee, Esq. Executive Director Inner City Press/Fair Finance Watch  Dear Mr. Lee: This is to acknowledge receipt of your comment letter with respect to the applications by MVB Financial Corp

October 24, 2022

Credit Suisse Sued in SDNY, Pays NJ Predatory Lending Settlement But More Coming

By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag

SOUTH BRONX / SDNY, Oct 18  – Credit Suisse, now on trial in the U.S. District Court for the Southern District of New York for rigging foreign exchange prices in a case covered by Inner City Press, has separately settled with the New Jersey Attorney General for its role in the US predatory lending scandal.

   "Credit Suisse said Monday that the settlement allows the bank to resolve its only remaining mortgage-backed securities matter involving claims by a regulator" - but there is opposition from beyond the too often defanged regulators.

  This is on top of money laundering supporting dictators from Zimbabwe to Kazakhstan, and assisting in the destruction of a Ukrainian agricultural firm.

Now it wants to set its asset management business in the US. It should and will face opposition, from Fair Finance Watch and others. Watch this site. 

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October 17, 2022

BMO Harris BNP Faced Fed Qs After Admitting Mislabeling Info Now More Confidential Answers

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FED COURT / S Bronx, Oct 15 – Whether or not the U.S. Community Reinvestment Act will actually be enforced under the Administration and its regulators remains an open question. 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.

On October 14, the banks' counsel sent Fair Finance Watch what purported to be a copy of its submission to the Fed under the Ex Parte Rules -- but the entire thing was withheld, under this cover message: "Attached is the public portion of the BMO response to the Federal Reserve Bank of Chicago’s request for additional information received on October 3, 2022.      Please feel free to reach out to me with any questions.     Best,  Ro     Ro Spaziani Wachtell, Lipton, Rosen & Katz."  No substance was attached, just a request for confidential treatment.

This is outrageous. The Fed itself should make these exhibits public. Then again, the Fed hid its October 14 action on US Bank - MUFG, see this week's Inner City Press Federal Reserve Watch report.  Watch this site.

October 10, 2022

NYCB Proposal With Flagstar Stalled and Now Talk of Fair Lending Action A Nail in Coffin?

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SOUTH BRONX / SDNY, Oct 6 – Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions.

  Fair Finance Watch found that in 2019 Flagstar made 60,982 mortgage loans to whites, with 13,963 denial to whites - while making only 3799 loans to African Americans with fully 1777 denials to African American. This was significantly worse than other lenders.

  New York Community Bank's record as an enabler of and profiteer off slumlords led Inner City Press file a Community Reinvestment Act challenge to its then-proposed merger with Astoria Bank, which fell apart.

Now a year a half later, the proposed merger is still not done and the extended deadline is approaching, amid talk of, as we predicted, fair lending action. Both companies' stock prices are down. CRA and fair lending sometimes do have an impact. Watch this site.

 Watch this site.

October 3, 2022

Lakeland Bank Redlined in NJ and NY Now Set to Cash Out to Provident, Disclosure Required

By Matthew Russell Lee, Patreon

SOUTH BRONX, Oct 1 – It is said the fair lending is being taken more seriously. Or is it being gamed more?

Take the example of Lakeland Bank. In New York State in 2021, it made 27 mortgage loans to whites, and NONE to African Americans, Fair Finance Watch has found.

   In New Jersey, it made 19 loans to African Americans - but 1224 to whites. It is redlining.   That week the Justice Department announced a $13.2 million fair lending settlement with Lakeland.

  But it was a game - in the same week, Landland announced it would apply to be bought by Provident Bank with $1.3 billion - that's billion - and its CEO Thomas Shara Jr. would stay on as executive vice chairman. Call it impunity. 

   In fact, it would appear that the Federal government is in on it, with the merger and the minimal fine being coordinated, a sort of pre-approval of the merger despite the Community Reinvestment Act. It shouldn't be, and all parties should be required to make full disclosure. Inner City Press on the FOIA - watch this site.

September 26, 2022

It is said that this US Administration is committed to the CRA and public participation - but it controls the FDIC, which last week said:

"Matthew Lee, Esq. Executive Director Fair Finance Watch Dear Mr. Lee: This letter is to inform you that the FDIC has decided not to grant your request for a hearing and extension of the public comment period regarding the application filed by Ford Credit Bank (Proposed), Salt Lake City, Utah to establish an industrial bank on July 22, 2022. We feel that the  material you have forwarded to this office will allow the FDIC to perform a thorough review and in- depth analysis to address your concerns." We'll see.

September 19, 2022

CommunityBank of Texas on Money Laundering as Protested Used Paid Letters Fed OKs

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Sept 14 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question. The same is the case about money laundering

   As the fourth CRA challenge of 2022, Fair Finance Watch with Inner City Press on the FOIA filed comments with the Federal Reserve against CommunityBank of Texas, fresh off a money laundering / Bank Secrecy Act settlement, with a disparate record, see below.

In June the banks bragged without irony about a new name, Stellar Bank (why not "Redlining Bank" or "Laundering Bank"?) - and claimed they'd close by the end of June.

"The parent companies of CommunityBank of Texas and Allegiance Bank have announced that the resulting company of their merger will be named Stellar Bank.  The rebrand will take effect once the merger completes, expected by the end of June."

Well, Fair Finance Watch's protest was still pending at the end of August 2022. CBTX is still blowing hot air instead of improving its record: "CBTX CEO Robert Franklin said the banks’ executives “don’t know of any reason why this deal wouldn’t get approved.”  “Our understanding is that we are in line. We just don’t know where we are in line, and there’s some 20 to 25 deals pending right now before the Fed." Really?

"From Fair Finance Watch / Inner City Press' protest: "This is a timely first comment on, the Applications of CBTX, Inc., Beaumont, Texas; to merge with Allegiance Bancshares, Inc., and thereby indirectly acquire Allegiance Bank, both of Houston, Texas. As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment. Fair Finance Watch has been tracking both banks, and has found their lending patterns troubling.   In Texas in 2020, CBTX's CommunityBank made 65 mortgage loans to whites with 54 denials. Meanwhile to African Americans it made only THREE loans, while denying fully ten applications. A referring should be made to the DOJ for fair lending violations.     In Texas in 2020, Alliance Bank made 257 mortgage loans to whites with 38 denials. Meanwhile to African Americans it made only SIX loans, while denying fully seven applications. Again, a referring should be made to the DOJ for fair lending violations.   Public evidentiary hearings are needed - especially because, and specifically on, CommunityBank's violations of the Bank Secrecy Act: "WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced a $1 million civil money penalty against CommunityBank of Texas, N.A., Beaumont, Texas, for violations of the OCC’s Bank Secrecy Act regulations.  The OCC found that CommunityBank of Texas failed to adopt and implement a Bank Secrecy Act/Anti-Money Laundering system of internal controls to assure ongoing compliance with the Bank Secrecy Act and its implementing regulations. Such deficiencies resulted in CommunityBank’s failure to timely file complete suspicious activity reports for approximately $100 million of suspicious activity.  The OCC’s civil money penalty is separate from, but coordinated with, the settlement between CommunityBank and the Financial Crimes Enforcement Network (FinCEN), which is also being announced today."     FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve's to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

 In response? CBTX put in a one-line letter of support from a hospital, and another bragging about other support from "corporate sponsors such as Valero, ExxonMobil, Entergy and many
others." That was from Nutrition & Services for Seniors. Who else? And how does this rebut money laundering and redlining?

  To the Federal Reserve, apparently, paid letters win the day. On September 14 the Board approved, stating "The Board received 18 public comments on the proposal from nonprofit organizations and other interested organizations and individuals. The vast majority of commenters expressed support for the proposal.22 Most of the commenters commended CommunityBank for its dedication to community service, philanthropy, and community reinvestment as well as the bank employees’ commitment to volunteering. In particular, the commenters noted service of CommunityBank executives on the boards of nonprofit organizations. Commenters also praised both CommunityBank’s and Allegiance Bank’s creative community development financing activities and funding for affordable housing. The Board received one adverse comment on the proposal. The commenter objected to the proposal, alleging that in 2020, both CommunityBank and Allegiance Bank made fewer home loans in Texas to African American individuals as compared to white individuals.23 The commenter also noted a 2021 civil money penalty against CommunityBank by the OCC for violations of the OCC’s Bank Secrecy Act (“BSA”) regulations." Then it approved. Watch this site.

September 12, 2022

In mid August, Fair Finance Watch with Inner City Press on the FOIA challenged Brookline Bank. And now the Federal Reserve has asked the bank: "Indicate whether any applicable state community reinvestment laws must be considered by the Board, under section 3(d)(3) of the BHC Act, and if so, discuss the records of compliance of Brookline; Brookline Bank, Brookline, Massachusetts; and Bank Rhode Island, Providence, Rhode Island, with such laws."  We'll see.

September 5, 2022

CommunityBank of Texas on Money Laundering as Protested Used Paid Letters but Still Waiting

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, August 30 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question. The same is the case about money laundering

   As the fourth CRA challenge of 2022, Fair Finance Watch with Inner City Press on the FOIA filed comments with the Federal Reserve against CommunityBank of Texas, fresh off a money laundering / Bank Secrecy Act settlement, with a disparate record, see below.

In June the banks bragged without irony about a new name, Stellar Bank (why not "Redlining Bank" or "Laundering Bank"?) - and claimed they'd close by the end of June.

"The parent companies of CommunityBank of Texas and Allegiance Bank have announced that the resulting company of their merger will be named Stellar Bank.  The rebrand will take effect once the merger completes, expected by the end of June."

Well, Fair Finance Watch's protest is still lending at the end of August 2022. CBTX is still blowing hot air instead of improving its record: "CBTX CEO Robert Franklin said the banks’ executives “don’t know of any reason why this deal wouldn’t get approved.”  “Our understanding is that we are in line. We just don’t know where we are in line, and there’s some 20 to 25 deals pending right now before the Fed." Really?

"From Fair Finance Watch / Inner City Press' protest: "This is a timely first comment on, the Applications of CBTX, Inc., Beaumont, Texas; to merge with Allegiance Bancshares, Inc., and thereby indirectly acquire Allegiance Bank, both of Houston, Texas. As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment. Fair Finance Watch has been tracking both banks, and has found their lending patterns troubling.   In Texas in 2020, CBTX's CommunityBank made 65 mortgage loans to whites with 54 denials. Meanwhile to African Americans it made only THREE loans, while denying fully ten applications. A referring should be made to the DOJ for fair lending violations.     In Texas in 2020, Alliance Bank made 257 mortgage loans to whites with 38 denials. Meanwhile to African Americans it made only SIX loans, while denying fully seven applications. Again, a referring should be made to the DOJ for fair lending violations.   Public evidentiary hearings are needed - especially because, and specifically on, CommunityBank's violations of the Bank Secrecy Act: "WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced a $1 million civil money penalty against CommunityBank of Texas, N.A., Beaumont, Texas, for violations of the OCC’s Bank Secrecy Act regulations.  The OCC found that CommunityBank of Texas failed to adopt and implement a Bank Secrecy Act/Anti-Money Laundering system of internal controls to assure ongoing compliance with the Bank Secrecy Act and its implementing regulations. Such deficiencies resulted in CommunityBank’s failure to timely file complete suspicious activity reports for approximately $100 million of suspicious activity.  The OCC’s civil money penalty is separate from, but coordinated with, the settlement between CommunityBank and the Financial Crimes Enforcement Network (FinCEN), which is also being announced today."   

August 29, 2022

Ford Credit Bank Proposal Challenged by Fair Finance Watch Citing Evasion of New CRA

By Matthew Russell Lee, Patreon Maxwell Book
BBC - Honduras - CIA Trial Book - NY Mag

S Bronx / SDNY, August 24 – While the Administration says it is modernizing the Community Reinvestment Act, Ford is rushing to use the old rule to evade CRA, ostensibly in the name of electric vehicles.

On August 23-4 Fair Finance Watch, with Inner City Press on the FOIA, filed comments opposing it with the FDIC and Utah regulator:

Re: Timely opposition to the application by the proposed Ford Credit Bank

Dear Kathy Moe Regional Director, Janet Kincaid Deputy Director, others at FDIC & Utah DFI:

This is a timely first comment opposing and requesting an extension of the FDIC's public comment period on the Applications by the proposed Ford Credit Bank. This proposal, if approved, would make a mockery of the Community Reinvestment Act, particularly as it is being modernized by the new regulation on which the comment period closed on August 5.

The FDIC should hold public hearings, and on the current record deny the application.   Contrary to the current and even more to the impending CRA regulation claims that despite its high volume of auto lending -- with its own compliance problems -- it should be viewed as a limited purpose institution.  Fair Finance Watch opposes this.   Consider, for example, the size of Ford Credit's retail lending, here: "Ford Credit delivered record quarterly earnings before taxes of $1.6 billion."

 Compare: 87 Fed. Reg. 33928, VIII. Retail Lending Test Product Categories and Major Product Lines   Public hearings are needed, and a re-opened comment period after the new CRA regulation is finalized.   

 Consider also, beyond previous issues at Ford's lending operations of discrimination against African Americans and Latinos, these recent TCPA cases: Coleman v. Ford Motor Credit Company LLC (8:21-cv-00647) District Court, M.D. Florida; and  Diaz v. Ford Motor Credit Company, LLC (3:20-cv-06027) District Court, N.D. California    The FDIC is administering a loophole that even many in the industry, because consumer and CRA advocates, oppose.   

  For the record, this is a timely comment on: " Ford Credit Bank (Proposed) 15 West South Temple SALT LAKE CITY, UT    Deposit Insurance (New Bank)    07/22/2022    08/24/2022     San Francisco     The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.  

  Very Truly Yours,     Matthew Lee, Esq.   Executive Director  Inner City Press/Fair Finance Watch

cc: Utah Dept of Financial Institutions

We'll have more on this.

August 22, 2022

Here was Fair Finance Watch / Inner City Press prepared testimony on Toronto Dominion / First Horizon - it was added to the fly, watch this site:

Good morning. I'm Matthew Lee and on behalf of Fair Finance Watch and Inner City Press, this three minute statement concerns the proposal by Toronto Dominion to acquire First Horizon.

 I first want to thank the Fed and the OCC for having this public meeting. I think this should come to be expected on mergers of this size and even mid-size mergers. I'd also like to encourage both agencies to have comment periods on Requests for Information to consider your merger review process as the FDIC did; the 99 percent or higher approval rate calls the credibility of review into question. 23 is kind of a bottom-line. It's good that you're listening to people. At the same time, if the conclusion is a fait accompli, it's a problem.  

 Proof that banks don't take these reviews seriously? Toronto Dominion, even with this pending, and calls by Senators and Congressmembers to block their proposed acquisitions, made another one: of Cowen, to "bulk up," as the business media put it. 

  If there are serious enough issues on Toronto Dominion to trigger rare complaints from Congressmembers and this still-to-rare regulatory public meeting, how can TD - Cowen sail through without similar review? Just as there is a recognition that the Community Reinvestment Act must be modernized, it is time to modernize the implementation of the Bank Holding Company Act and Bank Merger Act so that billion dollar proposals like TD-Cohen are subject to meaningful public review. 

 To the business media, TD spokesperson Lisa Hodgins has emailed bragging that "community leaders from regions served by the two banks having sent more than 300 letters in support of the merger to regulators." To some, this echoes the practices of Joseph Otting at One West. And what about the practices, including those highlighted by four members of Congress requesting that this merger be rejected?

Now, as to the Community Reinvestment Act aspects proposed acquisition by Toronto Dominion of First Horizon. Before getting to the HMDA data, note for the record that the Consumer Financial Protection Bureau had an active investigation of TD Auto Finance - until it was mysterious quashed.  Here are a few consumer complaints:


F.U. TD Auto Finance How do you put a lien on a car that was never financed and was bought and paid for? Then when a person calls you all and spends 6 hours  trying to get it taken care of and you can't understand the level frustration I have for

and to check your TD Auto Finance loan/balance/remaining term, you must have a personal TD bank account also (to register). Nobody does awful, archaic banking like Canada

 The agencies must get to the bottom of this, and the matters timely raised by the members of Congress. 

Nationwide in 2020, TD Bank denied almost as many applications from African Americans (833) as it made in mortgage loans to African Americans (853). Significantly, TD Bank grew worse and more disparate in 2021: 1142 denials to African Americans, versus only 886 originations.    It was far more generous with white borrowers: in 2020, 23,469 loans made, with only 9009 denials. In 2021, 20,515 originations with only 8362 denials.

  In New York State in 2020, TD Bank was even worse. It denied more mortgage applications from African Americans (255) that it made loans to African Americans in NYC (198). In 2021 in New York State, TD Bank denied 294 applications from African Americans while making only 231 loans. Again, TD Bank was far more generous with white borrowers in New York State: in 2020, 3,558 loans made, with only 1714 denials; in 2021, 3372 loans made and only 1430 denials.  These disparities should not just result in a Fed footnote that the data cited by Fair Finance Watch is accurate but HMDA data is not probative. The recently confirmed Governors, particularly the most recent confirmee Michael Barr, should go on the record on this before the Board rules.    

 These issues must be addressed; on the current record, this application - and TD / Cohen - should not be approved

August 15, 2022

Community Reinvestment Act Reg Comments In As Fed Bowman Hopes Bank Showed Burden

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, August 9 – Whether or not the U.S. Community Reinvestment Act will actually be enforced under thus Administration and its regulators remains an open question. Mergers continue to be rubber stamped. But the agencies requested comments by August 5, and Fair Finance Watch and Inner City Press and others in NCRC have met the deadline, see below.

 Meanwhile, Federal Reserve Governor Michelle Bowman told the Kansas Bankers Association on August 6 she hoped that had commented in the "short comment period" to the regulators about supposed burden on them, speech on Fed website here: "I am concerned that the proposal does not adequately account for the costs and benefits of certain provisions, and that no attempt has even been made to either ensure that or to analyze whether the benefits exceed the costs, which is a fundamental element of effective regulation. The comment period for the proposal ended on August 5, and I will repeat what I have said in the past: if this proposal affects you or your business, I hope that you made your voice heard by submitting a comment to the more than 600-page proposal within the short 90-day comment period."

August 8, 2022

On Community Reinvestment Act Reg Timely Comments In But Mergers Get Rubber Stamped

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, August 5 – Whether or not the U.S. Community Reinvestment Act will actually be enforced under thus Administration and its regulators remains an open question. Mergers continue to be rubber stamped. But the agencies requested comments by August 5, and Fair Finance Watch and Inner City Press and others in NCRC have met the deadline:

" On behalf of Inner City Press / Fair Finance Watch, this is a timely comment on the Community Reinvestment Act.    While below we address points from the joint proposal, since CRA is only enforcement on merger and expansion applications, the credibility and transparency of the agencies' enforcement of CRA on merger must be improved.to more fulsomely include review of fair lending laws, as well as CRA and negative impacts of recent mergers, from branch closings to raised prices to, yes, layoffs.

      The agencies currently do not sufficient consider "the probable effect of the transaction in meeting the convenience and needs of the community to be served." When the effect of a transaction includes further denuding lower income communities of branches, that is NOT meeting the convenience or needs of these communities.  

  The regulators are far too narrow. One recent example: Fair Finance Watch raised to the FRB and OCC that merger partner MUFG still does business in Russia amid its invasion of Ukraine. This is clearly risky (as well as immoral) and yet the Fed and OCC have not even asked MUFG or its proposed partner about it.  

 Also, employees are clearly "stakeholders" - yet the Federal Reserve had a footnote implying that no level of job loss is relevant to it in reviewing a merger. The CFPB should be consulted, as should legal data bases of discrimination cases. It must be made easier for the impacted public to comment, and to get copies of the regulators questions to the banks, and the banks answers.   The HHI understates the anticompetitive effects of recent mergers, with small banks being considered competitors to the Top Ten. More public comments, and more public hearings, are needed.   

  The agencies rubber stamp nearly all mergers. The bottom line is, some transactions should be denied. For example, when Investors Bank with its weak fair lending record got a conditional approval from the FDIC, it should have been a denial. The Federal Reserve absurdly allows Reserve Banks, which have no power to deny, to approve applications even by banks with rare Needs to Improve CRA ratings (Berkshire Bank).    As NCRC members, we join in NCRC's comments, including that CRA must explicitly consider bank activity by race and ethnicity... The agencies must improve their FOIA responsiveness and compliance, too.   Matthew R. Lee, Esq., Executive Director Fair Finance Watch / Inner City Press

August 1, 2022


As Toronto Dominion Bid To Buy First Horizon Opposed, Fed Defers to Murky OCC Website, Recommendations Given

By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN

SDNY / SOUTH BRONX, July 27 – Seemingly oblivious to US regulators stated desire to tighten up their merger review rules, specifically on fair lending, Toronto Dominion on February 28 announced a $13.4 billion proposal to buy First Horizon.

 Fair Finance Watch has been concerned by TD Bank's lending disparities for some time. Nationwide in 2020, TD Bank denied almost as many applications from African Americans (833) as it made in mortgage loans to African Americans (853). It was far more generous with white borrowers: 23,469 loans made, with only 9009 denials. 

 Fair Finance Watch immediately online noted that in New York State in 2020, TD Bank was even worse. It denied more mortgage applications from African Americans (255) that it made loans to African Americans in NYC (198). Again, TD Bank was far more generous with white borrowers in NYS: 3,558 loans made, with only 1714 denials. 

 Fair Finance Watch said: but just as the Federal Reserve begrudgingly is holding a public hearing on US Bancorp - MUFG / Union Bank, on March 8, there is even more reason to hold multiple hearings on a large and disparate Canadian bank buying Horizon.

Then: "The Federal Reserve Board (Board) and the Office of the Comptroller of the Currency (OCC) today announced a joint public meeting on the proposal by The Toronto-Dominion Bank, Toronto, Ontario, Canada, to acquire First Horizon Corporation, Memphis, Tennessee. The purpose of the public meeting is to collect information from a wide range of stakeholders as the agencies evaluate the proposed applications. By law, the agencies are required to evaluate: the convenience and needs of the communities to be served by the combined organization; the insured depository institutions’ performance under the Community Reinvestment Act; competition in the relevant markets; the effects of the proposal on the stability of the U.S. banking or financial system; the financial and managerial resources and future prospects of the companies and banks involved in the proposal; and the effectiveness of the companies and banks in combatting money laundering activities. The public meeting will be held virtually on August 18, 2022, at 9:00 a.m. EDT. Members of the public seeking to present oral comments must register by 12:00 p.m. EDT on July 28, 2022 through the online registration web page, which will be updated with registration details by June 8, 2022."

 But as of July 27, the Fed's link is to an OCC website which does not provide information about registering for the public meeting, only commenting. Fair Finance Watch timely used the box to register, and asked for confirmation. So far, this:

"Your comment was submitted successfully! Comment Tracking Number: l63-3wqi-yw6q  Your comment has been sent for review. This process is dependent on agency public submission policies/procedures and processing times. Once the agency has posted your comment, you may view it on Regulations.gov using your Comment Tracking Number.  Agency: COMPTROLLER OF THE CURRENCY (OCC) Document Type: Other Title: Merger Application - TD Bank NA - First Horizon Bank (2022-LB-Combination-326132) Document ID: OCC-2022-0010-0001  Comment: This is a timely registration to testify at the Federal Reserve's and OCC's public hearing on the TD - First Horizon proposal. The link on the Fed's web page led here, which there this no clear place to register. But this is a timely request, please immediately confirm receipt."

Inner City Press has subsequently provided these recommendations to a responsive, or at least responding, OCC-er: "for grassroots community groups it should not be made difficult to comment, or to register for public meetings. The press release announcing a public meeting on a merger should link directly to a simple interface to register. I am not sure that a "summary of expected testimony" should be required  -- and even if it is, should not be limited to 200 characters." Watch this site.

July 25, 2022

After Federal Reserve Talked 1-Way on CRA No Live Qs FRBNY Provide Off Record Reply

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, July 19 – Whether or not the U.S. Community Reinvestment Act will actually be enforced under the new Administration and its regulators remains an open question. But no live questions were taken by the Federal Reserve Bank of New York when it talked, one-way, about the CRA this month.

"This virtual event is intended for banks, consumer and community organizations, CRA stakeholders, and the general public. Selected questions submitted upon registration will be addressed during the event. There will not be live questions."

  Inner City Press asked them, "Why was it decided by the FRBNY that "there will be no live questions"? Who decided it?"

  On July 12, after the event, a "Corporate Communication Associate" at the FRBNY who demanded to not be named emailed back an answer labeled "off the record." Is this any way for a public institution to respond? Except, the Federal Reserve Banks are NOT public institution. Then why do they have a role in setting policy (like CRA) and approving bank mergers? We'll have more on this. And this:

The CFPB, Inner City Press has learned, has a policy of automatically closing complaints that name more than one institution, claiming that they can (or will) only forward the complaint to a single institution. This makes little sense on, for example, a wire transfer. But the CFPB Press office has yet to explain, so a FOIA request has been submitted. Watch this site.

 Back in December Inner City Press 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.

On May 17 the Federal Reserve and OCC announced that they will at least hold a public meeting: The public meeting will be held virtually on July 14, 2022, at 11:00 a.m. EDT. Members of the public seeking to present oral comments must register by 12:00 p.m. EDT on June 23, 2022, through the online registration webpage."

  Inner City Press / Fair Finance Watch visited the page on June 20, Juneteenth (Observed), in order to register - and found the Fed's "we want to know your views" - in 200 characters. Is that enough? Fair Finance Watch entered: "Concerns: BMO Harris HMDA disparities (nationside in 2020 only 223 mortgages to African Americans, vs. 9270 to whites), its destruction of evidence in a MN bankruptcy case;  BNP's activities in Russia." 

  Next came a series of Federal Reserve emails that went into spam, then a threat that if one didn't appear on screen for the Fed in one of four one-hour windows (three remaining) you couldn't testify. You had to ask to get the WebEx link. Inner City Press signed up - then came, at the same time, an FBI press conference about crypto fraud OneCoin, on which the Fed told Inner City Press under FOIA it has not a single document. Really?

 The penultimate slot conflicts with a press conference by the incoming president of the UN Security Council for July, Brazil. And July 5? The irony was, Inner City Press did this same sign up for the US Bancorp - MUFG public meeting. Why have to do it again?

We testified, and commented again in writing by the July 19 deadline. We'll have more on this- watch this site.

July 18, 2022

As BMO Harris Seeks Bank of the West Bulls Exec Shills & Fair Finance Watch Cites Ukraine

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, July 14 – Whether or not the U.S. Community Reinvestment Act will actually be enforced until the new Administration and its regulators remains an open question. Back in December Inner City Press 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.

On May 17 the Federal Reserve and OCC announced that they will at least hold a public meeting: The public meeting would be held virtually on July 14, 2022.

And on that day, Fair Finance Watch testified, then Inner City Press live tweeted, below:

Good afternoon. I'm Matthew Lee and on behalf of Fair Finance Watch and Inner City Press, this three minute statement concerns the proposal by Bank of Montral Harris to acquire BNP Paribas' Bank of the West. [Ad libbed about the need for more hearings on mid-sized mergers, and for Fed and OCC merger process review as FDIC has; named-checked Michael Barr and his duties.]

On the Community Reinvestment Act and fair lending. Fair Finance Watch conducted an analysis of the 2021 Home Mortgage Disclosure Act data of BMO Harris Bank and finds the disparities troubling.  In 2021 nationwide, BMO Harris Bank made only 289 mortgages to African Americans, versus 10,709 to whites. BMO Harris Bank's denial rate disparty was even more troubling: 5,889 denials to whites, half of its number of loans to whites. For African Americans, 647 denials, roughly three times it number of loans of to African Americans. A five to one disparity?

These disparities should not just result in a Fed footnote that the data cited by Fair Finance Watch is accurate but HMDA data is not probative. The recently confirmed Governors, particularly yesterday's confirmee Michael Barr, should go on the record on this before the Board rules. 

 As you will hear from other witnesses...  there are branch closing issues that should be addressed.  

 There is another issue which Inner City Press hereby timely raises to the Federal Reserve Board: the questionable and shifting position of BNP Paribas on Russia and its war on Ukraine. This year BNP told its employees to watch out from criticizing Russia's invasion, even on social media. See, e.g., this: "Watch what you say about Russian invasion, BNP Paribas warns bankers - Bank tells staff to clarify that any social media posts represent their own, personal views."

 As a managerial and corruption issue, BMO Harris was exposed by U.S. Bankruptcy Judge Kathleen Sanberg, who ruled that BMO “intentionally destroyed and failed to preserve” evidence of emails and other communications between the Petters company and its bank. She sanctioned BMO by saying the trustee could tell the jury about the destroyed evidence and also introduce documents over the bank’s objection. See, Kelley v. BMO Harris Bank N.A., 19-cv-01756, U.S. District Court, District of Minnesota (St. Paul).   These issues must be addressed; on the current record, the application should not be approved.

Then, the threadette:

Just testified to the Fed and OCC about Bank of Montreal - BNP Paribas merger, urging both regulators to do better. Beyond lending disparities, raised BMP's ham-handed gagging of its employees about the war in Ukraine, and a troubling BMO case 19-cv-01756

Corporate circus: Over-the-top testimony in favor of merger of Bank of Montreal & BNP Paribas' Bank of the West is Reinsdorf of the NBA's Chicago Bulls. Mortgage lending disparities, shameful positions on Ukraine and destruction of evidence ignored. Bull, indeed.

Collusion circus: so many of those supporting the merger begin identically, calling regulators Alison Tho, Colette Fried, Ben Olson, Jason Almonte & Donna Murphy "Commissioner" that it's clear they were coordinated. The banks are having / forcing borrowers to sing

We'll have more on this- watch this site.

July 11, 2022

To Community Reinvestment Act Challenge to United Community Bank - Progress, A Dodge

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SDNY COURTHOUSE, July 8 – Will the Community Reinvestment Act actually be enforced against banks with disparate lending records?

Fair Finance Watch, with Inner City Press on the FOIA, is raising the issue to regulators, on June 22 to the Federal Reserve and FDIC on United Community Bank

Dear Chair Powell, Secretary Misback and others in the FRS:

  This is a request for a full copy of, and a timely first comment on, the Applications of United Community Banks, Inc., to merge with Progress Financial Corporation, and subsidiary, Progress Bank and Trust, both of Huntsville, Alabama.  As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.  Fair Finance Watch has been tracking United Community Bank and finds it lending patterns, including in the newly released 2021 HMDA data not taken into account in CRA exams, troubling.

  In South Carolina in 2021, United Community Banks made 1482 mortgage loans to whites with 310 denials. Meanwhile to African Americans in the state it made only THIRTY NINE loans, while denying fully sixteen applications. A referral should be made to the DOJ for fair lending violations.    Nationwide, United Community Banks is scarcely better. In 2021 overall it made 9252 mortgage loans to whites with 1852 denials. Meanwhile to African Americans nationwide it made only 362 loans, while denying fully 131 applications. A referral should be made to the DOJ for a pattern and practice of fair lending violations.    Public evidentiary hearings are needed, at least like the public meeting the Fed has belatedly set on two Canadian banks' acquisition proposals in the US.  

   FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings.  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved

On June 23, the Fed wrote to the applicant's lawyers: June 23, 2022  Lee Kiser Nelson Mullins Riley & Scarborough LLP  2 W. Washington Street, Suite 400  Greenville, South Carolina 29601  Lee.kiser@nelsonmullins.com Dear Mr. Kiser: This refers to the application by United Community Banks, Inc., Blairsville, Georgia, to merge  with Progress Financial Corporation, and thereby acquire Progress Bank and Trust (Bank), both  of Huntsville, Alabama, pursuant to section 3(a)(5) of the Bank Holding Company Act.  Enclosed is a copy of a letter received from Matthew Lee, Esq., Executive Director Inner City  Press/Fair Finance Watch, commenting on the application.  A response to the comments should be received by this Reserve Bank within eight business days  from the date of this letter. In order to expedite processing of your application, please send  copies of your response to the Reserve Bank, the Board of Governors, the protestant, and to the  supervisory agencies that initially received copies of the application.

  And when United Community Banks responded, calling it Project Artemis, they argued "Mr. Matthew R. Lee of Inner City Press/Fair Finance  Watch submitted a comment in opposition to the merger of United and Progress on June 22, 2022.  This letter provides United’s response to the concerns raised by Mr. Lee.  The comment submitted by Mr. Lee requests that the Application not be approved in light  of concerns related to the Bank’s 2021 mortgage lending record, and requests that the comment  period be extended and evidentiary hearings be held regarding the Application.  I. Mortgage Lending Record  Mr. Lee cites 2021 Home Mortgage Disclosure Act (“HMDA”) data, particularly the  volume of mortgage loans made by the Bank to African-American borrowers. Specifically, Mr. Lee asserts that the Bank denied mortgage loan applications of African-American borrowers more  frequently than those of white borrowers in South Carolina and “nationwide.” United respectfully confirms for the reader that the Bank has a Southeastern—not nationwide—mortgage lending  footprint consisting of locations in South Carolina, Georgia, North Carolina, Florida, and Tennessee.  2 Mr. Lee’s comment letter attempts to evaluate United’s lending performance nationwide. Nationwide aggregates  can provide a distorted picture of a bank’s lending practices and have limited value because lenders’ geographic  footprints include differing proportions of racial or ethnic minorities. Accordingly, we understand that regulators do  not rely on aggregated nationwide data as a basis on which to assess a bank’s far lending performance in multiple  geographies.  United appreciates the opportunity to respond to the comments made on the Application  and believes that all substantive issues raised by Mr. Lee have been addressed." Well, no.

Watch this site.

July 4, 2022

Community Reinvestment Act Challenge to United Community Bank - Progress, Test Case

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SDNY COURTHOUSE, June 24 – Will the Community Reinvestment Act actually be enforced against banks with disparate lending records?

Fair Finance Watch, with Inner City Press on the FOIA, is raising the issue to regulators, on June 22 to the Federal Reserve and FDIC on United Community Bank

Dear Chair Powell, Secretary Misback and others in the FRS:

  This is a request for a full copy of, and a timely first comment on, the Applications of United Community Banks, Inc., to merge with Progress Financial Corporation, and subsidiary, Progress Bank and Trust, both of Huntsville, Alabama.  As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.  Fair Finance Watch has been tracking United Community Bank and finds it lending patterns, including in the newly released 2021 HMDA data not taken into account in CRA exams, troubling.

  In South Carolina in 2021, United Community Banks made 1482 mortgage loans to whites with 310 denials. Meanwhile to African Americans in the state it made only THIRTY NINE loans, while denying fully sixteen applications. A referral should be made to the DOJ for fair lending violations.    Nationwide, United Community Banks is scarcely better. In 2021 overall it made 9252 mortgage loans to whites with 1852 denials. Meanwhile to African Americans nationwide it made only 362 loans, while denying fully 131 applications. A referral should be made to the DOJ for a pattern and practice of fair lending violations.    Public evidentiary hearings are needed, at least like the public meeting the Fed has belatedly set on two Canadian banks' acquisition proposals in the US.  

   FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings.  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved

On June 23, the Fed wrote to the applicant's lawyers: June 23, 2022  Lee Kiser Nelson Mullins Riley & Scarborough LLP  2 W. Washington Street, Suite 400  Greenville, South Carolina 29601  Lee.kiser@nelsonmullins.com Dear Mr. Kiser: This refers to the application by United Community Banks, Inc., Blairsville, Georgia, to merge  with Progress Financial Corporation, and thereby acquire Progress Bank and Trust (Bank), both  of Huntsville, Alabama, pursuant to section 3(a)(5) of the Bank Holding Company Act.  Enclosed is a copy of a letter received from Matthew Lee, Esq., Executive Director Inner City  Press/Fair Finance Watch, commenting on the application.  A response to the comments should be received by this Reserve Bank within eight business days  from the date of this letter. In order to expedite processing of your application, please send  copies of your response to the Reserve Bank, the Board of Governors, the protestant, and to the  supervisory agencies that initially received copies of the application.

Watch this site.

June 27, 2022


Community Reinvestment Act Challenge to United Community Bank - Progress, Test Case

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SDNY COURTHOUSE, June 24 – Will the Community Reinvestment Act actually be enforced against banks with disparate lending records?

Fair Finance Watch, with Inner City Press on the FOIA, is raising the issue to regulators, on June 22 to the Federal Reserve and FDIC on United Community Bank

Dear Chair Powell, Secretary Misback and others in the FRS:

  This is a request for a full copy of, and a timely first comment on, the Applications of United Community Banks, Inc., to merge with Progress Financial Corporation, and subsidiary, Progress Bank and Trust, both of Huntsville, Alabama.  As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.  Fair Finance Watch has been tracking United Community Bank and finds it lending patterns, including in the newly released 2021 HMDA data not taken into account in CRA exams, troubling.

  In South Carolina in 2021, United Community Banks made 1482 mortgage loans to whites with 310 denials. Meanwhile to African Americans in the state it made only THIRTY NINE loans, while denying fully sixteen applications. A referral should be made to the DOJ for fair lending violations.    Nationwide, United Community Banks is scarcely better. In 2021 overall it made 9252 mortgage loans to whites with 1852 denials. Meanwhile to African Americans nationwide it made only 362 loans, while denying fully 131 applications. A referral should be made to the DOJ for a pattern and practice of fair lending violations.    Public evidentiary hearings are needed, at least like the public meeting the Fed has belatedly set on two Canadian banks' acquisition proposals in the US.  

   FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings.  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved

On June 23, the Fed wrote to the applicant's lawyers: June 23, 2022  Lee Kiser Nelson Mullins Riley & Scarborough LLP  2 W. Washington Street, Suite 400  Greenville, South Carolina 29601  Lee.kiser@nelsonmullins.com Dear Mr. Kiser: This refers to the application by United Community Banks, Inc., Blairsville, Georgia, to merge  with Progress Financial Corporation, and thereby acquire Progress Bank and Trust (Bank), both  of Huntsville, Alabama, pursuant to section 3(a)(5) of the Bank Holding Company Act.  Enclosed is a copy of a letter received from Matthew Lee, Esq., Executive Director Inner City  Press/Fair Finance Watch, commenting on the application.  A response to the comments should be received by this Reserve Bank within eight business days  from the date of this letter. In order to expedite processing of your application, please send  copies of your response to the Reserve Bank, the Board of Governors, the protestant, and to the  supervisory agencies that initially received copies of the application.

Watch this site.

June 20, 2022

Bank of America Is Sued for Not Fulfilling CRA Pledge in Hawai'i As Fed Rubberstamps Mergers

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SOUTH BRONX / SDNY, April 11 –    With the mega-merger horse largely out of the barn in the US, Citibank too big to question for its business in Russia even as JPMorgan Chase admits gambling a billion dollars they while closing branches in NYC, the smallest of regulators had started a review.  But where is the Community Reinvestment Act in mergers? And where is the follow up on and enforcement of CRA commitments?

  Bank of America has been sued for not following through: "Nā Po‘e Kōkua, a Hawaii nonprofit corporation, on behalf of native Hawaiians filed a Complaint for Damages, Injunctive, and Equitable Relief, Racketeer Influenced and Corrupt Organizations Act (RICO), filed pursuant to 18 U.S.C.§1962(c), 18 U.S.C. §§ 1964 (a)(c), and 18 U.S.C.§§1341,1343; The Ku Klux Klan Act, 42 U.S.C. § 1983; and for the Establishment of a Hawaii Constructive Trust RE: $150 Million FHA-247 Loan Commitment against Bank of America Corporation for decades of discriminatory practices and its open and notorious denial of a $150 Million FHA-247 originated loan commitment made to federal banking regulators in 1994 for the benefit of native Hawaiians, which was due to be completed in 1998, and remains unfulfilled.

"Sandra Perez, former Bank of America, N.A. Community Investment Officer, Affidavit4. On May 4, 2022, Nā Po‘e Kōkua obtained an Affidavit from Sandra Perez, former Vice President, Community Investment Officer at Bank of America, N.A. , who worked at BANA during the years 1994-2000. 5. Ms. Perez was part of the dedicated executive team assigned to handle 1 Bank of America, N.A. (“BANA”) is an indirect wholly owned subsidiary of Bank of America Corporation (“BAC”), which through its predecessor entity, BankAmerica Corporation, operated retail banks in Hawaii from 1992–1997, and is therefore implicated in the loan commitment allegations although not specifically named as a party defendant hereto. 3 Case 1:22-cv-00238 Document 1 Filed 05/31/22 Page 3 of 106 PageID #: 3 BANA’s response to Nā Po‘e Kōkua’s inquiry in 1997 about the status of the unfulfilled $150 Million FHA-247 mortgage loan commitment. [Exhibit 1, ¶ 18] 6. As stated in the Perez Affidavit: “By 1997, BANA decided to leave its retail presence in Hawaii. However, BANA had not fulfilled the Commitment made to the Federal Regulators.” [Exhibit 1, ¶ 15] 7. Ms. Perez reviewed the 2020 federal case filings in Bank of America, et al., v. County of Maui, Case No.: 1:20-cv-00310-JMS-WRP2020 (DHI), and stated that “BANA’s argument was laced with the truth but polluted with lies”, noting its “calculated use of terminology” in replacing Commitment with its words of choice being “goal, initiative, pledge, or aspiration” used to describe its $150 million dollar FHA-247 mortgage loan commitment made to native Hawaiians. Perez concluded that BANA’s lawsuit against Maui County “at its core presents a false narrative.” [Exhibit 1, ¶¶ 2, 3] 8. “The genesis of the $150 Million Commitment was not because BANA was feeling philanthropic, it was because BANA was being accused of discrimination and violations of federal law”, Perez said in her Affidavit." We'll have more on this.

June 13, 2022

Former FDIC Boss and Bank Shill McWilliams Cashes Out to Cravath in DC, Bad Banks Line Up

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SOUTH BRONX / SDNY, June 8 –  How much of a swamp is Washington DC, when it comes to banks dominating their putative regulators? Newest exhibit is this: "Jelena McWilliams, the former chair of the Federal Deposit Insurance Corp. is joining Cravath, Swaine & Moore as a partner, anchoring the firm’s new Washington, D.C., office, the law firm announced Monday. Also joining the D.C. office as partners are two former Securities and Exchange Commission (SEC) staffers: Elad Roisman, a former commissioner and acting chairman of the regulator, and Jennifer Leete, a former associate director in the SEC’s Division of Enforcement, the law firm said. The move marks McWilliams’ return to the private sector after spending 3½ years at the helm of the FDIC. A holdover from the Trump administration, McWilliams stepped down from the regulator in February following a dust-up with two  FDIC board members."

So who now will Cravath represent, before the regulatory agencies? We'll have more on this.

New York and Massachusetts are portrayed as diverse and progressive places. But their banks, not so much. 

 Consider for example today's proposed merger between Brookline Bank in Massachusetts and PCSB Bank in New York, with branches in Mount Vernon, Eastchester and elsewhere.  

Bronx-based Inner City Press has long exposed redlining. Along with Fair Finance Watch it finds that in 2020, the most recent year for which Home Mortgage Disclosure Act data is publicly available, PCSB Bank in New York State made 79 loans to whites - and only seven to African America. The dollar volume difference is even worse, a twenty to one disparity.  

So what is the lending record in Massachusetts of Brookline Bank, the proposed acquirer of PCSB?

Well, Brookline Bank in 2020 made 456 loans to whites and only FOUR to African Americans. Meanwhile it denied fully 11 applications from African Americans, and only 93 from whites.  

This is a proposed merger that should and will be challenged under the Community Reinvestment Act to the regulators. In fact, if the regulators mean what they claim, this application should not even be filed. Watch this site.

June 6, 2022

  Banks continue to insist that discrimination cases against them are irrelevant under the CRA. Will the Administration and Federal Reserve continue to let them get away with this? A litmus test is Veritex Community Bank in Texas. Fair Finance Watch along with lending disparities, raised a discrimination case. But Veritex's Senior EVP Angela Harper, as forwarded (drafted?) by Skadden Arps, insisted to the FDIC it's irrelevant. Will that be accepted?
May 30, 2022

Brookline Bank Bid To Bring Its Disparities To NY By Buying PCSB Bank Is a Litmus Test

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SOUTH BRONX / SDNY, May 25 –  New York and Massachusetts are portrayed as diverse and progressive places. But their banks, not so much. 

 Consider for example today's proposed merger between Brookline Bank in Massachusetts and PCSB Bank in New York, with branches in Mount Vernon, Eastchester and elsewhere.  

Bronx-based Inner City Press has long exposed redlining. Along with Fair Finance Watch it finds that in 2020, the most recent year for which Home Mortgage Disclosure Act data is publicly available, PCSB Bank in New York State made 79 loans to whites - and only seven to African America. The dollar volume difference is even worse, a twenty to one disparity.  

So what is the lending record in Massachusetts of Brookline Bank, the proposed acquirer of PCSB?

Well, Brookline Bank in 2020 made 456 loans to whites and only FOUR to African Americans. Meanwhile it denied fully 11 applications from African Americans, and only 93 from whites.  

This is a proposed merger that should and will be challenged under the Community Reinvestment Act to the regulators. In fact, if the regulators mean what they claim, this application should not even be filed. Watch this site.

May 23, 2022

As Toronto Dominion Bid To Buy First Horizon Disparities Raised by Press now Aug 18 Meeting

By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN

SDNY / SOUTH BRONX, May 21 – Seemingly oblivious to US regulators stated desire to tighten up their merger review rules, specifically on fair lending, Toronto Dominion on February 28 announced a $13.4 billion proposal to buy First Horizon. It will be opposed. 

 Fair Finance Watch has been concerned by TD Bank's lending disparities for some time. Nationwide in 2020, TD Bank denied almost as many applications from African Americans (833) as it made in mortgage loans to African Americans (853). It was far more generous with white borrowers: 23,469 loans made, with only 9009 denials. 

 Fair Finance Watch immediately online noted that in New York State in 2020, TD Bank was even worse. It denied more mortgage applications from African Americans (255) that it made loans to African Americans in NYC (198). Again, TD Bank was far more generous with white borrowers in NYS: 3,558 loans made, with only 1714 denials.    Analysis will be conducted of the target, First Horizon.

 Fair Finance Watch said: but just as the Federal Reserve begrudgingly is holding a public hearing on US Bancorp - MUFG / Union Bank, on March 8, there is even more reason to hold multiple hearings on a large and disparate Canadian bank buying Horizon.

Now: "The Federal Reserve Board (Board) and the Office of the Comptroller of the Currency (OCC) today announced a joint public meeting on the proposal by The Toronto-Dominion Bank, Toronto, Ontario, Canada, to acquire First Horizon Corporation, Memphis, Tennessee. The purpose of the public meeting is to collect information from a wide range of stakeholders as the agencies evaluate the proposed applications. By law, the agencies are required to evaluate: the convenience and needs of the communities to be served by the combined organization; the insured depository institutions’ performance under the Community Reinvestment Act; competition in the relevant markets; the effects of the proposal on the stability of the U.S. banking or financial system; the financial and managerial resources and future prospects of the companies and banks involved in the proposal; and the effectiveness of the companies and banks in combatting money laundering activities. The public meeting will be held virtually on August 18, 2022, at 9:00 a.m. EDT. Members of the public seeking to present oral comments must register by 12:00 p.m. EDT on July 28, 2022 through the online registration web page, which will be updated with registration details by June 8, 2022. Further information and requirements to present, as well as registration information to view the public meeting, are available in the attachment from the agencies. Also today, to give interested parties additional time to comment, the agencies announced that they are extending the public comment period for the applications to the OCC and Board that are associated with the proposal. Comments on the applications will now be accepted through August 23, 2022."

Inner City Press will be inquiring under the Freedom of Information Act. Watch this site. 

May 16, 2022

FDIC On Notice Of Need Crackdown On Bank Mergers As OCC Talks But No RFI Fed Silent

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SOUTH BRONX / SDNY, May 14 –    With the mega-merger horse largely out of the barn in the US, Citibank too big to question for its business in Russia even as JPMorgan Chase admits gambling a billion dollars they while closing branches in NYC, the smallest of regulators had started a review.  But where is the Community Reinvestment Act in mergers?

  The Federal Deposit Insurance Corporation, with jurisdiction mostly over small banks not members of the Federal Reserve System with the exception of the ironically named Truist, has a public comment period on mergers. 

  With the FDIC's request for information comment period set until May 31, here, Fair Finance Watch on April 11 submitted a first comment, now online here and below.

  The OCC through Comptroller Hsu has spoken of taking a harder look at mergers, but has yet to put out even the RFI that the FDIC did. The Federal Reserve, needless to say, is nowhere on this. Will the new Governors make a difference? Watch this site.

May 9, 2022

The Peoples Bank Dismissive on Lending Disparities & to Avenatti Inner City Press Raises

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SOUTH BRONX / SDNY, May 7 – Based in Biloxi, Mississippi The Peoples Bank made loans to now convicted Michael Avenatti, while disproportionately NOT lending to African Americans in their community. Fair Finance Watch, with Inner City Press on the FOIA, challenged its application to the FDIC to acquire trust assets of Trustmark National Bank under the Community Reinvestment Act. See below.   

   Now The Peoples Bank's CEO, who made the loans to Avenatti, has responded. On fair lending, the responsive is dismissive to Home Mortgage Disclosure Act. And on the Avenatti loans, it says the issue is not worthy of a response. Really? Response, which we were unable to copy and paste from, on Patreon here.

From the protest:  The applicant The Peoples Bank in 2020 in Mississippi based on its disparate marketing made 108 mortgage loans to whites -- while making only TEN loans to African Americans. This is far out of keeping with the demographics, and others lenders, in Mississippi, in particularly in The Peoples Bank's CRA assessment areas - this is outrageous.  

 Fair Finance Watch is also timely contesting whether, given its documented record of negligence, The Peoples Bank is qualified to take on more trust business. The Peoples Bank made three dubious loans to now incarcerated Michael Avenatti -- Inner City Press has covered the cases -- as set for in  https://www.justice.gov/usao-cdca/press-release/file/1147466/download  This criminal case - and how it reflects on The Peoples Bank's due diligence and managerial recources - concerns at least three loans:  one for $850,500, one for $2,750,000, and one for $500,000.  "The Peoples Bank President Chevis Swetman has not commented on the charges against Avenatti, saying only that he is still going through the criminal complaint." How do it reflect on The Peoples Bank?    

 How indeed. Watch this site.

May 2, 2022

First Internet Bank Hit By 1st CRA Protest of 2022 Requested Withdrawal now Rubberstamped

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, April 30 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question - although it it being answered in the negative, rubber-stamp approval by rubber-stamp approval.

  As the first CRA challenge of 2022, Fair Finance Watch with Inner City Press on the FOIA filed comments with the Federal Reserve against First Internet Bank, below.

  On January 19, First Internet Bank wrote to say that anything for which it requested confidential treatment MUST be withheld. For First Internet Bank, Larry Tomlin of SmithAmundsen of Indianapolis tells Inner City Press and the regulators and DOJ that Fair Finance Watch should withdraw its comments. Really? Inner City Press immediately filed a new and expanded FOIA request.

On February 22, First Internet - the bank that said Inner City Press' comment against it should be withdrawn - had to respond to this question: "5. According to First Internet Bank of Indiana's CRA Performance Evaluation, dated April 6, 2021, the bank received ratings of "Needs to Improve" and "Substantial Noncompliance" in each year (2018, 2019, and 2020) on Tests 6 ("Small Business Lending to Borrowers with Revenues of $1 million or less") and 9 ("Community Development Lending"). Provide information on how the bank has improved performance on these two metrics since 2020. Additionally, provide information on how the bank plans to improve these metrics following the merger with First Century Bank."

Its response? "The Bank continues to focus on and improve its CRA performance across the board." No, disparate.

Even the Federal Reserve Board's rubber-stamp approval in late April acknowledged "low volume of community development lending and a low level of lending to businesses with revenues of $1 million or less." Yet they approved.

April 25, 2022

  Now filed: "a timely comment on, the Applications The Peoples Bank, Biloxi, MS to acquire business from Trustmark in a proposal subject to the CRA which appears on the FDIC website under "Applications In Process Subject to the CRA Report" with an initial comment period running through May 8. This comment is timely.       The applicant The Peoples Bank in 2020 in Mississippi based on its disparate marketing made 108 mortgage loans to whites -- while making only TEN loans to African Americans. This is far out of keeping with the demographics, and others lenders, in Mississippi, in particularly in The Peoples Bank's CRA assessment areas - this is outrageous.   

Fair Finance Watch is also timely contesting whether, given its documented record of negligence, The Peoples Bank is qualified to take on more trust business. The Peoples Bank made three dubious loans to now incarcerated Michael Avenatti -- Inner City Press has covered the cases -- as set for here

  This criminal case - and how it reflects on The Peoples Bank's due diligence and managerial recources - concerns at least three loans:  one for $850,500, one for $2,750,000, and one for $500,000.  "The Peoples Bank President Chevis Swetman has not commented on the charges against Avenatti, saying only that he is still going through the criminal complaint." How do it reflect on The Peoples Bank?

  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      FFW and Inner City Press have been deeply concerned about the rush by the FDIC's to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings.  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."


April 18, 2022

FDIC Is Told Of Need Crackdown On US Bank Mergers by Fair Finance Watch Now Fed, OCC

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SOUTH BRONX / SDNY, April 11 –    With the mega-merger horse largely out of the barn in the US, Citibank too big to question for its business in Russia even as JPMorgan Chase admits gambling a billion dollars they while closing branches in NYC, the smallest of regulators had started a review.  But where is the Community Reinvestment Act in mergers?

  The Federal Deposit Insurance Corporation, with jurisdiction mostly over small banks not members of the Federal Reserve System with the exception of the ironically named Truist, has a public comment period on mergers. 

  With the FDIC's request for information comment period set until May 31, here, Fair Finance Watch on April 11 submitted a first comment:

April 11, 2022 

Via Email

  FDIC Attn: James P. Sheesley, Assistant Executive Secretary Comments—RIN 3064–ZA31, Federal Deposit Insurance Corporation, 550 17th Street NW, Washington, DC 20429  Re: Comments to the FDIC on improving merger reviews (RIN 3064–ZA31) 

Dear Secretary Sheesley:       On behalf of Inner City Press / Fair Finance Watch, this is a first timely comment on the FDIC's Request for Information about merger review.   

 All three Federal bank regulatory agencies need to improve their merger review to more fulsomely include review of performance under the Community Reinvestment Act and fair lending laws, as well as other negative impacts of recent mergers, from branch closings to raised prices to, yes, layoffs. Some responses:

     Question 1. Does the existing regulatory framework properly consider all aspects of the Bank Merger Act as currently codified in Section 18(c) of the Federal Deposit Insurance Act?

    No - the FDIC (and Federal Reserve and OCC) does not sufficient consider "the probable effect of the transaction in meeting the convenience and needs of the community to be served." When the effect of a transaction includes further denuding lower income communities of branches, that is NOT meeting the convenience or needs of these communities. 

Question 2. What, if any, additional requirements or criteria should be included in the existing regulatory framework to address the financial stability risk factor...  Q 3.   

   The regulators are far too narrow. One recent example: Fair Finance Watch raised to the FRB and OCC that merger partner MUFG still does business in Russia amid its invasion of Ukraine. This is clearly risky (as well as immoral) and yet the Fed and OCC have not even asked MUFG or its proposed partner about it. 

Question 4. To what extent should the convenience and needs factor be considered...

COMMENT: It would be absurd to simply defer to CRA ratings, when the regulators rate over 95 of banks Satisfactory or Outstanding. Also, employees are clearly "stakeholders" as the question puts it - yet the Federal Reserve had a footnote implying that no level of job loss is relevant to it in reviewing a merger. The CFPB should be consulted, as should legal data bases of discrimination cases. It must be made easier for the impacted public to comment, and to get copies of the regulators questions to the banks, and the banks answers.

 Question 5. In addition to the HHI...


  The HHI understates the anticompetitive effects of recent mergers, with small banks being considered competitors to the Top Ten. More public comments, and more public hearings, are needed. 

Question 6. How and to what extent should the following factors be considered in determining whether a particular merger transaction creates a monopoly or is otherwise anticompetitive? Please address the following factors....

 The examples the FDIC gives here imply that it thinks that current antitrust review is too strenuous - but the opposite is the truth. Unless the Antitrust Memo of the administration is meaningless, antitrust review must become more robust. 

Question 7. Does the existing regulatory framework create an implicit presumption of approval? If so, what actions should the FDIC take to address this implicit presumption?   

 The FDIC rubber stamps nearly all mergers. The bottom line is, some transactions should be denied. For example, when Investors Bank with its weak fair lending record got a conditional approval from the FDIC, it should have been a denial. The Federal Reserve absurdly allows Reserve Banks, which have no power to deny, to approve applications even by banks with rare Needs to Improve CRA ratings (Berkshire Bank). 

Question 8. Does the existing regulatory framework require an appropriate burden of proof from the merger applicant that the criteria of the Bank Merger Act have been met? If not, what modifications to the framework would be appropriate with respect to the burden of proof? 

COMMENT: The applicants should have to carry their burden and THEN a public comment period open, with sur-reply to the banks' response. 

Question 9. The Bank Merger Act provides an exception to its requirements... 

 These emergency powers have been abused, routinely on work-outs, and especially for example on the Fed allowing Goldman Sachs and Morgan Stanley (now a monopolist) into banking without any public comment period. 

Question 10. To what extent would responses to Questions 1–9 differ for the consideration of merger transactions involving a small insured depository institution?

These banks are key to some communities. There should be more review, and more public participation. There should be (automatic) public hearings. You will be hearing more from Fair Finance Watch, and other organizations including those of which it is a (proud) member [i.e., NCRC]  Matthew R. Lee, Esq., Executive Director Fair Finance Watch / Inner City Press South Bronx, NY 10458 USA

Inner City Press notes that former Federal Reserve government has chimed in for / on Brookings - mentioning Truist and Morgan Stanley, but not even once the CRA. Fair Finance Watch says by contrast, CRA must be at the center, it is communities loses to the mergers.

    Ohio Senator Sherrod Brown has written to the Fed's Jay Powell and to national bank overseer Michael Hsu, the Comptroller of the Currency who himself came from the Fed, to ask them to get involved. 

 They have much more to answer for.

  The FDIC in the face of a Community Reinvestment Act challenge to Investors Bank by Fair Finance Watch imposed conditions on the bank.

   But the Fed, with Investors being gobbled up by Citizens Bank, refused to review Investors compliance with even those tame conditions. Inner City Press' FOIA requests languish for months at the Fed.  

 The OCC, despite the issue being raised to Hsu, has yet to implement even back transparency measures in its merger reviews, such as sending copies of its questions, and the banks' answers, to public commenters.

So things are worse, it seems, than Senator Brown and his colleagues know.

The public, particularly affected communities, much comments and comment now. Watch this site. 

April 11, 2022

Call To Crackdown On US Bank Mergers Amid Fed Contempt for CRA Condition, Opaque OCC

By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag

SOUTH BRONX / SDNY, April 8 –    With the mega-merger horse largely out of the barn in the US, Citibank too big to question for its business in Russia even as JPMorgan Chase admits gambling a billion dollars there while closing branches in New York. the smallest of regulators had started a review.  

  The Federal Deposit Insurance Corporation, with jurisdiction mostly over small banks not members of the Federal Reserve System with the exception of the ironically named Truist, has a public comment period on mergers.  

    Now Ohio Senator Sherrod Brown has written to the Fed's Jay Powell and to national bank overseer Michael Hsu, the Comptroller of the Currency who himself came from the Fed, to ask them to get involved. 

 They have much more to answer for.

  The FDIC in the face of a Community Reinvestment Act challenge to Investors Bank by Fair Finance Watch imposed conditions on the bank.

   But the Fed, with Investors being gobbled up by Citizens Bank, refused to review Investors compliance with even those tame conditions. Inner City Press' FOIA requests languish for months at the Fed.  

 The OCC, despite the issue being raised to Hsu, has yet to implement even back transparency measures in its merger reviews, such as sending copies of its questions, and the banks' answers, to public commenters.

So things are worse, it seems, than Senator Brown and his colleagues know.

The public, particularly affected communities, much comments and comment now. Watch this site. 

April 4, 2022

Fed and Citizens Bank Thumbed Noses At CRA On Investors Bank, Request for Reconsideration

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, March 27 – 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." Watch this site.

 Citizens in 2020 in New York State based on its disparate marketing made 7183 mortgage loans to whites, with 3116 denials to whites -- while making only 323 loans to African Americans, with more than that in denials: 336.  

Watch this site.

March 28, 2022

Predatory Lending Lawsuit Against Bank of America Removed From The Bronx to SDNY

By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, March 25 – Juan Sanchez and George Royer sued Bank of America, Bayview Loan Servicing and MERS for predatory mortgage practices. The lawsuit was filed in state court in The Bronx but Bank of America removed it to Federal court.                  

  On March 25, U.S. District Court for the Southern District of New York Judge LewJohn G. Koeltl held a proceeding. Inner City Press covered it.

 Plaintiffs counsel said the case should be in The Bronx, before a Bronx jury. Judge Koeltl said he understood the impulse, but that if there is diversity, the case would stay Federal.

He asked the defendants to demonstrate their citizenship (outside of New York).

Amalgamated Bank Deal Off Amid CRA Protest For Closed Bronx Branch Now Lawsuit Threat

By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN

SOUTH BRONX / SDNY, March 23 – A CRA protest to Amalgamated Bank, which shuttered its South Bronx branch on Burnside Avenue with no mitigation, has been followed the Amalgamated proposal to acquire a Chicago-based bank falling apart. Fair Finance Watch and Inner City Press, which filed the CRA protest, say Good Riddance.

Now, a threat of litigation, in an SEC 8K: "Reference is made to the Current Report on Form 8-K of Amalgamated Financial Corp. (the "Company") filed with the U.S. Securities and Exchange Commission (the "Commission") on September 22, 2021, reporting that the Company had entered into a definitive agreement to acquire Amalgamated Investments Company ("AIC"), the holding company for Amalgamated Bank of Chicago (the "Merger Agreement"). On February 25, 2022, the Company issued a press release (furnished as Exhibit 99.1 to the Company's Current Report on Form 8-K furnished under Item 7.01 thereof) stating, among other things, that the Company had withdrawn its application for regulatory approval to acquire AIC due to an inability to obtain such approval and, as a result, the Company was is no longer proceeding with the transaction.  On March 15, 2022, the Company received a letter from AIC in which AIC declared the Merger Agreement terminated. Although the Company believes that there are no termination penalties in connection with the termination of the Merger Agreement, the Company has been advised by AIC's counsel that AIC may seek compensatory damages for an alleged breach of the Merger Agreement by the Company. The Company denies that it breached the Merger Agreement and would intend to vigorously defend any such claims by AIC." No honor among thieves.

The protest: October 23, 2021 Federal Deposit Insurance Corporation Attn: Frank Hughes, Regional Director and Robert P. Cordeiro, Scott D. Strockoz 350 Fifth Avenue, Suite 1200 New York, NY 10118-0110 Re: Timely First Comment on Application by Amalgamated Bank (NY) to buy Amalgamated Bank in Chicago

Dear Regional Director Hughes and others at the FDIC:   This is a timely first comment opposing and requesting an extension of the FDIC's public comment period on the Applications by Amalgamated Bank (NY) to buy Amalgamated Bank in Chicago. 

  As the FDIC surely knows, Amalgamated Bank New York outrageously closed branches including at 94 Burnside Avenue in the South Bronx when its customers needed it most.   

  This caused Fair Finance Watch to look more closely. And Amalgamated is not what it pretend to be. In 2020 in New York Amalgamated made only 41 home loans to African Americans, while denying more (67) - compared to its 962 loans to whites, with FEWER denials to whites (577).    That the Burnside Avenue closing has a negative impact is recognized even by state regulators: 'October 7, 2020 (TR-CRB) AMALGAMATED BANK 275 Seventh Avenue (Fourteenth Floor, New York, NY 10001  In accordance with Section 28-c of the Banking Law, the Superintendent of Financial Services has found that the closing of branch office at 94 East Burnside Avenue, Borough of Bronx, City of New York 10453, will result in a significant reduction of financial services in the community affected.' The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

The subsequent news: "New York-based Amalgamated Bank’s publicly traded parent Amalgamated Financial has walked away from its attempt to purchase the unaffiliated Amalgamated Bank of Chicago for $98 million dollars, Crain’s reported.   The banks were both founded by clothing workers’ unions, with organized labor still having a major stake in the New York institution, which has withdrawn its application for regulatory approval of the acquisition it announced it was seeking in September.   It cited an “inability” to obtain Federal Deposit Insurance Corporation approval in a statement after the close of trading Friday.  “As a result, AMAL is no longer proceeding with the transaction,” the statement said, using the parent company’s ticker symbol.  Amalgamated Bank of Chicago said the New York company does not have good cause to walk away from the deal.  “The terms of our agreement with Amalgamated Financial are clear on what triggers termination of this sale,” a spokeswoman for the Chicago bank said in an email to Crain’s. “They have not met that threshold as the door on addressing issues raised by the FDIC to obtain regulatory approval is still open. Amalgamated Financial has an obligation to address those issues, which we believe are not financial in nature, and move forward with refiling their application with the FDIC. Our goal is to help them overcome the issues that have been raised and we are confident that the sale can get back on track.” We say no.

March 21, 2022

As Redliner Community Bank NA Wants Elmira Inner City Press Protested Now Extends April 8

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Feb 12 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the now year-old Administration and its regulators remains an open question.

   On February 12 Fair Finance Watch with Inner City Press on the FOIA filed comments with the Office of the Comproller of the Currency against Community Bank N.A.'s application to acquire Elmira Savings Bank:

      The applicant Community Bank National Association in 2020 in New York State based on its disparate marketing made 4329 mortgage loans to whites, with 871 denials to whites -- while making only TWENTY SEVEN loans to African Americans, with five denials. This is far out of keeping with the demographics, and others lenders, in NYS - this is outrageous.   Beyond its lending disparities, Community Bank N.A. is a branch closer, see e.g., "Community Bank closing four locations," https://www.mytwintiers.com/news-cat/local/community-bank-closing-four-locations/, listing CBNA's closure of branches in Hornell at 7279 Seneca Rd., Bath Plaza branch located at 201 Bath and Hammondsport Railroad, the Canaseraga branch located at 37 Main St., and the Wellsville branch at 4196 Bolivar Road.   There is no public benefit to this proposal.     FFW and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners, particularly during the pandemic. We timely request public hearings."

This came after this exchange:

"Erik Zwick: What was the driver of the decision to move the closing of Elmira to 2Q? 

Mark Tryniski: I don't know if it's so much a decision on our part, it's just on expectations around where we see the trend of the regulatory approval process going. So we decided to push it off two months further out just based on the progress and the dialogue with the regulators. I mean, there's nothing of note or concern.  I think it's just right now with the administration and the pending appointments of some of the agency leadership and the - I'll call it, the interest of all of the regulatory agencies on every single transaction, even those who have a, let's call it, tangential involvement, it's a lot more [indiscernible] slow everyone out there, that's just the trend right now. So we just decided to push it out a couple of months to be sure. 

Erik Zwick:  Got it. That makes sense."

  No, it only makes sense to insiders.

In March, after the comment above, the comment period on Community Bank N.A. Elmira application was extended through April 8. Watch this site.

March 14, 2022

MUFG US Bank Hearing Has Branch Closing and Lending Disparities and MUFG in Russia

By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT – Amid US Treasury Department and Federal Reserve partial reactions to the war on Ukraine, and near total inaction on fair lending and the closure of branches in low income US communities, the agencies scheduled a public meeting on the US Bank - Mitsubishi UFG Financial Group proposed merger on March 8. 

  As often happens in such meeting, a variety of bank grantees Zoomed in to support the merger. Other grassroots activists opposed it, or proposed Community Benefits Agreements increasing lending by thirty or fifty percent. 

 Fair Finance Watch, with Inner City Press as always on the FOIA, raised fair lending issues and something new - the war on Ukraine, and MUFG's continued business in Russia:

"U.S. Bank in 2020 in New York State made only 26 mortgage loans to African Americans, while denying more, fully 66 applications from African Americans. By contrast, it made 842 loans to whites while denying less, only 567 applications from whites. Fair Finance Watch has identified similar disparities in Florida, Michigan and elsewhere.   

  Mitsubishi UFJ Financial Group's bank in Oregon in 2020 made only ONE mortgage loan to and African Americans, while denying more, two applications from African Americans. By contrast, it made 196 loans to whites while denying fewer, only 55 applications from whites.  

  These disparities should not just result in a Fed footnote that the data cited by Fair Finance Watch is accurate but HMDA data is not probative. The incoming Governors should go on the record on this before the Board rules.    

There are branch closing issues that should be addressed. 

  There is another issue which Inner City Press hereby timely raises to the Federal Reserve Board: the continued business with and in Russia by Mitsubishi UFJ Financial Group, which we confirmed on the bank's website just before this testimony.    Mitsubishi UFJ Financial Group's website says, "MUFG's presence in Russia started in Moscow in 1992, through a Representative Office. Our presence expanded significantly through the establishment of a Russian subsidiary, ZAO Bank of Tokyo-Mitsubishi UFJ (Eurasia), by the sole shareholder, The Bank of Tokyo-Mitsubishi UFJ, Ltd., on 29 May 2006. On 14 October 2015, the name of ZAO Bank of Tokyo-Mitsubishi UFJ (Eurasia) was changed to AO Bank of Tokyo-Mitsubishi UFJ (Eurasia). The Bank of Tokyo-Mitsubishi UFJ Ltd. was renamed to MUFG Bank Ltd., effective April 01, 2018. In line with such change the name of AO Bank of Tokyo-Mitsubishi UFJ (Eurasia) was changed to AO MUFG Bank (Eurasia) on 03 April 2018.    AO MUFG Bank (Eurasia) has a presence in Moscow and Vladivostok."  

This is troubling, and must be addressed under the Bank Holding Company Act's managerial and financial if not moral factors. Other large banks under Federal Reserve supervision still bragging about their presence and business in Russia including Citigroup and HSBC. The Federal Reserve must act on this immediately -- Inner City Press is requesting this be raised to the new / nominated Governors at the earliest time, along with recent rubber stamping by Federal Reserve Banks, which brag of not being government agencies, of bank mergers including involving banks with Needs to Improve CRA ratings, like Berkshire Bank. So too should the record of Toronto Dominion, among others. But the MUFG - Russia / Ukraine issue is most pressing, on this application.   

This was not addressed (yet?) by MUFG's Kevin Cronin and Julius Robinson nor USB's CDEO Andrew Cecere nor Reba Dominski.

The regulators present included Ben Olson Fed Presiding Officer; Donna M. Murphy OCC Presiding Officer; Fed's Vaishali Sack, Susan Motyka, Dafina Stewart, Chris Wangen FRB of Minneapolis; OCC's Barry Wides, Andrew Moss, Ron Pasch and Jason Almonte.


Close readers may remember a previous Inner City Press FOIA report: on May 6, 2020 Inner City Press belatedly received some responsive documents from Treasury's OCC,, but even on then-Comptroller Joseph Otting's schedule entries were redacted or in some cases unreadable - including the names of banks and CEOs met with. For example on January 24, 2020 there was a flurry of calls to bank CEOs, but only Wells Fargo and MUFG were legible.

March 7, 2022

Amalgamated Bank Deal Canceled Amid CRA Challenge For Closing South Bronx Branch

By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN

SOUTH BRONX / SDNY, March 5 – A CRA protest to Amalgamated Bank, which shuttered its South Bronx branch on Burnside Avenue with no mitigation, has been followed the Amalgamated proposal to acquire a Chicago-based bank falling apart. Fair Finance Watch and Inner City Press, which filed the CRA protest, say Good Riddance.

The protest: October 23, 2021 Federal Deposit Insurance Corporation Attn: Frank Hughes, Regional Director and Robert P. Cordeiro, Scott D. Strockoz 350 Fifth Avenue, Suite 1200 New York, NY 10118-0110 Re: Timely First Comment on Application by Amalgamated Bank (NY) to buy Amalgamated Bank in Chicago

Dear Regional Director Hughes and others at the FDIC:   This is a timely first comment opposing and requesting an extension of the FDIC's public comment period on the Applications by Amalgamated Bank (NY) to buy Amalgamated Bank in Chicago. 

  As the FDIC surely knows, Amalgamated Bank New York outrageously closed branches including at 94 Burnside Avenue in the South Bronx when its customers needed it most.   

  This caused Fair Finance Watch to look more closely. And Amalgamated is not what it pretend to be. In 2020 in New York Amalgamated made only 41 home loans to African Americans, while denying more (67) - compared to its 962 loans to whites, with FEWER denials to whites (577).    That the Burnside Avenue closing has a negative impact is recognized even by state regulators: 'October 7, 2020 (TR-CRB) AMALGAMATED BANK 275 Seventh Avenue (Fourteenth Floor, New York, NY 10001  In accordance with Section 28-c of the Banking Law, the Superintendent of Financial Services has found that the closing of branch office at 94 East Burnside Avenue, Borough of Bronx, City of New York 10453, will result in a significant reduction of financial services in the community affected.' The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

The subsequent news: "New York-based Amalgamated Bank’s publicly traded parent Amalgamated Financial has walked away from its attempt to purchase the unaffiliated Amalgamated Bank of Chicago for $98 million dollars

February 28, 2022

First Internet Bank Hit By 1st CRA Protest of 2022 Requested Withdrawal But Noncompliant

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Feb 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.

  As the first CRA challenge of 2022, Fair Finance Watch with Inner City Press on the FOIA filed comments with the Federal Reserve against First Internet Bank, below.

  On January 19, First Internet Bank wrote to say that anything for which it requested confidential treatment MUST be withheld. For First Internet Bank, Larry Tomlin of SmithAmundsen of Indianapolis tells Inner City Press and the regulators and DOJ that Fair Finance Watch should withdraw its comments. Really? Inner City Press immediately filed a new and expanded FOIA request.

On February 22, First Internet - the bank that said Inner City Press' comment against it should be withdrawn - had to respond to this question: "5. According to First Internet Bank of Indiana's CRA Performance Evaluation, dated April 6, 2021, the bank received ratings of "Needs to Improve" and "Substantial Noncompliance" in each year (2018, 2019, and 2020) on Tests 6 ("Small Business Lending to Borrowers with Revenues of $1 million or less") and 9 ("Community Development Lending"). Provide information on how the bank has improved performance on these two metrics since 2020. Additionally, provide information on how the bank plans to improve these metrics following the merger with First Century Bank."

Its response? "The Bank continues to focus on and improve its CRA performance across the board." No, disparate.

February 21, 2022

CommunityBank of Texas on Money Laundering As Protested Used Paid Letters Now Hit to FDIC

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Feb 17 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question. The same is the case about money laundering

   As the fourth CRA challenge of 2022, Fair Finance Watch with Inner City Press on the FOIA filed comments with the Federal Reserve against CommunityBank of Texas, fresh off a money laundering / Bank Secrecy Act settlement, with a disparate record: "This is a timely first comment on, the Applications of CBTX, Inc., Beaumont, Texas; to merge with Allegiance Bancshares, Inc., and thereby indirectly acquire Allegiance Bank, both of Houston, Texas. As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment. Fair Finance Watch has been tracking both banks, and has found their lending patterns troubling.   In Texas in 2020, CBTX's CommunityBank made 65 mortgage loans to whites with 54 denials. Meanwhile to African Americans it made only THREE loans, while denying fully ten applications. A referring should be made to the DOJ for fair lending violations.     In Texas in 2020, Alliance Bank made 257 mortgage loans to whites with 38 denials. Meanwhile to African Americans it made only SIX loans, while denying fully seven applications. Again, a referring should be made to the DOJ for fair lending violations.   Public evidentiary hearings are needed - especially because, and specifically on, CommunityBank's violations of the Bank Secrecy Act: "WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced a $1 million civil money penalty against CommunityBank of Texas, N.A., Beaumont, Texas, for violations of the OCC’s Bank Secrecy Act regulations.  The OCC found that CommunityBank of Texas failed to adopt and implement a Bank Secrecy Act/Anti-Money Laundering system of internal controls to assure ongoing compliance with the Bank Secrecy Act and its implementing regulations. Such deficiencies resulted in CommunityBank’s failure to timely file complete suspicious activity reports for approximately $100 million of suspicious activity.  The OCC’s civil money penalty is separate from, but coordinated with, the settlement between CommunityBank and the Financial Crimes Enforcement Network (FinCEN), which is also being announced today."     FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve's to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

 In response? CBTX put in a one-line letter of support from a hospital, and another bragging about other support from "corporate sponsors such as Valero, ExxonMobil, Entergy and many
others." That was from Nutrition & Services for Seniors. Who else? And how does this rebut money laundering and redlining?

  On February 17 Fair Finance Watch filed timely comments opposing the application with the self-described new FDIC. We'll see. Watch this site.

February 14, 2022

As Redliner Community Bank NA Spins Elmira Delay Inner City Press Files Its Disparate Data

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Feb 12 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the now year-old Administration and its regulators remains an open question.

   On February 12 Fair Finance Watch with Inner City Press on the FOIA filed comments with the Office of the Comproller of the Currency against Community Bank N.A.'s application to acquire Elmira Savings Bank:

      The applicant Community Bank National Association in 2020 in New York State based on its disparate marketing made 4329 mortgage loans to whites, with 871 denials to whites -- while making only TWENTY SEVEN loans to African Americans, with five denials. This is far out of keeping with the demographics, and others lenders, in NYS - this is outrageous.   Beyond its lending disparities, Community Bank N.A. is a branch closer, see e.g., "Community Bank closing four locations," https://www.mytwintiers.com/news-cat/local/community-bank-closing-four-locations/, listing CBNA's closure of branches in Hornell at 7279 Seneca Rd., Bath Plaza branch located at 201 Bath and Hammondsport Railroad, the Canaseraga branch located at 37 Main St., and the Wellsville branch at 4196 Bolivar Road.   There is no public benefit to this proposal.     FFW and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners, particularly during the pandemic. We timely request public hearings."

This comes after this exchange:

"Erik Zwick: What was the driver of the decision to move the closing of Elmira to 2Q? 

Mark Tryniski: I don't know if it's so much a decision on our part, it's just on expectations around where we see the trend of the regulatory approval process going. So we decided to push it off two months further out just based on the progress and the dialogue with the regulators. I mean, there's nothing of note or concern.  I think it's just right now with the administration and the pending appointments of some of the agency leadership and the - I'll call it, the interest of all of the regulatory agencies on every single transaction, even those who have a, let's call it, tangential involvement, it's a lot more [indiscernible] slow everyone out there, that's just the trend right now. So we just decided to push it out a couple of months to be sure. 

Erik Zwick:  Got it. That makes sense."

  No, it only makes sense to insiders.

February 7, 2022

While CRA Still In Limbo State Street Slowed By Antitrust on Brown Brothers, Now Fed Qs

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Jan 2 – Whether or not the U.S. Community Reinvestment Act will be again enforced underl this Administration and its regulators remains an open question. But perhaps antitrust is already tightening up.

  Back in September 2021 State Street announced it was buying the custody business of Brown Brothers Harriman for $3.5 billion and that the deal would close by the end of 2021. Then on January 19, 2022 they had to admit it is taking longer than that. Beyond concentration in the financial industry, these custody deals can impact on predatory mortgage loans and other impacts on low income communities, wider topics of NCRC. Watch this site.

   As the first CRA challenge of 2022, Fair Finance Watch with Inner City Press on the FOIA has filed comments with the Federal Reserve against First Internet Bank: "This is a request for a full copy of, and a timely first comment on, the Applications of First Internet Bancorp to acquire First Century Bancorp and First Century Bank, N.A., Commerce, Georgia. 

Fair Finance Watch has been tracking First Internet Bank, and has found its lending patterns troubling.  First Internet Bank in 2020 based on its disparate marketing made 2114 mortgage loans to whites, with only 178 denials to whites -- while making only 66 loans to African Americans, and denying 21 applications from African Americans. FIB essential denies African Americans three times more frequently than whites - worse that the rest of the industry - and makes a far smaller percentage of its loans to African Americans than other banks, particularly those based in Indiana (or Georgia). 

This application should be denied, and a referral made to the Justice Department, as the Fed did far too late on Cadence Bank, whose lesser disparities Inner City Press similarly raised to the Fed.    Public evidentiary hearings are needed - including on First Internet Bank's "tax product lending."

And on this, timely entered into the record:  "07/31/2019  Gave them all my personal info for a mortgage loan and received no call back tried to contact them to no avail. Scared it was a scam to get my info. They were recommended by credit karma. They have my fathers info also. They guaranteed they would get this done. Complaint Type: Problems with Product/Service Status: Answered 03/13/2019  I have attempted to contact someone at this office countless times via phone call, email and chat, I have been unsuccessful in finding out the reason this bank has decided to lock my account and HOLD MY FUNDs WITHOUT INFORMING ME... 

FFW and Inner City Press have been 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 and we timely request public hearings. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

January 31, 2022

CommunityBank of Texas After Money Laundering Case Hit by Protest by Fair Finance Watch

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Jan 26 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question. The same is the case about money laundering

   Now as the fourth CRA challenge of 2022, Fair Finance Watch with Inner City Press on the FOIA has filed comments with the Federal Reserve against CommunityBank of Texas, fresh off a money laundering / Bank Secrecy Act settlement, with a disparate record: "This is a timely first comment on, the Applications of CBTX, Inc., Beaumont, Texas; to merge with Allegiance Bancshares, Inc., and thereby indirectly acquire Allegiance Bank, both of Houston, Texas. As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment. Fair Finance Watch has been tracking both banks, and has found their lending patterns troubling.   In Texas in 2020, CBTX's CommunityBank made 65 mortgage loans to whites with 54 denials. Meanwhile to African Americans it made only THREE loans, while denying fully ten applications. A referring should be made to the DOJ for fair lending violations.     In Texas in 2020, Alliance Bank made 257 mortgage loans to whites with 38 denials. Meanwhile to African Americans it made only SIX loans, while denying fully seven applications. Again, a referring should be made to the DOJ for fair lending violations.   Public evidentiary hearings are needed - especially because, and specifically on, CommunityBank's violations of the Bank Secrecy Act: "WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced a $1 million civil money penalty against CommunityBank of Texas, N.A., Beaumont, Texas, for violations of the OCC’s Bank Secrecy Act regulations.  The OCC found that CommunityBank of Texas failed to adopt and implement a Bank Secrecy Act/Anti-Money Laundering system of internal controls to assure ongoing compliance with the Bank Secrecy Act and its implementing regulations. Such deficiencies resulted in CommunityBank’s failure to timely file complete suspicious activity reports for approximately $100 million of suspicious activity.  The OCC’s civil money penalty is separate from, but coordinated with, the settlement between CommunityBank and the Financial Crimes Enforcement Network (FinCEN), which is also being announced today."     FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve's to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and we timely request public hearings. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

January 24, 2022

Fair Finance Watch with Inner City Press on the FOIA this week filed a CRA challenge to the Applications of Alerus Financial Corporation to merge with MPB BHC, Inc., and thereby indirectly acquire Metro Phoenix Bank, and related applications.

Fair Finance Watch has been tracking Alerus Bank NA, and has found its lending patterns troubling. Alerus Bank NA in 2020 based on its disparate marketing made 5,041 mortgage loans to whites, with only 79 denials to whites -- while making only 105 loans to African Americans, and denying six applications from African Americans. This is outrageous. This application should be denied, and a referral made to the Justice Department, as the Fed did far too late on Cadence Bank, whose lesser disparities Inner City Press similarly raised to the Fed.   

Public evidentiary hearings are needed - including on this timely entered into the record: a former employee of KPC Healthcare, filed a class action complaint on June 1, 2020, alleging that, among other things, (i) in approving the Transaction, Alerus Financial, N.A. (Alerus), the Trustee of the KPC ESOP, caused the KPC ESOP to pay more than fair market value for KPC Healthcare’s stock... See, Class Action Complaint, Gamino v. KPC Healthcare Holdings, Inc., No. 5:20-cv-01126-SB-SHK (C.D. Cal. June 1, 2020), ECF No. 1.

January 17, 2022

  Fair Finance Watch with Inner City Press on the FOIA this week filed a CRA challenge to the Applications of Home Bank N.A. to acquire Texan Bank:

"Dear Director for Southern District Licencing and others at the OCC:  This is a request for a full copy of, and a timely first comment on, the Applications of Home Bank N.A. to acquire Texan Bank.

 Fair Finance Watch has been tracking Home Bank, N.A. and is concerned by its disparate lending. This proposal would impose it on new communities in Houston, Texas. Home Bank NA in Louisiana in 2020 based on its disparate marketing made 616 mortgage loans to whites, with 48 denials to whites -- while making only 53 loans to African Americans, and denying fully 11 applications from African Americans. This is far out of keeping with the demographics, and other lenders, in Louisiana - this is outrageous. This application should be denied, and a referral made to the Justice Department, as the Federal Reserve did far too late on Cadence Bank, whose lesser disparities Inner City Press similarly raised to the Fed.   

It is significant that this application is stuck at the end of the Weekly Bulletin: "ADDENDUM SECTION: This Application was omitted from a prior Weekly Bulletin." This militates for the requested extension of the public comment period, and an inquiry / explanation. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.


January 10, 2022

Fair Finance Watch with Inner City Press on the FOIA has filed a 2d CRA challenge of 2022, to the Fed (so far) on the Applications of TBB Investments LLC and TBB Intermediate LLC to become bank holding companies by acquiring Berkshire Bancorp, Inc and related applications.

 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. This application should be denied, and a referral made to the Justice Department... See also the conditions imposed by the FDIC after Fair Finance Watch comments to the FDIC on the sale of Berkshire branches.   Public evidentiary hearings are needed - including on this timely entered into the record: Reclusive landlord Moses Marx resigns as Berkshire chairman, see here.

January 3, 2022

First Internet Bank Georgia Bid Hit By 1st CRA Protest of 2022 by Fair Finance Watch

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Jan 2 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question.

   Now as the first CRA challenge of 2022, Fair Finance Watch with Inner City Press on the FOIA has filed comments with the Federal Reserve against First Internet Bank: "This is a request for a full copy of, and a timely first comment on, the Applications of First Internet Bancorp to acquire First Century Bancorp and First Century Bank, N.A., Commerce, Georgia. 

Fair Finance Watch has been tracking First Internet Bank, and has found its lending patterns troubling.  First Internet Bank in 2020 based on its disparate marketing made 2114 mortgage loans to whites, with only 178 denials to whites -- while making only 66 loans to African Americans, and denying 21 applications from African Americans. FIB essential denies African Americans three times more frequently than whites - worse that the rest of the industry - and makes a far smaller percentage of its loans to African Americans than other banks, particularly those based in Indiana (or Georgia). 

This application should be denied, and a referral made to the Justice Department, as the Fed did far too late on Cadence Bank, whose lesser disparities Inner City Press similarly raised to the Fed.    Public evidentiary hearings are needed - including on First Internet Bank's "tax product lending."

And on this, timely entered into the record:  "07/31/2019  Gave them all my personal info for a mortgage loan and received no call back tried to contact them to no avail. Scared it was a scam to get my info. They were recommended by credit karma. They have my fathers info also. They guaranteed they would get this done. Complaint Type: Problems with Product/Service Status: Answered 03/13/2019  I have attempted to contact someone at this office countless times via phone call, email and chat, I have been unsuccessful in finding out the reason this bank has decided to lock my account and HOLD MY FUNDs WITHOUT INFORMING ME... 

FFW and Inner City Press have been 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 and we timely request public hearings. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

December 27, 2021

As BMO Harris Applies For Bank of the West Litmus Test on Fairness for Rudderless Regulators

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Dec 21 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question. BMO Harris' application to buy Bank of the West and its more than 500 branches from BNP will be a litmus test.

 Fair Finance Watch notes, 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. So what will the (new?) regulators do?

First came the news that the Biden Administration had nominated Saule Omarova to head the Office of the Comptroller of the Currency. While described as "anti big bank" - good - Inner City Press and others asked, What are her views on CRA, and how would she approach, and deny some, mergers? This got lost in the comrade talk. Now her nomination is over, with Omarova pulling the plug after opposition by Sens. Jon Tester (D-Mont.) Mark Warner (D-Va.) Kyrsten Sinema (D-Ariz.), John Hickenlooper (D-Colo.) and Mark Kelly (D-Ariz.). So who's next?As BMO Harris Applies For Bank of the West Litmus Test on Fairness for Rudderless Regulators

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Dec 21 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question. BMO Harris' application to buy Bank of the West and its more than 500 branches from BNP will be a litmus test.

 Fair Finance Watch notes, 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. So what will the (new?) regulators do?

First came the news that the Biden Administration had nominated Saule Omarova to head the Office of the Comptroller of the Currency. While described as "anti big bank" - good - Inner City Press and others asked, What are her views on CRA, and how would she approach, and deny some, mergers? This got lost in the comrade talk. Now her nomination is over, with Omarova pulling the plug after opposition by Sens. Jon Tester (D-Mont.) Mark Warner (D-Va.) Kyrsten Sinema (D-Ariz.), John Hickenlooper (D-Colo.) and Mark Kelly (D-Ariz.). So who's next?

December 20, 2021

After Saule Omarova Quits OCC Race Fed Qs on South State Atlantic Capital CRA Protest

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Dec 17 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question. [Today the Fed asked more questions of South State - see below]

First came the news that the Biden Administration had nominated Saule Omarova to head the Office of the Comptroller of the Currency. While described as "anti big bank" - good - Inner City Press and others asked, What are her views on CRA, and how would she approach, and deny some, mergers? This got lost in the comrade talk. Now her nomination is over, with Omarova pulling the plug after opposition by Sens. Jon Tester (D-Mont.) Mark Warner (D-Va.) Kyrsten Sinema (D-Ariz.), John Hickenlooper (D-Colo.) and Mark Kelly (D-Ariz.). So who's next?

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Meanwhile the proposed acquisition by South State of Atlantic Capital Bank in Georgia remains 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 December 17 asked this of South State and its outside counsel: "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. Please respond in full to the following additional information items, including those listed in the confidential annex, and provide supporting documentation as appropriate. 1) In a response to a public comment dated September 17, 2021, South State indicated that South State Bank “annually engages an independent audit firm and conducts quarterly internal comparative file reviews of approved/declined loans to identify if there is inequitable pricing or underwriting of loans based on the prohibited basis found under the Equal Credit Opportunity Act and/or the Fair Housing Act.” a. Clarify whether the independent annual audit is separate from the quarterly internal comparative file review and discuss the types of information reviewed by both processes. Also discuss the role, if any, that South State or South State Bank staff have in the independent annual audit. b. Provide the most recent independent audit report. 2) At the time of its most recent Community Reinvestment Act (“CRA”) evaluation, Atlantic Capital Bank operated a network of branches in Georgia and Tennessee. Describe the process by which Atlantic Capital Bank reduced its branch network to its current two branches, including any steps that were taken to ensure continued compliance with the CRA." 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."

   What - the comment period running to its conclusion, before any application to comment on is available? This seems far too bank-friendly. How does it relate to the administration's Antitrust Memo? Watch this site.

December 6, 2021

After Investors Bank Hit With Conditions, CRA Protests To Amgalamated, Bronx Branch Closer

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Dec 5 – 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 not only the proposed acquisition of Investors Bank by Citizens Bank NA but also Amalgamated - Amalgamated will be litmus tests.

On December 4, after filing with the FDIC, Inner City Press filed with the Federal Reserve: 

"Dear Chair Powell, Secretary Misback and others in the FRS:  This is a timely first comment opposing and requesting an extension of the FRBs's public comment period on the Applications by Amalgamated Financial Corp., New York, New York; to merge with Amalgamated Investments Company, and thereby indirectly acquire Amalgamated Bank of Chicago, both of Chicago, Illinois    

As the FRBNY should know, Amalgamated Bank New York outrageously closed branches including at 94 Burnside Avenue in the South Bronx when its customers needed it most.    This caused Fair Finance Watch to look more closely. And Amalgamated is not what it pretends to be. In 2020 in New York Amalgamated made only 41 home loans to African Americans, while denying more (67) - compared to its 962 loans to whites, with FEWER denials to whites (577).     That the Burnside Avenue closing has a negative impact is recognized even by state regulators:

"October 7, 2020 (TR-CRB) AMALGAMATED BANK 275 Seventh Avenue (Fourteenth Floor, New York, NY 10001  In accordance with Section 28-c of the Banking Law, the Superintendent of Financial Services has found that the closing of branch office at 94 East Burnside Avenue, Borough of Bronx, City of New York 10453, will result in a significant reduction of financial services in the community affected."

The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved. 

  It is also unclear to ICP why this application, by a New York institution to buy one in Chicago, is listed in the Federal Register to the FRB of Philadelphia:

 "A. Federal Reserve Bank of Philadelphia (William Spaniel, Senior Vice President) 100 North 6th Street, Philadelphia, Pennsylvania 19105-1521. Comments can also be sent electronically to Comments.applications [at] phil.frb.org : 1. Amalgamated Financial Corp., New York, New York; to merge with Amalgamated Investments Company, and thereby indirectly acquire Amalgamated Bank of Chicago, both of Chicago, Illinois. " 

It is imperative that a review of South Bronx branch closure(s) by the local FR Bank, and not a random one in another district."

Meanwhile, 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 has been raised on Citizens' application, while Investors blithely asks for rubber stamp of a new branch, not in the communities it has redlined, but at 111 Broadway. And the NYSDFS? And the Administration and Fed Chair Powell?

November 29, 2021

In DC 5 Dems Oppose Saule Omarova as OCC Amid CRA Protest to South State Atlantic Capital

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Nov 24 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators is an open question.

Then came the news that the Biden Administration nominated Saule Omarova to head the Office of the Comptroller of the Currency. While described as "anti big bank" - good - what are her views on CRA, and how would she approach, and deny some, mergers? This got lost in the comrade talk. Now her nomination is said dead, killed by calls by Sens. Jon Tester (D-Mont.) Mark Warner (D-Va.) and Kyrsten Sinema (D-Ariz.) to Sen. Sherrod Brown (D-Ohio) — the panel's chairman — of their opposition.  They joined Sens. John Hickenlooper (D-Colo.) and Mark Kelly (D-Ariz.). So who's next?

Meanwhile the proposed acquisition by South State of Atlantic Capital Bank in Georgia remains 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

November 22, 2021

After Investors Bank Hit With Conditions, CRA Protest To Home BancShares Texas Entry

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Nov 20 – 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 not only the proposed acquisition of Investors Bank by Citizens Bank NA but also Home BancShares / Centennial Bank - Happy Bancshares will be litmus tests.

On November 20 Inner City Press filed with the Federal Reserve:

"This is a request for a full copy of, and a timely first comment on, the Applications of South State Corporation to merge with Home BancShares, Inc. to merge with Happy Bancshares, Inc., and thus indirectly acquire Happy State Bank. Fair Finance Watch has been tracking Home BancShares' Centennial Bank, including but not only because it has a branch in New York.

The applicant's Centennial in 2020 in Alabama based on its disparate marketing made 46 mortgage loans to whites, with 19 denials to whites -- while making only NO loans to African Americans. This is far out of keeping with the demographics, and other lenders, in Alabama - this is outrageous. This application should be denied, and a referral made to the Justice Department, as the Fed did far too late on Cadence Bank, whose lesser disparities Inner City Press similarly raised to the Fed.

This is a pattern. Centennial Bank in 2020 in Arkansas based on its disparate marketing made 1943 mortgage loans to whites, with 282 denials to whites -- while making only 113 loans to African Americans, with 37 denials. This is out of keeping with the demographics, and other lenders, in Arkansas, in the state Home BancShares' Centennial Bank presumably performs best.   South State Bank NA in 2020 in New York based on its disparate marketing made a mortgage loan to a white application, and none to African Americans. 

Centenntial Bank in 2020 in Florida based on its disparate marketing made 1591 mortgage loans to whites, with 256 denials to whites -- while making only 52 loans to African Americans, with 16 denials. This is out of keeping with the demographics, and other lenders, in Florida. What could Home BancShares' Centennial be expected to do in Texas?   

FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve's to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings. We have already submitted a FOIA request for all withheld portions of the applications / portions for which confidential treatment has been requested, and for communications. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.

November 15, 2021

After Investors Bank Hit With FDIC Conditions, CRA Protest To BankPlus - First Bank and Trust

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Nov 13 – 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 now for the FDIC, BankPlus' application to acquire First Bank and Trust will be a litmus test.

On November 12, Fair Finance Watch and Inner City Press filed with the FDIC:

"This is a first timely comment opposing, requesting hearings and an extension of the comment period on the applications by BankPlus to acquire First Bank and Trust  As an initial matter, this is a request that the FDIC immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.

Fair Finance Watch has been tracking BankPlus:

The applicant BankPlus 2020 in Mississippi based on its disparate marketing made 1918 mortgage loans to whites, with 198 denials to whites -- while making only 211 loans to African Americans, with 80 denials. This is far out of keeping with the demographics, and other lenders, in Mississippi - this is outrageous. This is a pattern.

BankPlus in 2020 in Alabama based on its disparate marketing made 71 mortgage loans to whites, with four denials to whites -- while making NO loans to African Americans. 

  Perhaps most relevant, BankPlus is disparate in the state it is trying to make this acquisition to impose and expand its practices. South State Bank NA in 2020 in Louisiana based on its disparate marketing made 24 mortgage loans to whites, with eight denials to whites -- while making as in Alabama N) loans to African Americans.    FFW and Inner City Press have been deeply concerned about the rush by the FDIC to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings."

November 8, 2021

After Investors Bank Hit With FDIC Conditions, CRA Protests To Community Bank NA - Elmira

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Nov 6 – 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 now for the Office of the Comptroller of the Currency, Community Bank NA's application to acquire Elmira Savings Bank will be a litmus test.

On October 6, Fair Finance Watch and Inner City Press filed with the OCC

"This is a timely first comment opposing and requesting an extension of the OCC's public comment period on Community Bank NA's applications to acquire Elmira Savings Bank.     Fair Finance Watch and Inner City Press have long been concerned by disparities in CBNY's lending. Recently, similar disparities at Investors Bank, raised by Inner City Press, triggered conditions on Investors, by the FDIC. See here

 So what's up with the OCC, on CBNA's disparities? 

The applicant Community Bank National Association in 2020 in New York State based on its disparate marketing made 4329 mortgage loans to whites, with 871 denials to whites -- while making only TWENTY SEVEN loans to African Americans, with five denials.  

That is, for CBNA in NYS, 4329 loans to whites versus only 27 to African Americans.  

  In Vermont in 2020, CBNA  based on its disparate marketing made 224 mortgage loans to whites, with 75 denials to whites -- while making only ONE loans to an African American applicant, with one denial.    This application should not be approved, much less at this time."

November 1, 2021

After Investors Bank Hit With FDIC Conditions, Stock Yards Protest Yields Fed CRA Questions

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Oct 28 – 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 not only the proposed acquisition of Investors Bank by Citizens Bank NA but also Stock Yards - Commonwealth will be litmus tests. FRB's Oct 27, 2021 letter here.

On October 2, after filing with the FDIC, Inner City Press filed with the Federal Reserve:

"This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Applications by Stock Yards Bancorp to acquire Commonwealth Bancshares, Inc., and thereby indirectly acquire Commonwealth Bank and Trust Company, both of Louisville, Kentucky     

 The applicant Stock Yard Bank is getting worse.  In Kentucky in 2020 it made 1431 home loans to whites and only 39 to African Americans (while denying 18application from African Americans, and only 188 from whites - down from 250 in 2019).    Commonwealth Bank & Trust in Kentucky in 2020 made more loans that its putative acquirer, but was also disparate: it made 3358 home loans to whites and 156 to African Americans (while denying 63 application from African Americans, and 459 from whites).  There is no public benefit to this proposal.    

FFW and Inner City Press have been deeply concerned about the rush by the FRB's penchant to rubberstamp mergers by redliners, particularly during the pandemic - including starting comment periods even before applications are filed and/or publicly available. We have just filed a FOIA request."

Now in late October, Inner City Press is publishing these questions to Stock Yard asked by the Federal Reserve on October 27, full letter here: "October 27, 2021 Mr. Nathan Berger Frost Brown Todd, LLC 400 West Market Street, 32nd Floor Louisville, Kentucky 40202-3363 Dear Mr. Berger:

This letter refers to application submitted by Stock Yards Bancorp, Inc. (“Stock Yards” or  “Applicant”), the parent of state nonmember bank, Stock Yards Bank & Trust Company (“Stock  Yards Bank”), to acquire Commonwealth Bancshares, Inc. (“Commonwealth”), a bank holding  company, and its state nonmember bank subsidiary, Commonwealth Bank & Trust Company (“Commonwealth Bank”), all of Louisville, Kentucky, pursuant to section 3 of the Bank Holding Company Act of 1956, as amended. Please provide a complete, detailed response to each of the  following items. Supporting documentation, as appropriate, should be provided.  1. Please confirm whether the merger will result in new products or services at the  resulting bank that are not currently offered by Stock Yard Bank or Commonwealth  Bank. If so, please provide: a. A description of the new products and services that Stock Yards Bank expects  to offer following the merger.  b. A description of how Stock Yards Bank plans to adjust its consumer compliance  program to support these new products and services. c. A description of how Stock Yards Bank plans to adjust its Community  Reinvestment Act program to support these new products and services.

2. Describe any changes to the consumer compliance program at Stock Yards Bank as a  result of the merger, including staffing. Discuss the skills and experience of the Stock  Yards Bank consumer compliance management team and provide an organizational  chart reflecting the consumer compliance function at the pro forma organization.

3. Applicant’s response to Question 19(d) indicates that the merger will result in an  expansion of Stock Yards Bank’s assessment areas and products and services. Discuss  whether the Applicant expects that staff responsible for managing the CRA program  will change following the merger. Mr. Nathan Berger October 27, 2021 Page 2 4. Applicant’s response to Question 20(c) of the Y-3 application shows that the Applicant  plans on closing or consolidating six branches following the merger. a. Indicate whether each branch listed in the response to Question 20(c) is in a  majority-minority census tract. b. Discuss how Stock Yards Bank plans to mitigate the impact of any branches to  be closed in LMI and/or majority-minority communities. 5

. Please provide a list of organizations and community groups, if any, with which Stock  Yards Bank engaged since 2019 to help reach African American borrowers in Kentucky. In your response, please provide detailed information about the partnerships  that Stock Yards Bank engaged in with these organizations and community groups since 2019.

6. Please provide information about Stock Yards Bank’s efforts to reach African  American borrowers in Kentucky, including specialized products and marketing  campaigns, since 2019.

7. Please provide a list of organizations and community groups, if any, with which Commonwealth Bank engaged since 2019 to help reach African American borrowers  in Kentucky. In your response, please provide detailed information about the  partnerships that Commonwealth Bank engaged in with these organizations and  community groups since 2019."

October 25, 2021

As Garland Talks Trustmark Citizens Bank Thumbs Nose At CRA On Investors Bank Test

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Oct 22 – 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 not the proposed acquisition of Investors Bank by Citizens Bank will be a litmus test, one that both Citizens and the regulators are failing.

 DOJ claims to be enforcing, with Merrick B. Garland on October 2 intoning, "settlement with Trustmark National Bank. The agreement resolves allegations that Trustmark engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Memphis, Tennessee. We commend Trustmark for its cooperation in swiftly resolving this matter. Through this settlement, Trustmark has shown an interest in remedying past practices and in promoting equal access to credit." But what about larger banks like Citizens and Investors Bank it wants, through a white shoe law firm?

   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 (on Patreon here) does not address it, and Citizens' law firm late provide its "answer" and two responses to the Fed.

This application should be denied.  

 Citizens in 2020 in New York State based on its disparate marketing made 7183 mortgage loans to whites, with 3116 denials to whites -- while making only 323 loans to African Americans, with more than that in denials: 336.  

Watch this site.

October 18, 2021

After Investors Bank Hit With FDIC Conditions, CRA Scams By Stock Yards - Commonwealth

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Oct 16 – 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 not only the proposed acquisition of Investors Bank by Citizens Bank NA but also Stock Yards - Commonwealth will be litmus tests.

On October 2, after filing with the FDIC, Inner City Press filed with the Federal Reserve:

"This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Applications by Stock Yards Bancorp to acquire Commonwealth Bancshares, Inc., and thereby indirectly acquire Commonwealth Bank and Trust Company, both of Louisville, Kentucky     

 The applicant Stock Yard Bank is getting worse.  In Kentucky in 2020 it made 1431 home loans to whites and only 39 to African Americans (while denying 18application from African Americans, and only 188 from whites - down from 250 in 2019).    Commonwealth Bank & Trust in Kentucky in 2020 made more loans that its putative acquirer, but was also disparate: it made 3358 home loans to whites and 156 to African Americans (while denying 63 application from African Americans, and 459 from whites)."

 Yet despite this disparate record, Stock Yards Bank's response of October 12, by its EVP and CFO T. Clay Stinnett, does not engage with his bank's actual lack of lending to African Americans, instead dismissing HMDA data and talking about "media outreach." Meanwhile despite an October 2 request, only on October 15 did the Fed provide the "public portion" of the application, and even then with portions inappropriately withheld at Stock Yards' request. This is a litmus test that is being failed.

Meanwhile, 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 has now been raised on Citizens' applications

October 11, 2021

After Investors Bank Hit With FDIC Conditions, Delta of FIFA Scandal Change in Bank Control

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Oct 9 – 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 not only the proposed acquisition of Investors Bank by Citizens Bank NA but also an application to change control of the FIFA scandal plagued Delta Bank of New York and Grand Cayman will be litmus tests.

Fair Finance Watch and  Inner City Press have filed with the Federal Reserve:

"This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Applications for a controlling stake in scandal-plagued Delta National Bank & Trust to be taken by a series of Brazil-based investors with their own issues.    Fair Finance Watch and Inner City Press have closely followed the FIFA corruption cases in which Delta prominently and shamefully figures. See, e.g.,  "One institution, Delta National Bank and Trust company, a small boutique bank that caters to wealthy Latin American clients and has offices in Miami, allegedly played an outsized role in the scandal. Authorities contend that Traffic International, a sports media company based in Brazil, shuffled at least $60 million in bribes and kickbacks to FIFA officials as part of an effort to win broadcast rights to FIFA tournaments and secure sponsorship deals.  Though Traffic also held an account with Citi in Miami, experts say its transfers through Delta should have raised flags, especially given the bank's history of misconduct. In 2003, Delta paid nearly $1 million after it was cited for failing to flag as much as $10 million in transactions tied to Colombian drug traffickers. Brazilian authorities have also launched investigations in the past into other Delta clients.  Related: SwissLeaks: How Banking Giant HSBC Helped 100,000 Rich Clients Dodge Taxes  When banks encounter questionable transactions, they are supposed to file suspicious activity reports. In the eyes of regulators, past scrutiny of a bank's practices should lead to stricter money-laundering measures and more reporting, but it appears that was not the case at Delta. As authorities determine whether charges will eventually be filed against any of the banks named in the indictment, they will likely consider the timespan over which the alleged misconduct occurred. The US says it dates back, in some cases, as long as 25 years."     See generally,  United States v. Webb (1:15-cr-00252) District Court, E.D. New York.

 The Fed has acknowledged receipt; the application says: "The Notificants are: Lucia de Campos Faria Junia de Campos Faria Ziegelmeyer Flávia Faria Vasconcellos Eliana de Campos Faria The FC Family Trust Claudia de Faria Carvalho. as primary beneficiary of the FC Family Trust The White Dahlia Company Inc.. as trustee of the FC Family Trust Interagency Biographical and Financial Reports (the "IBFRs") relating to the Notificants who are natural persons are submitted herewith as Confidential Exhibits II.A. I .a-e. Additional information regarding FC Family Trust and White Dahlia is provided in Confidential Exhibit II.A. i.e. Confidential Exhibit II.A.2 provides additional information regarding Mr. Faria's estate and the Notificants' holdings."

So it's all confidential? Inner City Press has filed a FOIA request.

Meanwhile, 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 has now been raised on Citizens' application

October 4, 2021

Melrose Credit Union CEO Kaufman Gets 46 Months For Bribes Including From CBS Radio

By Matthew Russell Lee, Video, Alamy photos

SDNY COURTHOUSE, Sept 29 – The CEO of Melrose Credit Union Alan Kaufman was arrested at 6 am on July 11, 2019 and presented on bribery charges before U.S. District Court for the Southern District of New York Magistrate Judge Henry B. Pitman at 4 pm. Wearing a red polo shirt, he pleaded not guilty.  Inner City Press was there and reported it.

 He agreed to a bail package of a $500,00 bond to be signed by his wife and his son, flying in on July 23 and, among other things, drug testing and treatment if needed. His co-defendant Tony Georgiton must post a $1 million bond and turn in not only his US but also his Greek passport. The next hearing was not until September 4 before SDNY District Judge Lewis A. Kaplan. Inner City Press wrote: It's good to be a banker.

On January 11, 2021, Georgiton had his sentencing, and Inner City Press live tweeted it, below.

On March 31, Kaufman was convicted after a jury trial "for participating in a scheme in which KAUFMAN, who was then the Chief Executive Officer of Melrose Credit Union (“Melrose CU”), accepted rent-free housing and financing for the purchase of his personal residence from Tony Georgiton as a reward for the approval of millions of dollars in loans to Georgiton’s companies at favorable terms.  KAUFMAN was also convicted for accepting lavish vacations, including to Paris and Hawaii, from a media company and other vendors, as a reward  for Melrose CU purchasing increased advertising from those companies.  The jury convicted KAUFMAN today following a two-week trial before U.S. District Judge Lewis A. Kaplan.

Now on September 29, 2021, ALAN KAUFMAN, who at the time of the offense was the chief executive officer of Melrose Credit Union (“Melrose CU”), was sentenced today to 46 months in prison.  KAUFMAN was previously convicted, following a three-week jury trial, of participating in a scheme in which he accepted from Tony Georgiton free housing and hundreds of thousands of dollars in financing for the purchase of his personal residence, after approving millions of dollars in loans to Georgiton’s companies at favorable terms.  KAUFMAN was also convicted for accepting lavish vacations, including to Paris and Hawaii, from CBS Radio after increasing Melrose CU’s advertising purchases at CBS Radio. We aim to have more on this.

September 27, 2021

After Investors Bank Hit With FDIC Conditions, CRA Protest Filed To Fed App by Citizens Bank

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Sept 25 – 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 the proposed acquisition of Investors Bank by Citizens Financial will be 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 has now been raised on Citizens' application, to the Federal Reserve, cc-ing Citizens:

"Re: Timely First Comment Opposing Citizens Financial Group's application to acquire Investors Bancorp, Inc. and thereby indirectly acquire Investors Bank 

Dear Chair Powell, Secretary Misback and others in the FRS: 

This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Applications by Citizens Financial Group's application to acquire Investors Bancorp, Inc. and thereby indirectly acquire Investors Bank

  Before getting to the data, 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."   

Citizens cannot, as of now, be allowed to acquire this hot mess.  As noted:  The applicant Citizens in 2020 in New York State based on its disparate marketing made 7183 mortgage loans to whites, with 3116 denials to whites -- while making only 323 loans to African Americans, with more than that in denials: 336.  

  Here's some of Investors' 2020 HMDA data:  Investors Bank in 2020 in New York State based on its disparate marketing made 164 mortgage loans to whites, with 76 denials to whites -- while making only THREE loans to African Americans, with SEVEN denials. This is far out of keeping with the demographics, and other lenders, in NYS - this is outrageous.

This is a pattern. Investors Bank in 2020 in New Jersey based on its disparate marketing made 1580 mortgage loans to whites, with 281 denials to whites -- while making only 64 loans to African Americans, with 28 denials. This is far out of keeping with the demographics, and other lenders, in New Jersey. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

Watch this site.

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September 20, 2021

Our sweet Kentucky home - but for the redlining: "This is a timely first comment opposing and requesting an extension of the FDIC's public comment period on the Applications by Stock Yards Bank to acquire Commonwealth Bank & Trust.      The applicant Stock Yard Bank in Kentucky in 2022 made 1431 home loans to whites and only 39 to African Americans (while denying 18application from African Americans, and only 188 from whites - down from 250 in 2019).    Commonwealth Bank & Trust in Kentucky in 2020 made more loans that its putative acquirer, but was also disparate: it made 3358 home loans to whites and 156 to African Americans (while denying 63 application from African Americans, and 459 from whites). There is no public benefit to this proposal.     FFW and Inner City Press have been deeply concerned about the rush by the FDIC's penchant to rubberstamp mergers by redliners, particularly during the pandemic. We timely request public hearings."

September 13, 2021

After Investors Bank Hit With FDIC Conditions, CRA Protest Filed To Deal With Citizens Bank

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Sept 11 – 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 will be 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 has now been raised on Citizens' application, to the OCC:

"Re: Timely First Comment Opposing Citizens to acquire Investors Bank

Dear Ms. Cummings and others in the OCC, including at "Large Banks": 

This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Citizens to acquire Investors Bank.  

  Before getting to the data, 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."   

Citizens cannot, as of now, be allowed to acquire this hot mess.  As noted:  The applicant Citizens in 2020 in New York State based on its disparate marketing made 7183 mortgage loans to whites, with 3116 denials to whites -- while making only 323 loans to African Americans, with more than that in denials: 336.  

  Here's some of Investors' 2020 HMDA data:  Investors Bank in 2020 in New York State based on its disparate marketing made 164 mortgage loans to whites, with 76 denials to whites -- while making only THREE loans to African Americans, with SEVEN denials. This is far out of keeping with the demographics, and other lenders, in NYS - this is outrageous.

This is a pattern. Investors Bank in 2020 in New Jersey based on its disparate marketing made 1580 mortgage loans to whites, with 281 denials to whites -- while making only 64 loans to African Americans, with 28 denials. This is far out of keeping with the demographics, and other lenders, in New Jersey. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

Watch this site.

September 6, 2021

OCC Protest of South State-Atlantic Capital Under CRA, How Will Hsu Differ from Before?

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Sept 4 – 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.

Now on September 4, Fair Finance Watch has commented to the Office of the Comptroller Currency, which some say has changed for the better. We'll see.

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."

   What - the comment period running to its conclusion, before any application to comment on is available? This seems far too bank-friendly. How does it relate to the administration's Antitrust Memo? Watch this site.

August 30, 2021

AOC Cites Need for Public Alternative To Credit Reports As Inner City Press Asks of CRA

By Matthew Russell Lee, Patreon UN censors
BBC - Guardian UK - Honduras - ESPN

NEW YORK, SDNY & EDNY, August 27 – The difference between retail and wholesale politics was again on display Friday night, in a town hall to The Bronx and Queens, when Inner City Press asked if  the Biden Administration is yet doing enough about bank redlining. (Video to come).

   Rep. Alexandria Ocasio-Cortez held a Zoom town hall, after which she took press questions.

  Inner City Press asked, ""Does Rep. Ocasio-Cortez think the administration's bank regulators have moved fast enough to increase scrutiny of redlining, predatory lending and other abuses?"

  Rep. Ocasio-Cortez said, in short, No. Acknowledging that it only scraped the surface, she said credit reporting agencies and banks have a conflict of interest: they profit from keeping consumers' credit scores down. She said there should be a public alternative - and invited Inner City Press (and presumably Fair Finance Watch) to specify work that needs to be done. That would be, bank-friendly merger reviews which have weakened the Community Reinvestment Act. We'll have more on that - and on the UN's continuing ban on Inner City Press.

 Inner City Press on August 27 also submitted a question about the United Nations - not answer answered - while the head of UN Media Accreditation Melissa Fleming continues to ban Bronx-based Inner City Press from even entering again to ask questions. This must be addressed before UNGA Week, September 21.

August 23, 2021

CRA Protest to South State - Atlantic Capital Shows Disparities In Georgia, Florida & SC

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, August 17 – 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 Corporation 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 this with the Federal Reserve Board:

Dear Chair Powell, Secretary Misback and others in the FRS:   This is  a timely first comment opposing the Applications of South State Corporation to merge with Atlantic Capital Bancshares, Inc., and thereby indirectly acquire Atlantic Capital Bank, NA .

 Fair Finance Watch has been tracking South State Bank NA:  The applicant's South State Bank NA in 2020 in Florida based on its disparate marketing made 5721 mortgage loans to whites, with 1019 denials to whites -- while making only 143 loans to African Americans, with 48 denials. This is far out of keeping with the demographics, and other lenders, in Florida - this is outrageous. 

This is a pattern. South State Bank NA in 2020 in South Carolina based on its disparate marketing made 3048 mortgage loans to whites, with 537 denials to whites -- while making only 133 loans to African Americans, with fully 147 denials. This is far out of keeping with the demographics, and other lenders, in South Carolina. The denials to African Americans are... outrageous.   

Perhaps most relevant, South State is disparate in the state it is trying to make this acquisition to impose and expand its practices. South State Bank NA in 2020 in Georgia based on its disparate marketing made 4068 mortgage loans to whites, with 451 denials to whites -- while making only 494 loans to African Americans, with 120 denials. This is far out of keeping with the demographics, and other lenders, in Georgia - this is outrageous.

 The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.


 Inner City Press (and Fair Finance Watch, on the HMDA) will have more to say about this. Watch this site.

August 16, 2021

Valley National - Westchester Bank Is Protested to NYS DFS Lacewell On Lending Disparities

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, August 14  – 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 by disparate lending Valley National Bank of The Westchester Bank in New York will be a litmus test, for the NYS Department of Financial Services, from which Cuomo ally Linda Lacewell is leaving by August 24.

On August 14, Fair Finance Watch (with Inner City Press on the FOIA) filed the below with the NYS DFS:

New York State Department of Financial Services Attn: Linda A. Lacewell, Acting Superintendent of Financial Services And Office of the General Counsel One State Street, New York, New York 10004-1511   Re: Timely Initial Comment Opposing Application of Valley National Bank to acquire The Westchester Bank    

Dear [Outgoing] Superintendent Lacewell, General Counsel and others at NYSDFS:     This is a timely first comment opposing and requesting an extension of the NYS DFS public comment period on the Applications by Valley National Bank to acquire The Westchester Bank.     

 The applicant Valley National Bank in 2020 in New York State based on its disparate marketing made 1080 mortgage loans to whites, with 83 denials to whites -- while making only 51 loans to African Americans, with seven denials. This is far out of keeping with the demographics, and others lenders, in NYS - this is outrageous.  This is a pattern.

The applicant Valley National Bank in 2020 in Florida based on its disparate marketing made 859 mortgage loans to whites, with 119 denials to whites -- while making only 45 loans to African Americans, with eight denials.

This is far out of keeping with the demographics, and others lenders, Florida - this is outrageous.  

 Beyond its lending disparities, Valley National Bank is being sued for mis-categorizing and underpaying those who work for it. See, e.g., PALERMO v. VALLEY NATIONAL BANCORP (D.N.J. 2020) - submitted for the record, and in light of the new merger review Executive Order.   

There is no public benefit to this proposal.  

August 9, 2021

As Cadence Bank Belatedly Faces Fair Lending DOJ Charge, Inner City Press Told Fed in 2018

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / BRONX, August 2 -- How out of control is the merger rubber stamping of the U.S. Federal Reserve and other regulators, even as they are ostensibly working to improve?

  Today it's reported that Cadence Bank is looking to settle with DOJ on lending discrimination. But Inner City Press / Fair Finance Watch protested Cadence to the Federal Reserve in 2018 - and the Fed approved the merger.

Inner City Press / Fair Finance Watch wrote: "timely first comment on, the Applications of Cadence Bancorporation, Houston, Texas; to acquire State Bank Financial Corporation, Atlanta, Georgia, and thereby indirectly acquire State Bank and Trust Company, Macon, Georgia As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.

Fair Finance Watch has been tracking Cadence Bank: In 2017 in the Dallas, Texas MSA for convention home purchase loans, Cadence made 99 such loans to whites - and NONE, not a single origination, to African Americans. In 2017 in the Houston Texas MSA for convention home purchase loans, Cadence made 236 such loans to whites - and only 15 to African Americans, and only 23 to Latinos. This is not in keeping with the aggregate, which made 37,128 such loans to whites, 3151 to African Americans and 8215 to Latinos.  

In 2017 in the Birmingham, Alabama MSA for convention home purchase loans, Cadence made 66 such loans to whites - and only ONE to African Americans. Even combining in Table 4-1, it was 79 home purchase loans to whites and only THREE to African Americans.

August 2, 2021

Investors Bank Hit With FDIC Conditions, Faces CRA Protest On Deal With Citizens Bank

By Matthew Russell Lee, Patreon Story Order
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, July 30 – 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 will be 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 will be raised on Citizens' application - disparities cannot be rewarded, seriatim. 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."

  Citizens cannot, as of now, be allowed to acquire this hot mess.

Citizens Bank proposes to buy 80 more branches, from HSBC. So on July 7, from Fair Finance Watch and Inner City Press on the FOIA, this:

Dear Deputy Comptrollers incl Kiefer, Ms. Cummings and others in the OCC:     This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Citizens Bank NA to acquire branches from HSBC, and close some of them.    

     The applicant Citizens in 2020 in New York State based on its disparate marketing made 7183 mortgage loans to whites, with 3116 denials to whites -- while making only 323 loans to African Americans, with more than that in denials: 336. This is outrageous. 

   Citizens Bank should be precluded from acquiring these branches. Additionally, it has not disclosed which branches it would close.  So which of these would Citizens close?   

See e.g., for the record on this application, this:
 "The branch acquisition also fills in an important gap in the $187-billion-asset bank's geographic footprint: New York City. While the bank does have 111 branches in New York, most of them are upstate and not around the city, so this certainly fills in a missing piece. Also, I expect the bank will find opportunities to consolidate or close branches, which will eventually result in cost savings down the line."

      There is no public benefit to this proposal.     

  FFW and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners, particularly during the pandemic. We also note the OCC's role in The Federal Savings Bank's use to try to get a job for its CEO with the previous administration, being exposed today in SDNY court.

July 26, 2021

Fed On Community Reinvestment Act While Prepares Rubber Stamp for M&T, Old National

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, July 20 – 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 merger of two redlining banks, M&T and People's United, will be a litmus test, see below.

On July 20, the Federal Reserve announced that "it is committed to working together with the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) to jointly strengthen and modernize regulations implementing the Community Reinvestment Act (CRA). "We are delighted to work together to develop a joint Notice of Proposed Rulemaking building on the Board's September 2020 Advance Notice of Proposed Rulemaking, which was intended to provide a framework for a joint rulemaking that ensures the CRA remains a strong and effective tool to address inequities in access to credit and meet the needs of low- and moderate-income communities and garners broad support," said Federal Reserve Governor Lael Brainard."

The inter-agency statement: "WASHINGTON -- The Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) are committed to working together to jointly strengthen and modernize regulations implementing the Community Reinvestment Act (CRA).  The agencies have broad authority and responsibility for implementing the CRA. Joint agency action will best achieve a consistent, modernized framework across all banks to help meet the credit needs of the communities in which they do business, including low- and moderate-income neighborhoods."

July 12, 2021

Citizens - HSBC Protest on NY Loans & Branch Closings, OCC Role in Calk Manafort Case

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, July 7 – 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 HSBC branches by Citizens Bank NA, and closing of many of them, will be litmus test.

Citizens Bank proposes to buy 80 more branches, from HSBC. So on July 7, from Fair Finance Watch and Inner City Press on the FOIA, this:

Dear Deputy Comptrollers incl Kiefer, Ms. Cummings and others in the OCC:     This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Citizens Bank NA to acquire branches from HSBC, and close some of them.    

     The applicant Citizens in 2020 in New York State based on its disparate marketing made 7183 mortgage loans to whites, with 3116 denials to whites -- while making only 323 loans to African Americans, with more than that in denials: 336. This is outrageous. 

   Citizens Bank should be precluded from acquiring these branches. Additionally, it has not disclosed which branches it would close.  So which of these would Citizens close?   

See e.g., for the record on this application, this:
 "The branch acquisition also fills in an important gap in the $187-billion-asset bank's geographic footprint: New York City. While the bank does have 111 branches in New York, most of them are upstate and not around the city, so this certainly fills in a missing piece. Also, I expect the bank will find opportunities to consolidate or close branches, which will eventually result in cost savings down the line."

      There is no public benefit to this proposal.     

  FFW and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners, particularly during the pandemic. We also note the OCC's role in The Federal Savings Bank's use to try to get a job for its CEO with the previous administration, being exposed today in SDNY court.

The branches in danger:

 24522 Doral Branch         4090 NW 97TH AVE.               MIAMI        FL          33178 Miami-Dade 127750A  24522 Arch St. Branch     1027 ARCH STREET                PHILADELPHIA  PA     19107 Philadelphia 127753A  24522 Boston Road Branch        3478 BOSTON ROAD             BRONX          NY    10469 Bronx 127764A  24522 Fordham Branch    ONE EAST FORDHAM ROAD                   BRONX       NY    10468 Bronx 127765A  24522 Crosby Branch       1756 CROSBY AVENUE                   BRONX          NY    10461 Bronx 127766A  24522 Riverdale Branch   569 WEST 235TH STREET               BRONX          NY    10463 Bronx 127767A  24522 Parkchester Branch          1499 WEST AVENUE              BRONX          NY    10462 Bronx 127769A  24522 3rd Ave. and 92nd Branch          9201 THIRD AVENUE             BROOKLYN         NY    11209 Kings 127874A  24522 Williamsburgh       252 BEDFORD AVENUE                   BROOKLYN         NY    11211 Kings 127876A  24522 86th St. & 23rd Ave Branch       2301 86TH STREET                 BROOKLYN         NY    11214 Kings 127878A  24522 9th Street Branch   325 E. 9TH STREET                BROOKLYN          NY    11215 Kings 127879A  24522 Avenue U Branch  1702 AVENUE U           BROOKLYN          NY    11229 Kings 127884A  24522 Georgetown Branch         2145 RALPH AVE.                   BROOKLYN         NY    11234 Kings 127886A  24522 Flatbush & Nostrand Branch     1545 FLATBUSH AVE.            BROOKLYN         NY    11210 Kings 127889A  24522 Starret City Branch          1330 PENNSYLVANIA AVE.             BROOKLYN         NY    11239 Kings 127891A  24522 Franklin Square Branch   682 DOGWOOD AVE.              FRANKLIN SQUARE    NY    11010 Nassau         127944A  24522 Levittown Branch  3130 HEMPSTEAD TURNPIKE                  LEVITTOWN       NY    11756 Nassau         127953A  24522 Miami Beach Branch       301 ARTHUR GODFREY RD.           MIAMI BEACH    FL      33140 Miami-Dade 127746A  24522 Syosset Branch      603 JERICHO TURNPIKE                 SYOSSET   NY    11791 Nassau         127958A  24522 Tribeca Branch      110 WEST BROADWAY                   NEW YORK         NY    10013 New York    127961A  24522 Lenox Hill Branch 1340 THIRD AVE.          NEW YORK          NY    10075 New York    127968A  24522 Union Square         15 UNION SQUARE WEST              NEW YORK         NY    10003 New York    127970A  24522 95th Street & Amsterdam Avenue Branch      721 Amsterdam Avenue                 New York    NY    10025 New York    127974A  24522 Canal Street Branch         235 CANAL STREET              NEW YORK         NY    10013 New York    127975A  24522 8th Ave. & 14th Branch   80 8TH AVENUE           NEW YORK          NY    10011 New York    127978A  24522 57th Street Branch 252 West 57th Street                 New York          NY    10019 New York    127986A  24522 57th Street & Lexington Avenue          131 East 57th Street                   New York    NY    10022 New York    127988A  24522 86th St. & 3rd Branch      186 E. 86TH ST.             NEW YORK          NY    10028 New York    127990A  24522 Staten Island Branch        280 Marsh Avenue          Staten Island          NY    10314 Richmond    128076A  24522 Commack Branch  5880 JERICHO TURNPIKE               COMMACK          NY    11725 Suffolk        128094A  24522 Huntington Village Branch        355 W. MAIN STREET             HUNTINGTON    NY    11743 Suffolk        128096A  24522 E. Setauket Branch 300 MAIN STREET SUITE 1            EAST SETAUKET NY    11733 Suffolk        128097A  24522 Lake Ronkonkoma Branch        395 PORTION RD.                   LAKE RONKONKOMA NY    11779 Suffolk        128107A  24522 Melville Branch     534 BROAD HOLLOW ROAD                    MELVILLE NY    11747 Suffolk        128112A  24522 Bohemia Branch    4040 VETERANS MEMORIAL HWY.                  BOHEMIA  NY    11716 Suffolk        128114A  24522 Hampton Bays Branch     248 MONTAUK HWY. WEST            HAMPTON BAYS          NY    11946 Suffolk        128115A  24522 Rye City Branch    67 PURCHASE STREET                   RYE          NY    10580 Westchester  128141A  24522 Bronxville Branch 74 PONDFIELD ROAD           BRONXVILLE          NY    10708 Westchester  128143A  24522 New Rochelle Branch      260 NORTH AVE.          NEW ROCHELLE          NY    10801 Westchester  128145A  24522 E. Yonkers Branch 778 YONKERS AVE.               YONKERS          NY    10704 Westchester  128151A  24522 S. Yonkers Branch 449 S. BROADWAY                YONKERS          NY    10705 Westchester  128152A  24522 North Avenue Branch      1300 NORTH AVENUE           NEW ROCHELLE          NY    10804 Westchester  128155A  24522 Chelsea Office       800 6TH AV          NEW YORK         NY          10001 New York    128638A  24522 Brickell        1441 Brickell Avenue, Suite 100                  MIAMI          FL      33131 Miami-Dade 128786A  24522 Washington D.C. Branch 1401 I Street, N.W.                    Washington  DC     20005 District of Columbia        129216A  24522 Las Olas Branch    350 EAST LAS OLAS BOUEVARD            FORT LAUDERDALE   FL      33301 Broward      130913A  24522 Rockville Centre Branch 330 SUNRISE HIGHWAY                  ROCKVILLE CENTRE  NY    11570 Nassau         132604A  24522 Fort Lee Office      2151 LEMOINE AVENUE                 FORT LEE   NJ      07024 Bergen         132663A  24522 Gramercy Branch  302 3RD AVENUE                   NEW YORK          NY    10010 New York    134403A  24522 City Center  1 CITY PLACE              WHITE PLAINS   NY          10601 Westchester  134608A  24522 Newport-Pavonia Branch 89 RIVER DRIVE          JERSEY CITY          NJ      07310 Hudson        136407A  24522 Rockville Branch   200C EAST MIDDLE LANE              ROCKVILLE        MD    20850 Montgomery          138446A  24522 Reston Office         11842 SPECTRUM CENTER            RESTON          VA     20190 Fairfax         138568A  24522 Bowling Green Branch    26 BROADWAY            NEW YORK          NY    10004 New York    127998A  24522 East Village Office 143 SECOND AVENUE          NEW YORK          NY    10003 New York    128001A  24522 Hillside Branch      147-02 HILLSIDE AVE.          JAMAICA          NY    11435 Queens        128051A  24522 Pomonok Branch   156-02 AGUILAR AVE.           FLUSHING          NY    11367 Queens        128052A  24522 Woodside     5120 NORTHERN BLVD.                 WOODSIDE          NY    11377 Queens        128053A  24522 Elmhurst East Branch      8703 QUEENS BLVD.              ELMHURST         NY    11373 Queens        128056A  24522 Glen Oaks Branch 257-15 UNION TPK                GLEN OAKS          NY    11004 Queens        128060A  24522 Arlington Office    4075 WILSON BOULEVARD            ARLINGTON       VA     22203 Arlington     139486A  24522 Frederick Douglass Boulevard Branch 2063 FREDERICK DOUGLASS BOULEVARD              NEW YORK         NY    10026          New York    142566A  24522 Bethesda Office     7637 OLD GEORGETOWN ROAD             BETHESDA          MD    20814 Montgomery          143620A  24522 Edison Branch       1819 STATE ROUTE 27          EDISON      NJ          08817 Middlesex    144070A  24522 River Road  10113 RIVER ROAD               POTOMAC MD          20854 Montgomery          147063A  24522 Bayside Branch     3415 FRANCIS LEWIS BLVD.                    FLUSHING NY    11358 Queens        128062A  24522 3rd Avenue & 40th Street 617 3rd Avenue              New York          NY    10158 New York    127983A  24522 Montague Street     174 Montague Street                 Brooklyn          NY    11201 Kings 127871A  24522 Coral Gables          2222 Ponce De Leon Boulevard, Suite 100             Coral Gables          FL      33134 Dade  127749A  24522 7th Avenue Branch 518 Fashion Avenue                 New York          NY    10018 New York    127964A  24522 Alexandria   1700 Diagonal Road                 Alexandria   VA          22314 Alexandria City     138631A  24522 Valley Stream        750 West Sunrise Highway, Space# 4110 (Green Acres Commons)          Valley Stream        NY    11582 Nassau          127954A  24522 Forest HIlls Branch         107-19 Continental Ave            Forest Hills   NY    11375 Queens        128068A  24522 Great neck   57 Middle Neck Road               Great Neck  NY          10023 Nassau         127955A  24522 Carle Place   857 East Gate Blvd                   Garden City NY          11530 Nassau         127940A  24522 Silver Springs        8252 Georgia Avenue               Silver Springs          MD    20910 Montgomery          209900A  24522 Avenue of the Americas   1133 Avenue of the Americas               New York    NY    10036 New York    127993A  24522 Northern Boulevard         144-01 Northern Boulevard                 Flushing      NY    11354 Queens        128061A  24522 Long Island City    24-15 Queens Plaza North                  Long Island City   NY    11101 Queens        210933A  24522 101 Delancey         101 Delancey Street                  New York          NY    10002 New York    210927A    

  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.

July 5, 2021

Old National - 1st Midwest Is Protested on Indiana & MN Loans, CRA, Fed Abstained PNC

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, June 28 – 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 merger of two redlining banks, M&T and People's United, will be a litmus test, see below.

And now another one: Old National's proposal to buy First Midwest. On June 28, Fair Finance Watch and Inner City Press on the FOIA) filed this with the Fed:

Dear Chair Powell, Secretary Misback and others in the FRS: This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Applications by Old National Bancorp, Evansville, Indiana; to merge with First Midwest Bancorp, Inc., and thereby indirectly acquire First Midwest Bank.    

 The applicant Old Nationa in Indiana in 2019 based on its disparate marketing made 3312 mortgage loans to whites, with 1060 denials to whites -- while making only SIXTY TWO loans to African Americans, with more than that in denials: 65. This is outrageous.   This is unacceptable.  

Worse, in 2020 in Indiana Old National made MORE loans to whites than in 2019 (3976) and essentially the same to African Americans (65). 

 In 2020 in Minnesota, based on its disparate marketing, Old National made 1387 loans to whites, and only fifty to African American.    This is totally unacceptable.  

So is this: "First Midwest CEO likely to see pay jump following Old ... First Midwest's merger with the Evansville, Ind.-based parent of Old National Bank will have the unusual distinction of employing two bank CEOs and two bank...."- Crain's Chicago Business    There is no public benefit to this proposal.     FFW and Inner City Press have been deeply concerned about the rush by the FRS' penchant to rubberstamp mergers by redliners, particularly during the pandemic. We note the Fed's recent website statement that a comment period has been extended to allow participation amid the Coronavirus crisis. This should be done, by the Fed's logic, on this and other applications. Inner City Press has already filed a FOIA request with the Board for records, today, with the application still not on the Board's website, which has no comment period running past June 17 - the responsive records must be provided before the comment period can close.

 Inner City Press (and Fair Finance Watch, on the HMDA) will have more to say about this. Watch this site.

June 28, 2021

While US Regulators Mull Bank Merger Challenges, Proposed Bill Would Require More

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, June 21 – While the Federal Reserve has tried to exclude from its scrutiny of banks questions of labor law violations, retaliation against whistleblowers and employment discrimination, a proposed law just introduced in the US House of Representatives would change that.

  It's called the Greater Supervision In Banking Act  of 2021, and it was introduced by Rep. Ayanna Pressley (D-MA-7). It would require reporting by global systemically important bank  holding companies of such things as

"any enforcement actions, including any consent orders and settlements, against the company (including any affiliate or subsidiary of the company), including enforcement actions          related to labor and health and safety law violations (in  addition to consumer protection); and

"the total number of whistleblower and ethics  complaints made by employees through internal company protocols over the past year, what issues were involved in the complaints, and what the resolutions of the complaints were... the company's actions taken in relation to climate  risk and contribution to climate change."

It's said that on mergers, the following is being added: "A description of the public benefits that resulted from the merger, including public benefits for any regional markets... A description of any specific demonstration of a public benefit such as a community benefits agreement, specifying future levels of loans, investments and services for communities of color, low- and moderate-income communities and other underserved communities...  A description of the progress the bank has made in implementing the lending, investment, grants and other goals of any community benefits agreement." Watch this site.

June 21, 2021

JPMorgan Chase Is Sued For Retaliation Now Complaints of Sealed Material Blurted In Court

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, June 16 – JPMorgan retaliated against Donald Turnbull, he says, because it suspected him of telling DOJ about "a range of the Bank's institutional failures regarding manipulative trading practices."     

       On June 16, U.S. District Court for the Southern District of New York Judge John G. Koeltl held a proceeding. Inner City Press covered it.   

 The proceeding was public - but a complaint was made that material for now filed under seal into the docket was read out in open court. Why so secret?

The case is Turnbull v. JPMorgan Chase & Co., 21-cv-3217 (Koeltl)

 And then there are the requests / demands that Chase return the overdrafts it took during the COVID crisis...

***

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June 14, 2021

Old National - 1st Midwest Will Be Scrutinized After PNC Abstention, As M&T Stonewalls

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, June 7 – 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 merger of two redlining banks, M&T and People's United, will be a litmus test, see below.

And now another one: Old National's proposal to buy First Midwest. If the Federal Reserve, or at least Governor (soon to be Fed chair?) Lael Brainard, had a problem with PNC - BBVA, why now Old National - First Midwest?

  For now we note that in Indiana in 2019 Old National based on its disparate marketing made 3312 mortgage loans to whites, with 1060 denials to whites -- while making only SIXTY TWO loans to African Americans, with more than that in denials: 65. This is outrageous.

 Inner City Press (and Fair Finance Watch, on the HMDA) will have more to say about this. Watch this site.

  While M&T - People's United still pends in the Federal Reserve, with a promised expedited FOIA response still not forthcoming, the Fed in mid May approved PNC - BBVA, with a rare abstention by Governor Lael Brainard, albeit on antitrust and not CRA or fair lending grounds.

June 7, 2021

Webster Proposed Sterling Merger Is Challenged to Fed Based on Disparities, Weak PPP Lending

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SOUTH BRONX / SDNY, June 3– The proposed merger of Webster Financial Corp. and Sterling Bancorp has now been challenged, on disparate lending and regulatory evasions.

  Fair Finance Watch has found that in 2019 in its home state of Connecticut, Webster National Bank made 3147 mortgage loans to whites, with 1364 denial to whites - while making only 71 loans to African Americans with fully 99 denials to African American. This is significantly worse than other banks in the state; the merger must be denied.

  Now Fair Finance Watch has found even worse disparities for Webster in New York, and on June 3 filed a formal protest with the Federal Reserve in DC and Boston:

Webster's record in New York State is even more disparate. In 2019 in NYS, Webster Bank based on its disparate marketing made 356 mortgage loans to whites, with 178 denial to whites - while making only EIGHT loans to African Americans with fully 10 denials to African American. 

Webster has also under performed in PPP lending:  "the head of Waterbury-based Webster Bank admitted his company can improve its performance in getting money into the hands of loan applicants.  “Certainly we wanted to help every small business borrower and customer of Webster that we could,” said CEO John Ciulla, speaking Tuesday on a conference call. “We got through approximately 30 percent applications approved (and) 30 percent funded, plus or minus a few percentage points on both sides of that."     This and Webster's dubious "health savings accounts" which it wants excluded from CRA, must be reviewed in this proceeding, including in public hearings    As to Sterling, Inner City Press previously exposed it as having unreliable CRA data, see, here.     There is no public benefit to this proposal.

   Among the comments on the Community Reinvestment Act submitted to the Federal Reserve recently  is one from Webster Bank, arguing that Health Savings Account "deposits should not be considered when determining whether the requirement would apply or when delineating such assessment areas" and should be excluded from the definition of "retail domestic deposits."Consequently, HSAs should also be excluded from  Community Development Financing Metric.

This is scam.

May 31, 2021

Citizens - HSBC Will Be Scrutinized After PNC BBVA Abstention, As M&T People's Stonewall

By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, May 26 – 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 merger of two redlining banks, M&T and People's United, will be a litmus test, see below.

And now another one: Citizens Bank's proposal to buy 80 more branches, from HSBC. If the Federal Reserve, or at least Governor Lael Brainard, had a problem with PNC - BBVA, why now Citizens - HSBC? Inner City Press (and Fair Finance Watch, on the HMDA) will have more to say about this. Watch this site.

  While M&T - People's United still pends in the Federal Reserve, with a promised expedited FOIA response still not forthcoming, the Fed in mid May approved PNC - BBVA, with a rare abstention by Governor Lael Brainard, albeit on antitrust and not CRA or fair lending grounds. But now on May 25, Governor Brainard didn't even abstain on Huntington - TCF, despite HHI Index going over 3000 in multiple markets. Limiting antitrust concern to those with $250 billion is unwise, and arbitrary. The minimal branch divestitures are just window dressing. We'll have more on this.

  On March 27, Fair Finance Watch and Inner City Press on the FOIA filed a challenge with the Federal Reserve to the banks' application, below. We await full response to the FOIA.

 On April 12, the Federal Reserve asked M&T 32 questions, including:

"Provide People’s United’s record and experience with customer complaints and the types  of actions taken by the company to resolve these complaints. Explain the complaint  handling process, including identification, evaluation, monitoring, and resolution.  Identify the number of complaints received during each of the last two years and how the  complaints were resolved. Discuss the policies and procedures People’s United has in  place to protect customers and resolve complaints. Please also provide plans for an  integrated complaints process and any early measures to monitor consumer complaints  following consummation of the proposed transaction.

 9. Indicate any legal proceedings/investigations related to consumer protection concerns  that either M&T or People’s United may be involved in.  Full letter here.

May 24, 2021

OCC Is Petitioned To Review Anchorage Paxos Protego & Nicolet - MBank Merger, Test for Hsu

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, May 20 – In the declared wind-down of the Coronavirus pandemic, at least in the U.S., and after a fintech and crypto-currency proponent replaced as Acting Comptroller of the Currency by Michael Hsu from the Federal Reserve, Nicolet National Bank with only six loans to African American versus 2,800 to whites has applied to the OCC to buy MBank.

  Fair Finance, with Inner City Press on the FOIA, has opposed it, see below. While awaiting to see what the Hsu OCC will do, he has received a letter from Senator Sherrod Brown:

"I am concerned about a number of national trust charters granted by the prior leadership of the OCC. Shortly after former Acting Comptroller Brian Brooks left the OCC to join Binance, a cryptocurrency exchange, several nontraditional firms that specialize in digital and cryptocurrency activities - including Paxos, Protego, and Anchorage – received conditional national trust charters from the OCC.1 As you may be aware, I have long been concerned about the OCC’s expansive view of its authority to grant charters to financial and non-financial companies.... A firm that cannot meet the rigorous requirements applicable to other banks should not be allowed to present itself to the public as a bank. Paxos, Protego and Anchorage seek to broaden access to cryptocurrencies and other risky and unproven digital assets and emerging technologies to traditional bank customers.  "

Review: Podcast by WSJ & Gimlet Claiming Brooks' OCC Helped People of Color Rings False

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, May 21 – For possible the most misleading, albeit well-produced, episode of a news podcast, Inner City Press has a nominee: the Wall Street Journal's (and Gimlet's) May 17, 2021 episode claiming that in 2020 the Office of the Comptroller of the Currency under Brian Brooks decided to urge banks to be fairer to people of color, here.

"5/17/2021 4:00:00 PM No Credit Score, No Problem? Banks could begin issuing credit cards to people without credit scores thanks to an effort by a banking regulator to make lending more racially equitable. WSJ's AnnaMaria Andriotis tells the story of how Black Lives Matter protests sparked the effort and explains how the lending would work."

Not.

  The episode does not even mention the Community Reinvestment Act, much less that this Brian Brooks like Joseph Otting before him assaulted the law, and also issues a since reversed "True Lender" (or Fake Lender) rule expanding high cost predatory lending, disproportionately to people of color.

  The episode is sponsored by Capital One, a rogue particularly in high cost auto lending. Was Gimlet only on the production quality, and not fact checking? The WSJ does some good reporting, but this was not among it. More podcast reviews will follow.

May 17, 2021

Wisconsin Disparities of Nicolet National Bank Raised Against MBank Merger to Hsu of OCC

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, May 15 – In the declared wind-down of the Coronavirus pandemic, at least in the U.S., and after a fintech and crypto-currency proponent replaced as Acting Comptroller of the Currency by Michael Hsu from the Federal Reserve, Nicolet National Bank with only six loans to African American versus 2,800 to whites has applied to the OCC to buy MBank.

  Fair Finance, with Inner City Press on the FOIA, has opposed it:

"Office of the Comptroller of the Currency  Acting Comptroller Hsu and  Central District Office Director for District Licensing 425 South Financial Place, Suite 2700 Chicago, IL 60605  

Re: Timely First Comment on Application by Nicolet National Bank to acquire mBank - application must be denied, and referral made, based on striking disparities 

Dear Acting Comptroller Hsu & others at OCC: 

This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Nicholet National Bank to acquire mBank.   

   Shockingly, the applicant Nicolet National Bank in the state of Wisconsin in 2019 made 2,800 HMDA-reported mortgage loans to white - and only SIX to African Americans.   

 Beyond this disparity which requires denial of this merger application, compare to the industry as a whole in the state of Wisconsin in 2019: 171,953 loans to whites, 2926 to African Americans.   

The industry as a whole in Wisconsin in 2019 made 58.7 loans to whites for every loan to an African American.  

  For Nicolet National Bank, the ratio was FOUR HUNDRED AND SIXTY SEVEN loans to whites for every loan to an African America.     There is more to be said, but on this outrageous record, evidentiary hearings and referrals are required, and the merger application must be withdrawn or denied." Watch this site.

May 10, 2021

In Ripple Case SEC Now Requests Records of All Legal Advice on XRP Compliance with Law

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, May 7 – In SEC v. Ripple Labs Inc. et al., a discovery hearing was held on April 30 before U.S. District Court for the Southern District of New York Magistrate Judge Netburn. Inner City Press live tweeted it, see below, then put underlying emails on Patreon here.

 On May 6, Judge Netburn issued an order: "ORDER granting in part and denying in part [126] Letter Motion for Discovery. Having reviewed the parties' submissions, the Court makes the following clarifications: (1)The SEC must produce communications with third-parties, including external agencies and market participants, subject to a privilege assertion. (2)The SEC need not produce informal intra-agency communications, such as emails, and such communications need not be searched or logged. (3)Intra-agency memoranda or formal position papers discussing Bitcoin, Ethereum, and XRP must be searched for and produced subject to a privilege assertion. Examples of such documents include Division reports, final reports of internal working groups, or formal position papers submitted to the Commissioners. Although such documents may ultimately be privileged, information that would be provided on a privilege log, such as dates and participants, may itself be relevant and is discoverable. (4)Any documents withheld on the basis of privilege must be identified on a privilege log. (5)The Court directs the parties to continue to meet-and-confer on the remaining issues presented in their letters. Respectfully, the Clerk of Court is directed to GRANT in PART the motion at ECF No. 126. (Signed by Magistrate Judge Sarah Netburn on 5/6/2021)."

On May 7, the SEC asked Judge Netburn for a conference to ask for an order compelling Ripple to "produce documents... discussing any legal advice Ripple sought or received as to whether Ripple's offers and sales of XRP were or would be subject to, and incompliance with, the federal securities laws." Then many exhibits are withheld. Watch this site.

From April 30: Netburn: There is not much case law in this area. [That's an understatement.]

Judge Netburn: The SEC's request to a foreign party could be rejected. But once a foreign regulator gets involved, it may be more compulsory.

 Lawyer: These are binding agreements, part of international law. It's not just the SEC calling up and saying, Could you help us? There is a treaty. That's not a request. It's back by the weight and power of the US government. Defendants don't have the same power.

 Lawyer: There should be a level playing field. Once the litigation beings, the SEC should play by the same rules we have do - the Hague Convention, letters rogatory. The SEC has to abide by this.

 Judge: If you agree you and the SEC could use the Hague Convention, what's the difference between that and the SEC's MOU, except that it's a bit easier for the SEC?

Lawyer: We only found out because a foreign party told the company and we raised it to the SEC

Lawyer: Under the Hague Convention, they'd have to make the request to you and we'd see it. Here, the SEC is operating outside the supervision of the court, in secret.

Lawyer: The SEC rushed at the end of the year, as the Administration was turning over. Now they have to play by the rules.

  and CRA?

May 3, 2021

As Crypto Paxos Gets Federal Bank Charter From Still Headless OCC, CRA Litmus Tests

By Matthew R. Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, SDNY, April 26 – In the midst of the Coronavirus pandemic and after the insurrection, then-Comptroller of the Currency Brian Brooks on January 13 gave another quid pro quo gift, a bank charter to Anchorage, even as he quit with a week left in the Administration. Inner City Press asked, Where might he land and get rewarded for all this?

 Then in March we learned: Brooks "has joined blockchain credit startup Spring Labs as its first independent director, the Marina Del Rey, California-based fintech bragged." Revolving / revolting door.

  Now in April at the still headless OCC, another rubber stamp: "The OCC granted a national trust bank charter to Paxos after [a] thorough review of the company and its current operations,” the OCC announced in a press release on April 23. “In granting this charter, the OCC applied the same rigorous review and standards applied to all charter applications." Yeah, rigorous. Where is the renewed enforcement of the CRA? So far, the litmus tests are being failed.  

Paxos was founded in 2012 in New York City, but the company also has offices in Singapore and London as well. At the end of December 2020, Paxos had raised roughly $240 million in financing. The OCC now hands Paxos the authority to exercise fiduciary powers under 12 USC 92a and 12 CFR 5.26. We'll have more on this.

 Meanwhile Inner City Press' requests under the Freedom of Information Act into Brooks' conflicts of interest in the fintech and crypto-currency world have yet to be fully answered.  Did  Brooks take "his" documents with him?

Fair Finance Watch and others opposed and requested extensions on Figure, for which OCC has yet to answer Inner City Press' FOIA request, here

April 26, 2021

Webster Proposed Merger With Sterling Will Be Challenged Based on Disparities, Weak PPP Lending

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SOUTH BRONX / SDNY, April 20– The proposed merger of Webster Financial Corp. and Sterling Bancorp will be challenged, on disparate lending and regulatory evasions.

  Fair Finance Watch has found that in 2019 in its home state of Connecticut, Webster National Bank made 3147 mortgage loans to whites, with 1364 denial to whites - while making only 71 loans to African Americans with fully 99 denials to African American. This is significantly worse than other banks in the state; the merger must be denied.

   Among the comments on the Community Reinvestment Act submitted to the Federal Reserve recently  is one from Webster Bank, arguing that Health Savings Account "deposits should not be considered when determining whether the requirement would apply or when delineating such assessment areas" and should be excluded from the definition of "retail domestic deposits."Consequently, HSAs should also be excluded from  Community Development Financing Metric.

This is scam. 

  Back on May 2, 2020 Fair Finance Watch, and Inner City Press on FOIA, filed a formal challenge with Otting's OCC to the application by Webster Bank to acquire State Farm Bank FSB, its problematic health savings accounts, no less.

   Webster has also under performed in PPP lending:  "the head of Waterbury-based Webster Bank admitted his company can improve its performance in getting money into the hands of loan applicants.  “Certainly we wanted to help every small business borrower and customer of Webster that we could,” said CEO John Ciulla, speaking Tuesday on a conference call. “We got through approximately 30 percent applications approved (and) 30 percent funded, plus or minus a few percentage points on both sides of that." On the CRA comments to the Fed, see NCRC's dashboard, here.

  Sterling has other issues, which Inner City Press previously documented to the OCC leading to delay. What will the still-delayed new Comptroller of the Currency do? Watch this site.

***

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April 19, 2021

In CRA Test BancorpSouth Bid For Cadence Will Be Challenged To Fed BXS Quit to Evade

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, April 17 – Whether or not the U.S. Community Reinvestment Act will be again enforced under the new Administration and its regulators is an open question.

  Now, a test. BancorpSouth, which when faced with race discrimination charges dropped its Federal Reserve Board holding company to get easier approvals from the FDIC, says it will buy Cadence Bancorp and its name.

  But Cadence *is* with the Federal Reserve, as Inner City Press documented here. So BancorpSouth's regulatory evasion would have to be reversed - and will be opposed. 

 BancorpSouth Bank in Mississippi in 2019 made 3756 home loans to whites and only 768 to African Americans. Its denial rate for African Americans was TWICE AS HIGH as for whites.   

   BancorpSouth Bank in 2019 made 6 loans to whites for each denial to whites. It made three loans to African Americans for every denial to African Americans.  

 This is totally unacceptable.

Cadence in Texas in 2019 made 3.40 loans to whites for every denial to whites, versus on 2.0 loans to African American for every denial to African American. Fair Finance Watch will be requesting public hearings.

       Previously, Inner City Press protested the applications of BancorpSouth to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independent Bank, and with Central Community Corporation, and thereby indirectly acquire First State Bank Central Texas, Austin, Texas. - based on racial discrimination in lending. Then:     See, e.g., this.   BancorpSouth's CEO said the company wanted to “alleviate... regulatory oversight,” and become the “only state-chartered bank not a part of the Federal Reserve system.” 

The Fed's logic in extending a recent comment period due to Coronavirus must apply to this and other applications. These are litmus tests. Watch this site.

April 12, 2021

CRA Litmus Test As M&T People's Challenged On Racial Disparities In Lending in NY CT PA

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, J-I here – 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 merger of two redlining banks, M&T and People's United, will be the litmus test.

  On March 27, Fair Finance Watch and Inner City Press on the FOIA filed a challenge with the Federal Reserve to the banks' application: "This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Applications by M&T Bank Corporation to acquire People's United Financial.   

   The applicant M&T in New York State in 2019 made 8,613 home loans to whites and only 629 to African Americans.  M&T in New York State in 2019 made 3.4 loans to whites for each denial to whites. It made only 1.4 loans to African Americans for every denial to African Americans.  

 This is totally unacceptable.       

  The applicant M&T in Connecticut in 2019 made 251 home loans to whites and only 27 to African Americans.  M&T in Connecticut in 2019 made 2 loans to whites for each denial to whites. It made only 1.28 loans to African Americans for every denial to African Americans.    This is unacceptable. 

        The applicant M&T in Pennsylvania in 2019 made 3565 home loans to whites and only 106 to African Americans.

 M&T in Pennsylvania in 2019 made 2.52 loans to whites for each denial to whites. It made only 1.15 loans to African Americans for every denial to African Americans. 

  This is totally unacceptable.

     Meanwhile, People's says it will close some 140 branches.   

    FFW and Inner City Press have been deeply concerned about the rush by the FRS' penchant to rubberstamp mergers by redliners, particularly during the pandemic. We note the Fed's recent website statement that a comment period has been extended to allow participation amid the Coronavirus crisis. This should be done, by the Fed's logic, on this and other applications. We timely request public hearings.  

 The hearings, and your review, should also address M&T's discrimation, see, e.g., (EEOC v. Manufacturers and Traders Trust Co., d/b/a M&T Bank., Civil Action No. 1:16-cv-03180-ELH) in U.S. District Court for the District of Maryland, Northern Division.  See also, this.

  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.


April 5, 2021

SoFi Bank Bid To Buy Golden Pacific Protested By Fair Finance Watch As Regulatory Evasion

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, April 3 – In the midst of the Coronavirus pandemic, and with a fintech and crypto-currency proponent then installed as Acting Comptroller, SoFi and its controller SoftBank sought to get a U.S. bank charter.

 On March 9, 2021 SoFi said it wants to buy Golden Pacific Bank, to "speed up" its charter and taking of insured deposits.

  On April 3, Inner City Press filed this: "Dear Acting Comptroller, Mr. Lybarger, and others in the OCC:  This is a timely first comment opposing and requesting an extension of the required OCC's public comment period on the application by SoFi Interim Bank to acquire Golden Pacific.       This is a major proposal, by a fintech in which SoftBank has a large stake.    

   Inner City Press / Fair Finance Watch opposed SoFi's previous, suspended attempt to get into banking. Since then the questions have only grown.   

  As to SoftBank, the dispute regarding another of its holdings, WeWork, portends the type of problems that regulators like the OCC are directed to keep out of, not invite into, the banking system. See also, for now, this  

This stealth proposal - it appears that Golden Pacific does not even report HMDA data - is a cynical attempt to game the regulatory system. See, e.g., "SoFi (NYSE:IPOE) is becoming a bank with its $22.3 million acquisition of Golden Pacific Bancorp (OTCPK:GPBI). Golden Pacific is a California-based community bank regulated by the Office of the Comptroller of the Currency and with $150 million in assets. The acquisition which will be paid for in cash builds on SoFi's current application to obtain a national bank charter with the OCC. On closing of the acquisition, the fintech company will switch its current bank application to a change of control application. This should accelerate the timeline for SoFi's attainment of a national bank charter."    Inner City Press opposes that CIBC application as well - but this application clearly should not be approved. Public hearings are needed, and requested.   

   For the above reasons, including the ongoing COVID-19 pandemic lockdowns and restrictions, the comment period should not yet start or should extended, until in person public hearings can be held." Watch this site.

March 29, 2021

As Ex-OCC Brooks Cashes Out To Spring Labs His Rules Subject Congressional Review Act

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, SDNY, March 25 – In the midst of the Coronavirus pandemic and after the insurrection, then-Comptroller of the Currency Brian Brooks on January 13 gave another quid pro quo gift, a bank charter to Anchorage, even as he quit with a week left in the Administration. Inner City Press asked, Where might he land and get rewarded for all this?

 Now in March we know: Brooks "has joined blockchain credit startup Spring Labs as its first independent director, the Marina Del Rey, California-based fintech bragged." Revolting revolving door.

 Now, moves to overturn one of Brooks' last acts: plans to introduce Congressional Review Act resolutions to eliminate a Trump-era regulation that helps lenders charging 179% APR or more evade state- and voter-approved interest rate caps. The rushed “fake lender” rule took effect in December and was issued by the Office of the Comptroller of the Currency (OCC). The rule protects “rent-a-bank” schemes whereby predatory lenders (the true lender) launder their loans through a few rogue banks (the fake lender), which are exempt from state interest rate caps. The rule overrides 200 years’ worth of caselaw allowing courts to see through usury law evasions to the truth, and replaces it with a pro-evasion rule that looks only at the fine print on the loan agreement. Watch this site.

 Meanwhile Inner City Press' requests under the Freedom of Information Act into Brooks' conflicts of interest in the fintech and crypto-currency world have yet to be fully answered.  Will Brooks be taking "his" documents with him?

  Brooks went whole hog with Anchorage, the so-called first crypto bank. It should be reversed - but will it be? Anchorage was represented by Dana Syracuse through the revolving door from the NYS Department of Financial Services.

Fair Finance Watch and others opposed and requested extensions on Figure, for which OCC has yet to answer Inner City Press' FOIA request, here

March 22, 2021

In CRA Test First National Community Bank Bid for Georgia Heritage First Is Challenged to OCC

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, March 20 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators is an open questions.

  Two months into the new Administration, Fair Finance Watch with Inner City Press on the FOIA filed comments with the Office of the Comptroller of the Currency on a proposal in Georgia, by First National Community Bank to acquire Heritage First Bank.

"The applicant First National Community Bank in Georgia in 2019 made 45 home loans to whites and only ONE to African Americans.    

 "The target Heritage First Bank in Georgia in 2019 made 44 home loans to whites and also only ONE to African Americans.    This is totally unacceptable.    

   FFW and Inner City Press have been deeply concerned about the rush by the OCC under previous Comptroller Brooks to rubberstamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings.   

The hearings, and your review, should also address First National Community Bank's prior consent order: "DUNMORE — First National Community Bank was released Wednesday from a federal consent order issued by the Office of the Comptroller of the Currency.  The order defined 21 articles the community bank had to address which included a capital plan to handle property acquisitions, develop and implement policies and procedures to ensure compliance with the Bank Secrecy Act."  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved."

The Fed's logic in extending a recent comment period due to Coronavirus must apply to this and other applications. These are litmus tests.

March 15, 2021

SoFi Bank Wants To Buy Golden Pacific After Got Charter Rubber Stamped by OCC Brooks

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, March 10 – In the midst of the Coronavirus pandemic, and with a fintech and crypto-currency proponent then installed as Acting Comptroller, SoFi and its controller SoftBank are seeking to get a U.S. bank charter. The WSJ and others have reported the bid, but it is not yet on the OCC's website (which often lags behind such that public comment periods end before notice is given). 

 Meanwhile Inner City Press' requests under the Freedom of Information Act into then Acting Comproller Brian P. Brooks' conflicts of interest in the fintech and crypto-currency world have yet to be answers.  

And so on July 13 Fair Finance Watch filed with the OCC, below. Brooks before his ouster gave preliminary approval.

 Now on March 9 SoFi says it wants to buy Golden Pacific Bank, to "speed up" its charter and taking of insured deposits.

FWW's protest:  "July 13, 2020
 Office of the Comptroller of the Currency  DC Comptroller Brooks and Mr. Lybarger, Deputy Comptroller for Licensing  & Northeastern District Office 
 Re: Timely First Comment on SoFi's reported application to the OCC to get into banking 

Dear Mr. Lybarger, Ms. Cummings and others in the OCC:  This is a timely first comment opposing and requesting an extension of the required OCC's public comment period on reported proposal by SoFi to get a national bank charter.  

    This is a major proposal, by a fintech in which SoftBank has a large stake. Yet, it is not yet on the OCC's website, where as of July 13 the most recent Weekly Bulletin cuts on on July 4. The only charter application listed as open for comment is Monzo Bank; the New Bank application link does not work. So, any comment period will have be be extended. This is a request for the complete application, all portions that the OCC after review does not find withholdable under FOIA. 

     Inner City Press / Fair Finance Watch opposed SoFi's previous, suspended attempt to get into banking. Since then the questions have only grown. 

March 8, 2021

Third Rakuten Application Challenged to FDIC by Inner City Press Reply Is A Form Letter

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, March 6 – Whether or not the U.S. Community Reinvestment Act will be again enforced under the new Administration and its regulators is an open questions.

  On the 25th day of the new Administration, Fair Finance Watch with Inner City Press on the FOIA filed comments with the FDIC on the third application by Rakuten for Federal deposit insurance. And then, by regular mail, a form letter response from Rakuten, cc-ing regulators.

Among the complaints, most not addressed by the Rakuten form letter: "Re: Timely first opposition to (third) application by Rakuten for FDIC insurance  Dear Chairman McWilliams:      Inner City Press / Fair Finance Watch is hereby timely opposing the second re-submission by Rakuten Card Co., Ltd., a subsidiary of Rakuten, Inc., of an application for federal deposit insurance (Rakuten Application) with the Federal Deposit Insurance Corporation (FDIC) to insure the deposits of Rakuten Bank America (Rakuten Bank).     

Not only do we believe that the revised application has not meaningfully changed and does little to address the fundamental question of mixing banking and non-financial activity as raised by the initial application, including concerns involving the use, privacy, and security of customer information - we also have these Rakuten-specific concerns which must be addressed, including at the public hearings we are hereby timely requesting.

1) " Rakuten USA, Inc’s Americas President, Yasuhisa “Yaz” Iida, allegedly grooming, sexually harassing, and finally, demoting Director of Corporate Hospitality, Jessica Wyman, who spurned his advances across two and a half years." See here 

2) "A former SoftBank Corp. employee has been arrested on suspicion of illegally disclosing 5G trade secrets to his new employer, Rakuten Mobile Inc., as it was preparing to launch its own mobile network.  [Police] arrested Kuniaki Aiba, 45, on suspicion of leaking secret information in breach of a law preventing unfair competition. See, here 

3) Also on anticompetitive behavior by Rakuten: "antitrust watchdog will launch an investigation into e-commerce giant Rakuten Inc. after receiving a petition from a group of merchants over the planned free-shipping policy of the company's online shopping mall.  According to the petition organized by around 450 Rakuten marketplace merchants that was signed by 4,000 people, the company is abusing its dominant position by forcing them to shoulder the costs of free shipping for all orders." See, here

 4) Rakuten, Inc. has confirmed a judgement has been issued in a class action lawsuit against its consolidated subsidiary Buy.com Inc. (currently, RAKUTEN COMMERCE LLC) (U.S.). 1.Court and date of judgement (i) Court:  United States Court of Appeals for the Ninth Circuit, here

  Procedurally, we requested a copy of Rakuten's application and received an acknowledgement of the request - but not yet the application. "Thank you for your request to receive the public, non-confidential portion of the selected deposit insurance application.  The FDIC appreciates your interest and will forward the requested application to the email address indicated." The application should have been put online; the comment period should be extended.    FFW and Inner City Press have been deeply concerned about the rush by the FDIC to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings, including on these concerns: (i) significant risks to the Deposit Insurance Fund (DIF) raised by the affiliation, integration, and assimilation of banking and non-financial businesses, and (ii) consumer protection concerns raised by the collection, use, privacy, security, and safeguarding of customer information."

  Rakuten's head of banking development Lee Carter responded with a form letter: "Dear Mr. Lee, I acknowledge receipt... Thank you for your comments regarding the proposed CRA Plan...We welcome relevant and constructive feedback regarding the CRA plan."

And not the antitrust and other violations? This form letter was cc-ed to the FDIC and Utah regulators. The applications should be denied.

March 1, 2021

CRA Litmus Test Looms on M&T People's Proposal on Money Laundering Plus Redlining

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Feb 22 – 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 merger of two redlining banks, M&T and People's United, will be the litmus test.

  On the 32nd day of the new Administration, the banks announced a proposed merger. Fair Finance Watch with Inner City Press exposed M&T as a redliner as well as money launderer; the first label applies to People's United as well.

  So what willl the regulators in this ostensibly new world do? CRA protests will be filed, after FOIA requests. And it will be a, even the, litmus test. Watch this site.

 Meanwhile in Federal court, PNC Bank and its Midland Loan Services have been sued for usury, predatory lending and civil conspiracy, under New York and Federal law. 

February 22, 2021

In CRA Test 3d Rakuten Application Challenged to FDIC by Inner City Press on Compliance

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Feb 15 – Whether or not the U.S. Community Reinvestment Act will be again enforced under the new Administration and its regulators is an open questions.

  On the 25th day of the new Administration, Fair Finance Watch with Inner City Press on the FOIA filed comments with the FDIC on the third application by Rakuten for Federal deposit insurance:

"Re: Timely first opposition to (third) application by Rakuten for FDIC insurance  Dear Chairman McWilliams:      Inner City Press / Fair Finance Watch is hereby timely opposing the second re-submission by Rakuten Card Co., Ltd., a subsidiary of Rakuten, Inc., of an application for federal deposit insurance (Rakuten Application) with the Federal Deposit Insurance Corporation (FDIC) to insure the deposits of Rakuten Bank America (Rakuten Bank).     

Not only do we believe that the revised application has not meaningfully changed and does little to address the fundamental question of mixing banking and non-financial activity as raised by the initial application, including concerns involving the use, privacy, and security of customer information - we also have these Rakuten-specific concerns which must be addressed, including at the public hearings we are hereby timely requesting.

1) " Rakuten USA, Inc’s Americas President, Yasuhisa “Yaz” Iida, allegedly grooming, sexually harassing, and finally, demoting Director of Corporate Hospitality, Jessica Wyman, who spurned his advances across two and a half years." See here 

2) "A former SoftBank Corp. employee has been arrested on suspicion of illegally disclosing 5G trade secrets to his new employer, Rakuten Mobile Inc., as it was preparing to launch its own mobile network.  [Police] arrested Kuniaki Aiba, 45, on suspicion of leaking secret information in breach of a law preventing unfair competition. See, here 

3) Also on anticompetitive behavior by Rakuten: "antitrust watchdog will launch an investigation into e-commerce giant Rakuten Inc. after receiving a petition from a group of merchants over the planned free-shipping policy of the company's online shopping mall.  According to the petition organized by around 450 Rakuten marketplace merchants that was signed by 4,000 people, the company is abusing its dominant position by forcing them to shoulder the costs of free shipping for all orders." See, here

 4) Rakuten, Inc. has confirmed a judgement has been issued in a class action lawsuit against its consolidated subsidiary Buy.com Inc. (currently, RAKUTEN COMMERCE LLC) (U.S.). 1.Court and date of judgement (i) Court:  United States Court of Appeals for the Ninth Circuit, here

  Procedurally, we requested a copy of Rakuten's application and received an acknowledgement of the request - but not yet the application. "Thank you for your request to receive the public, non-confidential portion of the selected deposit insurance application.  The FDIC appreciates your interest and will forward the requested application to the email address indicated." The application should have been put online; the comment period should be extended.    FFW and Inner City Press have been deeply concerned about the rush by the FDIC to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings, including on these concerns: (i) significant risks to the Deposit Insurance Fund (DIF) raised by the affiliation, integration, and assimilation of banking and non-financial businesses, and (ii) consumer protection concerns raised by the collection, use, privacy, security, and safeguarding of customer information."

February 15, 2021

Wells Fargo Account Scam Triggers SDNY Suit So Demand By Wells For Arbitration

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Feb 11 – Billy Dixon opened a Wells Fargo account with $750 in 2013. Then with Wells Fargo caught up in account opening fraud, it was closed the money not paid back for three weeks.

Dixon sued.

   On February 11, U.S. District Court for the Southern District of New York Judge John P. Cronan held a proceeding. Inner City Press covered it.  

 Wells Fargo predictably wants to compel arbitration, or to dismiss the case.

 It has no fewer than three lawyers in the docket.

The case is Dixon v. Wells Fargo Bank, NA, 21-cv-10 (Cronan)

February 8, 2021

In CRA Test Challenges To VeraBank Panola Application Replied To By Fed But OCC Silent

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

FEDERAL COURT / S Bronx, Feb 6 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators is an open questions.

  On the 10th day of the new Administration, Fair Finance Watch with Inner City Press on the FOIA filed comments with the post-Brooks Office of the Comptroller of the Currency and with the Federal Reserve on a proposal by VeraBank of Texas to acquire Panola National Bank.

 The issues include that the applicant VeraBank in Texas in 2019 made 465 home loans to whites and only NINE to African Americans. Its denial rate for African Americans was more than FOUR TIMES than for whites.   

   That is to say, VeraBank in Texas in 2019 made 3.7 loans to whites for each denial to whites. It made less than one - 0.81 - loans to African Americans for every denial to African Americans.

   There is also this: "'In the second round we have seen about half the number of requests that we did in the first round,' said Brad Tidwell, president and CEO of Henderson-based VeraBank."

  To the OCC, the rubber-stamping of mergers by redliners under Brian Brooks and Joseph Otting has been explicitly noted. To the Fed, its logic in extending a recent comment period due to Coronavirus must apply to this and other applications.

  Now, 17 days into the new Administration, the Federal Reserve has replied: "Richard Potomac, Esq.
Norton Rose Fulbright US LLP
Dallas, Texas 75201-7932
Subject: VeraBank, Inc., Henderson, Texas, to acquire Panola National Bank, Carthage, Texas.
Dear Mr. Potomac:
This is to advise that as of February 2, 2021, processing of your application was transferred from Delegated
Action to Board Action for further review." Inner City Press got the "public" portion of the Fed application, and had FOIA-ed the rest (and more) from the Board. And from the OCC? Nothing. Nothing at all. When will this change?
These are litmus tests. Watch this site.

February 1, 2021

As Yellen Takes Over Treasury Fair Access Paused But What Merger Rubber Stamping?

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Jan 29 – The US Treasury Department's Office of the Comptroller of the Currency under Joseph Otting and Brian Brooks rubber stamped bank charters and mergers for crypto-currency operators and redliners without regard to the Community Reinvestment Act, or FOIA.

  On January 25 Janet Yellen became the Secretary of the Treasury. And on January 27, a pause in one of Brian Brooks' proposals - but what of pending scam charters and mergers? OCC: "The Office of the Comptroller of the Currency (OCC) today announced it has paused publication of its rule to ensure large banks provide all customers fair access to their services.  The agency proposed the rule in November 2020 to codify more than a decade of OCC guidance stating that banks should conduct risk assessments of individual customers, rather than make broad-based decisions affecting whole categories or classes of customers, when providing access to services, capital, and credit.  Pausing publication of the rule in the Federal Register will allow the next confirmed Comptroller of the Currency to review the final rule and the public comments the OCC received, as part of an orderly transition."  What else will Yellen and whoever do to turn her Department's policies around? Inner City Press and Fair Finance Watch will be watching, acting and reporting.

January 25, 2021

On If CFPB Whitewash of Home Mortgage Data End Under Chopra FOIA By Inner City Press

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Jan 20 – The US Consumer Financial Protection Bureau under Kathy Kraninger issued Home Mortgage Disclosure Act data in a way that excluded more of the public and community groups more than in any recent year, undermining the entire purpose of the HMDA law. See this page.

 Now, what will Rohit Chopra do? The access to data for grassroots groups no using Excel should be restored - and FOIA requests, by Inner City Press and others, must now be answered, see below.

  Inner City Press on submitted this FOIA request: "Dear CFPB Chief FOIA Officer:  Pursuant to the federal Freedom of Information Act, 5 U.S.C. § 552, I request from the CFPB any and all records as that term is defined in FOIA regarding the CFPB's decision / action to make the 2018 Home Mortgage Disclosure Act data only available for download (the so-called data filter) rather then searchable and viewable in reports on the CFPB website as was the case for the 2017 data.

     To assist you in rapidly providing the requested information - this is a request for expedited treatment given that the withholding in accessible format of the 2018 data each day hinders low income community groups from commenting on bank mergers, the only enforcement mechanism of the Community Reinvestment Act to prevent bank redlining - be aware that the issue has been raised to CFPB staff in a number of conference calls including most recently to, inter alia  Brenda Muniz, Tim Lambert [some names redacted in this format.]

  These CFPB staffers were directly asked by the undersigned who at CFPB made the decision to curtail availability of HMDA data in simple format on the website. Knowing which government agency official made such a decision is a sine qua non of FOIA: the information should be provided an expedite basis, as well as all related documents." Watch this site.

January 18, 2021

As Crypto Comptroller Brooks Gifts Anchorage He Quits Early So Can Corrupted OCC Be Fixed

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, Jan 14 – In the midst of the Coronavirus pandemic and after the insurrection, crypto Comptroller of the Currency Brian Brooks on January 13 gave another quid pro quo gift, a bank charter to Anchorage, even as he quit with a week left in the Administration. Where might he land and get rewarded for all this?

 Meanwhile Inner City Press' requests under the Freedom of Information Act into Brooks' conflicts of interest in the fintech and crypto-currency world have yet to be fully answered.  Will Brooks be taking "his" documents with him?

  Brooks went whole hog with Anchorage, the so-called first crypto bank. It should be reversed - but will it be? Anchorage was represented by Dana Syracuse through the revolving door from the NYS Department of Financial Services.

Fair Finance Watch and others opposed and requested extensions on Figure, for which OCC has yet to answer Inner City Press' FOIA request, here.

On December 9, Brooks spoke at a Sinapore FinTech conference that charged for entrance. His Twitter profile gives equal space to CoinBase as the OCC. And what's next for him? Watch this site.

January 11, 2021

Manafort Lender Calk In Florida Is Denied Transfer To Illinois OCC Witnesses at Issue

By Matthew Russell Lee, Exclusive Patreon
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, Jan 7 – Steven M. Calk of FDIC-regulated Federal Savings Bank was presented and arraigned on May 23 in the U.S. District Court for the Southern District of New York for financial institution bribery for corruptly using his position with FSB to issue $16 million in high-risk loans to Paul Manafort in a bid to obtain a senior position with the Trump administration, namely Undersecretary of the Army.

  On April 23 SDNY Judge Lorna G. Schofield held an oral argument, by telephone with Calk himself on the line from Chicago. Inner City Press covered it, below.

On December 17, this: " ORDERED that this case is in second place to be tried beginning on February 17, 2021. The parties shall be prepared to begin trial on that date."

Now on January 7, Judge Schofield held a proceeding and Inner City Press covered it. Calk, currently in Florida, had his lawyers argue to transfer the trial to Chicago. But jury trial there are banned through at least March 1. Calk's lawyer stressed their right to confront witnesses; OCC witnesses arose. Will the OCC's position change? Or, might Calk get a pardon before January 20? Inner City Press live tweeted some, here:

Manafort's lender Calk is arguing again that a Chicago and not  @SDNYLIVE  trial would be more convenient, with OCC witnesses. Will OCC get more aggressive?

Calk's lawyer: "Mr. Calk is in Florida today, but would have no problem being in Chicago whenever necessary."  AUSA: We're not sure the witnesses could testify by video of the defense's objections....

 Judge Schofield has just denied the motion to transfer the trial to Chicago. Calk's lawyers said they oppose Zoom cross examination. Case to proceed in SDNY.

Jan 7 podcast here.

On November 13 Calk again asked to transfer his case to the Northern District of Illinois, saying that "critical Chicago-based witnesses" will not come to New York due to travel restrictions and COVID quarantine rules.

Calk's filing listed Office of the Comptroller of the Currency witnesses Catherine Aguirre and four unnamed in the Chicago area and one in Virginia. 

Now on November 27, the day after Thanksgiving, Calk's lawyers have made a filing stating that "the infection rate in Illinois is high but may be cresting; in New York it is lower but clearly rising." Watch this site.

  On September 4 a trial date was set, after review by the SDNY assignment committee made up of Judges J. Paul Oetken and P. Kevin Castel and White Plains-based District Judge Vincent L. Briccetti: "ORDER as to Stephen M. Calk. It is hereby ORDERED that the parties are advised that jury trials will resume, and the jury trial in this action shall commence on December 2, 2020."

 But on September 11, the US Attorney wrote to Judge Schofield to put on the record the Illinois has been added to New York's (and the SDNY's) 14 day quarantine list, and says it may significantly impact the feasibility of a December trial. On September 17 Judge Schofield held a proceeding on this, and Inner City Press live tweeted it, here ...

  While the OCC has yet to sufficiently answer, and is trying to hinder Inner City Press' reporting, we will stay on this case.

  On May 23, still from the SDNY courthouse covering other cases including one involving the death penalty, Inner City Press reported finding no U.S. Home Mortgage Disclosure Act data for "Federal Savings Bank." But there's more.

The Federal Savings Bank's website, while providing a generic link to the FDIC, and a statement "Member FDIC," has no link for the U.S. Community Reinvestment Act. (Nor does it mention the indictment of Stephen Calk, simply listing his brother John Calk now as CEO and Vice Chairman. Who is the chairman?)

  It lists a loan production office on Avenue J in Brooklyn, and two deposit taking braches in Illinois. Did it see some exemption from the CRA and other consumer protection laws? From fair lending laws?

  Earlier on the morning of May 24 Inner City Press asked the FDIC, "Having covered yesterday's arraignment of the Chairman of The Federal Savings Bank in the SDNY courthouse, including the FDIC's involvement, I checked the bank's website and found "Member FDIC" but no mention of the Community Reinvestment Act."

  The FDIC's spokesperson David Barr, to his credit, responded quickly, writing to Inner City Press: "The Federal Savings Bank, Chicago, is regulated by the Office of the Comptroller of the Currency. They would be responsible for CRA and regulatory oversight. You should contact the OCC for more information."

  Stephen Calk was quoted, at least in 2012, opposing regulation: "As Mr. Stephen Calk writes in the September 7, 2012 edition of Origination News: “Basel III is designed to level the playing field among major banking institutions that operate internationally. Force-feeding these same rules to community banks in the United States is unnecessary and in fact counter-productive, particularly in the current economic environment.” Basel III is one thing. But no Community Reinvestment Act?

The Federal Savings Bank lists locations - and bankers - in       Arizona - Scottsdale California - Irvine Colorado - Fort Collins Delaware - Selbyville Florida - Sarasota Illinois - Chicago Illinois - Lake Forest Illinois - Oak Brook Illinois - Park Ridge Indiana - Bloomington Indiana - Indianapolis Kansas - Overland Park Louisiana - Laplace Maryland - Annapolis Maryland - Timonium CD Massachusetts - Lawrence New Jersey - Hackensack New Jersey - Lakewood New York - Brooklyn New York - Melville New York - New York New York - Queens North Carolina - Raleigh Ohio - Columbus Rhode Island - South Kingstown Tennessee - Nashville Virginia - Alexandria Virginia - Fredericksburg Virginia - Newport News Virginia - Richmond Virginia - Vienna Virginia - Warrenton...  We'll have more on this.

January 4, 2021

Santander Makes Yonkers Towing A Federal Case Citing US Constitution and 42 USC 1983

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Dec 31 – Santander Consumer USA, Inc. has sued the City of Yonkers, citing the U.S. Constitution, for towing vehicles in which Santander has a security interest. 

 Now on New Year's Eve Santander has complained to U.S. District Court for the Southern District of New York Magistrate Judge Paul E. Davison about Yonkers not cooperating with discovery.  

 Santanter writes, "This is a 42 USC 1983 case regarding the policies and customs of Yonkers and its towing agent, APOW... the only document Yonkers produced was a redacted letter relating to some other seized vehicle. This is not a sufficient production."  

 Depositions are to be completed by January 29, 2021.

The case is Santander Consumer USA, Inc. v. The City of Yonkers, et al., 20-cv-4553 (Karas / Davison)

***

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December 28, 2020

Fair Finance Watch Protests Figure Bank at OCC Which Is Now Sued By CSBS in DC District

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SOUTH BRONX, NY, Dec 26– Even amid the Coronavirus pandemic, U.S. banks and fintechs keeps seeking to merge and expand, with less and less oversight.  Now the Conference of State Bank Supervisors has sued the OCC, see below, citing "extensive consultation with Figure that occurred during the draft application process."

 Fair Finance Watch, with Inner City Press on the FOIA, filed a Community Reinvestment Act protest / request for extension of the OCC comment period:

Dear Comptroller Brooks, Mr. Lybarger, and others in the OCC:  This is a timely first comment opposing and requesting an extension of the required OCC's public comment period on the application of Figure Bank NA.    

  Back on November 23 Inner City Press submitted, through the OCC's FOIA portal, a request for "the entirety of the pending applications of, and all OCC communications since 1/1/2020 with... Figure. The records should be provided within the comment period on each application, including OCC communications with the companies and affiliates, given the policy issues raised by the application."       Now at the deadline, despite the policy issues, no response at all. This is unacceptable. The comment period must be extended - it is absurd to require the public to comment while having none of the information it timely requested.

       We will simply note for now that this proposal, and the rushing and cover up by the OCC, is an assault on the CRA.   

  On the obvious need for the OCC to respond to the FOIA request, from the public record: "Founder Mike Cagney is always pushing the envelope, and investors love him for it. Not long after sexual harassment allegations prompted him to leave SoFi, the personal finance company that he co-founded in 2011, he raised $50 million for a new lending startup called Figure that has since raised at least $225 million from investors and was valued a year ago at $1.2 billion.  Now, Cagney is trying to do something unprecedented with Figure."

Unprecedented - and covered up? Amid sexual harassment allegations?     

 For the above reasons, including the ongoing COVID-19 pandemic lockdowns and restrictions, the comment period should not yet start or should extended, until in person public hearings can be held."

On December 10, a boiler plate acknowledgement of comment - with still no response at all to the FOIA request filed during the comment period: "Re: Figure Bank, National Association Charter Application OCC Control Number 2020-WE-Charter-317593

Dear Mr. Lee: The Office of the Comptroller of the Currency acknowledges receipt of your letter dated December 7, 2020 regarding the above referenced application. We appreciate your comments and will consider these remarks during our review of the application. A copy of your comment letter has been provided to the applicant for their information."

  Now the Conference of State Bank Supervisors has sued the OCC over Figure: "Because of the extensive consultation with Figure that occurred during the draft application process, and the OCC’s accepting the application as complete, the OCC’s imminent approval of the Figure Charter Application is a foregone conclusion. Additionally, the OCC is actively soliciting other applications for Nonbank Charters and has expressed publicly its enthusiasm for issuing Nonbank Charters. 28. Both CSBS and each of its members that currently supervise and regulate Figure’s operations in their states have already suffered actual injury as a result of the confusion and disruption of resource allocation created by the Nonbank Charter Program and Figure Charter Application, as described herein. Additional injuries to CSBS and its members are imminent as Figure prepares to begin operating as a chartered nonbank and the OCC continues its pursuit of Case 1:20-cv-03797 Document 1 Filed 12/22/20 Page 9 of 70 10 additional Nonbank Charter applicants. The injuries suffered by CSBS and its members have therefore taken a concrete and particularized form, and the legal challenge brought by CSBS is fit for adjudication. 29. For all of these reasons, the Nonbank Charter Program and the OCC’s imminent granting of a Nonbank Charter to Figure are subject to this Court’s review under the Administrative Procedure Act (“APA”) and cannot stand. CSBS brings this action seeking declaratory and injunctive relief declaring the OCC’s Nonbank Charter Program and the Figure Charter unlawful and enjoining the OCC from soliciting, accepting, or approving applications for Nonbank Charters, including the Figure Charter Application. 30. Additionally, CSBS seeks a declaration that the OCC’s preemption regulations (found at 12 CFR §§ 7.4007, 7.4008, & 34.4) are invalid and enjoining the OCC from further action pursuant to those regulations."


This is today's OCC. It must change.

December 21, 2020


FDIC Widens ILC Loophope As Abuses FOIA Exemption 8 To Withhold From Inner City Press

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SOUTH BRONX, SDNY, Dec 11 – How pro-bank has the FDIC become? There's been evasion of FOIA - and now a wider ILC loophole.

On the former, when Inner City Press submitted a FOIA request for the absurd redactions by Multi-Bank to its application for a denovo bank in Florida, the response was that there will be no review of the redactions to the application - until the application is approved.   

Also, the FDIC uses FOIA exemption 8 to say that every single one of its communications about the application are exempt. This is a new low.

As is this, the finalization of an industrial loan company loophole rule which could, unless closed, allow Amazon, Facebook, Walmart and even Google through. Even Bank Policy Institute said of an ILC application Inner City Press opposed, "it will set a precedent for every other Big Tech company (Amazon, Facebook, Google, etc.) to enter banking through an [industrial loan company] charter without consolidated supervision." This must be opposed.

Inner City Press (and Fair Finance Watch) requested:

This is a FOIA request for (all of) the overly redacted "public" application of Multi-Bank Application For DeNovo State Bank in Florida. Inner City Press has seen the redacted version, which withholdings from the public and press information about those involved and their plans. The entire application should be provide, along with all of the FDIC's communications with these applicants for the past year (including for preparation of public comment - it should be expedited and provided on a rolling basis).

Here is the FDIC's response of December 11:

This is in response to your November 29, 2020 Freedom of Information Act (FOIA) request... In general, the non-confidential portions of an application for deposit insurance for a de novo bank, an application to establish a branch, and other applications are publicly available in the appropriate FDIC Regional Office until 180 days following final disposition of the filing... for access to the public file, please contact: FDIC Atlanta Regional Office ATTN: RMS Regional Director 10 10th Street, NE, Suite 800 Atlanta, GA 30309 Since a FOIA request for these records is premature under our regulations, we are administratively closing this portion of your request.   

So there is no review of redactions. Outrageous

. Communications Between the FDIC and Applicants By its very nature, the information that you requested, if it exists and could be located, would be 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. All of that information, if it exists and could be located, would be exempt from disclosure in full under FOIA Exemption 8, 5 U.S.C. § 552 (b)(8). Therefore, this portion of your request is denied under Exemption 8

Inner City Press has appealed:

This is a FOIA appeal to the outrageous total denial by the FDIC to Inner City Press' FOIA request for the erroneously redacted portions of a pending bank application, and to communication about it.   Contrary to FOIA and the practice of other regulators, the December 11 decision ("Denial") by Alisa Colgrove Government Information Specialist FOIA/Privacy Act Group makes review of an applicant's redactions impossible until the FDIC approves an application.   

Exemptions are not supposed to be invoked across the board - it is impossible to believe that every since FDIC communication is covered by the exemption, and that is not the practice of the FRB. This is a laughable FOIA response and must immediately be reviewed and reversed, and the pending application stayed until it is.

December 14, 2020


Fair Finance Watch Protests Figure Bank at OCC Which Ignores FOIA Reply Is Boilerplate

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SOUTH BRONX, NY, Dec 10– Even amid the Coronavirus pandemic, U.S. banks and fintechs keeps seeking to merge and expand, with less and less oversight.   Fair Finance Watch, with Inner City Press on the FOIA, filed a Community Reinvestment Act protest / request for extension of the OCC comment period:

Dear Comptroller Brooks, Mr. Lybarger, and others in the OCC:  This is a timely first comment opposing and requesting an extension of the required OCC's public comment period on the application of Figure Bank NA.    

  Back on November 23 Inner City Press submitted, through the OCC's FOIA portal, a request for "the entirety of the pending applications of, and all OCC communications since 1/1/2020 with... Figure. The records should be provided within the comment period on each application, including OCC communications with the companies and affiliates, given the policy issues raised by the application."       Now at the deadline, despite the policy issues, no response at all. This is unacceptable. The comment period must be extended - it is absurd to require the public to comment while having none of the information it timely requested.

       We will simply note for now that this proposal, and the rushing and cover up by the OCC, is an assault on the CRA.   

December 7, 2020

Fair Finance Watch Protests Hanover Bank Bid On Savoy Bank As Bronx and Brooklyn Harmed

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SOUTH BRONX, NY, Dec 5 – Even amid the Coronavirus pandemic, U.S. banks keeps seeking to merge and expand, with less and less oversight.   Fair Finance Watch, with Inner City Press on the FOIA, has filed a Community Reinvestment Act protest:

Federal Deposit Insurance Corporation Attn: Frank Hughes, Regional Director and Robert P. Cordeiro, Scott D. Strockoz 350 Fifth Avenue, Suite 1200 New York, NY 10118-0110   Re: Timely First Comment on Applications by Hanover to acquire Savoy Bank.  Dear Regional Director Vogel and others at the FDIC: 

 This is a timely first comment opposing and requesting an extension of the FDIC's public comment period on the Applications by Hanover to acquire Savoy Bank.   

   The applicant Hanover in the New York in 2019 made 67 home loans to whites and only THREE to African Americans. Note that Hanover's CRA assessment area includes The Bronx, and Brooklyn. 

  Hearings are requested on that; they may also touch on the financing of the proposed deal: "“We are pleased to announce the successful completion of our subordinated debt offering,” said Michael Puorro, Hanover’s Chairman and CEO. “This offering is directly aligned with Hanover’s strategic plan of high growth and high profitability, which continues to create significant shareholder value. The proceeds from this transaction provide us with the necessary capital to finance our recently announced partnership with Savoy Bank, as well as the ability to continue to compete in an exciting marketplace and to execute upon our longer-term strategic goals.”  Stephens Inc. acted as lead placement agent for the offering, with PNC Financial Services Group, Inc. acting as co-placement agent. Windels Marx served as legal counsel to Hanover and Covington & Burling LLP served as legal counsel for the placement agents." 

The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved  From the FDIC: Matthew R. Lee, Esq. Fair Finance Watch P.O. Box 20047 New York, New York 10017 Dear Mr. Lee:  We received your e-mail dated November 28, 2020, concerning Hanover Community Bank’s applications to acquire Savoy Bank. We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2(c) and 303.2(l), and consider it a protest for the purpose of the applications. We forwarded your comments to the applicant

That is,

 Michael P. Puorro Chairman and Chief Executive Officer Hanover Community Bank 2131 Jericho Turnpike Garden City Park, New York 11040 Subject: Community Reinvestment Act Protest and the Removal of Application from Expedited Processing for Interagency Bank Merger Act Applications to acquire/merge with Savoy Bank, New York, New York Applications Tracking No. 20201214 and 20201215 Dear Mr. Puorro:  We are writing in reference to the enclosed e-mail correspondence that we received from Matthew R. Lee of Inner City Press/Fair Finance Watch, concerning your institution’s applications to acquire Savoy Bank. We reviewed the e-mail correspondence in accordance with the guidelines of 12 C.F.R. Section 303, and deemed it a Community Reinvestment Act (CRA) protest for the purpose of the applications. The subject e-mail raises issues regarding the bank’s record of lending to African American persons. The anticipated time and research required to investigate these issues has necessitated the removal of your applications from expedited processing.  You may provide a written response on the protest to me within ten business days after the date of this letter, in accordance with 12 C.F.R. Section 303

November 30, 2020

HUD FOIA Case Put Off For Inauguration As Rule on Housing Eligibility May Die Sine Die

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, Nov 24 –  The Legal Aid Society, represented by the Winston & Strawn law firm, has sued the U.S. Department of Housing and Urban Development under FOIA in March. On July 16 U.S. District for the Southern District of New York Judge Lewis J. Liman held another conference on the case; Inner City Press covered it. 

 Now on November 24 the case has been adjourned "sine die" because the underlying rule may die. There was a proceeding on November 24 and Inner City Press covered it. Reference was made to the Presidential inauguration being less than 50 days off. Judge Liman apologized for not getting into the docket endorsement of the adjournment, and took the opportunity to wish Happy Thanksgiving and safety. How many other cases will be adjourned like this?

  That FOIA request concerns a HUD rule limiting eligibility to housing based on immigration status of family members. The requesters want to know who worked on the rule.

  In another FOIA case against HUD handled by Judge Liman, PRLDEF now LatinoJustice is seeking documents about the disproportionate impact of the "Verification of Eligible Status Rule." Judge Liman held a proceeding on July 28 and Inner City Press covered it. A meet and confer had released a few documents, but HUD still disputes a fee waiver.

Judge Liman asked how LatinoJustice plans to disseminate documents to the public. The response was, El Diario, Huffington Post, even the Daily Mail. The next conference was set for August 20. This case is LatinoJustice PRLDEF v. HUD, 20-cv-4859 (Liman).

 On July 16 Judge Liman told the parties to agree to a production schedule by July 27, or to brief the issue. The Government's lead lawyer said she will be on vacation. The the deadline remains, with another conference scheduled for July 31. There were 640 pages in 132 White House documents, minus White House briefing documents.

 On September 25 Judge Liman held another conference with Inner City Press also covered. It came after a dispute arose whether PRLDEF's request for mixed-status family data was a new request not covered by the fee waiver request. Judge Liman inquired in detail, and set a new October 30 date. Inner City Press will continue to follow this case.

Inner City Press as a journalistic FOIA practitioner sees increasing foot dragging by Federal agencies like the Office of the Comptroller of the Currency, see here. So Judge Liman's approach is needed. The case is Legal Aid Society v. HUD, 20-cv-2283 (Liman).

November 23, 2020

Pro Crypto US Comptroller Brooks Wants To Give Gifts to Anchorage and Figure at 11th Hour

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, Nov 18 – In the midst of the Coronavirus pandemic and the election, with a fintech and crypto-currency proponent installed as Acting Comptroller, SoFi and its controller SoftBank sought to get and got a U.S. bank charter.

 Meanwhile Inner City Press' requests under the Freedom of Information Act into Acting Comproller Brian P. Brooks' conflicts of interest in the fintech and crypto-currency world have yet to be fully answered.  

  Now, with Brooks cynically nominated to be confirmed (to test out how fast he could be fired under Section 2 of the National Bank Act), Brooks has gone whole hog, inviting any and all crypto firms into the national bank world through the trust bank loophole, without regard to CRA or anything else. There is Anchorage, represented by Dana Syracuse through the revolving door from the NYS Department of Financial Services; there is Figure. All this must be opposed - and will be.

   And so now on November 9, Fair Finance Watch and Inner City Press have begun a call to block Brooks from handing out any more national bank charters between now at January 10 - such charters would be illegitimate, gifts by a lame duck. We'll have more on this.

November 16, 2020

While FTC Gets $371 For Discrimination Victims of Bronx Honda Lenders Not Named

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Nov 10 – Bronx Honda of East Tremont Avenue targeted Bronxites of color for higher prices; victims now get $371 each from the FTC. But when Inner City Press checks it out, Bronx Honda doesn't only use Honda Finance - it says it has "strong relationships" to find customers the best loans. So who are the other lenders? And are they being charged? We aim to have more on this. Here's from the FTC, November 10:

"The Federal Trade Commission is sending refunds totaling nearly $1.5 million to individuals who were affected by allegedly unlawful financing and sales practices by Bronx Honda. According to the FTC, Bronx Honda and its general manager told sales employees to charge higher financing markups and fees to African-American and Hispanic customers. The defendants told employees that these groups should be targeted due to their limited education, and not to attempt the same practices with non-Hispanic white consumers. The FTC further alleged that Bronx Honda failed to honor advertised sale prices, changed the sales price on paperwork in the middle of the sale without telling the consumer, double-charged consumers for taxes and fees, and misrepresented to consumers that they were required to pay extra reconditioning and warranty fees to purchase “certified” vehicles. The FTC is providing refunds, averaging about $371 each, to 3,977 victims of Bronx Honda’s practices.

November 9, 2020

Flagstar Bank Blames Regulators For Golden Parachute Delay But Docket Excludes Public

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Nov 1 – Joseph P. Campanelli was apparently an officer of Flagstar Bank, who wants his golden parachute payments but is being told he can only get them if the Federal Reserve and FDIC (and, it seems, the Office of the Comptroller of the Currency) sign off. 

On October 30 U.S. District Court for the Southern District of New York Judge Paul A. Engelmayer, to whom the case was assigned in August 2019, held a proceeding. Inner City Press covered it. 

  In the proceeding Judge Engelmayer to his credit told counsel for Flagstar, which was once referred to as Flagstaff like in Arizona, that they could not hide behind the regulators by citing "best efforts" language in the agreement.

  The difficult is that even hours after the open proceeding, the complaint of PACER still says, "You do not have permission to view this document." We will continue on this.

The case is Campanelli v. Flagstar Bancorp, Inc., 19-cv-7299 (Engelmayer)

November 2, 2020

SoFi Bank Charter Rubber Stamped by Pro FinTech Comptroller Brooks After FFW Protest

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, Oct 28 – In the midst of the Coronavirus pandemic, and with a fintech and crypto-currency proponent installed as Acting Comptroller, SoFi and its controller SoftBank are seeking to get a U.S. bank charter. The WSJ and others have reported the bid, but it is not yet on the OCC's website (which often lags behind such that public comment periods end before notice is given). 

 Meanwhile Inner City Press' requests under the Freedom of Information Act into Acting Comproller Brian P. Brooks' conflicts of interest in the fintech and crypto-currency world have yet to be answers.  

And so on July 13 Fair Finance Watch filed with the OCC, including this: "July 13, 2020
 Office of the Comptroller of the Currency  DC Comptroller Brooks and Mr. Lybarger, Deputy Comptroller for Licensing  & Northeastern District Office 
 Re: Timely First Comment on SoFi's reported application to the OCC to get into banking 

Dear Mr. Lybarger, Ms. Cummings and others in the OCC:  This is a timely first comment opposing and requesting an extension of the required OCC's public comment period on reported proposal by SoFi to get a national bank charter.  

    This is a major proposal, by a fintech in which SoftBank has a large stake. Yet, it is not yet on the OCC's website, where as of July 13 the most recent Weekly Bulletin cuts on on July 4. The only charter application listed as open for comment is Monzo Bank; the New Bank application link does not work. So, any comment period will have be be extended. This is a request for the complete application, all portions that the OCC after review does not find withholdable under FOIA. 

     Inner City Press / Fair Finance Watch opposed SoFi's previous, suspended attempt to get into banking. Since then the questions have only grown.  

    For now, we note that Inner City Press asked the OCC's FOIA unit for a copy of Comptroller Brooks' conflict of interest list with fintechs but has yet to receive it. Pending receipt, we ask that Acting Comptroller Brooks be recused from this application and that you confirm this in writing.

      As to SoftBank, the dispute regarding another of its holdings, WeWork, portends the type of problems that regulators like the OCC are directed to keep out of, not invite into, the banking system.

     For the above reasons, including the ongoing COVID-19 pandemic lockdowns and restrictions, the comment period should not yet start or should extended, until in person public hearings can be held, and Comptroller Brooks' should be recused pending/and his conflict of interest list should be released."

And now on October 28, Brooks' OCC has rubber stamped the application, stating "The OCC received one comment related to the Proposed Bank’s plans for complying with the Community Reinvestment Act (CRA, 12 USC 2901 et seq.), asserting, among other things, that the CRA plan included with the application only provides an outline of proposed activities without sufficient details. The OCC also received one other comment opposing approval of the charter application for reasons not related to the CRA and requesting an extension of the comment period. The CRA requires that the OCC take a national bank’s or federal savings association’s (bank) CRA record into account when evaluating an application for a deposit facility. 12  SoFi Bank, National Association, Cottonwood Heights, Utah (proposed) OCC Control Nos. 2020-WE-Charter-315294 and 2020-WE-Waiver-315536  2  USC 2903(a)(2). An application for a deposit facility is defined to mean, among other things, “a charter for a national bank or federal savings and loan association.” 12 USC 2902(3)(A). The CRA regulations require that “[a]n applicant... for a national bank charter must submit with its application a description of how it will meet its CRA objectives, if applicable.” 12 CFR 25.02(b). The Proposed Bank’s charter application included a CRA plan that provided an initial description of how it proposes to help meet the credit needs of its community. With regard to the commenter’s concerns about the sufficiency of the Proposed Bank’s CRA plan, the CRA requires the OCC to consider a proposed insured bank’s description of how it will meet the credit needs of its community in considering a charter application. 12 CFR 25.02(b). The OCC expects that organizers of a bank will begin to develop a CRA plan during the charter application phase; however, the OCC does not expect a bank to have a fully developed plan at this stage. The CRA plan should be finalized after a bank has received preliminary conditional approval from the OCC, but prior to final approval of the charter application. The Bank has demonstrated in its charter application and through discussions with OCC staff that it understands the requirements of the CRA and has begun to develop a CRA plan. The Bank is considering a strategic plan pursuant to 12 CFR 25.18, and the OCC will work with the Bank in the development of a strategic plan if this alternative is chosen." Rush job, rubber stamp. Watch this site.

October 26, 2020

Goldman Sachs Gets $2.9B Deferred Prosecution Deal Like HSBC Fed Reserved

By Matthew Russell Lee, Exclusive Patreon
Honduras - The Source - The Root - etc

FEDERAL COURTS NYC, Oct 22  – In the 1MDB scandal Inner City Press live tweeted a proceeding in August 2020, here and below.

Now on October 22, "today, in federal court in Brooklyn, Goldman Sachs entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York and the Department of Justice’s Criminal Division, Fraud Section and Money Laundering and Asset Forfeiture Sections (the Department) in connection with a criminal information filed in the Eastern District of New York charging the Company with conspiracy to violate the anti-bribery provisions of the FCPA. GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information charging it with conspiracy to violate the anti-bribery provisions of the FCPA. Previously, Tim Leissner, the former Southeast Asia Chairman and a Participating Managing Director of Goldman Sachs, pleaded guilty to conspiracy to violate the FCPA and conspiracy to commit money laundering. Ng Chong Hwa, also known as “Roger Ng,” former Managing Director of Goldman and Head of Investment Banking for GS Malaysia, has been charged with conspiracy to violate the FCPA and conspiracy to commit money laundering. Ng was extradited from Malaysia to face these charges and is scheduled for trial in March 2021. All four cases are assigned to U.S. District Judge Margo K. Brodie of the Eastern District of New York."

  For those counting, HSBC also got a deferred prosecution agreement. And the Federal Reserve, in the shadows, has let Goldman Sachs into bank, and rubber stamps mergers like by Banco Bradesco to this day. From August 2020:

 OK - in EDNY, 1MDB / Malaysia defendant EDNY Ng Chong Hwa, a.k.a. “Roger Ng" charged with conspiring to launder billions of dollars embezzled from 1Malaysia Development is before Judge Margo K. Brodie. Inner City Press will live tweet - thread

 Judge Brodie says there is a back-up of cases caused by COVID19, no assurance this trial can go forward in January 2021. Says won't have real info in September - even if protocol is in place, it will still be being tested. AUSA points out extradition from Malaysia

 AUSA says a status conference in early October would be fine "even if the trial is moved a little bit." Defense lawyer: I understand the difficulties of the court. But I'd like to convince the government or your Honor to loosen Mr Ng's conditions of home detention

Defense lawyer: Malaysia is not allowing Americans into the country at all, at least until September. This is a challenge we face. We'd like Mr. Ng to get out a bit more, and exercise. Judge: I think the parties should work that out. Next date Oct 6 at 10 am?

Judge: Does that work? Yes. Yes. No need to exclude time on this matter but I'll do it anyway. See you in October. Have a good day. Adjourned.
 And on Goldman, from SDNY:

Bryan Cohen, a Goldman Sachs banker charged with insider trading with the same cooperating witness as Telemaque Lavidas now on trial, on January 7 pled guilty to conspiracy to commit securities fraud.

  The US Attorney's Office did not publicize the proceeding or its 30 to 37 month plea deal, but Inner City Press was in the U.S. District Court for the Southern District of New York Magistrates Court as the only media, and spoke afterward with Cohen's defense lawyer Benjamin Brafman. More on Patreon here.

  Brafman told Inner City Press the connection to the Lavidas trial is the same cooperating witness. More formally, he said that "To his credit, Mr. Cohen has accepted responsibility for his conduct and will thereby avoid a trial. We are hopeful that at sentencing we will be able to pursuade Judge Pauley that despite his criminal conduct Mr. Cohen is a fundamentally decent young man who should be sentenced in a relatively lenient fashion."

As HSBC and Wells Eye Harlem Brownstone Bankruptcy Appeal Arrives in SDNY

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Oct 22 – Laverne Leonard lives in a brownstone on 131st Street in Manhattan and is worried it will be foreclosed on by lenders and/or servicers who don't even own the loan, including HSBC and Wells Fargo as server. 
  On October 22 U.S. District Court for the Southern District of New York Judge Lewis J. Liman held a bankruptcy appeal proceeding. Inner City Press covered it.  

 Judge Liman asked where the property is, and noted that he had a big box of documents related to the matter. He urged Ms. Leonard to email his Chambers.

The case is In Re: Laverne Leonard, 20-cv-6811 (Liman)

October 19, 2020

As Bronx Amalgamated Closing Has Negative Impact Inner City Press Hits BNB Dime Merger

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

South Bronx, Oct 14 –  This is a tale of two closing of bank branches, in The Bronx and in Kenosha, Wisconsin.

  In the South Bronx closing, by Amalgamated Bank, the FDIC did not hold a public meeting.

  But as to Kenosha, the Federal Reserve has said: "This is in reference to the notice provided to the Federal Reserve Bank of Chicago (“Reserve Bank”) by Johnson Bank, Racine, Wisconsin to close its branch located at 2729 18th Street, Kenosha, Wisconsin.   This Reserve Bank received correspondence regarding the branch closure which discusses its adverse effects on available banking services in the area; this Reserve Bank considers the comment not frivolous. Therefore, under Federal statute 12 USC § 1831r-1, this Reserve Bank shall convene a meeting of interested parties to explore the feasibility of obtaining adequate alternative facilities and services for the affected area following the branch closure.... Respectfully,   Jeremiah Boyle Assistant Vice President Community and Economic Development Federal Reserve Bank of Chicago."

  This is the same Federal Reserve which rubber stamped Banco Bradesco, and even serviced Varo at the Reserve Bank level. But the FDIC held no meeting, even virtual, on this (acknowledged as negatively impactful by the New York State Department of Financial Services, which has yet to meaningful act of the negative impacts of Dime being taken over by BNB, below) --

"October 7, 2020 (TR-CRB) AMALGAMATED BANK 275 Seventh Avenue (Fourteenth Floor, New York, NY 10001  In accordance with Section 28-c of the Banking Law, the Superintendent of Financial Services has found that the closing of branch office at 94 East Burnside Avenue, Borough of Bronx, City of New York 10453, will result in a significant reduction of financial services in the community affected." And? We'll have more on this - and on Dime / BNB.

October 12, 2020

Citibank Tells Those Facing Discrimination To Move But Inner City Press Hits BNB Dime

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

South Bronx, Oct 6 –  Citigroup, the global colossus, has issued a report including on what is says individuals can do when faced with discrimination.

Citibank recommends... moving. Here, at page 93: "Move: While a difficult decision, relocation may be the answer to improved jobs prospects. Sixty five percent of the Black population resides in 16 states in the U.S. However, according to a survey by McKinsey and Company, on average these states rank below national averages in metrics that can lead to an improved quality of life and wealth generation. Black workers, especially younger workers can opt to move to states that are generating the most jobs in high paying industries."

  Beyond being a "difficult decision," isn't this just accepting and perpetuating redlining?

  Instead, here's what Inner City Press / Fair Finance Watch is doing:

October 5, 2020

Dime Community Bank To Be Bought By BNB With No Loans to African Americans So Protest

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

South Bronx, Sept 28 –  Brooklyn based Dime Community Bank, it is proposed, would be taken over by Long Island-based Bridge Bancorp, making few to no loans to people of color. Fair Finance Watch has filed a timely protest:

"September 28, 2020 New York State Department of Financial Services Attn: Linda A. Lacewell, Acting Superintendent of Financial Services A   Re: Timely First Comment on Applications by Bridge Bancorp, Inc. to acquire control of Dime Community Bank and all related applications

Dear Acting Superintendent Lacewell:  This is a timely first comment opposing and requesting an extension of the NYSDFS' public comment period on the Applications by Bridge Bancorp, Inc. to acquire control of Dime Community Bank and all related applications  The applicant's BNB Bank in New York State in 2019 made 108 HMDA-reported loans to whites -- and NONE to African Americans, and only two to Latinos. 

  This is unacceptable and Fair Finance Watch and Inner City Press hereby timely request public evidentiary hearings and that Bridge Bancorp's and BNB Bank's applications be denied on Community Reinvestment Act and fair lending grounds.  

  Dime Community Bank, whose record Inner City Press has previously critiqued with some impact, in 2019 in NYS made 16 HMDA reported loans to whites, five to African Americans and NONE to Latinos. This is too is unacceptable, particularly in combination. This proposed merger should be denied.   

 See also, Shelter Island Reporter of July 6, 2020: "Certain retail locations on the East End w[ould] operate under the BNB Bank name for at least one year, according to a press release. It did not specify which locations.... what started as a trickle of bank branch closings and mergers has turned into a river. Capital One was among a handful of major banks that bucked the trend as late as 2014, actually adding more branches. But three years ago it joined the brick-and-mortar vanishing act, as reflected by branch closings on the East End, including Shelter Island. According to The Economist, since the financial crisis of 2008, banks have closed more than 10,000 branches."

All impacts of this proposed merger should be disclosed - this a timely request to be emailed a copy of the application(s), which should have been placed on the Department's website for public review as many Federal agencies do.  The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved." We'll have more on this.

       Watch this site.

September 28, 2020

Insurers Beat NYS Regulator In ACA Case in 2d Circuit Now SDNY Follows Suit

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Sept 24 – Insurers sued the NYS Superintendent of Financial Services for a 2017-18 regulation requiring them to pay a portion of the funds they received under the ACA's risk adjustment program into the NYS treasury. 

 The insurers won in the Second Circuit Court of Appeals. 

 On September 24 U.S. District Court for the Southern District of New York  Judge John G. Koeltl held a proceeding. Inner City Press covered it.

   The State's lawyer wanted a delay, to change their regulations seemingly voluntarily.

 Judge Koeltl rejected these optics, and granted the insurers summary judgment.

The case is, or was, UnitedHealthcare of New York, Inc. et al v. Vullo, 17-cv-7694 (Koeltl)

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September 21, 2020

Varo Bank The Bancorp Application Protested to OCC But Crypto Brooks Rubber Stamps It

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

South Bronx, Sept 14 –  The fintech Varo has applied to the U.S. Office of the Comptroller of the Currency of pro-crypto Brian Brooks for a transaction with The Bancorp. Fair Finance Watch filed a timely protest:

"September 7, 2020    Office of the Comptroller of the Currency  DC Comptroller Brooks & Western District Office  1225 17th Street, Suite 300 Denver, CO 80202  

Dear Comptroller Brooks and others in the OCC:    On behalf of Inner City Press / Fair Finance Watch (FFW) and in my personal capacity, this is questionlessly timely protest to the application by Varo regarding The Bancorp.

FFW and Inner City Press are deeply concerned about the rush by the OCC under Acting Comptroller Brooks to let fintechs and others into banking, and by his comment about not regulating entities (banks) but rather activities. This is killing the Community Reinvestment Act and we timely request public hearings. 


State Street Bank Is Sued For Boston Club Culture Now Complains About Discovery

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Sept 15 –   Two employees sued State State Bank for discrimination. Then their lawyer had some problems   

 On September 15 U.S. District Court for the Southern District of New York Judge Gregory H. Woods held a status conference. Inner City Press covered it.   

State Street's lawyer complained about the plaintiff getting double standards, while purporting to sympathize for their problems. The plaintiffs cite State Street's "notorious male-dominated 'Boston club' culture."

 The case is Shnyra et al v. State Street Bank and Trust Co., Inc., 19-cv-2420 (Woods)

September 14, 2020

Varo Bank The Bancorp Application Protested to OCC of Crypto Brooks By Fair Finance Watch

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

South Bronx, Sept 7 –  The fintech Varo has applied to the U.S. Office of the Comptroller of the Currency of pro-crypto Brian Brooks for a transaction with The Bancorp. Fair Finance Watch has filed a timely protest:

"September 7, 2020    Office of the Comptroller of the Currency  DC Comptroller Brooks & Western District Office  1225 17th Street, Suite 300 Denver, CO 80202  

Dear Comptroller Brooks and others in the OCC:    On behalf of Inner City Press / Fair Finance Watch (FFW) and in my personal capacity, this is questionlessly timely protest to the application by Varo regarding The Bancorp.

FFW and Inner City Press are deeply concerned about the rush by the OCC under Acting Comptroller Brooks to let fintechs and others into banking, and by his comment about not regulating entities (banks) but rather activities. This is killing the Community Reinvestment Act and we timely request public hearings.  

 As to Varo, consider for example the recent consumer complaints below, on top of  their service interruption in October 2019, including declined debit card transactions, which they tried to blame on their processor Galileo. See, e.g., this.

 More fundementally, consider weakened CRA duties, and disproportionate exclusion: low and moderate consumers disproportionately have prepaid or limited data plans and face disconnections of their mobile service. And just because consumers have email addresses does not mean that they have regular internet access, and if they close or move their accounts, they may lose access to their financial records.    

Despite or perhaps because of these and the service interruptions, using OCC deregulation, "Varo Money has raised an additional $241 million in Series D funding, the company announced today. The investment was co-led by new investor Gallatin Point Capital and existing investor The Rise Fund, co-founded by TPG. Also participating in the round were Bono (yes, that one), along with entrepreneur, impact investor and movie producer Jeff Skoll; plus HarbourVest Partners and Progressive Insurance.  To date, Varo has raised $419.4 million in funding."  

See also, for the record on which Inner City Press / Fair Finance Watch and I are timely requesting evidentiary hearings on this application, " NEWS Technology Finance  Unregulated Fintech Could be the Source of the Next Market Crash Posted to TechnologyFinance."    

Here for the record are recent consumer complaints against Varo:  Sep 02 Froze my account because I transferred money 3 times! 2.5 Details Varo Money - Froze my account because I transferred money 3 times! Varo Money - Froze my account because I transferred money 3 times! I was speechless when I received an email from Varo saying my account had been frozen due to an a number of transfers from my Chime account. I had a total of 3 transfers in the past year that I've had the account. I have $9,754 in my account and it came from unemployment, school refunds and tax refund. They won't respond to emails and customer service doens't know anything. How can this be legal? User's recommendation: find another bank because they will freeze your account.   No way to communicate with someone LOSS $9754 PREFERRED SOLUTION I want my money to be released immediately so I can transfer it to another bank 

Aug 07  Their website leaves many unanswered questions and when I called their listed phone number there was a very long and detailed recording and only by accident could you reach a prompt to talk with an agent. Another recording indicated that there would be a long delay in reaching an agent followed by some distorted music. After 20 minutes still no response so I disconnected. Their entire platform seems confusing and convoluted with unnecessary information. I would question the security of doing banking matters in an entirely mobile format with no customer service. 

Aug 04  Terrible service They closed my account. I've sent them 4 forms of id, proof of address, etc. After sending all that they said they still couldn't verify my identity and closed by account that I've had for years. Now I'm waiting for them to send my direct deposit back , and it's been a few days. User's recommendation: Don't use them."

       We timely request public hearings on, and the denial of, this application.  Thank you for your prompt attention,  Matthew R. Lee  Inner City Press / Fair Finance Watch."

  The Federal Reserve coordinated its timing with the OCC of Brian Brooks, who has numerous conflicts of interest in the fintech field.    Varo has bragged, "Varo has filed its Strategic Plan with the Office of the Comptroller of the Currency and believes that it will be approved in the near future. Varo respectfully submits that the OCC process is the appropriate forum for his comments. The Comment Letter vaguely references the “COVID-19 pandemic” and “Coronavirus restrictions” without providing any clear or definite demonstration as to how such pandemic or restrictions have interfered with the Commenter’s ability to meet the specified comment period or given rise to any hardship to Commenter or other meritorious reason to extend the comment period, or how the arbitrarily chosen “Phase Two” of such restrictions would alleviate any such unsubstantiated causes for delay. To the contrary, by virtue of the scope and content of the Comment Letter itself, the Commenter has clearly demonstrated his ability to comment within the specified comment period."

   What arrogance - commenting amid lockdowns is fine, the OCC is the place to comment. Well, now it's in.

       Watch this site.

September 7, 2020

From Coinbase Brooks Into OCC Says Will Not Regulate Entities Or Obey SDNY or CRA

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, Sept 1 – Acting U.S. Comptroller of the Currency Brian Brooks, as Coinbase’s chief legal officer,  was paid $1.4 million in salary -- separate from the stock options -- in the year and a half he spent with company, which had weighed seeking a charter through the OCC before making other moves to access the banking system."

  Now Brooks says, "I'm increasingly thinking of this agency as an activities regulator, not an entity regulator." But since the Community Reinvestment Act is enforced with regard to entities, this is an even more egregious attach on CRA than Otting engaged in. Combined with Brooks open contempt for rulings of the U.S. District Court for the Southern District of New York, it shows why he should be removed as Comptroller.

 On his conflicts of interest, Inner City Press asked - and then requested under FOIA - what are the "other tech firms" as to which Brooks is acknowledging a conflict.

   The OCC wrote to Inner City Press, faux apologizing for withholding information it has requested about Otting until after he had left the agency. Inner City Press immediately wrote back requesting a copy of Brooks' ethics letter and list of companies as to which even he acknowledges a conflict of interest.

  On June 18, that simple request was denied and so a FOIA request was filed, see below.

  And now more than a month later on July 22 the OCC has provide to Inner City Press under FOIA a copy of the ethics memo that Brooks is recused on: Amazon (minus AWS), Avant, Aventas, Merrill Lynch, CoinBase, EarnUp, Spring Labs, TextIQ - and Citibank N.A. residential mortgage business." We'll have more on this.

  From Inner City Press' FOIA request: "This is a request under FOIA on behalf of Inner City Press and in my personal capacity for all records concerning conflicts of interest or the appearance of conflict of interest by Acting Comptroller Brian Brooks, including but not limited to the Ethics letter Inner City Press requested from the OCC, below, and Coinbase, Avant, OneWest and any other firm.  Inner City Press in responding to a request by OCC to "close out" a FOIA request still not completed asked "I do have an OCC public information / transparency question - for the Acting Comptroller's ethics filing - can it be sent to me at Matthew.Lee@innercitypress.com? To identify it: "Brooks has submitted a letter through the agency's ethics office outlining companies he'll steer clear of because of potential conflicts of interest, including Amazon.com Inc., Bank of America Corp.'s Merrill Lynch unit, Coinbase and a number of other tech firms he's worked with." What are those companies? Thanks, -Matthew Lee, Inner City Press"  Days later and minutes ago Inner City Press received this: Good Morning Mr. Lee....  I don't know the answer to the question you asked.  You should file a FOIA request for the records you seek regarding the Acting Comptroller. " This is that request, on which expedited treatment should be granted - such disclosures are among the very purposes of FOIA."  Watch this site.

   Amid all this, Fair Finance Watch and Inner City Press / Community on the Move have launched a new project. And so far, Brooks' national banks have been among the worst. Watch this site.

August 31, 2020

Japanese FinTech Rakuten Retreats From CRA Evasion While OCC and Fed Cheer On Varo

By Matthew R. Lee

SOUTH BRONX, Aug 23 – Amid attacks on the U.S. Community Reinvestment Act now under Brian Brooks after Joseph Otting had his turn as Comptroller of the Currency, now Japan's Rakuten has withdrawn its application to get into banking. The opposition of smaller American banks didn't stop the OCC, and Federal Reserve on a delegated basis, from rubber stamping Varo into banking. But the line has been drawn, curved like an arrogant Amazon "smile," at this Japanese Internet company.

 Inner City Press / Fair Finance Watch has filed comments on all this. Previously: "A Japanese FinTech company is applying for a banking charter in the United States. The eCommerce firm Rakuten currently runs a shopper rewards program in the States, and said would file the necessary paperwork on Friday (July 26) with Federal Deposit Insurance Corp. (FDIC) and the state of Utah for an industrial loan company (ILC) charter.  Rakuten has about 13 million active users who earn rewards for purchasing products from participating merchants.   The bank would be headquartered in Utah and could handle users’ deposits, according to Lee Carter, Rakuten head of banking and potential ILC CEO. The company also wants to give members a credit card to make purchases in the future and also earn rewards.  Carter said he’s “kept a close eye on Square’s application.”  He also said the company would provide a complete plan for the Community Reinvestment Act with the application, because some groups are worried that FinTechs won’t be held accountable for certain rules.  “We have thought about that very, very carefully,” Carter said. “We’ll have specific goals for community service and investments back into the community."  We'll have about that.

August 24, 2020

Sued for PPP JPM Chase Citigroup Signature Tell Judge Rakoff of Chevron Deference

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, Aug 21 – In the U.S. Paycheck Protection Program, banks limited the loans to their own customers first. Then they refused to pay compensation to agents, and got sued.

On August 21 U.S. District Court for the Southern District of New York Judge Jed S. Rakoff held an oral argument, on Zoom. Inner City Press covered it.  

  A lead defendant is JPMorgan Chase Bank, N.A.. There's also Citigroup, MUFG Union Bank and Signature Bank.

 Judge Rakoff was directed to Chevron deference and quipped, I think that's still good law. When the Zoom broke down, he said it must be "Putin."

  The banks have moved to dismiss for failure to state a claim and for lack of subject matter jurisdiction.  

  By the end of the proceeding, Judge Rakoff allowed sur-rebuttal and promised a prompt decision.

The case is James Quinn et al v. JPMorgan Chase Bank, N.A. et al., 20-cv-4100 (Rakoff)

August 17, 2020

The regulators, even amid the COVID-19 pandemic, have shown a willingness to rubber stamp applications including the Federal Reserve on a "delegate" / approval-only basis as they did with Varo's application to become a bank holding company.  

But these moves are drawing increasing scrutiny, and some bad-actors are having to settle charges, like Capital One's $80 million fine, here.... Aug, Texas: "Three affiliated banks have announced a merger to form a Central Texas banking franchise in San Antonio, Austin and the Texas Hill Country. Southwest Bancshares, Inc., a bank holding company for the Bank of San Antonio, Capitol of Texas Bancshares, Inc., a bank holding company for the Bank of Austin, and Texas Hill Country Bancshares, for the Texas Hill Country Bank, will merge into one company"  July 17, Missouri: "United State Bank, based in Lewistown, Missouri, signed a pending acquisition agreement with Canton State Bank, based in Canton, Missouri"  There are more branch closures, for example in Michigan, here.  And Florida, here (and South Carolina, here).

August 10, 2020

Rubber Stamp of Varo Bank Protested to Federal Reserve Chair Powell Collusion With OCC

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

South Bronx, Aug 3 –  How corrupt has the Federal Reserve become using the COVID-19 pandemic as ground cover? Well, despite rules that substantively challenged applications can only be approved by the Board of Governors in DC, on July 28 the Fed rubber stamped on a delegated basis fintech Varo's application to form a bank holding company. It is an unprecedented now low - but happens while the Federal Reserve withholds under FOIA all information about the impact of COVID-19 on the application by Brazil-based Banco Bradesco. Something has gone dreadfully wrong on C St.

  Here's the Fed's - Federal Reserve Bank of San Francisco's - July 28 letter, sent to Inner City Press: "Dear Mr. Walsh: The Federal Reserve Bank of San Francisco (“Reserve Bank”), acting under authority delegated by the Board of Governors of the Federal Reserve System (“Board”), and having considered the relevant statutory factors, hereby approves the subject application. In consideration of this filing, reliance was placed upon all the representations and the commitments made by or on behalf of Bancorp. No significant changes in the transaction should be made prior to consummation without our approval. Approval of the application is subject to the Board’s authority to require reports by and make inspections and examinations of BHCs and their subsidiaries, and to require such modification or termination of activities of a holding company or any of its subsidiaries as the Board finds necessary to ensure compliance with the BHC Act. Approval of the application is also subject to receipt of all other required regulatory approvals, non-objections, or consents with this transaction. The proposed transaction may be consummated upon approval. 1 Please notify the undersigned in writing when the transaction is consummated."

 Then the FRBSF wrote to Inner City Press saying it had five days until August 3 at 5 pm PST to request review. We have: "On behalf of Inner City Press / Fair Finance Watch and in my personal capacity, this is questionlessly timely request for review of the FRBSF's unprecedented and shamefully rubber stamping on delegated authority - which authority is ONLY to approval - of the application by Varo to get into banking (through the OCC), renewed complaint about the FRB's failure update its H2A, its continued processing and rubber-stamping of expansion applications amid the COVID-19 pandemic and on the withholding of HMDA data in online form by CFPB and other FFIEC regulators including the FRB - and a demand for actions.    On June 10 Inner City Press submitted to the Board a timely comment. We heard nothing bank - no Additional Information letter to Varo, no request to us for information - until receiving first a copy of the FRBSF's approval, then a letter which did not even mention most of the issues we raised to the Board in June. We wrote to the Board because we have no confidence at all in the FRBSF, which did not purport to explain the withholding of information from the public nor its craven rubber stamping to go along with the OCC, during pandemic lockdown no less.    We immediately wrote back to the FRBSF, again with no response: This is to confirm receipt of your letter - and to immediately inform you of Inner City Press / Fair Finance Watch's outrage that this important application was rubber stamped on a delegated basis by a Reserve Bank which can only approve. This is a new low -- applications by much smaller institutions, raising many fewer issues, are sent to the Board of Governors for decision. This is a major mistake - we will be pursuing it, and urge that there be no consummation of this illegitimate delegated rubber-stamp.     The FRB has coordinated its timing with the OCC of Brian Brooks, who has numerous conflicts of interest in the fintech field.    The FRBSF has become not a regulator, but a cheerleader. As to Varo, consider for example their service interruption in October 2019, including declined debit card transactions, which they tried to blame on their processor Galileo... More fundamentally, consider weakened CRA duties, and disproportionate exclusion: low and moderate consumers disproportionately have prepaid or limited data plans and face disconnections of their mobile service. And just because consumers have email addresses does not mean that they have regular internet access, and if they close or move their accounts, they may lose access to their financial records. We requested and request hearings. .This shameful delegated authority approval by the FRBSF timed to collude with the OCC with its conflicts of interest must be rescinded." Watch this site.

August 3, 2020

Federal Reserve Rubber Stamps Varo Into Banking On Delegated Basis As Denies FOIAs

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

South Bronx, July 28–  How corrupt has the Federal Reserve become using the COVID-19 pandemic as ground cover? Well, despite rules that substantively challenged applications can only be approved by the Board of Governors in DC, on July 28 the Fed rubber stamped on a delegated basis fintech Varo's application to form a bank holding company. It is an unprecedented now low - but happens while the Federal Reserve withholds under FOIA all information about the impact of COVID-19 on the application by Brazil-based Banco Bradesco. Something has gone dreadfully wrong on C St.

  Here's the Fed's - Federal Reserve Bank of San Francisco's - July 28 letter, sent to Inner City Press: "July 28, 2020 Via Electronic Mail Mr. Colin Walsh Varo Money, Inc. 222 Kearny Street, 9th Floor San Francisco, California 94108 RE: Varo Money, Inc., San Francisco, California (“Bancorp”), to become a bank holding company (“BHC”) through the acquisition of 100 percent of the voting shares of Varo Bank, N.A. (In Organization), Draper, Utah, pursuant to Section 3(a)(1) of the Bank Holding Company Act (“BHC Act”) Dear Mr. Walsh: The Federal Reserve Bank of San Francisco (“Reserve Bank”), acting under authority delegated by the Board of Governors of the Federal Reserve System (“Board”), and having considered the relevant statutory factors, hereby approves the subject application. In consideration of this filing, reliance was placed upon all the representations and the commitments made by or on behalf of Bancorp. No significant changes in the transaction should be made prior to consummation without our approval. Approval of the application is subject to the Board’s authority to require reports by and make inspections and examinations of BHCs and their subsidiaries, and to require such modification or termination of activities of a holding company or any of its subsidiaries as the Board finds necessary to ensure compliance with the BHC Act. Approval of the application is also subject to receipt of all other required regulatory approvals, non-objections, or consents with this transaction. The proposed transaction may be consummated upon approval. 1 Please notify the undersigned in writing when the transaction is consummated."

  Corrupt.

July 27, 2020

From Coinbase Brooks Into OCC With List of Conflicts Avant Aventas and Some of Citibank

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, July 22 – Acting U.S. Comptroller of the Currency Brian Brooks, as Coinbase’s chief legal officer,  was paid $1.4 million in salary -- separate from the stock options -- in the year and a half he spent with company, which had weighed seeking a charter through the OCC before making other moves to access the banking system."

  Inner City Press asked - and then requested under FOIA - what are the "other tech firms" as to which Brooks is acknowledging a conflict.

   The OCC wrote to Inner City Press, faux apologizing for withholding information it has requested about Otting until after he had left the agency. Inner City Press immediately wrote back requesting a copy of Brooks' ethics letter and list of companies as to which even he acknowledges a conflict of interest.

  On June 18, that simple request was denied and so a FOIA request was filed, see below.

  And now more than a month later on July 22 the OCC has provide to Inner City Press under FOIA a copy of the ethics memo that Brooks is recused on: Amazon (minus AWS), Avant, Aventas, Merrill Lynch, CoinBase, EarnUp, Spring Labs, TextIQ - and Citibank N.A. residential mortgage business." We'll have more on this.

July 20, 2020

SoFi Bid For Bank Charter From Pro FinTech Comptroller Brooks Is Opposed By Fair Finance Watch

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SOUTH BRONX / SDNY, July 13 –   In the midst of the Coronavirus pandemic, and with a fintech and crypto-currency proponent installed as Acting Comptroller, SoFi and its controller SoftBank are seeking to get a U.S. bank charter. The WSJ and others have reported the bid, but it is not yet on the OCC's website (which often lags behind such that public comment periods end before notice is given). 

 Meanwhile Inner City Press' requests under the Freedom of Information Act into Acting Comproller Brian P. Brooks' conflicts of interest in the fintech and crypto-currency world have yet to be answers.  

And so on July 13 Fair Finance Watch filed with the OCC, including this: "July 13, 2020
 Office of the Comptroller of the Currency  DC Comptroller Brooks and Mr. Lybarger, Deputy Comptroller for Licensing  & Northeastern District Office 
 Re: Timely First Comment on SoFi's reported application to the OCC to get into banking 

Dear Mr. Lybarger, Ms. Cummings and others in the OCC:  This is a timely first comment opposing and requesting an extension of the required OCC's public comment period on reported proposal by SoFi to get a national bank charter.  

    This is a major proposal, by a fintech in which SoftBank has a large stake. Yet, it is not yet on the OCC's website, where as of July 13 the most recent Weekly Bulletin cuts on on July 4. The only charter application listed as open for comment is Monzo Bank; the New Bank application link does not work. So, any comment period will have be be extended. This is a request for the complete application, all portions that the OCC after review does not find withholdable under FOIA. 

     Inner City Press / Fair Finance Watch opposed SoFi's previous, suspended attempt to get into banking. Since then the questions have only grown.  

    For now, we note that Inner City Press asked the OCC's FOIA unit for a copy of Comptroller Brooks' conflict of interest list with fintechs but has yet to receive it. Pending receipt, we ask that Acting Comptroller Brooks be recused from this application and that you confirm this in writing.

      As to SoftBank, the dispute regarding another of its holdings, WeWork, portends the type of problems that regulators like the OCC are directed to keep out of, not invite into, the banking system.

     For the above reasons, including the ongoing COVID-19 pandemic lockdowns and restrictions, the comment period should not yet start or should extended, until in person public hearings can be held, and Comptroller Brooks' should be recused pending/and his conflict of interest list should be released." Watch this site. 

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July 13, 2020

Epstein Deals of Deutsche Bank Trigger $150M NYS Fine As UN Maxwell Deals UNexplained

By Matthew Russell Lee Patreon Periscope Song
BBC - Decrypt - LightRead - Honduras - Source

SDNY COURTHOUSE, July 7 – After the death of Jeffrey Epstein in the MCC prison, on July 2 Acting US Attorney for the Southern District of New York Audrey Strauss announced and unsealed in indictment of Maxwell on charges including sex trafficking and perjury.

   Inner City Press went to her press conference at the US Attorney's Office and asked, Doesn't charging Maxwell with perjury undercut any ability to use testimony from her against other, bigger wrong-doers? Periscope here at 23:07.

  Strauss replied that it is not impossible to use a perjurer's testimony. But how often does it work?

  Now on July 7 from NYS Superintendent of Financial Services Linda A. Lacewell, this: "Deutsche Bank AG, its New York branch, and Deutsche Bank Trust Company America (collectively “Deutsche Bank” or the “Bank”) have agreed to pay $150 million in penalties as part of a Consent Order entered into with the New York State Department of Financial Services (“DFS” or the “Department”) for significant compliance failures in connection with the Bank’s relationship with Jeffrey Epstein and correspondent banking relationships with Danske Bank Estonia (“Danske Estonia”) and FBME Bank (“FBME”).    This agreement marks the first enforcement action by a regulator against a financial institution for dealings with Jeffrey Epstein.   “Banks are the first line of defense with respect to preventing the facilitation of crime through the financial system, and it is fundamental that banks tailor the monitoring of their customers’ activity based upon the types of risk that are posed by a particular customer,” Superintendent Lacewell said. “In each of the cases that are being resolved today, Deutsche Bank failed to adequately monitor the activity of customers that the Bank itself deemed to be high risk. In the case of Jeffrey Epstein in particular, despite knowing Mr. Epstein’s terrible criminal history, the Bank inexcusably failed to detect or prevent millions of dollars of suspicious transactions.”   With respect to the case of Jeffrey Epstein, the Bank failed to properly monitor account activity conducted on behalf of the registered sex offender despite ample information that was publicly available concerning the circumstances surrounding Mr. Epstein’s earlier criminal misconduct. The result was that the Bank processed hundreds of transactions totaling millions of dollars that, at the very least, should have prompted additional scrutiny in light of Mr. Epstein’s history, including:   payments to individuals who were publicly alleged to have been Mr. Epstein’s co-conspirators in sexually abusing young women;   settlement payments totaling over $7 million, as well as dozens of payments to law firms totaling over $6 million for what appear to have been the legal expenses of Mr. Epstein and his co-conspirators;  payments to Russian models, payments for women’s school tuition, hotel and rent expenses, and (consistent with public allegations of prior wrongdoing) payments directly to numerous women with Eastern European surnames; and  periodic suspicious cash withdrawals — in total, more than $800,000 over approximately four years.  This substantive failure was compounded by a series of procedural failures, mistakes, and sloppiness in how the Bank managed and oversaw the Epstein accounts. For example, certain conditions imposed upon the Epstein accounts by a Bank reputational risk committee — conditions that, if followed, might have detected and prevented many subsequent suspicious transactions — (a) were not transmitted to the majority of the account relationship team; and (b) were misinterpreted by a compliance officer in a way that resulted in very little actual change in how the monitoring of the accounts occurred. Throughout the relationship, very few problematic transactions were ever questioned, and even when they were, they were usually cleared without satisfactory explanation." We'll have more on this.

   In the July 3 media coverage of Epstein's procurer Ghislaine Maxwell, media all of the world used a video and stills from it of Maxwell speaking in front of a blue curtain, like here.

 What they did not mention is something Inner City Press has been asking the UN about, as under UNSG Antonio Guterres with his own sexual exploitation issues (exclusive video and audio) it got roughed up and banned from the UN: Ghislaine Maxwell had a ghoulish United Nations press conference, under the banner of the "Terramar Project," here.

  On July 5, after some crowd-sourcing, Inner City Press reported on another Ghislaine Maxwell use of the United Nations, facilitated by Italy's Permanent Representative to the UN, UN official Nikhil Seth and Amir Dossal, who also let into the UN and in one case took money from convicted UN briber Ng Lap Seng, and Patrick Ho of CEFC China Energy, also linked to UN Secretary General Antonio Guterres.

  At the Ghislaine Maxwell UN event, the UN Deputy Secretary General was directly involved.

List of (some of) the participants on Patreon here.

Antonio Guterres claims he has zero tolerance for sexual exploitation, but covers it up and even participate in it. He should be forced to resign - and/or have immunity waived.

  Terramar has been dissolved, even though Maxwell's former fundraiser / director of development Brian Yurasits still lists the URL on his (protected) Twitter profile, also here.

  But now Inner City Press has begun to inquire into Ghislaine Maxwell's other United Nations connections, starting with this photograph of another day's (or at least another outfit's) presentation in the UN, here. While co-conspirator Antonio Guterres has had Inner City Press banned from any entry into the UN for two years and a day, this appears to be in the UN Economic and Social Council (ECOSOC) chamber. We'll have more on this, and on Epstein and the UN. Watch this site.

  The case is US v. Maxwell, 20-cr-330 (Nathan).

July 6, 2020

On Manafort Lender Stephen Calk Trial Reset For Dec 1 Witness List Has Gates and Kushner

By Matthew Russell Lee, Exclusive Patreon
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, June 28 – Steven M. Calk of FDIC-regulated Federal Savings Bank was presented and arraigned on May 23 in the U.S. District Court for the Southern District of New York for financial institution bribery for corruptly using his position with FSB to issue $16 million in high-risk loans to Paul Manafort in a bid to obtain a senior position with the Trump administration, namely Undersecretary of the Army.

  On April 23 SDNY Judge Lorna G. Schofield held an oral argument, by telephone with Calk himself on the line from Chicago. Inner City Press covered it, below.

 On July 2, Judge Schofield held a proceeding. Inner City Press live tweeted it:

Assistant US Attorney Paul Monteleoni rattled off COVID bad news, to request trial later in 2021. He says Broadway is closed through 2020, indoor dining pushed back, possible outbreak in Rockland County.

AUSA Monteleoni floats the idea of a witness having to go into 2 week quarantine. Notes that incarcerated defendants will get first trials. US Attorney does not want December 2020.

Judge Schofield: This is complex. There are 26 active judges, and senior judges, many trials waiting. So, I think what I'll do at the moment is set a December trial date with the understanding that we all need to talk with each other. We'll take the earliest date. I'll set it for Tuesday, December 1. Take it with a grain of salt. I won't schedule a conference now. Let's move on to the motions that are at issue. The motions to compel...

AUSA: They've asked us for a document and we're working on it.

 Judge Schofield: Let's move on to the issue of sanctions.

Calk's lawyer: Government wrote to you in August, for six weeks to give documents from the Special Counsel's office. They took longer; we did not complain. But in March we learned of millions of more pages. We only got the documents in April - but the government learned about them in December. We felt this was unfair, given the government an unfair tactical advantage for trial.

 Calk's lawyer: "The government has put on its witness list Mr. Manafort, Gates and Kushner."

Judge Schofield: The defendant's motion for sanctions for US discovery violations is denied. Court's examine the culpability and prejudice to the defendant. Miranda, 2d Cir, 1975. Here, the government was untimely, the argument goes. But it was not intentional.

Inner City Press will stay on this.

June 29, 2020

Once Otting Out of OCC To Black Knight His Anti CRA Rule Challenged NDCA Court

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

FEDERAL COURTHOUSE, June 25 – On May 29 Joseph Otting had his last day as US Comptroller of the Currency, a position he has misused to attack the Community Reinvestment Act he came to despise as head of OneWest Bank.

   A week later Ottting cashed out, taking a paying position on the board of directors of Black Knight, described as a fintech.
 
  But if bank regulators have a cooling off period, how can the just former Comptroller joint a fintech, an industry he and his successor worked and work to get into the national banking world?

 Now Otting's handiwork, undermining the CRA, is itself under attack, in a lawsuit filed in the U.S. District Court for the Northern District of California by NCRC and CRC; the complaint cites "During the Senate hearings on the CRA, Senator William Proxmire of Wisconsin stated: By redlining let me make it clear what I am talking about. I am talking about the fact that banks and savings and loans will take their deposits from a community and instead of reinvesting them in that community, they will actually or figuratively draw a red line on a map around the areas of their city, sometimes in the inner city, sometimes in the older neighborhoods, sometimes ethnic and sometimes black, but often encompassing a great area of their neighborhood."

  As to Acting Comptroller Brian Brooks, Bloomberg reported that "[a]s Coinbase’s chief legal officer, Brooks was paid $1.4 million in salary -- separate from the stock options -- in the year and a half he spent with company, which had weighed seeking a charter through the OCC before making other moves to access the banking system... He still has stock and bond holdings between $1 million and $2.2 million. Because he’s acting comptroller -- not yet nominated by President Donald Trump to seek Senate confirmation -- he’s not required to take the ethics pledge that would limit his ability to work in lobbying after he leaves the job, according to an OCC spokesman. However, Brooks has submitted a letter through the agency’s ethics office outlining companies he’ll steer clear of because of potential conflicts of interest, including Amazon.com Inc., Bank of America Corp.’s Merrill Lynch unit, Coinbase and a number of other tech firms he’s worked with....  Otting, who left the job last month, wasn’t out of work long. He was tapped this week to join the board of Black Knight Inc., which provides software for the mortgage industry." Bloomberg did not delve into that conflict of interest. And what are the "other tech firms" as to which Brooks is acknowledging a conflict?

   The OCC wrote to Inner City Press, faux apologizing for withholding information it has requested about Otting until after he had left the agency. Inner City Press immediately wrote back requesting a copy of Brooks' ethics letter and list of companies as to which even he acknowledges a conflict of interest. So far, nothing. But we note, for example, that he was on the board of Avant. What else?

   Amid all this, Fair Finance Watch and Inner City Press / Community on the Move have launched a new project. And so far, Brooks' national banks have been among the worst. Watch this site.

June 22, 2020

From Coinbase Brooks Into OCC With List of Conflicts Withheld So Now FOIA Request

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, June 18 – May 29 was the last day for Joseph Otting as US Comptroller of the Currency, a position he has misused to attack the Community Reinvestment Act he came to despise as head of OneWest Bank.

   A week later Ottting cashed out, taking a paying position on the board of directors of Black Knight, described as a fintech.
 
  But if bank regulators have a cooling off period, how can the just former Comptroller joint a fintech, an industry he and his successor worked and work to get into the national banking world?

  As to Acting Comptroller Brian Brooks, Bloomberg reported that "[a]s Coinbase’s chief legal officer, Brooks was paid $1.4 million in salary -- separate from the stock options -- in the year and a half he spent with company, which had weighed seeking a charter through the OCC before making other moves to access the banking system... He still has stock and bond holdings between $1 million and $2.2 million. Because he’s acting comptroller -- not yet nominated by President Donald Trump to seek Senate confirmation -- he’s not required to take the ethics pledge that would limit his ability to work in lobbying after he leaves the job, according to an OCC spokesman. However, Brooks has submitted a letter through the agency’s ethics office outlining companies he’ll steer clear of because of potential conflicts of interest, including Amazon.com Inc., Bank of America Corp.’s Merrill Lynch unit, Coinbase and a number of other tech firms he’s worked with....  Otting, who left the job last month, wasn’t out of work long. He was tapped this week to join the board of Black Knight Inc., which provides software for the mortgage industry." Bloomberg did not delve into that conflict of interest. And what are the "other tech firms" as to which Brooks is acknowledging a conflict?

   The OCC wrote to Inner City Press, faux apologizing for withholding information it has requested about Otting until after he had left the agency. Inner City Press immediately wrote back requesting a copy of Brooks' ethics letter and list of companies as to which even he acknowledges a conflict of interest.

  Today on June 18, that simple request was denied and so a FOIA request filed: "This is a request under FOIA on behalf of Inner City Press and in my personal capacity for all records concerning conflicts of interest or the appearance of conflict of interest by Acting Comptroller Brian Brooks, including but not limited to the Ethics letter Inner City Press requested from the OCC, below, and Coinbase, Avant, OneWest and any other firm.  Inner City Press in responding to a request by OCC to "close out" a FOIA request still not completed asked "I do have an OCC public information / transparency question - for the Acting Comptroller's ethics filing. To identify it: "Brooks has submitted a letter through the agency's ethics office outlining companies he'll steer clear of because of potential conflicts of interest, including Amazon.com Inc., Bank of America Corp.'s Merrill Lynch unit, Coinbase and a number of other tech firms he's worked with." What are those companies? Thanks, -Matthew Lee, Inner City Press"  Days later and minutes ago Inner City Press received this: Good Morning Mr. Lee....  I don't know the answer to the question you asked.  You should file a FOIA request for the records you seek regarding the Acting Comptroller. " This is that request, on which expedited treatment should be granted - such disclosures are among the very purposes of FOIA."  Watch this site.

As CFPB Shirks Public Process With Advisory Opinions Its Whitewash of Mortgage Continues With Attack on CRA

By Matthew Russell Lee, Patreon
Honduras - The Source - The Root - etc

South Bronx, June 18 – With the Office of the Comptroller of the Currency now under Brian Brooks formally undermining the  Community Reinvestment Act, Inner City Press / Fair Finance Watch filed a number of CRA protests, and requests with bank- and non-bank lenders for their PPP information.

  On June 18 the Consumer Financial Protection Bureau (CFPB) announced "a pilot advisory opinion program designed to provide additional protections for financial institutions at the expense of consumers. Under the CFPB pilot, itself issued without notice and comment, financial institutions are invited to submit requests for regulatory clarifications in areas of “substantive importance.” The advisory opinions will then be issued by the CFPB, without notice-and-public comment, on the basis of confidential information submitted by the financial institution. Only entities subject to the CFPB’s jurisdiction may request these advisory opinions, and the advisory opinions will provide safe harbor protections for financial institutions under all major consumer protection laws. One of the priorities of the pilot program is to identify outdated, unnecessary or unduly burdensome regulations in order to reduce regulatory burdens on companies." This is a pattern.

The CFPB under Kathy Kraninger issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law.

June 15, 2020

Through Revolving Door Brooks Into OCC With List of Conflicts As Otting Out to Black Knight

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, June 11 – Only a week ago, May 29 was the last day for Joseph Otting as US Comptroller of the Currency, a position he has misused to attack the Community Reinvestment Act he came to despise as head of OneWest Bank.

  Now a week later Ottting has cashed out, taking a paying position on the board of directors of Black Knight, described as a fintech.
 
  But if bank regulators have a cooling off period, how can the just former Comptroller joint a fintech, an industry he and his successor worked and work to get into the national banking world?

  As to now Acting Comptroller Brian Brooks, Bloomberg reports that "[a]s Coinbase’s chief legal officer, Brooks was paid $1.4 million in salary -- separate from the stock options -- in the year and a half he spent with company, which had weighed seeking a charter through the OCC before making other moves to access the banking system. He also received $1.5 million in the past two years from Fannie Mae, where he was a board member after having been the company’s top lawyer.  Brooks traded those lucrative posts to earn less than $300,000 a year running the OCC. But he still has stock and bond holdings between $1 million and $2.2 million. Also, OCC chiefs are among high-ranking government officials who often move on to high-paying positions after their time in the government.  Because he’s acting comptroller -- not yet nominated by President Donald Trump to seek Senate confirmation -- he’s not required to take the ethics pledge that would limit his ability to work in lobbying after he leaves the job, according to an OCC spokesman. However, Brooks has submitted a letter through the agency’s ethics office outlining companies he’ll steer clear of because of potential conflicts of interest, including Amazon.com Inc., Bank of America Corp.’s Merrill Lynch unit, Coinbase and a number of other tech firms he’s worked with....  Otting, who left the job last month, wasn’t out of work long. He was tapped this week to join the board of Black Knight Inc., which provides software for the mortgage industry." Bloomberg did not delve into that conflict of interest. And what are the "other tech firms" as to which Brooks is ackowledging a conflict? Watch this site.

   It has not only been a policy dispute. Under Otting, the OCC immediately started denying Freedom of Information Act fee waivers, even for copies of pending merger applications subject to public comment. He debased certain longtime OCC staff, or perhaps they had alwasy been ready to take this turn. Time will tell.


Amid PPP Secrecy By Mnuchin Inner City Press Requests Basic Data Sample PNC Answer Here

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SDNY COURT / SOUTH BRONX, June 13 –     Amid the COVID-19 pandemic, fair lending and the Community Reinvestment Act are taking a back seat, or worse. Some banks to which CRA applies are excluding smaller businesses and those in communities of color. And some banks bragging about the PPP loans won't provide any information - we are Pressing.

   Inner City Press / Community on the Move has begun contacting both banks and non-banks for their Paycheck Protection Program data. Without yet getting into the full results, we want to make a contrast not only to the contempt for CRA and public disclosure shown by Joseph Otting, now with Black Knight but also his OneWest crony and Treasury Secretary Steve Mnuchin calling PPP information "proprietary."

 The contrast is to the answers by a sample bank, PNC, to questions Inner City Press / Community on the Move put to it and others:

"Hello again, Matthew. I am able to answer most but not all of your questions. As you know, the Paycheck Protection Program is still active but I can provide the most recent information on hand: 

1. How many loans have you made pursuant to the programs? We have registered more than 74,000 applications from small business customers in 49 states and the District of Columbia. 

2. What is the total dollar amount of loans made pursuant to the program ? $14.1 billion 

3. What is the average loan size? The average loan amount for all of our SBA registered loans is less than $190,000, demonstrating that our efforts reached many of the smallest businesses in need. 

4. What is the distribution by loan size (e.g. LTE $99,999, $100,000-$999,999, $1mm-$10mm) of the loans made pursuant to the program?  Approximately 80 percent of the total applications that we have been able to successfully register with the SBA are for amounts of $150,000 or less; and an additional 10 percent are for amounts of $350,000 or less (but more than $150,000). Although the statutory maximum PPP loan size per business is $10 million, only 0.4 percent of our total SBA-registered applications are for amounts above $5 million. 

5. What is the distribution of the average annual revenues of borrowers under your program (e.g., LTE $99,999, $100,000-$999,999, $1mm-$5mm)? This information was not required to be provided on the SBA PPP application. 

6. How many loans have you made to qualifying tax-exempt non-profits?  What is the total dollar amount of those loans? We also took special care to ensure that applications from non-profit organizations were not left behind. We have successfully registered more than 4,600 PPP applications totaling $1.24 billion from non-profit organizations throughout our footprint.

 7. How many loans have you made to hotels and restaurants (NAICS code beginning with 72)?  What is the total dollar amount of those loans? This information is not available. 

8. What is the distribution of loans by number of employees of the borrower (e.g., 1-10, 11-50, 51-100, 101-250, 251-5000?  Eighty two percent of our SBA-registered loans are for businesses with twenty or fewer employees, and an additional ten percent are for businesses with 21 to 50 employees. Only six percent of our SBA-registered loans are for businesses with between 51 and 250 employees, and only one percent for businesses with more than 250 employees. Clearly, our efforts assisted some of the smallest businesses across our communities. 

9. What percentage of your PPP loans are to borrowers with a previous borrowing relationship with your institution? We require that the borrower have a business relationship with us, which could mean a loan or deposit relationship. The vast majority (85 percent) of the PPP applications we have processed and registered with the SBA are from our Business Banking clients, which is our business segment that services business clients (including non-profits, sole proprietors and independent contractors) with less than $5 million in annual revenues. Only approximately 15 percent of the PPP loans that we submitted and that have been registered by the SBA are from eligible businesses within our Corporate & Institutional Bank, which services businesses with $5 million or more in annual revenues, or other business segments... On our PPP applications from small businesses operating in low- or moderate-income (LMI) geographies, as you know these areas are frequently the hardest hit in periods of economic stress. I am pleased to report that we have assisted more than 15,400 small business located in LMI census tracts receive SBA registration for their loans aggregating to approximately $3.36 billion. To further support small businesses that may lack access to traditional financial institutions, PNC has committed nearly $50 million to eight community development financial institutions (CDFIs) since March 2020 to support their own origination of PPP loans in potentially underserved geographies and sectors."

  Contrast this to the "proprietary information" dodge - and note for example that the highest overdraft fee bank in America, Ameris Bank has for now responded to Inner City Press' questions by stating that: "Information about our Paycheck Protection Program participation can be found in our filings with the Securities and Exchange Commission.  Sincerely,  William D. McKendry EVP and Chief Risk Officer Ameris Bank. " UNacceptable.

  We'll have more on this and others, including fintechs. Watch this site.

June 8, 2020

Police Brutality Bonds Raise Questions About Investments by Federal Reserve and UN

By Matthew Russell Lee, Patreon Soundcloud
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, June 6 – Amid the protests of police brutality triggered by the murder of George Floyd in Minneapolis, U.S. cities' use of municipal bonds reduce the cost of their abuse of residents has come into focus.

   Holders of issuances such as Chicago, IL 7.045% 2029 bonds have been petitioned to acknowledge their role in enabling and reducing the costs of brutality.   A former attorney for the City of Chicago admitted, "When you had to budget more for police tort liability you had less to do lead poisoning screening for the poor children of Chicago.  We had a terrible lead poisoning problem and there was a direct relationship between the two.  Those kids were paying those tort judgments, not the police officers."

 Chicago’s lawsuit payouts required the city to sell $1 billion in bonds in 2011 and to issue $100 million in bonds in 2014.111  Yet the spokesman for the Chicago  Police Department made clear that “the police department isn’t forced to cut back on things like OT [overtime] or equipment purchases due to litigation costs Email from Roderick Drew, Freedom of Info. Officer, City of Chi. Law Dep’t, to author (Oct. 9, 2013), on file with Joanna C. Schwartz of UCLA School of Law. See, 63 UCLA L. Rev. 1144.  

But what about the Federal Reserve, which is taking credit for its purchase of municipal bonds as for its involvement in the increasingly disparate Paycheck Protection Program? Any screening on issues of police brutality and others by the Fed is not apparent. And what about the United Nations and its UN Pension Fund? Inner City Press will have more on this.

June 1, 2020

On Day Otting Out of OCC Legacy of Contempt For CRA Public Process and FOIA Brooks Next

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, May 29 – Today is the last day for Joseph Otting as US Comptroller of the Currency, a position he has misused to attack the Community Reinvestment Act he came to despise as head of OneWest Bank.

  We have only two words: Good riddance.

   It has not only been a policy dispute. Under Otting, the OCC immediately started denying Freedom of Information Act fee waivers, even for copies of pending merger applications subject to public comment. He debased certain longtime OCC staff, or perhaps they had alwasy been ready to take this turn. Time will tell.

Otting started refusing to consider timely comments on mergers, such as the take-over of Chinatown FSB by a national bank. Such contempt for the public and the public process is Otting's legacy.

  What will change under Otting's successor Brian P. Brooks? Brooks was vice chair of OneWest, before going to FannieMae then CoinBase, which he left only in March. Inner City Press has heard a number of things about Brooks, but as always goes into it with an open mind. Watch this site

May 25, 2020

Amid PPP Abuse Lenders Like Berkshire Bank Refuse As Inner City Press Requests Basic Data

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SDNY COURT / SOUTH BRONX, May 24 –     Amid the COVID-19 pandemic, fair lending and the Community Reinvestment Act are taking a back seat, or worse. Some banks to which CRA applies are excluding smaller businesses and those in communities of color. And some banks bragging about the PPP loans won't provide any information - we are Pressing.

   Inner City Press / Community on the Move has begun contacting both banks and non-banks for their Paycheck Protection Program data. Without yet getting into the result, note that ostensibly progressive or "exciting" Berkshire Bank has for now responded to Inner City Press' questions by stating that: "Good morning Matthew,     Our CRA Officer will be reaching out to you to assist. Terry." Then, after no answer, and Inner City Press re-iterated its questions, this:  "They are working on getting the answers to all of your questions. You should hear from them soon. Terry."

  But they were not getting answers to any of Inner City Press' questions. Next, this came: "Hi Matthew,     Thank you for reaching out to Berkshire Bank in regards to receiving information about our CRA Public File and our PPP loans. We are currently unable to answer the questions you sent over because we do not have that data available for release at this time...  Aaliyah Outlaw  (She, Her, Hers) Corporate Communications Coordinator." UNacceptable.

  We'll have more on this.

While U.S. Comptroller of the Currency Joseph Otting is pushing forward with his proposal to weaken the CRA, his new chief national bank examiner Blake Paulson said bank examinations have gone 95% off-site.

  The Federal Reserve says it is suspending "non-critical" examinations, even at the largest institutions.

Meanwhile the Fed is pushing forward to approve bank merger applications, like Banco Bradesco - BAC which Fair Finance Watch has been opposing, as it has commented to the OCC against the acquisition of State Farm's health savings account business by Webster Bank, based in part of Webster's problematic Paycheck Protection Program performance.

   Fintechs and other non-bank financial firms are now at the PPP trough and are getting sued. For example, there is the lawsuit filed as a class action against Fountainhead Commercial Capital LLC on May 6, noting the finance firm advertised that it would process loan requests on a first-come, first-served basis and then stealthly shuffled its line of PPP applicants so that it would lock down the largest lending fees first.

     Meanwhile Paulson of the OCC, which wants to admit fintechs into banking without regulation, says no one is in PPP for the money. This while in response to Inner City Press' FOIA request for Otting's schedule the OCC redacted the names of banks that he met without, and obscured others. (A FOIA appeal has been filed.)

   Amid all this, Fair Finance Watch and Inner City Press / Community on the Move are launching a new project. Watch this site.

May 18,2020


As US Bank Regulators Suspend Non Critical Exams Or Go 95% Off-Site New Project on Abuses

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, May 11 –     Amid the COVID-19 pandemic, fair lending and Community Reinvestment Act are taking a back seat, or worse.

While U.S. Comptroller of the Currency Joseph Otting is pushing forward with his proposal to weaken the CRA, his new chief national bank examiner Blake Paulson said bank examinations have gone 95% off-site.

  The Federal Reserve says it is suspending "non-critical" examinations, even at the largest institutions.

Meanwhile the Fed is pushing forward to approve bank merger applications, like Banco Bradesco - BAC which Fair Finance Watch has been opposing, as it has commented to the OCC against the acquisition of State Farm's health savings account business by Webster Bank, based in part of Webster's problematic Paycheck Protection Program performance.

   Fintechs and other non-bank financial firms are now at the PPP trough and are getting sued. For example, there is the lawsuit filed as a class action against Fountainhead Commercial Capital LLC on May 6, noting the finance firm advertised that it would process loan requests on a first-come, first-served basis and then stealthly shuffled its line of PPP applicants so that it would lock down the largest lending fees first.

     Meanwhile Paulson of the OCC, which wants to admit fintechs into banking without regulation, says no one is in PPP for the money. This while in response to Inner City Press' FOIA request for Otting's schedule the OCC redacted the names of banks that he met without, and obscured others. (A FOIA appeal has been filed.)

   Amid all this, Fair Finance Watch and Inner City Press / Community on the Move are launching a new project. Watch this site.

Capital One Bank Switch of Business Balance to Personal Is Sued in SDNY

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, May 12 – Capital One Bank (USA) NA was sued in May 2019 for putting the balance on a "Capital One Spark Signature Business Card" onto plaintiff's personal credit history, disqualifying him from a loan. 

    Capital One removed case to the U.S. District Court for the Southern District of New York, in which on May 12 a conference was held that Inner City Press covered.

   SDNY Magistrate Judge Kevin N. Fox set a discovery schedule. 

    Capital One's Park Avenue lawyer said to "Tee it up for a mediator."   

   Judge Fox said, If not, submit joint pre-trial order in November. Let me turn now to protective order.

   It turned out that Capital One Bank (USA) NA's proposed Protective Order purported to bind third parties to a confidentiality agreement. Judge Fox ordered modified that and other provisions.

 The case is Kapin, et al. v. Capital One Bank (USA) NA, 19-cv-5899 (Liman / Fox).

May 11, 2020

Weakening CRA Comptroller Otting Met Bank CEOs and Clarence Thomas FOIA Appeal Filed

By Matthew Russell Lee, Exclusive Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SDNY COURT / BRONX, May 10 –  As US Comptroller of the Currency Joseph Otting moved toward closing the public comment period amid the COVID-19 pandemic on his widely criticized rule to weaken the Community Reinvestment Act, he took one-on-one input from JPMorgan Chase's Jaime Dimon, and the CEOs of Capital One, Santander, Citizens Bank and others.

  These others have their names obscured in the Office of the Comptroller of the Currency's May 6 response to Inner City Press' February 12 Freedom of Information Act request for

"copies of records sufficient to show all of Comptroller Otting's scheduled meetings, appointments, and scheduled events from the date he became Comptroller to the date of your response including but not limited to Outlook calendar entries and daily briefing books for Comptroller Ottings on those dates."

   None of the briefing books have been provided, and many of the names of people Otting met with are obscured.

 Listed are, however, Supreme Court Justice Clarence Thomas and Senator Tom Tillis (about "swaps") on June 10, 2019, and Rick Perry, twice.  View on Scribd; download on Patreon here.

  Along with Chase's Jaime Dimon, Otting conversed about CRA with former Chase CRA officer Mark Willis, and had a meeting about a "Project Madison," unexplained in the FOIA response.

   There are many empty days, a trip to Japan and the Philippines that is mostly empty but for MUFG, and page after page of "private appointment," "Do Not Schedule" and "Desk Time." There is a reference to "Citi Bank" that is obscured. Inner City Press has now appealed under FOIA:

"This is a FOIA appeal for all withheld portions of Comptroller Otting's schedule and all other withheld records responsive to Inner City Press / Fair Finance Watch's underlying FOIA request.  On May 6 Inner City Press belatedly received some responsive documents, but even on the Comptroller's schedule entries are redacted or in some cases unreadable - including the names of banks and CEOs met with. For example on January 24, 2020 there is a flurry of calls to bank CEOs, but only Wells Fargo and MUFG are legible. The calls between 10 am and 11:30 am only list "CRA CAL" -- then cut off. The names of these banks must be disclosed.  And more: On December 10, 2019, the noon briefing has the Comptroller's counterparty met with entirely redacted. This is not acceptable, and is being appealed as well as the withholding of "material attached" on that day, and throughout.  On January 2, 2020, there is "Discuss [b(8)] and against on January 3, b(8). This must be released - at this remove, and because it if the very purpose of FOIA. Who was Comtroller Otting meeting with? About what? For these reasons we are appealing all redactions and withholdings, on an expedited basis."

   While even Otting's partner in weakening CRA, the FDIC, has extended the comment period for foreign banks, Otting insists that excluding the public and community required to stay at home and closing his comment period is fine. The OCC's partial FOIA response to Inner City Press shows who Otting is working for. Watch this site.

May 4, 2020

Amid COVID Fair Finance Watch Challenges Webster Bank Bid For State Farm HSAs to OCC

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, May 2 – Amid the Coronavirus pandemic, U.S. bank regulators like Comptroller of the Currency Joseph Otting are continuing to rubber stamp bank mergers, even by banks who are under-performing in the Paycheck Protection Program.

  On May 2 Fair Finance Watch, and Inner City Press on FOIA, filed a formal challenge with Otting's OCC to the application by Webster Bank to acquire State Farm Bank FSB, its problematic health savings accounts, no less. Here is some of it:

"This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by Webster Bank NA to acquire State Farm FSB / Health Savings Accounts. Given complaints against State Farm's HSAs, and Webster Bank's PPP performance, public hearings are needed when they are not, as now, prohibited by social distancing rules. The CRA deform proposal should be shelved.

While Comptroller Otting has said he never saw discrimination (except being told by family members about it), consider for the record on this application that even as reflected by the too-limited 2018 HMDA data available on the CFPB's website, Webster Bank in New York State in 2018 made 270 loans to whites - and only NINE to African Americans, out of proportion to the demographics of its service area and of other lenders' activities in it.       While making only NINE loans to African Americans in NYS in 2018, Webster denied 16 applications from Africans, much more disparate that its ratio for whites: 270 loans made, 145 denial: signifcantly more disparate to African Americans.

      This application should be denied. And for the record, the CFPB's elimination of the HMDA informaiton that has been available on the FFIEC's and even its own website for 2017 data is part of the destruction of CRA and HMDA of which the OCC is a part.    

   Consider for the record that "the head of Waterbury-based Webster Bank admitted his company can improve its performance in getting money into the hands of loan applicants.  “Certainly we wanted to help every small business borrower and customer of Webster that we could,” said CEO John Ciulla, speaking Tuesday on a conference call. “We got through approximately 30 percent applications approved (and) 30 percent funded, plus or minus a few percentage points on both sides of that."  Webster Bank has the third biggest base of deposits in Connecticut, offering both traditional savings and loans accounts as well as a health-savings account business that is among the largest in the nation. On Tuesday, Webster bolstered its HSA Bank subsidiary with the acquisition of 24,000 health-savings accounts from State Farm totaling $140 million."     

 No, that has not been approved. And it should not be. #TreasureCRA. Otting's crusade to weaken the Community Reinvestment Act has ghoulishly persisted even as his partner the FDIC has given foreign banks an extension of their comment period, on living wills. We'll have more on this.

April 27, 2020

As FinTechs Like NewTek Snub Small Business While At PPP Trough CRA Should Apply Inner City Press Says

By Matthew Russell Lee, Patreon
BBC - Decrypt - LightRead - Honduras - Source

BRONX / SDNY, April 25 – So-called fintech firms like Square and Kabbage have been trying to get into the banking field without complying with the Community Reinvestment Act, which would measure and require their minimal fairness to low- and moderate-income communities. Now they're at the Paycheck Protection Program trough, along with NewTek.

  NewTekOne.com is (mis) serving small businesses in many communities; look for example here at the City of Detroit's PPP website, where it is listed among lenders willing unlike Chase and Bank of America to take non customers - well, some of them. Here's a sample complaint:

"Contacted my bank today to follow up again. Got the website for newtekone, the lender handling the majority of applicants for the PPP. I called them, verified the app submitted on Apr 3rd was rec'vd Apr 6th. 1099 & sole proprietor had to wait until 10th to apply. By the time we could apply the program ran out of $$ days later and I still haven't even received the full application by email yet 17 days later. Newtekone confirmed today I'm in queue & should still receive the application."

 And thus are small business jobs lost, as with Junior's in Brooklyn and Times Square for other reasons. But why are lenders like NewTekOne at the trough, without oversight?

 In fairness, NewTekOne says, "Newtracker is fully transparent, allowing our referral partner to follow a referral from cradle to closing. Partners also receive periodic reporting in addition to creating an easily accessible audit and compliance trail." Transparency only to referral partners? We say, more oversight, and CRA - or oust them. And others.

 These evasions of CRA have been assisted by the US Comptroller of the Currency Joseph Otting, who has been attacking CRA ever since he was outed submitting fake comments to support the sale of his OneWest Bank to CIT.   

Now under the Paycheck Protection Program Square is bragging about having been approved to make SBA loans; Kabbage says the same, through through a fig leaf fiction with Celtic Bank.

    So why are there any CRA requirements on these lenders getting into this government program? Inner City Press / Fair Finance Watch has been raising the issue for week, including to Congressional leadership. #TreasureCRA. Now we are compiling formal comments for submission to the SBA, on their already final but still "interim" rule. Watch this site.

April 20, 2020

As FinTechs Line Up at PPP Trough Community Reinvestment Act Should Apply Inner City Press Says

By Matthew Russell Lee, Patreon
BBC - Decrypt - LightRead - Honduras - Source

BRONX / SDNY, April 14 – So-called fintech firms like Square and Kabbage have been trying to get into the banking field without complying with the Community Reinvestment Act, which would measure and require their minimal fairness to low- and moderate-income communities.

 In this evasion they have been assisted by the US Comptroller of the Currency Joseph Otting, who has been attacking CRA ever since he was outed submitting fake comments to support the sale of his OneWest Bank to CIT.   

Now under the Paycheck Protection Program Square is bragging about having been approved to make SBA loans; Kabbage says the same, through through a fig leaf fiction with Celtic Bank.

    So why are there any CRA requirements on these lenders getting into this government program? Inner City Press / Fair Finance Watch has been raising the issue for week, including to Congressional leadership. #TreasureCRA. Now we are compiling formal comments for submission to the SBA, on their already final but still "interim" rule. Watch this site.

April 13, 2020

As Banks Turn Small Businesses Away From PPP Otting Ghoulishly Closes Comment Period

By Matthew Russell Lee, Patreon  Periscope
BBC - Decrypt - LightRead - Honduras - Source

BRONX / SDNY, April 10 -- With the Community Reinvestment Act under attack by US Comptroller of the Currency Joseph Otting, Fair Finance Watch and Inner City Press on April 8 submitted a sixth comment, demanding that he not close the comment period while even amid Coronavirus large national banks turn away underserved business from the Paycheck Protection Program. Otting makes things worse.

 Groups have asked that in light of Coronavirus / COVID-19 the comment period on the assault on CRA be extended for months. See also here. Though it shouldn't have been necessary, Fair Finance Watch commented again on March 20, noting postponements by SEC and others.

  With Otting even still resisting postponing his dream of weakening the CRA, his OCC has joined not only his sometime partner in crime the FDIC but also the Fed providing a TWO YEAR extension for big banks, while still threatening to push through his attack on CRA, ghoulishly using Coronavirus, see below.

  Otting's outrageous statement on April 9, that should get him fired and be his legacy: "'It is our intention to craft a final rule that will encourage banks to lend and invest more in the communities they serve, including low- and moderate-income neighborhoods,” Otting said. “We will work toward issuing a final rule during the first half of this year. Further delay would only prevent these valuable resources from reaching those who need them most in this time of national emergency.' An FDIC spokesman - could it be Mr. Barr? -- declined Thursday to comment on Otting’s statement but stressed the agency is now just focused on reviewing the proposal feedback."

 From Fair Finance Watch April 8 comment: "even now at the absurdly (even ghoulishly) enforced deadline, no response so far from the OCC. In fact, this was the canned quote from Comptroller Otting: 'Slowing the rulemaking would only delay relief and support that communities across the country need. Modernization would bring valuable additional resources to communities across America that are currently underserved by the current regime. Further delay will prevent these additional resources from reaching those who need them most in this time of national emergency.'

  So Otting is trying to use this deadly virus to deregulate the national banking system. This is a historic low for US financial regulators. The comment period must be extended or re-opened, and Otting must be recused from any decision making on this. In fact, we contend, he should resign. Large national banks are excluding underserved businesses from PPP loans, and all Otting can think of is further deregulating them. The FDIC is complicit."

April 6, 2020

As Regulators Give Big Banks Two Years Community Reinvestment Act Comment Period Must Be Extended

By Matthew Russell Lee, Patreon  Periscope
BBC - Decrypt - LightRead - Honduras - Source

BRONX / SDNY, March 30 --   With the Community Reinvestment Act under attack by US Comptroller of the Currency Josephy Otting, Fair Finance Watch and Inner City Press on March 11 submitted a third comment this time making an obvious request.

They ask that in light of Coronavirus / COVID-19 the comment period on the assault on CRA be extended for months. See also here. Though it shouldn't have been necessary, Fair Finance Watch commented again on March 20, noting postponements by SEC and others.

  Now, with Otting even still resisting postponing his dream of weakening the CRA, his OCC has joined not only his sometime partner in crime the FDIC but also the Fed providing a TWO YEAR extension for big banks, while still threatening to push through his attack on CRA, ghoulishly using Coronavirus.

  Fair Finance Watch has written in, receipt confirmed, on March 30:

 Office of the Comptroller of the Currency Chief Counsel's Office, Attention: Comment Processing,  400 7th Street SW, Suite 3E-218, Washington, DC 20219

Re: Docket ID OCC-2018-0008 - 5th opposition to OCC/FDIC plan to weaken CRA - formal demand that comment period be extended in light of Coronavirus COVID-19 & OCC inaction, two year postponement for big banks, threats to communities

To whom it may concern at the OCC and FDIC:    On behalf of Fair Finance Watch, and Inner City Press, and in my personal capacity, this is a fifth timely comment opposing the proposal by Comptroller Joseph Otting and the FDIC to weaken the CRA.   On March 11, amid the then-worsening Coronavirus COVID-19 crisis, we wrote to formally demand an extension of this comment period.

On March 18, we wrote to point out that the SEC extended comment periods, and that even filing taxes was extended to July 15.    Still, no response so far from the OCC. This is both telling and troubling.   

So now, on March 30, this: Otting's OCC was among the Federal regulators which announced on Friday, March 27 that "big banks can wait longer before phasing in the regulatory capital effects of a new loan loss accounting standard and can choose to switch over early to an updated methodology for calculating certain capital requirements, moves intended to buoy bank lending during the COVID-19 pandemic.  The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency issued an emergency rule stating that banks required to adopt the current expected credit losses, or CECL, accounting standard in 2020 may delay its estimated impact on their regulatory capital for two years." 

  So - extensions for big banks, but still none for impacted communities and consumers. Even if the OCC as it must acts today to indefinitely postpone Otting's crusade to kill the CRA, this delay has been indicative of Otting's inordinate focus on destroying the CRA in retaliation for his exposure for fake comments as he sold his OneWest to CIT Group.    Again, a pending CRA merger challenge submitted electronically by FFW to Northfield Bank - Victory State Bank choosing to respond, cursorily, by snail mail. Something is dreadfully wrong at the OCC. This comment period on weakening the CRA must be indefinitely extended.   The above is added to what we can only interpret as the OCC's furthering weakening of CRA by no documents response to our FOIA request about this CRA proposal and the Comptroller's schedule, and the OCC's failure to inquire into even branch closings int he CBNA - Steuban Trust proposal we comments on. This is not the time to be slipping through an undermining of CRA."

Your comment was submitted successfully! Comment Tracking Number: 1k4-9fuc-1xeg    Your comment has been sent for review. This process is dependent on agency public submission policies/procedures and processing times. Watch this site

March 30, 2020

As FDIC Tries To Weaken CRA Fair Finance Watch on Republic Bank and Axos Bank Demands Extension

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, March 22 – Amid the Coronavirus crisis, with the FDIC and OCC yet to confirm they will postpone any closing of the comment period on their joint attempt to weaken the Community Reinvestment Act, both try to rubber stamp mergers even while public hearings would be prohibited.

Fair Finance Watch, and Inner City Press with FOIA requests, have filed a timely comment with the FDIC against a proposal by predatory lenders Republic Bank and Trust and Axos Bank: "Dear Chairman McWilliams, Regional Director Conneely, Deputy Regional Director Sabanty:    On behalf of Fair Finance Watch and Inner City Press and in my personal capacity, this is a timely comment opposing and demanding an extension of the comment period on the application by high-cost lender Republic Bank & Trust to merge with Axox Bank, including based on the Coronavirus crisis.  

Already, the IRS had extended the filing deadline for 2019 taxes to July 15, 2020 (as should this application).

These are high cost lenders, already underregulated and under commented on. To try to rubber stamp this transaction while the effected public is under shelter in place orders would be unconscionable.

   For the record, for now: "Non-bank payday lenders try to get in on the action by putting a bank’s name on the loan, allowing them the pre-emption protection. One company engaged in this is Elevate Financial. Its line-of-credit product, Elastic, uses Republic Bank, which is chartered in Kentucky, to make the loans. Elevate supplies the underwriting software and therefore controls who gets a loan. Republic Bank holds onto the loans, but then sells a 90 percent “participation interest” to an affiliate of Elevate. Functionally speaking, Elevate issues and effectively owns the loans, but it has a legal fig leaf that enables it to point to Republic Bank as the actual lender. This enables Elevate to sell Elastic, which its financial disclosures say carries an annual percentage rate of 109 percent, in states like Minnesota, Montana, and Oregon, which cap interest rates at 36 percent. It also allows Elevate to sell what is effectively a payday lending/installment loan product called Rise in states where payday lending has been banned, like Arizona."  

This is the application: 20200218 REPUBLIC BANK & TRUST COMPANY 601 WEST MARKET STREET, LOUISVILLE, KY    Merger (Regular)    02/18/2020    03/21/2020    Chicago 

 Additionally, this application is subjec to requests for public hearings, but public hearings right now are prohibited. It is clear you must extend the comment period - please confirm immediately, and how this applies to other pending application and those on which you have closed or purported to close the public comment period this month. Matthew R. Lee, Esq., Fair Finance Watch Watch this site.

March 23, 2020

Community Reinvestment Act Credit For Coronavirus Means Comment Period Must Be Extended

By Matthew Russell Lee, Patreon  Periscope
BBC - Decrypt - LightRead - Honduras - Source

BRONX / SDNY, March 20 --   With the Community Reinvestment Act under attack by US Comptroller of the Currency Josephy Otting, Fair Finance Watch and Inner City Press on March 11 submitted a third comment this time making an obvious request.

They ask that in light of Coronavirus / COVID-19 the comment period on the assault on CRA be extended for months. See also here.

  Now, with Otting still resisting postponing his dream of weakening the CRA, his OCC has joined not only his sometime partner in crime the FDIC but also the Fed in speaking on the Coronavirus COVID-19 crisis, offering banks CRA credit for any and everything they do in any way related to the virus. Fine - but doesn't that make it absolutely clear Otting has to indefinitely postpone closing the comment period on his destructive proposal? Watch this site.

 Here it was: March 11, 2020  Re: Docket ID OCC-2018-0008 - 3d opposition to OCC/FDIC plan to weaken CRA - demand that comment period be extended for months in light of Coronavirus COVID-19 & OCC inaction

To whom it may concern at the OCC and FDIC:    On behalf of Fair Finance Watch, and Inner City Press, and in my personal capacity, this is a third timely comment opposing the proposal by Comptroller Joseph Otting and the FDIC to weaken the CRA.    To be clear: the comment period must now be extended for months in light of Coronavirus / COVID-19. This is based on the Administration's own statements on the topic, and what we can only interpret at the OCC's furthering weakening by it, with no response to our timely comments on Northfield Bank - Victory State Bank, no documents response to our FOIA request about this CRA proposal and the Comptroller's schedule, and the OCC's failure to inquire into even branch closings int he CBNA - Steuben Trust proposal we comments on. This is not the time to be slipping through an undermining of CRA.  

 Note, simply as examples, that Federal courts have shut down (see, e.g., the Eastern District of Washington), whole law firms have, and the containment of New Rochelle, NY just above The Bronx. The comment period must be extended.

March 16, 2020

Community Reinvestment Act For Coronavirus Must Have Comment Period Extended Fair Finance Watch Says

By Matthew Russell Lee, Patreon
BBC - Decrypt - LightRead - Honduras - Source

BRONX / SDNY, March 11 --   With the Community Reinvestment Act under attack by US Comptroller of the Currency Josephy Otting, Fair Finance Watch and Inner City Press on March 11 submitted a third comment this time making an obvious request.

They ask that in light of Coronavirus / COVID-19 the comment period on the assault on CRA be extended for months. Confirmation of receipt by Regulations.gov of the comment and request has been received. Here it is: March 11, 2020  Re: Docket ID OCC-2018-0008 - 3d opposition to OCC/FDIC plan to weaken CRA - demand that comment period be extended for months in light of Coronavirus COVID-19 & OCC inaction

To whom it may concern at the OCC and FDIC:    On behalf of Fair Finance Watch, and Inner City Press, and in my personal capacity, this is a third timely comment opposing the proposal by Comptroller Joseph Otting and the FDIC to weaken the CRA.    To be clear: the comment period must now be extended for months in light of Coronavirus / COVID-19. This is based on the Administration's own statements on the topic, and what we can only interpret at the OCC's furthering weakening by it, with no response to our timely comments on Northfield Bank - Victory State Bank, no documents response to our FOIA request about this CRA proposal and the Comptroller's schedule, and the OCC's failure to inquire into even branch closings int he CBNA - Steuben Trust proposal we comments on. This is not the time to be slipping through an undermining of CRA.  

 Note, simply as examples, that Federal courts have shut down (see, e.g., the Eastern District of Washington), whole law firms have, and the containment of New Rochelle, NY just above The Bronx. The comment period must be extended. 

Enforcing the CRA including through commenting to the Federal Reserve and FDIC, and OCC under previous Comptrollers, the results have been new bank branches in the South Bronx, and lending and consumer protection commitments well beyond.   Now under Otting the OCC is ignoring, rebuffing and sometimes simply rejecting such public comments. This as Otting says he is personally unaware of discrimination. So, during and in connection with this comment period on his attempt to more systematically defang the CRA, Fair Finance Watch has commented on a proposed acquisition by a national bank which settled race discrimination charges, Evans Bank: "Evans had redlined Buffalo’s predominantly African-American East Side neighborhoods, intentionally excluding these neighborhoods from its lending area.  Evans Bank also allegedly developed mortgage products that it made unavailable to these neighborhoods, notwithstanding the creditworthiness of the applicants; and refused to solicit customers, market mortgages or provide banking facilities in those neighborhoods.  The lawsuit alleged that by redlining the East Side neighborhoods, which are home to more than 85,000 people, Evans excluded an area that is home to the vast majority of Buffalo’s African-American population from the marketing and sales of its mortgage products and services."   

 This is a national bank. Its Fairport Savings application should be denied. And for the record, the CFPB's elimination of the HMDA informaiton that has been available on the FFIEC's and even its own website for 2017 data is part of the destruction of CRA and HMDA of which the OCC is a part.   Also for the record, "Nasca says there may be consolidation of some back office staff." Public hearings should be held. But Otting routinely denies such requests.     Aain, since Otting became Comptroller, we have seen timely comments ignored, and been denied access to bank merger applications by a retaliatory imposition of FOIA fees. The Federal Reserve and other federal agencies, like the OCC pre-Otting, grant Inner City Press FOIA fee waivers. Under Otting, the OCC does not. On Chinatown FSB, the OCC refused to consider a timely comment. The OCC unilaterally determined not to accept public comments on a major bank's charter conversion application, which it rubber stamped. This has been rogue-like behavior.    As a proud member of NCRC we join in its comments.  The central point of CRA is ensuring that banks meet local needs. For agencies to ascertain that, they must listen carefully to the public.   But Otting has shown that he does not, or does so only selectively. The proposal must be rejected. We will have further comments. Matthew R Lee Fair Finance Watch (and Inner City Press) New York.

Your comment was submitted successfully! Comment Tracking Number: k7n-zxq6-onzv  Your comment has been sent for review. This process is dependent on agency public submission policies/procedures and processing times. Watch this site

March 9, 2020

As CFPB Evades Public Process With Advisory Opinions Its Whitewash of Mortgage Continues With Attack on CRA

By Matthew Russell Lee, Patreon
Honduras - The Source - The Root - etc

Bronx / SDNY, March 6 –  With US Comptroller of the Currency Joseph Otting formally moving along with the FDIC to undermine the  Community Reinvestment Act, on January 11 Inner City Press / Fair Finance Watch filed a CRA protest with the OCC to Community Bank NA's application to acquire Steuben Trust Company. The Otting's OCC is now trying to intimidate groups with phone "interviews" of which the OCC won't show the target their write-ups.

  On March 6 the Consumer Financial Protection Bureau (CFPB) announced "plans to create an advisory opinion program which, if enacted, would circumvent the public notice-and-comment process, a pillar of our government and democracy. The intent of the advisory opinion program, according to the CFPB, would be to provide clear guidance to assist companies in better understanding their legal and regulatory obligations through advisory opinions. But in actuality, the CFPB is proposing to sidestep the usual public notice-and-comment rulemaking process under the Administrative Procedures Act, and the congressionally-mandated process for providing interpretations of the Truth and Lending Act.       Worse, once these interpretations are issued, they could be entitled to a level of deference almost equal to that of regular rulemaking, outside of the context of the original requester. Agencies that issue advisory opinions usually end up with a welter of contradictory, mostly pro-industry interpretations that have the long-term impact of undermining the credibility of the agency and the deference accorded to it." This is a pattern.

The CFPB under Kathy Kraninger issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page and this December 16 filing with FDIC, cc-ed to the CFPB:

December 16, 2019  Via e-mail

Federal Deposit Insurance Corporation Attn: John Vogel, Regional Director and Doreen R. Eberley, Jim Watkins, Robert P. Cordeiro, Scott D. Strockoz 350 Fifth Avenue, Suite 1200 New York, NY 10118-0110  

Re: Timely First Comment on Applications by Flushing Bank to Acquire Empire National Bank 

Dear Regional Director Vogel and others at the FDIC:  

This is a timely first comment opposing and requesting an extension of the FDIC's public comment period on the Applications by Flushing Bank to Acquire Empire National Bank.   

Flushing Bank in 2018, for race specified loans, made six times more loans to whites than to African Americans, entirely out of keeping with the demographics of its market.   

Compare the demographics of its lending to the geography: 68 loans to Queens, 35 in Manhattan, 27 in The Bronx, 35 in Manhattan, five on Staten Island and 24 in Westchester County.    

Inner City Press / Fair Finance Watch would like to and has a right to submit more detailed HMDA data. But for the record, the Consumer Financial Protection Bureau for 2018 data has unilaterally removed the ability of the public to view HMDA data by race on its website, which the FFIEC / Federal Reserve allowed in previous years and the CFBP did even in 2017.

Inner City Press / Fair Finance Watch contends that the CFPB's move is both anti-public and illegal.    

March 2, 2020

As CFPB Whitewashed Mortgage Data It Proposes Business Lending Timeline in ND CAL

By Matthew Russell Lee, Patreon
Honduras - The Source - The Root - etc

Bronx / SDNY, Feb 27 –  With US Comptroller of the Currency Joseph Otting moving along with the FDIC to undermine the  Community Reinvestment Act, in February 2020 Inner City Press / Fair Finance Watch filed a CRA protest with the OCC to the application by Community Bank NA to buy Steuben Trust, here.

The Consumer Financial Protection Bureau under Kathy Kraninger issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page and the December 16 filing with FDIC, cc-ed to the CFPB, below.
 
  Now while still withholding race and ethnic information from HMDA data available for view on its website, the CFPB has been forced into a settlement about business lending data: "a settlement agreement filed with the U.S. District Court for the Northern District of California, the Consumer Financial Protection Bureau will agree to concrete court-ordered deadlines for implementing Section 1071 of the Dodd-Frank Act, which requires the agency to collect and disclose data on discriminatory lending to America’s small businesses. After unlawfully delaying this requirement for years, the CFPB must also submit status reports updating the public on its progress. Today marks a milestone victory for addressing the credit barriers small business owners face across the country — particularly women and entrepreneurs of color.  The settlement agreement was reached in response to a lawsuit... According to the agreement, the CFPB will:  By September 2020, outline its proposals for collecting the required data and publicly release those proposals for consideration of their effect on small businesses; By October 2020, establish a Small Business Advocacy Review panel to provide input on its proposal. CFPB will take panelist suggestions from the small business plaintiff groups; Negotiate deadlines with the plaintiffs for each stage of the rulemaking process to facilitate the data collection, including the deadline to issue the final data collection rule, and accept Court-ordered deadlines if the parties cannot agree; and Submit status reports every 90 days detailing the CFPB’s progress toward implementing this data collection rule. The joint settlement agreement was submitted to the Court on Wednesday, February 26, 2020. The agreement is subject to final Court approval." Inner City Press will follow this. CRC and many other NCRC members remain on the case.

February 24, 2020

Community Reinvestment Act Attack by Otting Continues But With Comments to April 9

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SOUTH BRONX, Feb 19 –   The current US Comptroller of the Currency Joseph Otting cashed out of his position with OneWest Bank in California by overseeing fake comments in favor its acquisition by the CIT Group.

   Then, emboldened, he devoted the Office of the Comptroller of the Currency to weakening or destroying the Community Reinvestment Act which provides for the public process that he subverted with fake comments.

   Inner City Press, which opposed the merger and then pursued a Freedom of Information Act request for all documents about Otting's fraud, soon found its and Fair Finance Watch's comments to the OCC being rejected, or ignored, or returned. 

  While Inner City Press' FOIA requests get fee waivers from the Federal Reserve and a range of agencies in the US and beyond, Otting's OCC suddenly started denying them, hindering access to the merger applications on which CRA is enforced.   

Otting is trying to push through this CRA-killing proposal on a short comment period, cognizant of the other CRA, the Congressioal Review Act. But it is obvious that even banks want more time.

On January 26, in advance of Otting's belated January 29 House of Representatives appearance, Inner City Press / Fair Finance Watch submitted a formal comment, below. It included a demand that Otting recuse himself (not yet acted on) and a request for an extension of the comment period.

  Now on February 19 from FDIC, this: "FDIC and OCC Announce 30-day Extension of Comment Period for Proposed Changes to Community Reinvestment Act Regulations WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency (OCC) today extended the public comment period for proposed changes to the regulations implementing the Community Reinvestment Act (CRA) until April 8, 2020.  On December 12, 2019, the FDIC and OCC announced a proposal to modernize the regulations under the CRA and provided for a 60-day comment period following formal publication on January 9, 2020 in the Federal Register (85 FR 1204). The FDIC and OCC have now determined that a 30-day extension of the comment period is appropriate."

  So, April 9, more to follow. But Otting must still be recused.

February 17, 2020

Community Reinvestment Act Attack by Otting Questioned In FOIA For Bank Meetings By Inner City Press

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SOUTH BRONX, Feb 12 – The current US Comptroller of the Currency Joseph Otting cashed out of his position with OneWest Bank in California by overseeing fake comments in favor its acquisition by the CIT Group.

   Then, emboldened, he devoted the Office of the Comptroller of the Currency to weakening or destroying the Community Reinvestment Act which provides for the public process that he subverted with fake comments.

  On February 12, Inner City Press submitted a FOIA request: "Dear OCC FOIA Officer: On behalf of Inner City Press, Fair Finance Watch and in my personal capacity this request for records pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, and OCC regulations. On an expedited basis, this is a request for all record regarding the OCC's January 30, 2020 Meeting with Consumer Bankers Association (CBA) bankers [including

Yvonne Blumenthal, US Bank (Chair)  Lloyd Brown, Citigroup (Vice Chair)  Kelli Arnold, KeyBank  Reza Aghamirzadeh, Citizens Financial Group  Nathalia Artus, Atlantic Union Bank  Jan Bergeson, Ally  Tonya Billings, Independent Bank  Norm Bliss, Bank of the West  Len Bolton, Rockland Trust  Melissa Borino, BMO Harris  Sunada Brookins, Hancock Whitney Bank  Doug Craycraft, Chase  Jennifer Creger, Crescent Bank & Trust  Christina Cudney, United Bank  Jon Davies, Regions  Brad Dossinger, M&T Bank  Scott Fujii, Bank of Hawaii  Alberto Garofalo, Bank of America  Staci Glenn Short, Huntington  Emmanuel Glover, TCF  Seth Goodall, Santander  Joseph Hernandez, TIAA  Amy Howcroft, PNC  Angela Hudson, Bank OZK  Sharon Jeffries-Jones, Truist  Matthew Joy, Mechanics Bank  Lori-Anne Lawton, Webster Bank  Christine Lloyd, HSBC  Robert Manuel, Wells Fargo Bank  Jim Matthews, Capital One  Roddell McCollough, First Financial Bank  Chris McGillis, BBVA Compass  Beverly Meek, Flagstar  Kapil Narang, Ameriprise  Cathy Niederberger, PNC Bank  Donna Normandin, Frost Bank                                                                           , Rey Ocanas, Byron Reed, CIT  Karl Renney, Eastern Bank  Julius Robinson, MUFG Union Bank, N.A.  Kathleen Robinson, TD Bank  Bobbie Salgado, MUFG Union Bank, N.A  Doug Schaeffer, WoodForest  Camino Smith, Banner Bank  Natalie Smith Parker, Synovus  Christopher Stelma, First Commonwealth  Beth Trotter, IBERIABANK  Alan Urie, Synchrony  Paul Vicente, Fifth Third  Amy Walls, Discover

All that has been disclosed is:  "On January 29, 2020, representatives from the Office of the Comptroller of the Currency (OCC) participated in a conference call with representatives of CBA member banks regarding the Community Reinvestment Act (CRA) notice of proposed rulemaking (NPR)1 and the associated request for information (RFI).2  The discussion focused on several aspects of the CRA NPR and RFI, including (1) the information and data requested in the RFI, (2) the implementation timeframe, (3) the retail lending distribution tests, (4) data aggregation, (5) where banks will receive credit for qualifying activities, (6) the empirical benchmarks and thresholds, (7) credit for retail loan originations, and (8) data collection."    That is laughable and abusive as it does not contain any information about what the banks, or the OCC, said, in the middle of an already flawed rulemaking process. The records should be provided on an expedited basis and under a FOIA fee waiver Inner City Press has become aware Otting's OCC grants to others, non-media, while denying to ICP in retaliation.    ICP also again requests copies of records sufficient to show all of Comptroller Otting's scheduled meetings, appointments, and scheduled events from the date he became Comptroller to the date of your response including but not limited to Outlook calendar entries and daily briefing books for Comptroller Ottings on those dates.

February 10, 2020

  As Otting's OCC continues its assault on the CRA, even as Otting was outed in another House hearing last week for his fake comments on OneWest - CIT, the OCC stands poised to reward with an approval to buy Fairport Savings none other than Evans Bank, which settled redlining charges. Otting, of course, has never himself seen any discrimination, only heard about it from his family...

February 3, 2020

As House Sees OCC Attacks on CRA Otting Contempt For Protest to Steuben Trust Bid By Community Bank NA

By Matthew Russell Lee, Patreon
The Source - The Root - etc

Bronx / DC, Feb 1 –  With US Comptroller of the Currency Joseph Otting on December 12 formally moving along with the FDIC to undermine the  Community Reinvestment Act, now with comment period to March 9, two hearings have been held in the House Financial Services Committee. And see our comment here.

On January 11 Inner City Press / Fair Finance Watch filed a CRA protest with the OCC to Community Bank NA's application to acquire Steuben Trust Company. It was filed electronically, but there was no response at all from the OCC until a snail-mailed January 27 letter stating "The OCC has decided not to extend the comment period and will not hold a public hearing/meeting." This is Otting's OCC.

January 27, 2020

To Kill Community Reinvestment Act Otting Vows No Delay As His Staff Intimidate Groups

By Matthew Russell Lee, Patreon
Honduras - The Source - The Root - etc

Bronx / SDNY, Jan 23 –  With US Comptroller of the Currency Joseph Otting, himself shown to have use fake comments to get paid for selling OneWest to CIT, trying to manipulate the comment period on his proposal to further weaken the  Community Reinvestment Act, on January 22 he bragged that nothing will stop him.

  And in fact, he has deployed OCC staffers once viewed as benign to try to intimidate community groups which have opposed his plan. Inner City Press, denied documents by Otting under FOIA, has been contacted by dozens of groups. They say they have received "weird" calls from OCC staff, who grill them about their views and say they will not provide the notes of the conversations to them.

  The OCC staffers range from NIMBY Barry Wides to Tim Herwig, Denise Kirk-Murray and Norma Polanco-Boyd, among others. Even moderate groups are expressing disgust. But Otting is racing to beat the CRA - not only the Community Reinvestment Act, which he has hated since his OneWest days, but the Congressional Review Act. This is shameful. Inner City Press will have more on this.

  On December 16 Inner City Press / Fair Finance Watch filed a CRA protest with the FDIC to Flushing Bank's application to acquire Empire National Bank, see below. Since then it has commented to the OCC on Community Bank NA - so far without any action at all. The OCC under Otting is gutting the CRA.

January 20, 2020

On OCC Attack on CRA Even Bankers Say More Analysis Needed As Gramm Chimes In

By Matthew Russell Lee, Patreon
The Source - The Root - etc

Bronx / DC, Jan 15 –  With US Comptroller of the Currency Joseph Otting on December 12 formally moving along with the FDIC to undermine the  Community Reinvestment Act, now with comment period to March 9, on January 14 a hearing was held in the House Financial Services Committee - about but without Otting, a regulator not only rogue but also reclusive. He will appear, it is said, later in the month.

 And in advance of that, even the bankers' trade group Consumer Bankers Association has written to the House that "More analysis must be undertaken by  stakeholders to better understand the impact the new metrics that will be used to measure  CRA activity for individual institutions and the communities they can serve.     It is crucial that the OCC and FDIC engage with  stakeholders to carefully analyze the real impact of the proposed changes on CRA deserts and  hot spots, to make sure that sufficient incentives are provided to induce banks to serve the  hard-to-reach areas that are most in need of investment."

  Perhaps that's why OCC has taken to contacting some groups outside of the too-short formal commenting process. Will such contacts - some say intimidation - be subject to FOIA, unless Otting undermines it by imposing outrageous fees?

  Former Senator Phil Gramm has chimed in in the Wall Street Journal, linking Otting's proposal to a movement to free banks to lend to payday lenders. Indeed.

  At the January 14 hearing, Rep. Pressley of Massachusetts, for example, pointed out that under Otting's and the FDIC's proposal, a bank could get CRA credit for funding a stadium and jumbotron in low or moderate income area, and other forms of gentrification.

  Too little, however, was said of Otting's attacks since he took office on the enforcement mechanism of CRA: the public comment process on proposed mergers. Otting has denied access to merger application by imposing unheard of fees, and has refused to consider timely comments. We'll have more on this - including in connection with merger comments just filed, see, below.

  The January 14 session was entitled "The Community Reinvestment Act: Reviewing Who Wins and Who Loses with Comptroller Otting's Proposal;" it was held in the Subcommittee on Consumer Protection and Financial Institutions. See Periscope video here (including Inner City Press / Fair Finance Watch live comments.)

January 13, 2020

Now FDIC and Otting Attack on CRA March 9 Deadline As Wells Fargo Tries To Censor

By Matthew Russell Lee, Patreon
Honduras - The Source - The Root - etc

Bronx / SDNY, Jan 9 –  With US Comptroller of the Currency Joseph Otting on January 9 formally publishing notice in the Federal Register along with the FDIC to undermine the  Community Reinvestment Act, the too-short comment period is set: to March 9. Notice here.

  Meanwhile Wells Fargo, one of the less than a handful of banks which dominate the industry in the United States, is asking a federal court to shut down a website. 

  Wells Fargo's motion, filed on January 8, complains that "Defendants have re-posted the very website that defames and threatens Wells Fargo and its employees, agents, attorneys, and vendors involved in this litigation. See Exhibit A, http://www.wwshrimp.com, Website Screen Shots captured 1/7/20. Defendants should now be immediately ordered to take down the Website and should be permanently enjoined from re-posting any of its content again in any public forum."  More on Patreon here.  

    While describing a bank or its lawyers as prostitutes is not nice - and may as to the bank reverse the analysis - Inner City Press finds it highly problematic that a mega-bank, particularly one so recently bailed out by the public, should be trying to shut down a website.

January 6, 2020

In SDNY Schwab - TD Bank Proposed Tie Up Faces Antitrust Suit by Asian American Firm

By Matthew Russell Lee, Exclusive Patreon
BBC - The Times UK - Honduras - The Source 

SDNY COURTHOUSE, Dec 31 – A major proposed merger in the brokerage and banking fields was announced on the morning of November 25: Charles Schwab proposes to buy TD Ameritrade in an approximately $26-billion US all-stock deal. The deal would see Toronto-Dominion Bank, which holds approximately 43 per cent of TD Ameritrade's stock, own a roughly 13 per cent stake in the combined company.

   Inner City Press has reported that fraud scheme OneCoin publicly represented that it had a banking relationship with TD Bank. When action was belatedly (and begrudgingly) taken, questions arise and will be raised as to what TD Bank knew, and when.

  And now in late December Schwab has been sued about the deal, on antitrust grounds under Sections 1 and 2 of the Sherman Act and Section 7 of the Clayton Act.

  Reports on the suit to date have omitted a key element: the plaintiff, BlackCrown Inc., describes itself in the amendment complaint filed on December 30 as "an independent minority (Asian American) owned and operated SEC registered independent wealth management firm (CRD #298140 / SEC # 801-113929)."

 Antitrust meets fair lending, or fair dealing. The amendment should have been seen to be coming, as the complaint said the proposed merger would “disenfranchise a great segment of the industry by effectively establishing a caste system.”    Ordering TD Ameritrade’s custodial business sold to BlackCrown would “dissipate the anti-competitive effects” of the planned merger, the suit says. Alongside following the states' suit against the proposed T-Mobile / Sprint merger, Inner City Press will be following this (even) longer-shot private antitrust case - watch this site.

   As Inner City Press covered the OneCoin trial last month, a number of names of indicted co-conspirators emerged on which we are now following up.

  One of them was Amer Abdulaziz Salman. From his Phoenix Thoroughbred's, Inner City Press is informed that Dermot Farrington has left.

    As Inner City Press exclusively reported on November 6, surprise cooperating witness Konstantin Ignatov brought up Amer Abdulaziz during his testimony, live-tweeted @InnerCityPress, and see here.

December 30, 2019

Community Reinvestment Act Assault By OCC Joined In By Federal Reserve Hiding Mergers CFPB Hiding Data

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - CJR - PFT

SDNY / BRONX, Dec 28 – The assault against the U.S. Community Reinvestment Act, begun by Comptroller of the Currency Joseph Otting then joined in by the FDIC and the Consumer Financial Protection Bureau withholding mortgage data, has reached the Federal Reserve. 

 For months the Federal Reserve has first slowed down its disclosure of pending merger applications on which the public can comment under CRA, and now outright hide them, such that on its website no proposed mergers have open comment periods. Call it the death, or attempted murder, of the Community Reinvestment Act.

  Alongside comments to the OCC and FDIC, Inner City Press / Fair Finance Watch on December 28 filed comments with the Federal Reserve: Dear Chair Powell, Secretary Misback, others in FRB:   On behalf of Inner City Press / Fair Finance Watch and in my personal capacity, this is questionlessly tiemly protest to one sample application, a complaint about the FRB's failure update its H2A, and on the withholding of 2018 HMDA data in online form by CFPB and other FFIEC regulators including the FRB - and a demand for actions.     Currently as of December 28, the most recent application on the FRB's online H2A has a comment period ending December 20 - that is, already closed. This negligence, or intentional exclusion of the public, has been the case at the FRB for months. All comment periods must be re-opened.    

Here is a timely protest to one sample application that (only) the Federal Register tells us has a comment period expiring "not later than December 30, 2019.A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690-1414:1. Bosshard Financial Group, Inc., La Crosse, Wisconsin; to merge with Northern Bankshares, Inc., and thereby indirectly acquire Mc  Farland State Bank, both of McFarland, Wisconsin.Board of Governors of the Federal Reserve System, November 25, 2019."    

Second and more systematic problem, that must be solved or all comment periods extended: the Consumer Financial Protection Bureau for 2018 data has unilaterally removed the ability of the public to view HMDA data by race on its website, which the FFIEC / Federal Reserve allowed in previous years and the CFBP did even in 2017. Inner City Press / Fair Finance Watch contends that the CFPB's move is both anti-public and illegal.     

Given this situation, which must be addressed, for now Inner City Press timely submitted the two attached photos from the CFPB's disturbingly and intentionally stripped down site. In 2018 in Wisconsin, McFarland made 206 loans to white, and only three to African Americans. This is an interim protest; the comment period(s) must be extended.  

Here are some more applications not in the FRB's H2A, requiring explanation and extension of comment periods: 

not later than December 20, 2019.  A. Federal Reserve Bank of Atlanta (Kathryn Haney, Assistant Vice President) 1000 Peachtree Street NE, Atlanta, Georgia 30309. 1. BCI Financial Group, Inc., Miami, Florida; to merge with Executive Banking Corporation, and thereby indirectly acquire Executive National Bank, both of Miami, Florida. In connection with this proposal, Bci Financial Group, Inc.'s parent companies, Empresas Juan Yarur SpA and Banco de Credito e Inversiones S.A., both of Santiago, Chile, to indirectly acquire Executive Banking Corporation and Executive National Bank.   not later than December 20, 2019.  A. Federal Reserve Bank of St. Louis (David L. Hubbard, Senior Manager) P.O. Box 442, St. Louis, Missouri 63166-2034. 1. Citizens Union Bancorp of Shelbyville, Inc., Shelbyville, Kentucky; to merge with Owenton Bancorp, Inc., and thereby indirectly acquire Peoples Bank & Trust Company, both of Owenton, Kentucky.   

not later than January 23, 2020.  A. Federal Reserve Bank of St. Louis (David L. Hubbard, Senior Manager) P.O. Box 442, St. Louis, Missouri 63166-20341. Comments can also be sent electronically to Comments.applications@stls.frb.org:   First Horizon National Corporation, Memphis, Tennessee; to acquire IBERIABANK Corporation and thereby indirectly acquire IBERIABANK, both of Lafayette, Louisiana.   

B. Federal Reserve Bank of New York (Ivan Hurwitz, Senior Vice President) 33 Liberty Street, New York, New York 10045-0001. . Barclays US Holdings Limited, New York, New York; a company organized under the laws of the Cayman Islands, to become a bank holding company by acquiring Barclays US LLC, also of New York, New York, and thereby indirectly acquire Barclays Bank Delaware, Wilmington, Delaware. In addition, Barclays PLC and Barclays Bank PLC, both of London, England, to retain Barclays US Holdings Limited and thereby indirectly acquire Barclays US LLC and Barclays Bank Delaware.  

not later than January 9, 2020.  A. Federal Reserve Bank of New York (Ivan Hurwitz, Senior Vice President) 33 Liberty Street, New York, New York 10045  1. First Bancorp, San Juan, Puerto Rico; to acquire Santander BanCorp and thereby indirectly acquire Banco Santander Puerto Rico, both of San Juan, Puerto Rico. In addition, FirstBank Puerto Rico, San Juan, Puerto Rico, to become a bank holding company for a moment in time by acquiring Santander BanCorp and thereby indirectly acquiring Banco Santander Puerto Rico.

      In this context, Inner City Press / Fair Finance Watch is demanding an extension of all comment periods by the FRB, its intervention with the CFPB to restore access on the website itself to 2018 HMDA data, and on the current record the denial by the FRB of these application(s). Thank you for your prompt attention, Matthew R. Lee Inner City Press / Fair Finance Watch

  Watch this site.

December 23, 2019

Protest to Flushing Bank Empire After FDIC Joins Otting Assault on CRA Amid Whitewash of Mortgage Data

By Matthew Russell Lee, Patreon
Honduras - The Source - The Root - etc

Bronx / SDNY, Dec 16 –  With US Comptroller of the Currency Joseph Otting on December 12 formally moving along with the FDIC to undermine the  Community Reinvestment Act, on December 16 Inner City Press / Fair Finance Watch filed a CRA protest with the FDIC to Flushing Bank's application to acquire Empire National Bank, see below.

  On December 12 in a badly-webcast FDIC meeting Director Jelena McWilliams said that where she was born there is a phrase about if you can't go to the Hill, the Hill comes to you - the reference was to Rep. Maxine Waters - the FDIC sold its credibility to Otting. And why then are the regulators like the FDIC, now with the connivance now only of the OCC but also CFPB, making it harder for the public to enforce CRA?

The Consumer Financial Protection Bureau under Kathy Kraninger issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page and this December 16 filing with FDIC, cc-ed to the CFPB:

December 16, 2019  Via e-mail

Federal Deposit Insurance Corporation Attn: John Vogel, Regional Director and Doreen R. Eberley, Jim Watkins, Robert P. Cordeiro, Scott D. Strockoz 350 Fifth Avenue, Suite 1200 New York, NY 10118-0110  

Re: Timely First Comment on Applications by Flushing Bank to Acquire Empire National Bank 

Dear Regional Director Vogel and others at the FDIC:  

This is a timely first comment opposing and requesting an extension of the FDIC's public comment period on the Applications by Flushing Bank to Acquire Empire National Bank.   

Flushing Bank in 2018, for race specified loans, made six times more loans to whites than to African Americans, entirely out of keeping with the demographics of its market.   

Compare the demographics of its lending to the geography: 68 loans to Queens, 35 in Manhattan, 27 in The Bronx, 35 in Manhattan, five on Staten Island and 24 in Westchester County.    

Inner City Press / Fair Finance Watch would like to and has a right to submit more detailed HMDA data. But for the record, the Consumer Financial Protection Bureau for 2018 data has unilaterally removed the ability of the public to view HMDA data by race on its website, which the FFIEC / Federal Reserve allowed in previous years and the CFBP did even in 2017.

Inner City Press / Fair Finance Watch contends that the CFPB's move is both anti-public and illegal.    

For further context, last week the FDIC opted in a party line vote to go with the OCC of ex-banker Otting which is trying to further weaken the CRA, and has already in rogue-like fashion barred the public from comment on charter conversion and even merger applications like that involving Chinatown FSB earlier this year.   

In this context, Inner City Press / Fair Finance Watch is demanding an extension of this comment period by the FDIC, its intervention with the CFPB to restore access on the website itself to 2018 HMDA data, a reversal of the FDIC's anti-CRA moves, and on the current record the denial by the FDIC of these application(s).  Thank you for your prompt attention, 
Matthew R. Lee
Inner City Press / Fair Finance Watch

December 16, 2019

FDIC Joins Otting To Deregulate Banks As CFPB Hides Mortgage Data

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Dec 12 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, one of his moves this year has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

 Now on December 12 the Federal Deposit Insurance Corporation has joined Otting's assault on CRA. In a badly webcast FDIC meeting Director Jelana McWilliams said that where she was born there is a phrase about if you can't go to the Hill, the Hill comes to you - the reference was to Rep. Maxine Waters - the FDIC sold its credibility to Otting. Can the Federal Reserve be far behind?  And why then are the regulators like the OCC, now with the connivance of the CFPB, making it harder for the public to enforce CRA?

With the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page and see below.

  Now with this CFPB abuse still unaddressed, including in an evasive response from CFPB this week, from Capitol Hill, this: "United States Senator Elizabeth Warren (D-Mass.), member of the Senate Banking, Housing, and Urban Affairs Committee, and Representative Jesús “Chuy” García (D-Ill.), member of the House of Representatives Committee on Financial Services, today announced the introduction of the Bank Merger Review Modernization Act. The legislation would restrict harmful consolidation in the banking industry and protect consumers and the financial system from “Too Big to Fail” institutions, like those that caused the 2008 financial crisis. The upcoming merger between SunTrust Banks, Inc. (SunTrust) and BB&T Corporation (BB&T) will create the sixth-largest U.S. bank and first new Too Big to Fail bank since the financial crisis. Representatives Jan Schakowsky (D-Ill.) and Rashida Tlaib (D-Mich.) are original House cosponsors of the bill.  “Nearly two years ago, Chairman Powell confirmed my worst suspicions that the Fed has not declined a single merger request since before the financial crisis,” said Senator Warren. “The bill Congressman García and I are announcing today would ensure that regulators do their jobs by stopping mergers that deprive communities of the banking services they need, reward banks that cheat or discriminate against their customers, and risk another financial crisis.     “When big banks get bigger, consumers and taxpayers usually lose. We must protect our financial system by slowing down bank consolidation. This bill will help address this, taking the Fed and FDIC off autopilot and giving consumers a voice in reviewing bank mergers,” said Congressman García." This is one of the steps that is needed.

  After various attempts to get CFPB to acknowledge its outrageous move in disenfranchising grassroots groups from the data meant to benefit them, which we will leave UNdescribed for now, Inner City Press on November 7 submitted a FOIA request see below. The CFPB has acknowledged receipt, but says it has a unspecified backlog and has denied the request for expedited processing because it does not think redlined communities defending their rights and lives with the CRA is urgent.

Now on December 3 from the CFPB, more evasion with a list of downloaded and bookmarks that do not being to replace what CFPB unilaterally removed. Brenda Muñiz  Office of Public Engagement and Community Liaison  Consumer Financial Protection Bureau lists downloads and a pre-formatted search not even yet available. CFPB has now whitewashed data and protected banks and bank mergers for months. This must immediately end and those responsible be named and held accountable: Until the CFPB unilaterally decided to whitewash was had previously been available as an on-website, no-download / no-Excel search could show denial rates. This was and is an arrogant move by the CFPB which disempowers grassroots groups and makes it significantly more difficult for others, including journalists, to examine mortgage discrimination. We continue to demand reversal - and the names of and reasoning used by those at CFPB who decided to do this. Watch this site.

December 9, 2019

FDIC Backsliding With Otting To Deregulate Banks Raised in DC As CFPB Hides Mortgage Data

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Dec 5 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, one of his moves this year has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

 Now the Federal Deposit Insurance Corporation is sliding toward joining Otting's assault on CRA, but was questioned this week in the US Senate:

Q: the FDIC could give the smaller banks that regulates the choice of opting into this new OCC led CRA regulatory framework or continuing to be examined under the current system. That could lead to a situation where banks themselves choose to participate in the model that gives them the best grade and not the one that best measures whether their activities are effectively addressing the needs of their communities.          If adopted, do you know what percentage of FDIC regulated banks would the choice to opt into the OCC approach?         

JELENA MCWILLIAMS:  So, the -- the proposal is still being worked. One of the options we considered was the opt-out for small banks -- I'm sorry, opt-in, opting into the new regime or keeping the existing regime. The main reason for the opt-in opportunity would be to provide an ability for small banks not to have to change their reporting requirements and their -- how they go through the analysis of what qualifies for the CRA. Small banks - the number of small banks will - if they decide to opt in would depend on what threshold we pick for the cut off.         

MENENDEZ:  So you don't know yet what number because you haven't decided on the threshold?         

MCWILLIAMS:  It's not - it's not firm. We are looking at numbers and making sure...        

MENENDEZ:  But I hope that other than - we want small banks, yes, to have less response - less necessity in terms of paperwork but we don't want them to have less necessity or obligation in terms of creating a portal of opportunity under the CRA. If most FDIC-regulated banks would be able to opt in, then aren't you - if that's what happens, then aren't you simply making a political calculation that best protects the interest of the banks you're charged with regulating over those who stand to benefit from a strong CRA rule. Isn't in essence the threshold going to determine whether that's the reality or not?         

MCWILLIAMS:  No, actually it is not. The reason that I'm willing to consider a reform to the Community Reinvestment Act is because the Act has not been revisited since 1995 by the regulators and Congress. You gave us the authority to take a look at the Act and make sure it serves its intended purpose.          Currently we have digital delivery channels for banks that are not necessarily accounted for appropriately in the current assessment areas. The way the deposit taking now takes place is everything gets attributed to a branch and now it will be the digital channels - excuse me. There's a lot of deposit taking that's taking place outside of this area and we want to make sure that under the reform of the CRA, those areas where the digital banks are functioning and offering - and taking deposits and offering services are served by the CRA."  But why then are the regulators like the OCC, now with the connivance of the CFPB, making it harder for the public to enforce CRA?

December 2, 2019

TD Bank Seeks To Own 13% of Schwab After OneCoin Bragged Of TD Bank Relationship

By Matthew Russell Lee, Exclusive Patreon
BBC - The Times UK - Honduras - The Source 

SDNY COURTHOUSE, Nov 25 – A major proposed merger in the brokerage and banking fields has been announced on the morning of November 25: Charles Schwab proposes to buy TD Ameritrade in an approximately $26-billion US all-stock deal. The deal would see Toronto-Dominion Bank, which holds approximately 43 per cent of TD Ameritrade's stock, own a roughly 13 per cent stake in the combined company.  "This transaction will deliver significant value for TD and provide us with an ownership stake in one of the most innovative and highly regarded investment firms in the U.S.," TD Bank chief executive Bharat Masrani said.

   Inner City Press has reported that crypo currency scheme OneCoin publicly represented that it had a banking relationship with TD Bank. When action was belatedly (and begrudgingly) taken, questions arise and will be raised as to what TD Bank knew, and when. Watch this site.

   As Inner City Press covered the OneCoin trial this month, a number of names of indicted co-conspirators emerged on which we are now following up.

  One of them was Amer Abdulaziz Salman. From his Phoenix Thoroughbred's, Inner City Press is informed that Dermot Farrington has left.

    As Inner City Press exclusively reported on November 6, surprise cooperating witness Konstantin Ignatov brought up Amer Abdulaziz during his testimony, live-tweeted @InnerCityPress, and see here.

  On November 24 those tweets were used without any credit in a derivative article by the Racing Post's Peter Scargill - apparently dodginess pervades this part of the industry.

  Inner City Press has been contacted from Dubai of Sheikh Mohammed bin Rashid al Maktoum, from Amer Abdulaziz's native Bahrain and elsewhere by whistleblowers in the horse racing industry, with extensive information about Amer Abdulaziz's previous schemes and sudden windfall with OneCoin money.

  Abdulaziz for example was outed as not paying for three horses, with it being for uncredited reported that Fasig-Tipton had not received payment for grade I winner Crisp and the broodmares Little Bonnet and Sky Mom, who were sold for more than $1.9 million combined...

November 25, 2019

Rogue Regulator Otting of OCC Moves to Launder Predatory Loans As Valid When Made

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Nov 8 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to move to laundering high-cost loans by calling them "valid when made." See legal analysis here.

  The FDIC is poised to follow suit; the issue is on the FDIC board meeting agenda for November 19.

Now with the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger has launched a no action letter process for fintech, giving assurances without any public notice or comment that activities can be undertaken with no concern about enforcement. See here.

In September Kraninger's CFPB issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page.

  Now after various attempts to get CFPB to acknowledge its outrageous move in disenfranchising grassroots groups from the data meant to benefit them, which we will leave UNdescribed for now, Inner City Press on November 7 submitted a FOIA request see below. The CFPB has acknowledged receipt, but says it has a unspecified backlog and has denied the request for expedited processing because it does not think redlined communities defending their rights and lives with the CRA is urgent.

"Dear Mr. Lee: This letter is to inform you that on November 8, 2019, the Consumer Financial Protection Bureau (CFPB) received your Freedom of Information Act (FOIA) request dated November 7, 2019.  Your request sought: [a]ll records regarding the CFPB's decision / action to make the 2018 Home Mortgage Disclosure Act data only available for download (the so-called data filter) rather then searchable and viewable in reports on the CFPB website as was the case for the 2017 data. Please be advised that the CFPB FOIA Office has a backlog of pending FOIA requests.  We are diligently working to process each request in the order in which it was received.  Your patience is greatly appreciated.  The CFPB FOIA regulations found at 12 C.F.R. Part 1070 specifically define “representative of the news media” as “any person or entity that gathers information of potential interest to a segment of the public, uses its editorial skills to turn the raw materials into a distinct work, and distributes that work to an audience.”  Based on the information contained in your request, the CFPB has granted your request to be considered a “representative of the news media"... Your request for expedited processing is Denied because you failed to demonstrate a particular urgency to inform the public about the government activity involved in the request beyond the public’s right to know about government activity generally." Really?

The request: "Dear CFPB Chief FOIA Officer:  Pursuant to the federal Freedom of Information Act, 5 U.S.C. § 552, I request from the CFPB any and all records as that term is defined in FOIA regarding the CFPB's decision / action to make the 2018 Home Mortgage Disclosure Act data only available for download (the so-called data filter) rather then searchable and viewable in reports on the CFPB website as was the case for the 2017 data.

     To assist you in rapidly providing the requested information - this is a request for expedited treatment given that the withholding in accessible format of the 2018 data each day hinders low income community groups from commenting on bank mergers, the only enforcement mechanism of the Community Reinvestment Act to prevent bank redlining - be aware that the issue has been raised to CFPB staff in a number of conference calls including most recently to, inter alia  Brenda Muniz, Tim Lambert [some names redacted in this format.]

  These CFPB staffers were directly asked by the undersigned who at CFPB made the decision to curtail availability of HMDA data in simple format on the website. Knowing which government agency official made such a decision is a sine qua non of FOIA: the information should be provided an expedite basis, as well as all related documents." Watch this site.

November 18, 2019

Deutsche Bank RMBS Fraud Leads To $500,000 Civil Penalty Against Former Exec In EDNY

By Matthew Russell Lee, Video, Q&A, HK here

FEDERAL COURTHOUSE, Nov 14 –  Deutsche Bank, which profited as trustee from predatory mortgage lending, has also been raided for money laundering, see below. In the SDNY trial OneCoin trial Inner City Press has been covering daily since November 4, here, Deutsche Bank keeps coming up in connection with money laundering for Ruja Ignatova. Now on November 14 from across the East River in Brooklyn, this: "The United States has reached agreement with Paul Mangione, a former Deutsche Bank executive, to settle a civil action filed in September 2017 in which the United States sought civil penalties for Mangione’s conduct in connection with Deutsche Bank’s marketing and sale of two residential mortgage-backed securities (RMBS) in 2007. The agreement provides for payment of $500,000 in civil penalties in exchange for dismissal of the complaint. Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the settlement. “This Office’s settlement with a bank executive in connection with RMBS fraud reflects our commitment to holding individuals accountable for their role in corporate fraud,” stated United States Attorney Donoghue. Mr. Donoghue thanked the Federal Housing Finance Agency’s Office of the Inspector General for its assistance in conducting the investigation in this matter. The complaint in the action, United States v. Paul Mangione, alleged that Mangione, a former Managing Director and head of subprime trading at Deutsche Bank, engaged in a scheme to defraud investors in two Deutsche Bank RMBS, ACE 2007-HE4 and ACE 2007-HE5, by misrepresenting the characteristics of the loans backing the two securities and misleading potential investors about the loan origination practices of Deutsche Bank’s wholly-owned subsidiary, DB Home Lending LLC (f/k/a Chapel Funding, LLC), which originated a number of the loans backing the two RMBS. The complaint stated claims for relief under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), based on mail fraud and wire fraud."

   We'll have more on this

November 11, 2019

CFPB Takes 2017 Mortgage Data Down Days After 2018 Complaint and FOIA by Inner City Press

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Nov 9 – The US Consumer Financial Protection Bureau, days after complaints about withholding 2018 mortgage data by race and a FOIA request from Inner City Press responded by taking the 2017 data offline. Photo here. This bureaucratic retaliation and/or criminal negligence should be the subject of Congressional hearings and then firings.

  Eric Blankenstein while working at the increasingly rogue Consumer Financial Protection Bureau was kept on despite openly racist blog posts. (The CFPB is now withholding from impacted comments the 2018 mortgage lending data by race, see below). Now Blackenstein has been promoted by HUD to VP at GinnieMae. This is a pattern.

With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

Now with the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger has launched a no action letter process for fintech, giving assurances without any public notice or comment that activities can be undertaken with no concern about enforcement. See here.

In September Kraninger's CFPB issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page.

  Now after various attempts to get CFPB to acknowledge its outrageous move in disenfranchising grassroots groups from the data meant to benefit them, which we will leave UNdescribed for now, Inner City Press on November 7 submitted a FOIA request see below. The CFPB has acknowledged receipt, but says it has a unspecified backlog and has denied the request for expedited processing because it does not think redlined communities defending their rights and lives with the CRA is urgent.

"Dear Mr. Lee: This letter is to inform you that on November 8, 2019, the Consumer Financial Protection Bureau (CFPB) received your Freedom of Information Act (FOIA) request dated November 7, 2019.  Your request sought: [a]ll records regarding the CFPB's decision / action to make the 2018 Home Mortgage Disclosure Act data only available for download (the so-called data filter) rather then searchable and viewable in reports on the CFPB website as was the case for the 2017 data. Please be advised that the CFPB FOIA Office has a backlog of pending FOIA requests.  We are diligently working to process each request in the order in which it was received.  Your patience is greatly appreciated.  The CFPB FOIA regulations found at 12 C.F.R. Part 1070 specifically define “representative of the news media” as “any person or entity that gathers information of potential interest to a segment of the public, uses its editorial skills to turn the raw materials into a distinct work, and distributes that work to an audience.”  Based on the information contained in your request, the CFPB has granted your request to be considered a “representative of the news media"... Your request for expedited processing is Denied because you failed to demonstrate a particular urgency to inform the public about the government activity involved in the request beyond the public’s right to know about government activity generally." Really?

The request: "Dear CFPB Chief FOIA Officer:  Pursuant to the federal Freedom of Information Act, 5 U.S.C. § 552, I request from the CFPB any and all records as that term is defined in FOIA regarding the CFPB's decision / action to make the 2018 Home Mortgage Disclosure Act data only available for download (the so-called data filter) rather then searchable and viewable in reports on the CFPB website as was the case for the 2017 data.

     To assist you in rapidly providing the requested information - this is a request for expedited treatment given that the withholding in accessible format of the 2018 data each day hinders low income community groups from commenting on bank mergers, the only enforcement mechanism of the Community Reinvestment Act to prevent bank redlining - be aware that the issue has been raised to CFPB staff in a number of conference calls including most recently to, inter alia  Brenda Muniz, Tim Lambert [some names redacted in this format.]

  These CFPB staffers were directly asked by the undersigned who at CFPB made the decision to curtail availability of HMDA data in simple format on the website. Knowing which government agency official made such a decision is a sine qua non of FOIA: the information should be provided an expedite basis, as well as all related documents." Watch this site.

November 4, 2019

  While the CFPB continues to withhold basic mortgage lending data, we note that a spokesperson for disparate LendingClub is quoted: “We are completely committed to fair lending practices. Researchers at the Philadelphia Fed have analyzed our data and concluded that we’re lending in more areas where banks are closing their branches, we’re improving pricing and the quality of credit decisioning, and increasing financial inclusion.”  Wait - so now the Federal Reserve has handing out fair lending cover up fig leafs to disparate fintechs?

October 28, 2019

As Rogue Regulator Otting Tries To Kill CRA His Staff Tries To Coopt #TreasureCRA No Answers

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Oct 24 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, on August 21 he engaged in a cynical tour of Jamaica, Queens with Rep. Gregory Meeks while his OCC was also refusing to consider a CRA protest filed less than 30 days after People's Bank's application was filed and that, later, available. See below.

 On October 24, amid a tweet-storm from NCRC grassroots groups to #TreasureCRA, one of Otting's staffers Bryan Hubbard tried to re-position his boss as an imposter supporter of CRA, here. Inner City Press asked online how this is consistent with Otting refusing to update the OCC's online weekly bulletin of applications subject to CRA comment, and imposing FOIA fees to get the merger applications to comment on, here. No answer for a while, then one that did not answer on FOIA. Otting is a one-way rogue.

October 21, 2019

CFPB Whitewashes 2018 Home Mortgage Data Despite NYAG Opposing Disclosure Tables Gone

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Oct 19 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

Now with the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger has launched a no action letter process for fintech, giving assurances without any public notice or comment that activities can be undertaken with no concern about enforcement. See here.

Last month Kraninger's CFPB issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page.

Now on October 19 Inner City Press reports on push-back from New York, beyond the obvious need to make the disclosure tables available online again, this: "Dear Director Kraninger: The New York State Attorney General (“NYAG”) submits the following comments on the Consumer Financial Protection Bureau’s (the “CFPB”) Advance Notice of Proposed Rulemaking on the efficacy of certain data points and coverage of the Home Mortgage Disclosure Act (“HMDA”) (Docket No. CFPB-2019-0020/RIN 3170-AA97) (“Advance Notice”). HMDA is an important tool in ending the scourge of mortgage lending discrimination that has long plagued our country. Designed to provide public detailed mortgage lending data, HMDA ensures that the public and state regulators have the means necessary to enforce federal and state fair lending laws and to guarantee that the lending needs of their communities are being met. In 2010, in the wake of the 2008 financial crisis, Congress amended HMDA to make certain that our economy would never again be brought down by predatory mortgage lending. Congress statutorily added more required data fields and then gave the CFPB the authority to add additional fields to achieve the objective of greater transparency. In 2015, after five years of research, outreach and various notice and comment periods, the CFPB added 14 additional data points and revised certain others (“2015 HMDA Amendments”). The 2015 HMDA Amendments went into effect on January 1, 2018 and the 2018 HMDA data is the first data set that contains these new fields. Most of these new fields request data that mortgage lenders already collect for the purpose of underwriting and for selling these loans to Fannie Mae, Freddie Mac or other investors.  The CFPB is now asking whether it should reverse course and reduce the transparency provided by its current HMDA reporting requirements. The answer is a resounding no. Reducing HMDA reporting requirements would undermine the ability of local public officials to investigate unfair and discriminatory mortgage lending practices, such as the predatory practices that led to the housing market crash in 2008. "

On October 12 Inner City Press reported a flood of identical comments *supporting* Kraninger and the CFPB like this one on HMDA: "Comment Submitted by Anonymous Sonnenburg, I appreciate the CFPB's recent willingness to reconsider and revise its prior rulemakings." This while CFPB is still withhold the basis race and ethic information from display on its website, raw data download only unlike previous years. This is an outrage - and its having impacts. The Federal Reserve, citing the CFPB, rubber stamped Hancock Whitney - MidSouth Bank, and is prepared to close its comment periods on Simmons - Landrum and other proposed mergers while the CFPB on September 7 is still saying this: "We will retire HMDA Explorer and its API Our tool for exploring HMDA data—and the Public Data Platform API that powers it—will be shut down in the coming months. We will post additional details as they become available.  The 2018 HMDA data include a number of new data points and, as a result, are not compatible with the multi-year functionality provided by the Public Data Platform.    The Federal Financial Institutions Examination Council (FFIEC) will publish a query tool for the 2018 data in the coming months, which will be available at ffiec.cfpb.gov.  After the new query tool becomes available, the Bureau will retire the current HMDA Explorer tool and the Public Data Platform API  that powers it."  In the coming months? The CFPB has months to do this. They are intentionally making it more difficult for the public to access basic fair lending information.

 This is confirmed in a blithe "request for comments" that includes "the HMDA Platform allows users to produce and export custom data sets rather than relying on numerous static reports that few previously accessed. To enable external software developers to access some of the key services offered by the HMDA Platform, the Bureau publishes Application Programming Interfaces (APIs) that can be integrated into external websites, analytical tools, and industry software. The Bureau has innovated in other areas as well."

 Inner City Press has commented:   Dear Director Kraninger and others at CFPB:     On behalf of Inner City Press / Fair Finance Watch, which has reviewed and publicized HMDA data for years, this is a comment both on Docket No. CFPB–2019– 0048 and specifically demanding that CFPB's troubling whitewash of the 2018 HMDA data, refusing to make it simply available with race and ethnicity information, be reversed and the data made available as below.    Your proposal (mis) states that "tthe HMDA Platform allows users to produce and export custom data sets rather than relying on numerous static reports that few previously accessed.      That is false, and is also an unacceptable pretext to make race and ethnicity HMDA data less available.  As Inner City Press has previously written to CFPB staff, so far without action: Go to  https://ffiec.cfpb.gov/data-publication/disclosure-reports   Compare disclosure for 2017 (with race and ethnicity)  https://ffiec.cfpb.gov/data-publication/disclosure-reports/2017      to 2018 - no race or ethnicity.     CFPB must make this basic information available, in simple format that can be used by grassroots groups. Already time is going by in which the 2018 data is ostensibly available but grassroots groups cannot access race and ethnicity information as they did before, which is among the goals of HMDA data.     Please explain when and where this information will be made available again.   Matthew Lee, Esq., Executive Director Inner City Press / Fair Finance Watch." Watch this site.

October 14, 2019

CFPB Whitewashes 2018 Home Mortgage Data Now Slew of Identical Letters Appreciating It

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Oct 12 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

Now with the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger has launched a no action letter process for fintech, giving assurances without any public notice or comment that activities can be undertaken with no concern about enforcement. See here. N

Last month Kraninger's CFPB issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page.

Now on October 12 Inner City Press can report a flood of identical comments *supporting* Kraninger and the CFPB like this one on HMDA: "Comment Submitted by Anonymous Sonnenburg, I appreciate the CFPB's recent willingness to reconsider and revise its prior rulemakings." This while CFPB is still withhold the basis race and ethic information from display on its website, raw data download only unlike previous years. This is an outrage - and its having impacts. The Federal Reserve, citing the CFPB, rubber stamped Hancock Whitney - MidSouth Bank, and is prepared to close its comment periods on Simmons - Landrum and other proposed mergers while the CFPB on September 7 is still saying this: "We will retire HMDA Explorer and its API Our tool for exploring HMDA data—and the Public Data Platform API that powers it—will be shut down in the coming months. We will post additional details as they become available.  The 2018 HMDA data include a number of new data points and, as a result, are not compatible with the multi-year functionality provided by the Public Data Platform.    The Federal Financial Institutions Examination Council (FFIEC) will publish a query tool for the 2018 data in the coming months, which will be available at ffiec.cfpb.gov.  After the new query tool becomes available, the Bureau will retire the current HMDA Explorer tool and the Public Data Platform API  that powers it."  In the coming months? The CFPB has months to do this. They are intentionally making it more difficult for the public to access basic fair lending information.

October 7, 2019

Rogue Regulator Otting Withholds Merger Notices Since August 17 So All Comment Periods Close

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Oct 5 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, on August 21 he engaged in a cynical tour of Jamaica, Queens with Rep. Gregory Meeks while his OCC was also refusing to consider a CRA protest filed less than 30 days after People's Bank's application was filed and that, later, available. See below.

  Now on October 5, 2019, on Otting's OCC website the most recently Weekly Bulletin of pending mergers, each with a 30 day comment periods is dated August 17. That is to say, all of the merger of which Otting's OCC is providing public have comment period which are closed. Those with open comment periods are not disclosed. This is criminal.

  On September 3, Otting rang up another death knell to accountability and judicial review, getting the CSBS' lawsuit about his sure to be ghoulish fintech charter dismissed as not ripe. A D.C. federal judge has again shot down a lawsuit that seeks to block the federal government from granting specialized national bank charters to fintech firms, saying the Conference of State Bank Supervisors is still jumping the gun by suing over a charter that no one has even applied for.  In a ruling Tuesday, U.S. District Judge Dabney Friedrich dismissed because the "claims remain unripe.” This is four months after U.S. District Judge Victor Marrero of the Southern District of New York allowed the New York Department of Financial Services to proceed with its challenge to the fintech charter.  In her ruling on Tuesday, Judge Friedrich said she “respectfully” disagrees with Judge Marrero’s decision to the extent it conflicts with either of her dismissal decisions in the CSBS cases.  Inner City Press goes with the SDNY. In DC the OCC is represented in-house by Jonathan V. Gould, Bao Nguyen, Gregory F. Taylor, Hannah Hicks, Peter C. Koch, Ashley W. Walker, Gabriel A. Hindin and Michael K. Morelli -- some of these are involved in trying to exempt the OCC from FOIA by denying fee waivers, even for merger applications. Otting is destroying the OCC, and wants to destroy the CRA. 

  Mere hours after refusing to consider an actual CRA comment, Otting issued this: "Comptroller of the Currency Joseph Otting today participated in a tour of New York neighborhoods to see firsthand the success of Community Reinvestment Act (CRA) activity and discuss how CRA regulations can promote more lending, investment, and services, where they are needed most.  'Here in New York, we saw great examples of community and bank partnerships to conduct CRA activity that helps meet important needs of underserved neighborhoods,' Comptroller Otting said following the tour. 'We also discussed challenges communities, advocates, and bankers face in lending, investing, and providing services that can be addressed in part by modernizing CRA regulations.'" This is fraud.

September 30, 2019

CFPB Whitewashes 2018 Home Mortgage Data Calling It Static Report And Excluding Public With Tech Sprints

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Sept 28 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

Now with the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger has launched a no action letter process for fintech, giving assurances without any public notice or comment that activities can be undertaken with no concern about enforcement. See here. This is a sandbox like Saudi Arabia, which killed journalist Jamal Khashoggi and now hired Instagram "micro-influencers," like the UN's Antonio Guterres, to whitewash its image.

Last month Kraninger's CFPB issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page. This is an outrage - and its having impacts. The Federal Reserve, citing the CFPB, rubber stamped Hancock Whitney - MidSouth Bank, and is prepared to close its comment periods on Simmons - Landrum and other proposed mergers while the CFPB on September 7 is still saying this: "We will retire HMDA Explorer and its API Our tool for exploring HMDA data—and the Public Data Platform API that powers it—will be shut down in the coming months. We will post additional details as they become available.  The 2018 HMDA data include a number of new data points and, as a result, are not compatible with the multi-year functionality provided by the Public Data Platform.    The Federal Financial Institutions Examination Council (FFIEC) will publish a query tool for the 2018 data in the coming months, which will be available at ffiec.cfpb.gov.  After the new query tool becomes available, the Bureau will retire the current HMDA Explorer tool and the Public Data Platform API  that powers it."  In the coming months? The CFPB has months to do this. They are intentionally making it more difficult for the public to access basic fair lending information.

 This is confirmed in a blithe "request for comments" that includes "the HMDA Platform allows users to produce and export custom data sets rather than relying on numerous static reports that few previously accessed. To enable external software developers to access some of the key services offered by the HMDA Platform, the Bureau publishes Application Programming Interfaces (APIs) that can be integrated into external websites, analytical tools, and industry software. The Bureau has innovated in other areas as well."

 Inner City Press has commented:   Dear Director Kraninger and others at CFPB:     On behalf of Inner City Press / Fair Finance Watch, which has reviewed and publicized HMDA data for years, this is a comment both on Docket No. CFPB–2019– 0048 and specifically demanding that CFPB's troubling whitewash of the 2018 HMDA data, refusing to make it simply available with race and ethnicity information, be reversed and the data made available as below.    Your proposal (mis) states that "tthe HMDA Platform allows users to produce and export custom data sets rather than relying on numerous static reports that few previously accessed.      That is false, and is also an unacceptable pretext to make race and ethnicity HMDA data less available.  As Inner City Press has previously written to CFPB staff, so far without action: Go to  https://ffiec.cfpb.gov/data-publication/disclosure-reports   Compare disclosure for 2017 (with race and ethnicity)  https://ffiec.cfpb.gov/data-publication/disclosure-reports/2017      to 2018 - no race or ethnicity.     CFPB must make this basic information available, in simple format that can be used by grassroots groups. Already time is going by in which the 2018 data is ostensibly available but grassroots groups cannot access race and ethnicity information as they did before, which is among the goals of HMDA data.     Please explain when and where this information will be made available again.   Matthew Lee, Esq., Executive Director Inner City Press / Fair Finance Watch." Watch this site.

September 23, 2019

CFPB Brags About Complaint Database While Whitewashing 2018 Home Mortgage Data

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Sept 18 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

Now with the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger has launched a no action letter process for fintech, giving assurances without any public notice or comment that activities can be undertaken with no concern about enforcement. See here. This is a sandbox like Saudi Arabia, which killed journalist Jamal Khashoggi and now hired Instagram "micro-influencers," like the UN's Antonio Guterres, to whitewash its image.

Earlier in the month Kraninger's CFPB issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page. This is an outrage - and its having impacts, see below.

  Meanwhile the CFPB blithely brags about transparency in other areas, while destroying decades of accessibility of HMDA data: "Today the Consumer Financial Protection Bureau (CFPB) announced that it will continue the publication of consumer complaints, data fields and narrative descriptions through the Bureau’s Consumer Complaint Database while making several enhancements to the information available to users of the database. The enhancements include: modified disclaimers to provide better context to the published data; integrating financial information and resources into the complaint process to help address questions and better inform consumers before they submit a complaint; and information to assist consumers who wish to contact the financial company to get answers to their specific questions. Additionally, the Bureau will work to provide enhanced features for the database that include dynamic visualization tools on recent complaint data.  “Since its inception, the Consumer Complaint Database has not been without controversy. When the Bureau asked for feedback in 2018, we received nearly 26,000 comments from a wide array of stakeholders including government officials, consumer groups, companies, academics, and individual consumers. After carefully examining and considering all stakeholder and public input, we are announcing the continued publication of complaints with enhanced data and context that will benefit consumers and users of the database while addressing many of the concerns raised,” said CFPB Director Kathleen L. Kraninger. “The continued publication of the database, along with the enhancements, empowers consumers and informs the public.." Yeah, informs the public - NOT their priority, it seems.

September 16, 2019

CFPB Launches Saudi Like Sandbox for Deregulation After Whitewashing 2018 Home Mortgage Data

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Sept 11 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

Now with the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger has launched a no action letter process for fintech, giving assurances without any public notice or comment that activities can be undertaken with no concern about enforcement. See here. This is a sandbox like Saudi Arabia, which killed journalist Jamal Khashoggi and now hired Instagram "micro-influencers," like the UN's Antonio Guterres, to whitewash its image.

Earlier in the month Kraninger's CFPB issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page. This is an outrage - and its having impacts. The Federal Reserve, citing the CFPB, rubber stamped Hancock Whitney - MidSouth Bank, and is prepared to close its comment periods on Simmons - Landrum and other proposed mergers while the CFPB on September 7 is still saying this: "We will retire HMDA Explorer and its API Our tool for exploring HMDA data—and the Public Data Platform API that powers it—will be shut down in the coming months. We will post additional details as they become available.  The 2018 HMDA data include a number of new data points and, as a result, are not compatible with the multi-year functionality provided by the Public Data Platform.    The Federal Financial Institutions Examination Council (FFIEC) will publish a query tool for the 2018 data in the coming months, which will be available at ffiec.cfpb.gov.  After the new query tool becomes available, the Bureau will retire the current HMDA Explorer tool and the Public Data Platform API  that powers it."  In the coming months? The CFPB has months to do this. They are intentionally making it more difficult for the public to access basic fair lending information. We'll have more on this.

September 9, 2019

Amid Otting Rogue Show OCC Gets DC Court To Shoot Down CSBS Fintech Suit Using Anti FOIA Lawyers

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, Sept 4 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, on August 21 he engaged in a cynical tour of Jamaica, Queens with Rep. Gregory Meeks while his OCC was also refusing to consider a CRA protest filed less than 30 days after People's Bank's application was filed and that, later, available. See below.

  On September 3, Otting rang up another death knell to accountability and judicial review, getting the CSBS' lawsuit about his sure to be ghoulish fintech charter dismissed as not ripe. A D.C. federal judge has again shot down a lawsuit that seeks to block the federal government from granting specialized national bank charters to fintech firms, saying the Conference of State Bank Supervisors is still jumping the gun by suing over a charter that no one has even applied for.  In a ruling Tuesday, U.S. District Judge Dabney Friedrich dismissed because the "claims remain unripe.” This is four months after U.S. District Judge Victor Marrero of the Southern District of New York allowed the New York Department of Financial Services to proceed with its challenge to the fintech charter.  In her ruling on Tuesday, Judge Friedrich said she “respectfully” disagrees with Judge Marrero’s decision to the extent it conflicts with either of her dismissal decisions in the CSBS cases.  Inner City Press goes with the SDNY. In DC the OCC is represented in-house by Jonathan V. Gould, Bao Nguyen, Gregory F. Taylor, Hannah Hicks, Peter C. Koch, Ashley W. Walker, Gabriel A. Hindin and Michael K. Morelli -- some of these are involved in trying to exempt the OCC from FOIA by denying fee waivers, even for merger applications. Otting is destroying the OCC, and wants to destroy the CRA.

September 2, 2019

CFPB Puts Out 2018 Home Mortgage Data With No Racial or Ethnic Info Lawless Whitewash

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, June 3 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to refuse to consider a timely CRA protest to People's United Bank by Inner City Press / Fair Finance Watch.

Now with the OCC yet to be sued for its contempt for the law, the Consumer Financial Protection Bureau under Kathy Kraninger has issued 2018 Home Mortgage Disclosure Act data - with an interface without any racial or ethnic information unlike 2017 and every previous year, undermining the entire purpose of the HMDA law. See this page. This is an outrage, on which Inner City Press will have more.

 Previously CFPB issued a rule relieving payday lenders of the duty to comply with the ability-to-repay standard for the CFPB’s short term lending rule of November 2017.

  Here's how the CFPB breezily put it: "The Bureau of Consumer Financial Protection is issuing this final rule to delay the August 19, 2019 compliance date for the mandatory underwriting provisions of the regulation promulgated by the Bureau in November 2017 governing Payday, Vehicle Title, and Certain High-Cost Installment Loans (2017 Final Rule or Rule). Compliance with these provisions of the Rule is delayed by 15 months, to November 19, 2020." Whats 15 months among friends?

August 26, 2019

Amid Otting Rogue Show in NYC His OCC Protects People's United Bid For United Bank Refusing Timely Comment

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, August 21 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, on August 21 he engaged in a cynical tour of Jamaica, Queens with Rep. Gregory Meeks while his OCC was also refusing to consider a CRA protest filed less than 30 days after People's Bank's application was filed and that, later, available. See below.

  Mere hours after refusing to consider an actual CRA comment, Otting issued this: "Comptroller of the Currency Joseph Otting today participated in a tour of New York neighborhoods to see firsthand the success of Community Reinvestment Act (CRA) activity and discuss how CRA regulations can promote more lending, investment, and services, where they are needed most.  'Here in New York, we saw great examples of community and bank partnerships to conduct CRA activity that helps meet important needs of underserved neighborhoods,' Comptroller Otting said following the tour. 'We also discussed challenges communities, advocates, and bankers face in lending, investing, and providing services that can be addressed in part by modernizing CRA regulations.'" This is fraud.

 In June 2019 Otting denied access to documents about whom he meets with which Inner City Press requested back in January 2019. This while he had made the OCC start rejecting timely CRA comments on mergers and on Fifth Third's lateral move to the less regulated OCC charter, asserting that he has unfettered discretion to consider such comments.

  Now it gets worse - Otting is citing a 30 day comment period as a basis to refuse to consider comments even when by his own OCC's letter it was timely, less than thirty said. Inner City Press / Fair Finance Watch was sent this by the OCC on August 21: "People’s United Bank, National Association, Bridgeport, Connecticut filed its Application with the CCC on July 18, 2019, and published its first public notice of the application on July 17, 2019. The 30-day public comment period ended on August 15, 2019. The 0CC made information concerning the application publicly available in the July 20, 2019 Weekly Bulletin and, on July 23, 2019, posted the public portion of the application to the OCC’s Freedom of Information Act Electronic Reading Room. Your comment was submitted on August l6, following the close of the comment period on August 1 As a result, the comment was not timely and the OCC will not consider this comment in its review of the pending application." Do the math. Then impeach Otting.

 On August 15-16, Inner City Press / Fair Finance Watch, less than 30 days after the application was filed, submitted this to the OCC including its Barry Wides in DC: "August 15-16, 2019    

 Office of the Comptroller of the Currency  Northeastern District Office  Deputy Comptroller, Kristin Kiefer  Acting Director for District Licensing, Marva V. Cummings  340 Madison Avenue, Fifth Floor  New York, NY 10173-0002  and Barry Wides, DC

   Re: Timely Initial Comment on Application of People's United Bank to acquire United Bank     Dear Deputy Comptroller Kiefer, Ms. Cummings, Mr. Wides and others in the OCC:     

This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by People's United Bank to acquire United Bank.       The OCC states that "when a public notice is published, the public has 30 days to submit a written comment to the OCC." See here.       This comment is timely. While the "public" notice in the Hartford Courant is behind paywall - we are noting that for the record, to be acted on by the OCC like its now routine late updating of its online Weekly Bulletins - dispositively, the OCC web site says "Filing Status:     Action Date Receipt 2019-07-18." July 18 plus 30 days is August 17. Even if one ignores the filing date for comment period start date, July 17, plus 30 days is August 16. This comment is timely.     

Add to the above, for the record, that the OCC under Comptroller Otting has reversed years of OCC precedent and refused FOIA fee waivers for copies of the application to comment on. This comment is timely,and the lawless policy reversal(s) must be reversed.       

People's United is getting worse and worse.          In the the New York City MSA in 2017, the most recent year for which HMDA data is publicly available - the comment period should be extended until the delayed 2018 data is available - People's United made 83 home purchase loans to whites, only seven to Latinos and only FOUR to African Americans. Its denial rate for African Americans was 2.81 times higher than for whites - worse than its peers, by far. This comment is timely, an evidentiary hearing is needed; on the current record the application should be denied.     For refinance loans in the New York City MSA in 2017, People's United made 85 loans to whites, only five to Latinos and only six to African Americans.  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.     People's United record is hardly sufficient in the Hartford MSA where it now proposes to acquire United Bank. In 2017 in the Hartford MSA, People's United made 139 home purchase loans to whites and only 10 to African Americans and only five to Latinos. Its denial rate for African Americans was a whopping 4.71 times higher than for whites - worse than its peers, by far.    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.      

See also, for the record, "People’s United Bank is growing, but at the expense of branches and possibly jobs.  The Bridgeport-based subsidiary of People’s United Financial is looking to acquire the parent company to United Bank in Hartford for roughly $759 million by the end of the year, and executives have confirmed that the merger would result in cuts.  “There is a lot of overlap, and we’ve done quite a bit of homework and due diligence already, but we will finish that work with the United (Bank) team and we will make decisions about which will close,” People’s United CEO Jack Barnes said.          In this context, the comment period should be extended so that public evidentiary hearings can be held, and the application should be denied." Watch this site.

  Now in a promotional brochure about his attack on CRA, Otting has misstated what the CRA statute says, and significantly so. His brochure said that the law requires the regulators to "consider the CRA RATING in connection with certain licensing applications." Uploaded by Inner City Press on Scribd here.

  In fact, the process is that CRA issues are considered on merger and charter conversion and other applications, not just ratings. That is a safe harbor, something repeatedly considered, fought off and rejected. Now fraudulent comment generator Otting is simply changing the law. We'll have more on this.

August 19, 2019

As OCC Of Otting Attacks CRA People's United Bid For United Bank Challenged On Lending and Cuts

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, August 18 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, in June 2019 he denied access to documents about whom he meets with which Inner City Press requested back in January 2019. This while he had made the OCC start rejecting timely CRA comments on mergers and on Fifth Third's lateral move to the less regulated OCC charter, asserting that he has unfettered discretion to consider such comments.

  And so, this test. On August 15-16, Inner City Press / Fair Finance Watch, less than 30 days after the application was filed, submitted this to the OCC including its Barry Wides in DC: "August 15-16, 2019    

 Office of the Comptroller of the Currency  Northeastern District Office  Deputy Comptroller, Kristin Kiefer  Acting Director for District Licensing, Marva V. Cummings  340 Madison Avenue, Fifth Floor  New York, NY 10173-0002  and Barry Wides, DC

   Re: Timely Initial Comment on Application of People's United Bank to acquire United Bank     Dear Deputy Comptroller Kiefer, Ms. Cummings, Mr. Wides and others in the OCC:     

This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by People's United Bank to acquire United Bank.       The OCC states that "when a public notice is published, the public has 30 days to submit a written comment to the OCC." See here.       This comment is timely. While the "public" notice in the Hartford Courant is behind paywall - we are noting that for the record, to be acted on by the OCC like its now routine late updating of its online Weekly Bulletins - dispositively, the OCC web site says "Filing Status:     Action Date Receipt 2019-07-18." July 18 plus 30 days is August 17. Even if one ignores the filing date for comment period start date, July 17, plus 30 days is August 16. This comment is timely.     

Add to the above, for the record, that the OCC under Comptroller Otting has reversed years of OCC precedent and refused FOIA fee waivers for copies of the application to comment on. This comment is timely,and the lawless policy reversal(s) must be reversed.       

People's United is getting worse and worse.          In the the New York City MSA in 2017, the most recent year for which HMDA data is publicly available - the comment period should be extended until the delayed 2018 data is available - People's United made 83 home purchase loans to whites, only seven to Latinos and only FOUR to African Americans. Its denial rate for African Americans was 2.81 times higher than for whites - worse than its peers, by far. This comment is timely, an evidentiary hearing is needed; on the current record the application should be denied.     For refinance loans in the New York City MSA in 2017, People's United made 85 loans to whites, only five to Latinos and only six to African Americans.  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.     People's United record is hardly sufficient in the Hartford MSA where it now proposes to acquire United Bank. In 2017 in the Hartford MSA, People's United made 139 home purchase loans to whites and only 10 to African Americans and only five to Latinos. Its denial rate for African Americans was a whopping 4.71 times higher than for whites - worse than its peers, by far.    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.      

See also, for the record, "People’s United Bank is growing, but at the expense of branches and possibly jobs.  The Bridgeport-based subsidiary of People’s United Financial is looking to acquire the parent company to United Bank in Hartford for roughly $759 million by the end of the year, and executives have confirmed that the merger would result in cuts.  “There is a lot of overlap, and we’ve done quite a bit of homework and due diligence already, but we will finish that work with the United (Bank) team and we will make decisions about which will close,” People’s United CEO Jack Barnes said.          In this context, the comment period should be extended so that public evidentiary hearings can be held, and the application should be denied." Watch this site.

  Now in a promotional brochure about his attack on CRA, Otting has misstated what the CRA statute says, and significantly so. His brochure said that the law requires the regulators to "consider the CRA RATING in connection with certain licensing applications." Uploaded by Inner City Press on Scribd here.

  In fact, the process is that CRA issues are considered on merger and charter conversion and other applications, not just ratings. That is a safe harbor, something repeatedly considered, fought off and rejected. Now fraudulent comment generator Otting is simply changing the law. We'll have more on this. And on this:

 On August 9 Otting issued an Orwellian summary of a visit to Atlanta ostensibly to help the CRA be more transparent: "WASHINGTON — Comptroller of the Currency Joseph Otting, today visited Atlanta to tour neighborhoods that have benefitted from activities encouraged by the Community Reinvestment Act (CRA) and areas that could benefit from additional CRA activity.  “Today, we saw what great things can be accomplished when banks, civil rights organizations, nonprofit groups, and local advocates work together to meet the needs of their communities,” Comptroller Otting said following the tour. “We also discussed how current CRA regulations hamstring efforts that could revitalize these areas and bring even more lending, investment, and service to where they are needed most.”  The Comptroller was joined on the tour by John Hope Bryant, CEO and Founder of Operation HOPE, Ambassador and former Atlanta Mayor Andrew Young, and representatives from area community groups, redevelopment organizations, and banks. The group began their tour of Atlanta from the Martin Luther King Sr. Community Resources Collaborative and visited a HOPE Inside office at [a shopping center]... “The places we visited today confirm how CRA has been a force for good for the past 40 years,” the Comptroller said. “Our goal now is to strengthen CRA so that it continues to encourage the flow of billions of dollars into our communities and neighborhoods each year. We can modernize CRA regulations to encourage banks to do even more by clarifying what counts for CRA credit, updating where activity qualifies, making evaluations of bank CRA performance more objective, and reporting results in a more timely and transparent manner.”  More transparent? From a man who withholds all his information, after generating fake comments to support the cash out merger of One West when he ran it? And which unnamed banks were along on this tour?

August 12, 2019

Amid attacks on the U.S. Community Reinvestment Act this month Inner City Press / Fair Finance Watch has filed comments under the CRA opposing Banco Bradesco's application to acquire BAC Florida.  Here's some of it: "This is a timely first comment opposing and requesting documents about and an extension of the FRB's public comment period on the Application by Banco Bradesco to acquire BAC Florida.       This is a proposal by a bank in Brazil where authorities are reviewing the bank for corruption, to buy a US bank with a disparate lending record in order to use it to serve disproportionately the affluent. There is no public benefit; the application should be denied.       Fair Finance Watch has been reviewing the Home Mortgage Disclosure Act (HMDA) data for 2017 for BAC Florida and finds, troublingly, that for home purchase loans in the New York City MSA it made 13 such loans to Asians, and none to African Americans or Latinos. For Latinos it hada 100% denial rate.       In the Miama MSA in 2017, BAC Florida made 68 home puchase loans to whites and none to African Americans.  Now see, for the record, "Brazil's Bradesco to buy Florida bank to focus on wealthy individuals" - "Banco Bradesco SA has embarked on its first-ever international acquisition by paying approximately $500 million to buy BAC Florida Bank, which focuses on high-net-worth individuals in a move intended to close the gap with Brazilian rivals.  Based in Coral Gables, BAC Florida is controlled by Grupo Pellas, which was founded in 1877 in Nicaragua.  After the deal closes, Bradesco said its main goal is to provide a wide range of financial services in the United States to Bradesco clients and lure new customers to BAC Florida.  Bradesco Chief Executive Officer Octavio de Lazari said on a call with journalists that the Brazilian bank’s private banking clients have increasingly demanded diversification and greater access to global products.   “This move underscores our expansion not only in the U.S., but also in Latin America as a whole, as BAC has clients all over the region,” he said. Around 20 percent of BAC Florida’s clients are Brazilian and 9 percent are American.  Still, Lazari said Bradesco is not seeking to build a retail base outside Brazil, but wants to boost its private banking business." Where is the CRA?      

Now see this, on managerial resources, also for the record and the request for an evidentiary hearing: "Brazilian anti-graft prosecutors mull lawsuit against Bradesco"  - " Brazilian prosecutors are considering a civil lawsuit against Banco Bradesco SA , as they believe the country’s second-largest private-sector bank may have failed to prevent corruption schemes, Valor Econômico reported on Thursday.  Earlier this week, prosecutors asked a court to issue an arrest warrant for two Bradesco bank managers, saying they had been part of a complex scheme involving shell companies, fraudulent checks and bank slips that helped launder nearly 1 billion reais ($252 million).  Eduardo El Hage, the prosecutor heading the Rio de Janeiro part of the massive “Car Wash” corruption investigation, told the Brazilian newspaper he believes Bradesco should have caught on to those financial transactions.  Bradesco declined to comment on the matter."       On the current record, Banco Bradesco's applications should be denied." We'll have more on this.

August 5, 2019

Capital One Exposed 140000 Social Security Numbers While Abusing Consumers Regulators Defanged

By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, July 30 – Three years after Capital One Bank was sued for its overdraft fees on debit card transactions for which there were sufficient funds available in the customers' accounts, on June 25 the bank's motion for summary judgment was denied by U.S. District Court for the Southern District of New York Judge Lorna G. Schofield.   

  Now on July 29 Capital One belatedly disclosed that it was "compromised," including 140,000 social security numbers, 80,000 linked bank account numbers, and “personal information” from credit card applications from 2005 through early 2019. And where were and are the regulators, who approved Capital One's mergers rebuffing detailed Press comments? We'll have more on this.

   Back on June 25, Judge Schofield after her ruling joked that it felt like the case began in last century. She gave the lawyers for named plaintiff Tawanna M. Roberts two weeks to file a letter presaging their motion for class certification.   

   The case has already seen one appeal to the Second Circuit Court of Appeals, which partially reversed Judge Schofield's granting of Capital One's motion to dismiss Roberts' causes of action for breach of contract and violation of New York General Business Law § 349.     

   The case has attracted interest as an example, consumer advocates say, of predatory practice, citing a Capital One account agreement which states that an overdraft occurs when it “elects to pay” a transaction that exceeds a customer’s available balance. 

  The advocates say that by charging overdraft fees on transactions that the bank elected to pay when the available balance was sufficient, but that later settled against negative funds, Capital One led consumers to believe it would do one thing while doing the opposite, inflicting significant financial hardship - that is, overdraft fees - on affected customers in the process.  

July 29, 2019

Japanese FinTech Rakuten Lines Up For Utah Evasion Of Community Reinvestment Act

By Matthew R. Lee

SOUTH BRONX, July 27 – Amid attacks on the U.S. Community Reinvestment Act this month Inner City Press / Fair Finance Watch has filed comments under the CRA opposing Hancock Whitney Bank's applications to acquire MidSouth Bank, see below. Now comes this news: "A Japanese FinTech company is applying for a banking charter in the United States. The eCommerce firm Rakuten currently runs a shopper rewards program in the States, and said would file the necessary paperwork on Friday (July 26) with Federal Deposit Insurance Corp. (FDIC) and the state of Utah for an industrial loan company (ILC) charter.  Rakuten has about 13 million active users who earn rewards for purchasing products from participating merchants.   The bank would be headquartered in Utah and could handle users’ deposits, according to Lee Carter, Rakuten head of banking and potential ILC CEO. The company also wants to give members a credit card to make purchases in the future and also earn rewards.  Carter said he’s “kept a close eye on Square’s application.”  He also said the company would provide a complete plan for the Community Reinvestment Act with the application, because some groups are worried that FinTechs won’t be held accountable for certain rules.  “We have thought about that very, very carefully,” Carter said. “We’ll have specific goals for community service and investments back into the community."  We'll have about that.

July 22, 2019

Predatory Real Estate Lawyer Maddiwar Gets 5 Years As SDNY Judge Ramos Says He Lied

By Matthew Russell Lee, Patreon

FEDERAL COURTHOUSE, July 19 – Real estate and lending fraud got their day in court on July 19 and it wasn't pretty. Lawyer Rajesh Maddiwar who was convicted for his role in the theft of 30 homes in The Bronx, Brooklyn and Queen where he had his office, was up for sentencing. But he repeated, as he had at trial, that he was the victim and that he never knew that the people he told to just sign on the dotted line were losing their homes.  

In the gallery of Courtroom 618 in the U.S. District Court for the Southern District of New York, a man vigorously shook his head.   

  Inner City Press, which has long covered the bank side of predatory lending, from CitiFinancial to Wells Fargo and beyond, waited to hear the victim impact statements. But they never came.

 After Maddiwar's defiant speech, SDNY Judge Edgardo Ramos sentenced him to 60 months in jail, stating flatly that Maddiwar had lied at trial: "He lied again and again." The case is USA v. Maddiwar, part of USA v. Alvarenga et al., 15-cr-00627 (Ramos).   

  Assistant US Attorneys Sheb Swett and Andrew Thomas said their office would later that day make the referral for Maddiwar to lose his law licence. Maddiwar told Judge Ramos when he gets out he will go to school to take up another profession. Imagine what he could do as a doctor. Wonder which one. More on Patreon here.

July 15, 2019

Melrose Credit Union CEO Bailed For $500000 and Drug Testing As Georgiton Turns In Greek Passport

By Matthew Russell Lee, Video, Alamy photos

SDNY COURTHOUSE, July 11 – The CEO of Melrose Credit Union Alan Kaufman was arrested at 6 am on July 11 and presented on bribery charges before U.S. District Court for the Southern District of New York Magistrate Judge Henry B. Pitman at 4 pm. Wearing a red polo shirt, he pled not guilty.

 He agreed to a bail package of a $500,00 bond to be signed by his wife and his son, flying in on July 23 and, among other things, drug testing and treatment if needed. His co-defendant Tony Georgiton must post a $1 million bond and turn in not only his US but also his Greek passport. The next hearing is not until September 4 before SDNY District Judge Lewis A. Kaufman. It's good to be a banker.

  This was the press release: "Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that ALAN KAUFMAN and TONY GEORGITON were arrested today and charged with bribery of a financial institution officer.  KAUFMAN and GEORGITON were charged with participating in a scheme in which KAUFMAN, who was then the chief executive officer of Melrose Credit Union (“Melrose CU”), accepted free housing and financing for the purchase of his personal residence from GEORGITON in exchange for the approval of millions of dollars in loans to GEORGITON’s companies at favorable terms.  KAUFMAN is also charged with accepting lavish vacations, including to Paris and Hawaii, as bribes from a media company, in exchange for Melrose CU purchasing increased advertising with that company. In 2010, GEORGITON purchased a home in Jericho, New York (the “Jericho Residence”), and permitted KAUFMAN to live in that home rent-free for over two years.  While KAUFMAN was living rent-free at the Jericho Residence, KAUFMAN personally approved the refinancing of over $60 million worth of loans at Melrose CU held by a company owned by GEORGITON with favorable terms.  The head of Melrose CU’s loan department refused to sign off on the loans given to GEORGITON because, among other things, he believed that the terms were too favorable and did not comply with Melrose CU’s loan policy.     In 2011, KAUFMAN sought approval from Melrose CU’s board of directors for Melrose CU to purchase the naming rights to a ballroom under construction in Astoria, Queens (the “Melrose Ballroom”).  That ballroom was owned by a company owned by GEORGITON.  KAUFMAN did not disclose to the Melrose board that he was living rent-free in a house owned by GEORGITON at the time he sought board approval for the naming rights acquisition.  Over the next four years, Melrose CU paid approximately $2 million to GEORGITON’s company for the naming rights to the Melrose Ballroom.     In 2013, KAUFMAN purchased the Jericho Residence from GEORGITON, with financing that largely came from GEORGITON.  To purchase the Jericho Residence, KAUFMAN took out a $200,000 loan from Melrose CU co-signed by GEORGITON and secured by GEORGITON’s shares in Melrose CU.  GEORGITON also gave KAUFMAN a $240,000 unsecured personal loan.  GEORGITON has never made a demand for payment on that personal loan and KAUFMAN has never made a payment on that personal loan.     In addition, from in or about 2010 through in or about 2015, KAUFMAN solicited and accepted lavish vacations and other gifts worth tens of thousands of dollars from a media company located in New York, New York (“Media Company-1”), in exchange for KAUFMAN’s approval of increased advertising spending by Melrose CU with Media Company-1.  For example, in 2010, Media Company-1 paid for KAUFMAN and his girlfriend, who also worked at Melrose CU, to fly to Paris, France, and stay at the Four Seasons George V Paris.  In 2012, Media Company-1 paid for KAUFMAN and his girlfriend to fly to Maui, Hawaii, and stay at the Four Seasons in Wailea.  In 2013, Media Company-1 paid for KAUFMAN and his girlfriend to attend the Super Bowl in New Orleans.     KAUFMAN did not seek approval for these vendor-paid trips from the Melrose CU board, nor did he disclose these vendor-paid trips to the Melrose CU board, in violation of Melrose CU’s anti-bribery policy."

  Credit unions should be covered by the U.S. Community Reinvestment Act....

July 8, 2019

Community Reinvestment Act Challenge to Hancock Whitney Bid For MidSouth Bank

By Matthew R. Lee, Exclusive

SOUTH BRONX, July 6 – Amid attacks on the U.S. Community Reinvestment Act this month Inner City Press / Fair Finance Watch has filed comments under the CRA opposing Hancock Whitney Bank's applications to acquire MidSouth Bank. Here's some of it: "This is a timely first comment opposing and requesting documents about and an extension of the FRB's public comment period on the Application by Hancock Whitney to acquire MidSouth.       Fair Finance Watch has been reviewing the Home Mortgage Disclosure Act (HMDA) data for 2017 for Whitney and finds, troublingly, that for home purchase loans in the New Orleans, Louisiana MSA in 2017 Whitney denied the applications of African American 3.35 times more frequently than whites - and denied Latinos a whopping 4.68 times more frequently than whites.       Despite the demographics including of home ownership in the NOLA MSA, Whitney in 2017 made 507 home purchase loans to whites and only 52 to whites (and only 13 to Latinos).       An evidentiary hearing should be held and the 2018 data should immediately be made available, including through the HMDA Explorer site and format, which appears to be being terminated by the CFPB.         In support of the request for an extension and a hearing, "There is no word on whether there will be any layoffs or branch closings. Trisha Voltz Carlson, spokesperson for Hancock Whitney, said it is premature to discuss branches or employees at this time.  “While there is some overlap in our footprint with MidSouth, we are not ready to discuss consolidation of branches or costs at this time,” Carlson said by email." These must be disclosed and comment allowed including at a hearing.       On the current record, Hancock Whitney's applications should be denied." We'll have more on this.

July 1, 2019

Capital One Motion For Summary Judgment In Overdraft Fees Case Denied In SDNY

By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, June 25 – Three years after Capital One Bank was sued for its overdraft fees on debit card transactions for which there were sufficient funds available in the customers' accounts, on June 25 the bank's motion for summary judgment was denied by U.S. District Court for the Southern District of New York Judge Lorna G. Schofield.   

   Judge Schofield after her ruling joked that it felt like the case began in last century. She gave the lawyers for named plaintiff Tawanna M. Roberts two weeks to file a letter presaging their motion for class certification.   

   The case has already seen one appeal to the Second Circuit Court of Appeals, which partially reversed Judge Schofield's granting of Capital One's motion to dismiss Roberts' causes of action for breach of contract and violation of New York General Business Law § 349.     

   The case has attracted interest as an example, consumer advocates say, of predatory practice, citing a Capital One account agreement which states that an overdraft occurs when it “elects to pay” a transaction that exceeds a customer’s available balance. 

  The advocates say that by charging overdraft fees on transactions that the bank elected to pay when the available balance was sufficient, but that later settled against negative funds, Capital One led consumers to believe it would do one thing while doing the opposite, inflicting significant financial hardship - that is, overdraft fees - on affected customers in the process.    

  In the run-up to the June 25 oral arguments, Judge Schofield informed the parties that she would only grant argument to lawyers graduating in 2014 or more recently. Capital One's law firm Morrison Foerster proposed a 2013 graduate, Tiffani B. Figueroa. Judge Schofield approved it, and the argument took place with Sophia Goren Gold representing Tawanna Roberts. Now she seeks class certification. The case is Roberts v. Capital One Financial Corporation, 16-cv-4841 (Schofield).

June 24, 2019

OCC Denies Access To Otting Calendar Inner City Press Requested Five Months Ago As Regulator Goes Rogue

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, June 21 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move is to deny access to documents about whom he meets with which Inner City Press requested back in January 2019. After first denying a Freedom of Information Act fee waiver for these documents, and now for all bank merger applications is obvious retaliation, on June 20 the OCC wrote to Inner City Press:

"Dear Mr.Lee: This is in response to your letter dated January 16, 2019, which was received in my office on January 17, 2019 for processing under the Freedom of Information Act (FOIA), 5 U.S.C. 552. You requested copies of records sufficient to show all of Comptroller Otting's scheduled meetings, appointments, and scheduled events from the date he became Comptroller to the date of your response including but not limited to Outlook calendar entries and daily briefing books for Comptroller Otting on those dates. You seek records of any kind, including paper records, electronic records, audiotapes, videotapes, photographs, data, and graphical material. Our determination concerning your request is as follows:

1. Mr. Otting’s Calendar is published on the OCC’s Website in the Electronic Reading Room located at www.occ.gov.  Certain entries have been deleted under the authority of 5 U.S.C. 552(b)(2) and 12 C.F.R. (b)(2), related solely to the internal personnel rules and practices of an agency which covers confirmation numbers, ticket numbers, dialin numbers and PIN codes for telephone conferences; 5 U.S.C. 552(b)(5) and 12 C.F.R. 4.12(b)(5) inter-agency or intra-agency memorandums or letters which would not be available by law to a party other than an agency in litigation with the agency which are considered deliberative in nature; 5 U.S.C. 552(b)(6) and 12 C.F.R. 4.12(b)(6), personnel and medical files and similar files the disclosure of which would constitute a clearly unwarranted invasion of personal privacy which covers personal, non-government issued telephone cell phone numbers; and, 5 U.S.C. 552 (b)(8) and 12 C.F.R. 4.12(b)(8), contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an agency responsible for the regulation or supervision of financial institutions;.
2. Briefing books or materials submitted to the Comptroller in preparation for meetings appearing on his calendar and are marked “MATERIALS ATTACHED” are withheld under the authority of 5 U.S.C. 552(b)(5) and 12 C.F.R. 4.12(b)(5) inter-agency or intraagency memorandums or letters which would not be available by law to a party other than an agency in litigation with the agency, which is consistent with Department of Justice policy.
3. The OCC does not capture audiotapes or videotapes of meetings.
4. Telephone messages made to the Comptroller are also not captured.
5. The OCC does not maintain transcripts.
6. Handwritten notes are not maintained by the Comptroller or the OCC. 7. The OCC does not sweep the personal email accounts of its employees. 
8. A Vaughan index is not required to be produced at the administrative level of processing FOIA requests.

Once you have reviewed the calendars for Mr. Otting and have identified specific topics you you’d like to review, please submit a targeted FOIA request and we will once again search our records. Please note that you requested a fee waiver that I denied.  This was because the basis for your fee waiver did not constitute an official reason as set forth in our regulations to justify a fee waiver.  Upon receive a request for possibly vast amounts of data, you need to adequately justify any such request for a fee waiver.  Due to the volume of requests the OCC is now receiving, each request for a fee waiver is being scrutinized very closely and such waivers are not automatic.    Additionally, keep in mind that the less targeted a FOIA request is, and the possible large amount of data that must be gathered and reviewed, the less likely a request for expedited processing will be granted.  It is just physically impossible."

   Impossible for an ex-banker turned regulator, gone rogue.

June 17, 2019

OCC of Otting Delayed Notice of Mergers Like FOIA Fee Waiver Final Denial to Inner City Press

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, June 15 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move is to deny access to documents about the application to the OCC for WSFS to acquire Beneficial Bank and close 25 branches. Inner City Press requested the records months ago, along with a request for a waiver of fees as the other Federal bank regulators grant it and as the OCC has until now.

  But Otting is different. First he denied a fee waiver on Inner City Press' request for his calendar. Then he relented on that, after Inner City Press citing case law and precedent. But seemingly in retaliation, he has denied access to a merger application subject to public comment. Denial here on Scribd.

  And now, dated June 11 but e-mailed later, a final denial, after putting Inner City Press through three rounds of more and more detailed argumentation - just to waste its time until long after Otting rubber stamped the merger - accusing Inner City Press of not "explaining how the application submitted by WSFS would contribute significantly to the public’s understanding of the operations or activities of the OCC. As such, your request for a fee waiver is denied. Until you contact the OCC Disclosure Services office with assurance that you will pay associated fees, FOIA request # 2019-00206 will not be processed."

  So the OCC thinks it can hinder public review and public comment by changing the law and its own pre-Otting practice.

  On 1 June 2019 the most recent OCC Weekly Bulletin of bank merger applications on which the comment periods are 30 days is from May 4. Inner City Press tweeted photo here. That is to say, the applications are being hidden until the comment period closes.But we'll have more on this, now that Otting's OCC has fully shown itself.

June 10, 2019

OCC Decides No Public Comments On Fifth Third Application For Conversion Lawless Otting Rules

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, June 8 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move has been to deny access to documents about the application to the OCC for WSFS to acquire Beneficial Bank and close 25 branches, see below. Otting's pro-bank capitulation is not lost on the industry: now Fifth Third, a long time state chartered member bank regulated by the Federal Reserve, says it has applied for Otting's rogue-like national charter.

 First Otting left his Weekly Bulletin web page unchanged for week, making it impossible for the public to know of the application in order to comment.

  Now, with Fifth Third's application belatedly noticed on the OCC's website, there's more. Otting has decided to thumb his nose at the public and at the law and refuse to list any public comment period, or to accept comment, on the application by a large bank, Fifth Third, to convert to a national charter and pre-empt a slew of consumer protection laws.

See notice here, with no comment period listed; the OCC has said while it acknowledges such applications have include public comment periods in the past, now under Otting they won't.

Prior to this the Otting's New York OCC office told Inner City Press it simply wouldn't take its comment on the takeover of Chinatown FSB. This is lawless deregulation by a former bad banker mad that he got caught. Any other agency, FDIC or Federal Reserve, that work with him is colluding. We'll have more on this.

   Meanwhile the Consumer Financial Protection Bureau under Kathy Kraninger is thumbing its nose at the US Administrative Procedures Act and proposing to undermine the Home Mortgage Disclosure Act.

CFPB is trying three separate but inter-related attacks. The first is to raise the threshold for reporting HMDA data, to exempt wither 36% or 53% of banks and credit unions, a proposal on which the comment period runs only to June 12, here. (Comments are going in from such banks as Village Bank and Hamilton Bank and even, incongruously, Brenda Muniz OF the CFPB.)

  Second is to weaken the "data points" which will be reported by those still required to under HMDA. The CFPB wants to drop such information as "reason for denial" and "debt to income ratio" - the very information that banks so often cite in response to CRA challenged by Fair Finance Watch and others, as justifying their disparities. Now the CFPB wants to not collect this supposed justification of disparities. Just trust us, is the message. Well, no. This comment period runs to July 8, here.

  Finally, without any comment period at all, the CFPB is eliminating the public's front door to the HMDA data, the HMDA Explorer web site that many community groups such as the hundreds that are members of NCRC use to assess banks in their communities. The CFPB wants to take even this away. They should be sued.  We'll have more on this. And see @SDNYLIVE.

June 3, 2019

OCC of Otting Delays Notice of Mergers Until Comment Period Closes Like FOIA Fee Waiver Sleaze

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, June 1 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move is to deny access to documents about the application to the OCC for WSFS to acquire Beneficial Bank and close 25 branches. Inner City Press requested the records months ago, along with a request for a waiver of fees as the other Federal bank regulators grant it and as the OCC has until now.

  But Otting is different. First he denied a fee waiver on Inner City Press' request for his calendar. Then he relented on that, after Inner City Press citing case law and precedent. But seemingly in retaliation, he has denied access to a merger application subject to public comment. Denial here on Scribd.

  Now on 1 June 2019 the most recent OCC Weekly Bulletin of bank merger applications on which the comment periods are 30 days is from May 4. Inner City Press tweeted photo here. That is to say, the applications are being hidden until the comment period closes. Otting is killing the CRA.

May 27, 2019

After Banker Calk Pled Not Guilty Inner City Press Puts Fraud Q to OCC Where Banker Otting Delays

By Matthew Russell Lee, Video, Alamy photos

SDNY COURTHOUSE, May 24 – Steven M. Calk of FDIC-regulated Federal Savings Bank was presented and arraigned on May 23 for financial institution bribery for corruptly using his position with FSB to issue $16 million in high-risk loans to Paul Manafort in a bid to obtain a senior position with the Trump administration, namely Secretary of the Army.

  Magistrate Judge Debra Freeman in the U.S. District Court for the Southern District of New York accepted the government's proposal of $5 million bond with no co-signer (although that is usually required for moral suasion) and travel allowed throughout the United States (though more defendants are usually confined to the Soutern and Eastern District of NY and one other district). Money talks.

  Afterward in front of the SDNY courthouse Inner City Press asked Calk's lawyers Daniel Stein and Jeremy Margoles about Manafort saying he had misstated his financial situation to get the FSB loans. When did Calk know? They did not answer. Video here, Facebook video here.  Inner City Press' Alamy photos here.

  On May 23, still from the SDNY courthouse covering other cases including one involving the death penalty, Inner City Press reported finding no U.S. Home Mortgage Disclosure Act data for "Federal Savings Bank." But there's more.

The Federal Savings Bank's website, while providing a generic link to the FDIC, and a statement "Member FDIC," has no link for the U.S. Community Reinvestment Act. (Nor does it mention the indictment of Stephen Calk, simply listing his brother John Calk now as CEO and Vice Chairman. Who is the chairman?)

  It lists a loan production office on Avenue J in Brooklyn, and two deposit taking braches in Illinois. Did it see some exemption from the CRA and other consumer protection laws? From fair lending laws?

  Earlier on the morning of May 24 Inner City Press asked the FDIC, "Having covered yesterday's arraignment of the Chairman of The Federal Savings Bank in the SDNY courthouse, including the FDIC's involvement, I checked the bank's website and found "Member FDIC" but no mention of the Community Reinvestment Act."

  The FDIC's spokesperson David Barr, to his credit, responded quickly, writing to Inner City Press: "The Federal Savings Bank, Chicago, is regulated by the Office of the Comptroller of the Currency. They would be responsible for CRA and regulatory oversight. You should contact the OCC for more information."

  Now the OCC under Comptroller Joseph Otting has done everything possible to block the release of information, denying FOIA fees waivers and expedited treatment, refusing comments. But for now online the OCC has said this about The Federal Savings Bank: "While TFSB originated a substantial majority of its loans outside of its AAs; the bank’s business strategy is to operate as a mortgage banking entity with a nationwide presence and market place. Taking the bank’s business strategy into consideration the bank’s performance under this lending criterion is deemed reasonable." Reasonable? Bribery, too, seems to have been part of its business strategy, right under the nose of the OCC of Otting.

  Before 2 pm on May 24 Inner City Press in writing asked Otting's OCC: "This is a Press question for the OCC, from Inner City Press... Please confirm that The Federal Savings Bank is subject to HMDA, and/or if it is below a threshold, as I can find no data in its name on FFIEC.gov. Also, please today provide as an OCC response to the Press this OCC-regulated bank's CRA public file and other information in the OCC's possession concerning the bank's CRA and fair lending performance.   Is it normal for a bank not to mention these things on its website, nor to provide any link to its actual regulator, the OCC, but only to the FDIC?     Please explain what steps the OCC is taking beyond Stephen Calk no longer being the CEO. What about his brother?"

  More than three hours later, even to the questions at the end, the OCC had only provided this:   "We are reviewing your questions, but we may not be able to respond by your deadline.     Regards,  Stephanie        Stephanie Collins  Manager, Media Relations  Public Affairs Operations  Office of the Comptroller of the Currency." This is the same OCC which has delayed FOR MONTHS providing basic information about a merger it has now already rubber stamped. We'll have more on this.

  Stephen Calk was quoted, at least in 2012, opposing regulation: "As Mr. Stephen Calk writes in the September 7, 2012 edition of Origination News: “Basel III is designed to level the playing field among major banking institutions that operate internationally. Force-feeding these same rules to community banks in the United States is unnecessary and in fact counter-productive, particularly in the current economic environment.” Basel III is one thing. But no Community Reinvestment Act?

The Federal Savings Bank lists locations - and bankers - in       Arizona - Scottsdale California - Irvine Colorado - Fort Collins Delaware - Selbyville Florida - Sarasota Illinois - Chicago Illinois - Lake Forest Illinois - Oak Brook Illinois - Park Ridge Indiana - Bloomington Indiana - Indianapolis Kansas - Overland Park Louisiana - Laplace Maryland - Annapolis Maryland - Timonium CD Massachusetts - Lawrence New Jersey - Hackensack New Jersey - Lakewood New York - Brooklyn New York - Melville New York - New York New York - Queens North Carolina - Raleigh Ohio - Columbus Rhode Island - South Kingstown Tennessee - Nashville Virginia - Alexandria Virginia - Fredericksburg Virginia - Newport News Virginia - Richmond Virginia - Vienna Virginia - Warrenton...  We'll have more on this.

  In the indictment press release, FDIC OIG Special Agent-in-Charge Patricia Tarasca said, “Today’s indictment charges Stephen Calk with misusing his position as Chairman and CEO of a bank for his own personal gain.  The FDIC Office of Inspector General remains committed to investigating cases where bank officials cause multimillion-dollar losses to a financial institution and undermine its integrity.” (The FDIC stands to be the lead regulator of BB&T whose money laundering enforcement action was just terminated by the Federal Reserve to facilitate merger with Suntrust, click here for that and Inner City Press' FOIA request and appeal.)

May 20, 2019

OCC of Otting Told ETRADE It Is Exempt From CRA Inner City Press Finds Under FOIA

By Matthew R. Lee, Exclusive

SOUTH BRONX, May 18 – The US Treasury Department is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. Now on October 11, more on Otting's assault on the CRA has become known. In April 2018 his OCC approved an application by E-Trade Saving Bank which Fair Finance Watch had challenged based on the bank having no fewer than six states rare "Needs to Improve" CRA ratings. FFW noted rare Needs to Improve ratings for the entire states of Arizona, Colorado, Florida, Georgia, Michigan and Oregon, and an undeserved “Satisfactory” for New York. Otting's OCC, after the approval, helpfully contacted E-Trade Bank to tell it that upon (Otting's) reflection, it was no longer even subject to the Community Reinvestment Act.

 Back in October 2018 Inner City Press asked the OCC for documents about this under FOIA - while the OCC has sought to evade by accessing fees, to this day. But in May 2019 while withholding 1000 pages the OCC released to Inner City Press, like a needle in a hay stack, its June 16, 2018 letter from Assistant Deputy Comptroller for Midsize Bank Supervision William Russell to E*TRADE's Karl Roessner telling him that E*TRADE's banks are exempt from CRA, here. We'll have more on this.

May 13, 2019

FOIA Fee Waiver Appeal To OCC Otting By Inner City Press For His Secret WSFS Bank Merger Docs

By Matthew R. Lee, Video, FOIA fee denial

SOUTH BRONX, SDNY, May 11 – With Comptroller of the Currency Joseph Otting moving to undermine the US Community Reinvestment Act, his latest move is to deny access to documents about the application to the OCC for WSFS to acquire Beneficial Bank and close 25 branches. Inner City Press requested the records months ago, along with a request for a waiver of fees as the other Federal bank regulators grant it and as the OCC has until now.

  But Otting is different. First he denied a fee waiver on Inner City Press' request for his calendar. Then he relented on that, after Inner City Press citing case law and precedent. But seemingly in retaliation, he has denied access to a merger application subject to public comment. Denial here on Scribd.

  Ironically the grounds cited is that releasing this information about a merger subject to public comment would not increase the public's understanding. This shows Otting contempt for CRA - and for the public. Inner City Press has filed this appeal with Otting, et al.:

"Dear Comptroller Otting:    

Inner City Press traditionally has received fee waivers from the Office of the Comptroller of the Currency under 5 U.S.C. § 552(a)(4)(A)(iii) and 12 C.F.R. § 4.17. Waivers were granted on the basis of similar or identical language contained in the instant Freedom of Information Act (FOIA) request, which is now the subject of OCC’s waiver rejection. Outrageously, on Inner City Press' FOIA request for the portions of the WSFS - Beneficial merger application that the applicants unilaterally requested confidential treatment for, your FOIA Manager Frank Vance writes:   

 "Concerning the third consideration, contribution to public understanding, we examined whether or not disclosure of the requested records would contribute to the understanding of the public at large, as opposed to the understanding of the requester or a small number of interested persons.  In other words, we considered whether or not you demonstrated how contribution to public understanding outweighs personal benefit to you.  I find that you did not demonstrate this component; therefore, you did not satisfy the regulatory requirement of 12 C.F.R. 4.17(b)(4)(i).  In light of this, there is no need to analyze your justification with respect to 12 C.F.R. 4.17(b)(4)(ii). "     

So you are claiming that the public is not interested in, and should be constrained in access, the bank merger applications on which the public has a right to comment. You are claiming that to get any OCC review of the often outrageously overbroad requests for confidential treatment of the banks you supervise, the public has to pay untold fees. This is a new low, and Inner City Press is appealing.     Inner City Press Is Eligible for a Fee Waiver     In accordance with 5 U.S.C. § 552(a)(4)(A)(iii) and 12 C.F.R. § 4.17, Inner City Press is eligible for, and requests, a waiver of fees associated with processing its request for records. The subject of this request—the review of a merger to close at least 25 bank branches -- concerns the operations of the federal government, and the disclosures will likely contribute to a better understanding of relevant government procedures by the general public in a significant way. Moreover, the request is primarily and fundamentally for non-commercial purposes.     Inner City Press requests a waiver of fees because disclosure of the requested information is “in the public interest because the disclosure . . . [i]s likely to contribute significantly to public understanding” of government operations or activities.

 Specifically, the disclosure of the information sought under this request will document and reveal the activities of the federal government, including how your OCC reviews the CRA and branch closing aspects of the merger.      As discussed below, Inner City Press has both the ability and the intention to effectively convey the information it receives to the public.     Inner City Press does not have a commercial interest in the requested information. This request is primarily and fundamentally for non-commercial purposes. Inner City Press does not have a commercial purpose and the release of the information requested is not in its financial interest. Inner City Press’s mission is to engage in cutting-edge investigative reporting focused, fair lending, development, and government accountability advocacy. Core to its mission is to educate the public about government activities and to ensure the accountability of government officials. Inner City Press uses the information gathered, and its analysis of it, to educate the public through reports, press releases, or other media. It also makes materials it gathers available on its public website and promotes their availability on social media platforms. Inner City Press has demonstrated its commitment to the public disclosure of documents and creation of editorial content. For example, Inner City Press’s website contains dozens of articles describing the operations of the federal government from a unique perspective, including about the OCC:  
 In SDNY FreddieMac Via FHFA of Otting Says Its Negligent Late Objection Is Fine As Otting Lawless

 And this.

   Inner City Press’s website contains many more examples demonstrating its ability and intention to inform the public about government activities, including specifically related to how the subject of the instant FOIA request spent his time at OCC.     Accordingly, Inner City Press qualifies for a fee waiver.    

Significantly, well before this outrageous denial which now longer keeps secret the requested documents, even the OCC wrote "your correspondence of March 8 is more robust and sets forth with reasonable specificity the grounds to justify the OCC's granting of the fee waiver. Therefore, your request for a fee waiver with respect to FOLA request 2019-00104 is granted. The OCC's Disclosure Services office will remove the matter from "Hold" status and proceed to process the request."    

Of course, even in that case [about your / Otting's schedule] in the two month since our letter we have not received a single document from your OCC.          

There can be no doubt that Inner City Press qualifies for a waiver based on the foregoing. Moreover, Inner City Press’s long track record of fee waivers is further evidence of our current eligibility. In particular, we have demonstrated repeatedly our intent and ability to inform the public about government operations and that our requests for information are not primarily in our commercial interest.     

We find your OCC's FOIA and other practices outrageous and demand expeditious ruling on this appeal and release of the already long delayed documents.    Matthew Lee, Esq., Executive Director Inner City Press / Fair Finance Watch." Watch this site.

May 6, 2019

On Money Laundering After Federal Reserve Withholds 133 Pages On BB&T Inner City Press Comments

By Matthew R. Lee, FOIA docs, BB&T denial

NEW YORK CITY, May 4 – When BB&T announced a $66 billion proposal to take over Suntrust Bank, which would close a still undisclosed number of branches and extend BB&T disparate lending patterns, many linked it to deregulatory moves in Washington. Then two days after Federal Reserve Governor Lael Brainard was asked by Inner City Press about the Fed's lax review of previous mergers, including WSFS on which the Fed still hasn't ruled on the bank's withholding of information after rubber stamping the deal, the Fed announced public hearings. But the fix it seems it still in. On April 18, conveniently, the Fed "announce[d] termination of enforcement action with BB&T Corporation" for money laundering. So there's a public comment period on the merger, but none on the Fed's dubious move while the application is pending. Meanwhile as Inner City Press has exclusively reported, BB&T has been named in connection with sleazy debt collections in a case in the SDNY - more on all this to come. On April 29, Inner City Press submitted a FOIA request about the dubious termination of enforcement action, and a comment to the Fed and FDIC, below.

  On the afternoon of May 2, before seeking to close the comment period on BB&T - Suntrust on May 3, the Federal Reserve wrote to Inner City Press that only ONE PAGE about its BB&T money laundering enforcement termination would be provided, and 133 pages withheld in full, no even subject to the type of partial redaction that is required under FOIA. FRB 99% denial letter here.

  The one page is not even from the Federal Reserve: it is from the North Carolina regulator. And there is a request to the FDIC about three pages. Just after the Federal Reserve's FOIA "response," the FDIC wrote to Inner City Press to say its comment period would closed on May 3, and has not responded how it and the Fed's May 3 public meeting, replete with singing for supper, can be viewed. On May 3 before 5 pm Inner City Press raised the bogus FOIA response to the Fed governors and FDIC: "Dear Chair Powell, Secretary Misback and others in the FRS:      This is a timely second comment opposing and requesting an extension of the FRB's public comment period on the Application by BB&T Corporation to merge with SunTrust Banks, Inc. and indirectly acquire SunTrust Bank Holding Company, Orlando, FL, and SunTrust Bank.       As Fair Finance Watch was reviewing the Home Mortgage Disclosure Act (HMDA) and other data of the banks with an eye toward commenting or not commenting by the current May 3 expiration of comment period on this proposed mega-merger, it and Inner City Press were shocked to see the Federal Reserve Board's cynical April 18 termination of the enforcement action against BB&T for money laundering.       Money laundering is, along with redlining, one of the most serious crimes a bank can engage in. For example currently in the SDNY there are numerous AML prosecutions, resulting for example in the conviction of CEFC's Ho for UN-related bribery. Even the Fed had historically acknowledged the primacy of full AML compliance over the rush toward corporate combination, for example in connection with M&T Bank.       Yet here, for the convenience of and in collusion with a proposed mega merger, the Fed without transparency has terminated the BB&T AML enforcement action during the public comment period on the merger, without taking any public comment on it.     Inner City Press has submitted a Freedom of Information Act request to the Federal Reserve for records related to this troubling de-regulatory action. It requested expedited treatment and formally requests that the comment period be kept open until the FRB has made these records available.        Cynically, the Fed responded just before deadline with one page, withholding 133 pages in full in contravention of FOIA. Inner City Press has timely appealed:  an mmediate FOIA appeal of FRB absurd denial by providing only one page and withhold 133 pages in full - in response to Inner City Press' FOIA request regarding the FRB's decision to terminate the money laundering enforcement action against BB&T during the pendency of its application to acquire Suntrust.      As you must know, agencies are request to provided all reasonably segregable information and are not allow mass withhold, as here, over 99% of responsive pages, in full.      Troublingly, just as the Fed acquiesced to BB&T and lifted the enforcement action to facilitate this merger, now it provide a shameful FOIA (non response), to claim it is legitimate to close its comment period on this, the largest merger proposal since 2008.        This is a demand that on this record the comment period must be extended. Inner City Press also timely notes that it asked the FDIC how to view today's public meeting and was told it is only live streamed INSIDE the Federal Reserve Bank. This should be explained - it is far from the best practice, of smaller regulators, on smaller proposed mergers.

April 29, 2019

In SDNY Predatory Lending Defendants Get Free Lawyers Sullivan and Cromwell $2000 a Week

By Matthew Russell Lee, Exclusive, Periscope

SDNY COURTHOUSE, April 23 – Two defendants arrested at Newark International Airport for an advance fee scheme, essentially predatory lending, were presented late on April 23 in the U.S. District Court for the Southern District of New York arraignments courtroom, presided over by this week by retiring Magistrate Judge Henry Pitman. One of them, Omar Young of 107 West Fourth Street, Granton, Wisconsin, was given a free / publicly funded lawyer despite having $215,000 in a business checking account. The other, a Mister Perlman of northern Georgia, has $161,000 in the bank but his counsel, from the white shoe firm of Sullivan & Cromwell, argued that he should be given a free lawyer - and that the whole proceeding should be sealed. But it was held in open court, and Inner City Press was there, albeit the only media present. Why is a corporate law firm like Sullivan & Cromwell representing a predatory lender -- alleged, of course -- and arguing they should be paid, and it should be sealed? Inner City Press aims to have more on this case. For now we note that in the open court proceeding it was said that no hotel can be found in or around New York City for less than $250 to $300 a night, and each defendant was allowed while getting publicly funded counsel to spend $2000 a week while in New York. That's $102,000 a week, deemed reasonable by the court and Sullivan & Cromwell, in a District where many families don't make that in a decade. Inner City Press will have more on this.

April 22, 2019

As Otting Targets CRA He Changed FOIA Fee Policy To Hinder Coverage Reversed on Appeal Still No Docs

By Matthew R. Lee, Video, story, FOIA docs

NEW YORK CITY, April 19 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is the Office of the Comptroller of the Currency's (OCC's) Joseph Otting. This Spring Otting, in order to hinder Press coverage of how many banks he meets with by changing the OCC's long standing FOIA fee waiver policy, is saying he will make it harder to get CRA information too. This is the "new" OCC - see its letter on new policies, below.  After Inner City Press appealed, twice, this has been reversed as to Otting's scheduled - but still as of the end of the week on Friday, April 19 not a single one of the long ago requested documents has been received. For the record, "Matthew Lee, Esq. Executive Director, Inner City Press/ Fair Finance Watch P.O. Box 20047 New York, NY 10017  Subject: Freedom of Information Act Appeal No. 2019-00004  Dear Mr. Lee:  I am writing in response to your correspondence of February 11, 2019, and March 8, 2019. In your correspondence, you sought to appeal the OCC's denial of your request for a fee waiver in connection with your request or information pursuant to the Freedom of Information Act, 5 U.S.C. 552, as amended (FOIA)(numbered 2019-00104).  The FOIA does not provide an explicit right to appeal the denial of a fee waiver, The OCC's FOIA regulations also do not provide such a right. See 12 C.F.R. 4.15(d)(1). Moreover, I am not aware of any legal precedent holding that a denial of a fee waiver is an appealable "adverse determination” pursuant to the FOLA or otherwise requiring any federal agency to consider an appeal of a fee waiver denial.  Nonetheless, the OCC, in its discretion, has considered your appeal. While you did not meet the legal standard in section 552(a)(4)(A)(iii) of the FOIA to justify the granting of a fee waiver in your initial FOIA request or in your February 11 correspondence, your correspondence of March 8 is more robust and sets forth with reasonable specificity the grounds to justify the OCC's granting of the fee waiver. Therefore, your request for a fee waiver with respect to FOLA request 2019-00104 is granted. The OCC's Disclosure Services office will remove the matter from "Hold" status and proceed to process the request.  Sincerely,  Rao  Bao Nguyen Principal Deputy Chief Counsel Office of the Comptroller of the Currency." Otting's OCC still says it will not consider public comments on "Business Combination" applications on which public comments have always in the past been considered, for example this one on a Long Island bank trying to take over Chinatown FSB, here. Now they write again, to pretend that it is not a new policy, and that the US Administrative Procedure Act does not apply to changes of agency policy, particularly to protect and censor for a new head of agency.

April 15, 2019

As Otting Targets CRA He Refused Inner City Press Chinatown Comment Now Rep Katie Porter Letter

By Matthew R. Lee, Video, story, FOIA docs

NEW YORK CITY, April 10 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is the Office of the Comptroller of the Currency's (OCC's) Joseph Otting. He has gone beyond overall attempts to underling the CRA to refusing public comment on the type of business combination applications on which comment has in the past been accepted and considered. Photo here. In fact, his OCC's refusal comes on application for which a public comment period was specifically listed on the agency's website.

So Inner City Press / Fair Finance Watch wrote to the OCC, including Stephen Lybarger, as follows:  "Thanks for emailing this letter but I must say, Inner City Press / Fair Finance Watch it deeply concerned by, and hereby opposes it.  Heretofore our comment on just such Business Combination proposals HAVE been considered by the OCC. If under Comptroller Otting the OCC is changing its longtime practice it needs to do a notice and comment process under the APA. This is lawless.  In this case, the proposal we commented on specifically provides for a comment period: Please retract your letter and consider appropriately our comment, or explain in writing why.  Please confirm receipt of these requests."

  The OCC has not responded or reversed itself to consider the comments, even as Inner City Press pursues Chinatown FSB documents at agencies which don't problematize such requests for bogus FOIA fee waiver issues. Now Rep. Katie Porter has written to Otting, including "If the OCC fails to consider community group comments during a merger-approval process, that would directly contradict the law. 12 CFR 8 5.33 also states: “When the OCC evaluates an application for a business combination under the Community Reinvestment Act, the OCC also considers the performance of the applicant and the other depository institutions involved in the business combination in helping to meet the credit needs of the relevant communities, including low- and moderate-income neighborhoods, consistent with safe and sound banking practices." 2. How are your proposed changes to community group comment consideration during the  merger-approval process consistent with 12 CFR § 5.33?  ... See,David Dayen, "The Fake Public Comments Supporting A Bank Merger Are Coming From Inside the House," The Intercept (September 2018), here. 3. Do you intend to recuse yourself from the new rule-making, given the irregularities  confirmed in One West's CRA review process while you were CEO? If not, how will you engage in this rule-making without prejudice extending from your experience with the One West/CIT merger? Community groups submit their comments during the merger-approval process with the specific i Please respond to these inquiries in writing by April 15th." Watch this site.

April 8, 2019

After Fair Finance Watch Protest to Ameris Bank Takeover Of Fidelity Fed Has Questions

By Matthew R. Lee, Patreon

NEW YORK, April 4 – The bank with the worst record in the United States for gouging consumers with overdraft fees, Ameris, has applied to the Federal Reserve to buy Fidelity Southern Corporation and its Fidelity Bank, both in Atlanta. On March 2, Fair Finance Watch filed formal opposition with the Federal Reserve Board, whose chairman Jerome Powell has insisted that the Fed is not just a rubber stamper of all mergers, citing the gouging, Ameris' disparate mortgage lending record in Atlanta, Georgia and Florida, and the Community Reinvestment Act. See below. Now the Fed has asked Ameris questions, including: "5)    The Community Reinvestment Act performance evaluation for Ameris Bank as of October 2016 stated that Ameris Bank “demonstrated poor responsiveness in meeting the community development investment needs in the Atlanta MSA.”  Please discuss any subsequent efforts to improve this performance, and please discuss any community development investment plans for the combined bank." Why should a bank already demonstrably poor in Atlanta be allowed to buy another bank there? Without even an evidentiary hearing? The Fed's question letter also zeroes in on some of the inconsistencies that have characterized Ameris' recent interactions with regulator, for example asking: "1)    The Application indicates that immediately prior to the effective time of the merger of FSC with and into Applicant (“Merger”), FSC’s outstanding common stock will be converted into the right to receive 0.80 shares of Applicant’s common stock.  However, for question 10c of the Application, which requests a current and pro forma shareholder list if the proposed transaction will result in a change in ownership, Applicant answered “not applicable.”    a.    Please address this discrepancy.    b.    If yes, provide a current and, if different, pro forma list of Applicant’s shareholders that will hold a 5 percent or more ownership interest, identifying the percentage of voting interests and total equity of Applicant held by each shareholder or group of shareholders.   2)    The Application indicates the Merger will be funded through the issuance of approximately 22 million shares of Applicant’s common stock.  Please revise the response to question 10d of the Application to address this statement.    3)    The Application indicates Fidelity Bank has branches in states other than Applicant’s home state of Georgia.  Accordingly, please revise the response to question 21 of the Application." This is not the first time Ameris' applications to the Fed have contained falsehoods.  As Inner City Press previously exclusively reported it turned out, from Ameris' response, that its application was false when it said it would continue the CRA policies of Atlantic - see full response on Patreon, here, question 3. Inner City Press requested records under the Freedom of Information Act - a process on which the Fed is increasingly slow, perhaps taking its lead from Comptroller Joe Otting who is now trying to hinder even getting copies of merger applications from the OCC. We'll have more on this.

April 1, 2019

Wells Fargo Now Goes On Without Tim Sloan After Dropping CRA 2 Levels by OCC Whose Otting Apologized

By Matthew R. Lee

NEW YORK, March 28 – Seven months after Wells Fargo Bank's Community Reinvestment Act rating was dropped two levels to "Needs to Improve," barring it from acquisitions, the Office of the Comptroller of the Currency of Joseph Otting quietly said, in a footnote to a Bulletin issued on 12 October 2017, that "The OCC’s policy is not to lower a bank’s CRA composite or component rating by more than one rating level." See here, footnote 8. So when did this become the OCC's policy, after it dropped Wells by two levels? Call it a stealth sop to Wells Fargo - and seemingly a violation of the Administrative Procedures Act, one in what has become a series by Otting at the OCC. Now on 28 March 2018, Tim Sloan is abuptly out at Wells Fargo, leaving general counsel Allen Parker as interim CEO pending a search. Could Otting's obsequiousness be a try-out? Would communities be worse off with him as head of a bank, again, or as regulators of most of the largest banks? We'll have more on this. In July it emerged that over 800,000 people who took car loans from Wells were charged for needless auto insurance, pushing 274,000 Wells Fargo customers into delinquency and triggering nearly 25,000 wrongful vehicle repossessions. So much for the industry having cleaned itself up after the predatory lending meltdown. New York City announced it will not enter any new relationships with the bank, also suspending Wells Fargo's role as a senior book-running manager for NYC General Obligation and Transactional Finance Authority bond sales. A statement by Mayor Bill de Blasio and Controller Scott Stringer noted that "Currently, Wells Fargo holds contracts with the City to provide banking services, including to operate 'Lock Box' services that hold taxes and fees collected by the City. There is approximately $227 million of City dollars held in Wells Fargo accounts." Bu will they get involved in opposing Sterling National Bank, which Inner City Press and Fair Finance Watch have exposed as having "unreliable" CRA data, notwithstanding the OCC's scam "Satisfactory" rating on May 30? Click here. We'll have more on this.

March 25, 2019

Federal Reserve Board Is Already Rubber Stamping Mergers Now Anti CRA Stephen Moore Nominated

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, March 23 – Federal Reserve Board chairman Jay Powell told Congress he will run transparent reviews of mergers like BB&T - Suntrust, and announced two public hearings as if to prove it. But on February 27 while still not acting on Inner City Press' Freedom of Information Act request for withheld information, his Fed Board rubber stamped the application by WSFS to buy Beneficial and close at least 25 branches. Now the Fed portends to become even more of a rubber stamp, even more dismissive of the Community Reinvestment Act, now that Stephen Moore has been nominated. Beyond his article trashing the CRA, here, Moore has been outed for using false data such that even the Kansas City Star said they won't publish him any more. But he'll be in FRB merger approval orders? The Fed's WSFS order said, "A commenter objected to the proposal alleging, based on data reported under the Home Mortgage Disclosure Act (“HMDA”)25 for 2017, that WSFS Bank denied home purchase mortgage loans to African American and Latino applicants at significantly higher rates than to white applicants in the Wilmington, DelawareMaryland-New Jersey Metropolitan Division (“MD”) and the Salisbury, MarylandDelaware Metropolitan Statistical Area (“MSA”). The commenter also raised concerns regarding branch closures anticipated in connection with the proposed mergers." The comment, which the Fed seems not to want to name in order to try to deny legal standing, is Fair Finance Watch / Inner City Press.

March 18, 2019

As BB&T Tries Taking Over Suntrust Fed Sets Public Hearings After Brainard Quizzed on FOIA By Inner City Press

By Matthew R. Lee, FOIA docs

NEW YORK CITY, March 14 – When BB&T announced a $66 billion proposal to take over Suntrust Bank, which would close a still undisclosed number of branches and extend BB&T disparate lending patterns, many linked it to deregulatory moves in Washington. Now two days after Federal Reserve Governor Lael Brainard was asked by Inner City Press about the Fed's lax review of previous mergers, including WSFS on which the Fed still hasn't ruled on the bank's withholding of information after rubber stamping the deal, the Fed has announced this: "The Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) on Thursday announced that they will jointly hold two public meetings on the proposed merger of BB&T Corporation, Winston-Salem, North Carolina, with SunTrust Banks, Inc., Atlanta, Georgia. As part of the proposal, BB&T would merge SunTrust Bank with and into its subsidiary state non-member bank, Branch Banking and Trust Company, Winston-Salem, North Carolina.  The purpose of the meetings is to collect information relating to the convenience and needs of the communities to be served, including a review of the insured depository institutions' performance under the Community Reinvestment Act. The agencies also will consider and collect information on other factors relevant to making a decision on the application, including the effects of the proposal on the stability of the U.S. banking or financial system, the financial and managerial resources and future prospects of the companies, and competition in the relevant markets.  The first public meeting will be held:  Thursday, April 25 at 8:30 a.m., EDT Charlotte Branch of the Federal Reserve Bank of Richmond 530 East Trade Street, Charlotte, North Carolina The second public meeting will be held:  Friday, May 3, at 8:30 a.m., EDT Federal Reserve Bank of Atlanta 1000 Peachtree Street N.E., Atlanta, Georgia. All persons wishing to testify at the public meeting in Charlotte should submit a written request no later than 5:00 p.m. EDT on Monday, April 15, 2019. A request to testify at the Charlotte public meeting may be sent by mail to: Matthew Martin, Vice President, Research Department, Microeconomics and Research Communications, Federal Reserve Bank of Richmond, 530 East Trade Street, Charlotte, North Carolina, 28202; by online form at: the Charlotte Public Meeting Request Form; by e-mail to: publicmeeting.charlotte@rich.frb.org; or by facsimile: 704-358-2300.  All persons wishing to testify at the public meeting in Atlanta should submit a written request no later than 5:00 p.m. EDT on Tuesday, April 23, 2019. A request to testify at the Atlanta public meeting may be sent by mail to: Karen Leone de Nie, Vice President Community and Economic Development, Federal Reserve Bank of Atlanta, 1000 Peachtree Street N.E., Atlanta, Georgia, 30309; by online form at: Atlanta Public Meeting Request Form; by e-mail to: atlfedcomdev@atl.frb.org." Game on. The deregulatory moves  include an assault on the Community Reinvestment Act, being led by Comptroller of the Currency Joseph Otting, who while at OneWest Bank led a false commenting process to push through a merger with CIT Group. (Otting is trying to change the OCC's practices on FOIA fee waivers and is even refusing to consider comments on some Business Combinations. But this BB&T proposal will go to the Fed whose Jerome Powell has vowed, credibly or not, to conduct a full review. And so consider this:  BB&T has been ordered to return $5.2 million to investors, according to the Securities and Exchange Commission, over charges it it acquired misled clients about the cost of advisory services.  The SEC said the firm that BB&T acquired with Susquehanna Bancshares, known then as Valley Forge Asset Management, misled about 1,200 clients into believing they were receiving full service brokerage services at a discount. We'll have more on this.

 Fair Finance Watch, which has been tracking BB&T as well as Otting's and the Federal Reserve's anti-CRA moves, finds that for example in the Atlanta Metropolitan Statistical Area in 2017 BB&T denied the home purchase mortgage applications of African Americans 2.2 times more frequently than whites, while making only 50 such loans to African Americans, and 23 to Latinos, compared to 458 to whites, all more disparate that other lenders in the market.

March 11, 2019

As Otting Targets CRA and Changes FOIA Policy For Mergers Inner City Press Legal Response

By Matthew R. Lee, Video, story, FOIA docs

NEW YORK CITY, March 8 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is the Office of the Comptroller of the Currency's (OCC's) Joseph Otting. Now Otting, in order to hinder Press coverage of how many banks he meets with by changing the OCC's long standing FOIA fee waiver policy, is saying he will make it harder to get CRA information too. This is the "new" OCC - see its letter on new policies, below.  And his OCC has said it will not consider public comments on "Business Combination" applications on which public comments have always in the past been considered, for example this one on a Long Island bank trying to take over Chinatown FSB, here. Now they write again, to pretend that it is not a new policy, and that the US Administrative Procedure Act does not apply to changes of agency policy, particularly to protect and censor for a new head of agency. These people are lawless. Inner City Press has again timely replied, this time also to the OCC's Stephen Lybarger and Barry Wides: "Good afternoon. Having not received a single page or day of the Comptroller's calendar which Inner City Press requested in January, in an abundance of caution and to ensure prompt receipt, we submit the below by your deadline, please confirm receipt:  Dear Ms. Merritt:     Inner City Press traditionally has received fee waivers from the Office of the Comptroller of the Currency under 5 U.S.C. § 552(a)(4)(A)(iii) and 12 C.F.R. § 4.17. Waivers were granted on the basis of similar or identical language contained in the instant Freedom of Information Act (FOIA) request, which is now the subject of OCC’s waiver rejection. I understand from your correspondence that you are not questioning Inner City Press’s eligibility for a waiver in this instance; rather, it appears you are requiring a more thorough enunciation of our eligibility than under prior requests. Inner City Press maintains its objection to OCC’s original determination, which has caused undue delay and prejudice to Inner City Press based on a previously unstated requirement to provide unprecedented detail in our waiver request. Nevertheless, below we provide additional detail to support our eligibility for a waiver.     Inner City Press Is Eligible for a Fee Waiver     In accordance with 5 U.S.C. § 552(a)(4)(A)(iii) and 12 C.F.R. § 4.17, Inner City Press is eligible for, and requests, a waiver of fees associated with processing its request for records. The subject of this request—calendars of an OCC senior official—concerns the operations of the federal government, and the disclosures will likely contribute to a better understanding of relevant government procedures by the general public in a significant way. Moreover, the request is primarily and fundamentally for non-commercial purposes.     Inner City Press requests a waiver of fees because disclosure of the requested information is “in the public interest because the disclosure . . . [i]s likely to contribute significantly to public understanding” of government operations or activities.[1] Specifically, the disclosure of the information sought under this request will document and reveal the activities of the federal government, including how high-ranking agency personnel are using their official time, with whom they are meeting to discuss official agency business, and whether and to what extent external interests are influencing administration policy decisions. The manner in which a senior official spends his time reveals agency priorities, enables the public to evaluate whether the official is abiding by ethical constraints on meeting with prior employers or clients, and reveals to degree of industry influence of political donor access to the agency. The value of such information speaks for itself. In addition, its value has been widely recognized. For example, in 2017, the New York Times identified an article based on then-EPA Administrator Scott Pruitt’s calendars as one of its most important stories of the year. See 2017: Our Reporters Reflect on Covering Washington and Politics, N.Y. Times, Dec. 29, 2017, available at https://www.nytimes.com/2017/12/29/us/politics/covering-washington-politics.html (citing E.P.A. Chief’s Calendar: A Stream of Industry Meetings and Trips Home, Eric Lipton, N.Y. Times, Oct. 3, 2017).     As discussed below, Inner City Press has both the ability and the intention to effectively convey the information it receives to the public.     Inner City Press does not have a commercial interest in the requested information. This request is primarily and fundamentally for non-commercial purposes. As a 501(c)(3) nonprofit, Inner City Press does not have a commercial purpose and the release of the information requested is not in its financial interest. Inner City Press’s mission is to engage in cutting-edge investigative reporting focused, fair lending, development, and government accountability advocacy. Core to its mission is to educate the public about government activities and to ensure the accountability of government officials. Inner City Press uses the information gathered, and its analysis of it, to educate the public through reports, press releases, or other media. It also makes materials it gathers available on its public website and promotes their availability on social media platforms. Inner City Press has demonstrated its commitment to the public disclosure of documents and creation of editorial content. For example, Inner City Press’s website contains dozens of articles describing the operations of the federal government from a unique perspective, including about the OCC:     ·        In SDNY FreddieMac Via FHFA of Otting Says Its Negligent Late Objection Is Fine As Otting Lawless: http://www.innercitypress.com/sdny1fhfahera030719.html.  https://theintercept.com/2018/09/29/joseph-otting-occ-onewest-bank-merger-cit/     Inner City Press’s website contains many more examples demonstrating its ability and intention to inform the public about government activities, including specifically related to how the subject of the instant FOIA request spent his time at OCC.     Accordingly, Inner City Press qualifies for a fee waiver.     Conclusion     Without withdrawing Inner City Press’s previously articulated objection to our original waiver denial, we submit the above information to satisfy the OCC’s newly-stringent standard for satisfying the waiver provisions of your regulations and the FOIA statute. There can be no doubt that Inner City Press qualifies for a waiver based on the foregoing. Moreover, Inner City Press’s long track record of fee waivers is further evidence of our current eligibility. In particular, we have demonstrated repeatedly our intent and ability to inform the public about government operations and that our requests for information are not primarily in our commercial interest." So far, only this, from the OCC's Kristin Merritt: "Mr. Lee.  I have received. Thank you." Watch this site. Here was their letter, dated March 5: "Dear Mr. Lee :   I sent you the following information in an email on 2/19/2019, and have not received a response.  Please respond as soon as possible, and by Friday, 3/8/2019 at the latest.   Good afternoon Mr. Lee.    I am writing to you regarding your correspondence of February 11, 2019, as it relates to your January 17, 2019 FOIA request number 2019-00104.  Although you request a fee waiver in connection with your FOIA request, you do not provide a sufficient justification for the granting of the waiver in either your January 17 or your February 11 correspondence.   I understand that in the past, the OCC has granted you fee waivers based on the same or similar language used in your most recent request, and that you may not have received an adequate explanation as to why your recent request was not being handled in a similar manner as past requests.  Please be aware that going forward, with respect to your case number 2019-00104 and all other requests made by any requester for any information, the OCC will only grant fee waivers on a case-by case basis when a requester has affirmatively demonstrated entitlement to a fee waiver in accordance with the requirements of the FOIA at 5 U.S.C. 552(a)(4)(A)(iii).  This approach is in accordance with the FOIA statute and DOJ guidance.  In applicable guidance, DOJ has stated:  “The Department of Justice stands committed to encouraging agencies to waive fees under the FOIA whenever the statutory fee waiver standard is met. By the same token, of course, agencies also are expected to respect the balance drawn in the statute, safeguarding federal funds by granting waivers or reductions only where it is determined that the statutory standard is satisfied.”  see FOIA Update, Vol. VIII, No. 1 (“OIP Guidance: New Fee Waiver Policy Guidance”) (emphasis added).  Moreover, the OCC’s approach is consistent with case law, which provides that each fee waiver request is considered on a case-by-case basis because each request involves varied information.  See Media Access Project v. FCC, 883 F.2d 1063 (D.C. Cir 1989).  Additionally, the OCC is not bound to grant a fee waiver to a requester in a particular case just because it has granted the requester waivers in the past.  See e.g., Judicial Watch Inc., v. DOJ, No. 99-2315, 2000 WL 33724693 at *5  (D.D.C. Aug. 17, 2000); Judicial Watch, Inc., v. DOJ, No. 97-2089, Slip op. at 14 (D.D.C. July 14, 1998).     The burden for establishing that a fee waiver is justified is on the requester.  See Friends of the Coast Fork v. U.S. Dep’t of the Interior, 110 F.3d 53, 55 (9th Cir. 1997).  Thus, in order for the OCC to determine whether your request meets the requirements for a fee waiver, you must demonstrate that the OCC’s disclosure in response to your request meets the standard set forth in Section 552(a)(4)(A)(iii).  You may wish to consult DOJ’s guidance at https://www.justice.gov/oip/blog/foia-update-new-fee-waiver-policy-guidance  in formulating your justification.  Until these issues are resolved with respect to your fee waiver, the clock is stopped on your FOIA request.       Thank you for your prompt attention to this matter.   Best,                    Kristin Merritt  Special Counsel Administrative & Internal Law  Office of the Comptroller of the Currency  400 7th St., S.W.  Washington, D.C.  20219" Under Otting, who is throwing up roadblocks to the release of his calendar under the Freedom of Information Act (see below), "the OCC is instructing examiners to investigate some of the claims separately, rather than addressing them within the merger-approval process.  “We require a certain level of detail and specificity in comments,” Comptroller of the Currency Joseph Otting said in a written statement. 'The changes ensure that concerns are validated by exam staff who are best positioned to review [their] merits.'"

This is a backdoor safe harbor. Since 98% of banks are rated Satisfactory or Outstanding (including those which later are found guilty of discrimination and redlining), to discount comments that are not "validated" by these bogus and inflated rating is regulatory malpractice. Perhaps this is why Otting is hiding his calendar

March 4, 2019

As Otting Targets Community Reinvestment Act He Refuses To Consider Public Comment on Chinatown Acquisition

By Matthew R. Lee, Video, story, FOIA docs

NEW YORK CITY, March 2 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is the Office of the Comptroller of the Currency's (OCC's) Joseph Otting. He has gone beyond overall attempts to underling the CRA to refusing public comment on the type of business combination applications on which comment has in the past been accepted and considered. Photo here. His OCC in a February 26, 2019 letter to Inner City Press / Fair Finance Watch concerning its timely comment opposing the application to the OCC by Long Island-based Hanover Community Bank to acquire Chinatown Federal Savings Bank, stated that "the business combination application filed with the OCC in connection with Hanover's acquisition, referenced above, is not subject to public comment." Photo of letter here. This is a direct attack on the CRA and on public participation more generally. Here's from the Fair Finance Watch comment Otting is refusing to consider: "February 18, 2019 Via e-mail
Office of the Comptroller of the Currency Northeastern District Office Acting Director for District Licensing, Marva V. Cummings 340 Madison Avenue, Fifth Floor New York, NY 10173-0002 
Re: Timely First Comment on OCC 2019-NE-Combination-307316, re Applications by Hanover to acquire Chinatown FSB
Dear Ms. Cummings and others in the OCC:  This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Hanover to acquire Chinatown FSB.       The applicant Hanover in the New York City MSA in 2017 made 269 home purchase loans to Asians -- and NONE to African Americans. Note that Hanover's CRA assessment area includes The Bronx, and Brooklyn.    Note that when Hanover opened a deposit taking branch in NYC, in Forest Hills, its press release said nothing about a focus on Chinese Americans or Asians or any limitations or restrictions on lending, here.  Hanover does not even appear to offer any FHA, FSA/RHS, and VA home-purchase loans. This is not acceptable.... The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved." Then Otting says, we don't care, we won't listen. 
Otting, in order to hinder Press coverage of how many banks he meets with by changing the OCC's long standing FOIA fee waiver policy, is saying he will make it harder to get CRA information too. This is the "new" OCC - see its letter on new policies, below.  Under Otting, who is throwing up roadblocks to the release of his calendar under the Freedom of Information Act (see below), "the OCC is instructing examiners to investigate some of the claims separately, rather than addressing them within the merger-approval process.  “We require a certain level of detail and specificity in comments,” Comptroller of the Currency Joseph Otting said in a written statement. 'The changes ensure that concerns are validated by exam staff who are best positioned to review [their] merits.'"

This is a backdoor safe harbor. Since 98% of banks are rated Satisfactory or Outstanding (including those which later are found guilty of discrimination and redlining), to discount comments that are not "validated" by these bogus and inflated rating is regulatory malpractice. Perhaps this is why Otting is hiding his calendar...

February 25, 2019

Amid Targeting of Community Reinvestment Act Fed Asks WSFS About Branch Closings

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, February 20 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. At the November 19 deadline, not yet posted was Inner City Press' November 17 fourth comment, just as Otting's OCC absurdly waited 13 days to try to rule it does not have to consider Fair Finance Watch's comments on WSFS Bank's application to acquire Beneficial. Now, after the OCC gleefully closed its comment period on that, WSFS on December 13 announced it will close 25 branches. One would think Otting would have to re-open the comment period. But that's not how Otting rolls. And the Fed, on FOIA and now public notice, is absurd. It has allowed WSFS to withhold its answer on CRA, in a letter it sent late to Inner City Press. Now just past midnight on February 20 the Fed has asked WSFS a "non-confidential" question, below, and presumably some confidential question(s) which Inner City Press / Fair Finance Watch has no chance to obtain under FOIA before Board action. Here's what FFW has just received: "From: Derald Seid To: mnonaka; Benjenk, Randy Cc: Kelley O"Mara; Arthur White; Ken Williams Subject: WSFS Application Date: Wednesday, February 20, 2019 12:22:00 AM NONCONFIDENTIAL // EXTERNAL Messrs. Nonaka and Benjenk: This request refers to the application by WSFS Financial Corporation (“WSFS”), Wilmington, Delaware, to acquire Beneficial Bancorp, Inc. (“Beneficial”), and thereby indirectly acquire Beneficial Bank (“Beneficial Bank”), both of Philadelphia, Pennsylvania, pursuant to section 10(e) of the Home Owners’ Loan Act following the conversion of Beneficial from a bank holding company to a savings and loan holding company. Following the proposed acquisition, WSFS plans to merge Beneficial Bank into its subsidiary, Wilmington Savings Fund Society, FSB (“WSFS Bank”), Wilmington, Delaware. Based on our review of the current record, the following information is requested: · WSFS has represented that it plans to close a total of 25 WSFS Bank and Beneficial Bank branches in connection with the proposed transaction, primarily because of the proximity of those branches to other branches of the proposed combined bank. Please confirm that WSFS will comply with the requirements of section 42 of the Federal Deposit Insurance Act (12 U.S.C. § 1831r-1) and interagency guidance applicable to branch closures (See Joint Policy Statement on Branch Closings by Insured Depository Institutions, https://www.federalreserve.gov/boarddocs/press/BoardActs/1999/19990707/r-1036.pdf). In accordance with the Federal Reserve’s ex parte procedures, provide a copy of the public portion of your response (together with any attachments) directly to the commenter, Mr. Matthew Lee of Fair Finance Watch. Any information for which you desire confidential treatment must be so labeled and separately bound, and accompanied by your request for confidential treatment pursuant to section 261.15 of the Board’s Rules Regarding Availability of Information (12 CFR 261.15). Best regards, Derald Derald L. Seid | Legal Division | Board of Governors of the Federal Reserve System."


February 18, 2019

As Otting Targets Community Reinvestment Act His OCC Starts Safe Harbor Relying On Bogus Ratings

By Matthew R. Lee, Video, story, FOIA docs

NEW YORK CITY, February 13 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is the Office of the Comptroller of the Currency's (OCC's) Joseph Otting. Now under Otting, who is throwing up roadblocks to the release of his calendar under the Freedom of Information Act (see below), "the OCC is instructing examiners to investigate some of the claims separately, rather than addressing them within the merger-approval process.  “We require a certain level of detail and specificity in comments,” Comptroller of the Currency Joseph Otting said in a written statement. 'The changes ensure that concerns are validated by exam staff who are best positioned to review [their] merits.'"

This is a backdoor safe harbor. Since 98% of banks are rated Satisfactory or Outstanding (including those which later are found guilty of discrimination and redlining), to discount comments that are not "validated" by these bogus and inflated rating is regulatory malpractice. Perhaps this is why Otting is hiding his calendar; perhaps the WSJ's Lalita Clozel will dig further. As to the Federal Reserve, Inner City Press has been informed of a memo by a major law firm which has hired and used former Fed Legal Division staff bragging about the fast Fed approvals it is receiving. We'll have more on this - including on BB&T / Suntrust, see here.

February 11, 2019

As Otting Targets Community Reinvestment Act Denies FOIA Fee Waiver For Inner City Press Request For His Calendar For 1st Time

By Matthew R. Lee, Video, story, FOIA docs

NEW YORK CITY, February 9 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is the Office of the Comptroller of the Currency's (OCC's) Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. On January 16 Inner City Press asked the OCC on the expedited basis for records to disclose Otting's meetings with the banking industry and othersBut in a letter dated January 31, the OCC for the first time in years denied Inner City Press' fee waiver request on this one request, despite the request using the same language as requests the OCC has granted for Inner City Press repeatedly. The only difference is the subject of the FOIA request: Otting. This is an abuse of power. Inner City Press has appealed: "Inner City Press is appealing Mr Frank Vance's letter dated January 31, 2019 which denies, for the first time in years, Inner City Press' request for a fee waiver - because the request concerns Comtroller Otting and his schedule. Inner City Press is a media that covers the OCC... it seeks this information to educate the public about the operations of the OCC. The language of the fee waiver request was the same as the OCC has requested granted - now suddenly a new standard is applied, due to the subject matter of the request. This is unacceptable. The denial letter doesn't even inform of the right to appeal, and the request number is not listed in our account - thereby blocking submission of the appeal. We are submitting under the number of another of our 2019 requests on which fee waiver WAS granted, on the same language. We ask for expedited ruling on this appeal, and an explanation."

February 4, 2019


US Settlement Without Fine For Predatory Lending From Malta Needs SDNY Approval Comparative Crime

By Matthew Russell Lee

NEW YORK CITY, February 1 – A dubious settlement of predatory lending claims by the US Consumer Financial Protection Bureau is coming for approval to the US District Court for the Southern District of New York, CFBP announced on Friday afternoon.

The facts of the case are extreme: a lender pretending to be based off-shore in Malta charging interest rates of 700%. But CFPB is settling out the case with no penalties, no restitution, nothing - and asking the SDNY to sign off on it. Will it?   The case is No. 15cv5211 (CM)(RWL) of which the CFPB says "The proposed settlement covers NDG Financial Corp., E-Care Contact Centers, Ltd., Blizzard Interactive Corp., New World Consolidated Lending Corp., New World Lenders Corp., Payroll Loans First Lenders Corp., New World RRSP Lenders Corp., Northway Financial Corp., Ltd., and Northway Broker, Ltd and corporate officials Kimberly DeThomas, Jeremy Sabourin, and William Wrixon. The defendants were not fined."

  These days Inner City Press is covering a range of cases in the SDNY. Not only Michael Cohen, and the back to back UN bribery cases of Ng Lap Seng then Patrick Ho, but also this week's sentencings for the NYPD's guns for cash scandal (18 months in prison) and conspiracy to commit arson in The Bronx (28 months, see below). So what is system predatory lending worth? Doesn't it, too, ravage communities? Compare and contrast... A Bronx man who pled guilty to conspiracy leading to the burning down of a convenience store in the Bronx on 11 September 2016 was sentenced to 28 months in prison on February 1 by Judge William H. Pauley III in the US District Court for the Southern District of New York.

  Arson and The Bronx were for a time synonymous, though few of the perpetrators were caught much less sentenced. Times have changed. Present at Friday afternoon's sentencing on the 20th floor of the Daniel Patrick Moynihan U.S. Courthouse were only the defendant Richard Sanchez and his lawyer, a lone prosecutor, three family members and Inner City Press. Yet the tale was heartbreaking, in its way.

  Sanchez' lawyer Patrick Brackley recounted that he had prior run-ins with the law, citing an incident with a dirt bike. But, he said, Sanchez had used his time out free on bail to re-build his life. Sanchez himself read what he called an open letter to Judge Pawley, speaking about his ten year old daughter, a business he was starting and his brand.

   Judge Pauley said he took note of these but found it inexplicable that someone would, for $500, agree to find people to burn down a store in their own neighborhood. Sanchez was contracted by the owner of one deli to burn down a nearly-open competitor; both stores were across the street from where Sanchez lived. Judge Pauley told Sanchez he was lucky no one had been injured or killed, alluding to the felony murder rule which would have held Sanchez liable.

   While the prosecution via Assistant U.S. Attorney Adam S. Hobson sought a sentence of from 46 to 57 months, Pauley imposed 28 months in prison to be followed by three years of supervised release, at a prison as near to New York City as possible.

   Restitution of $50,000 was ordered, and the same standard $100 mandatory special assessment that SDNY Judge Edgar Ramos had imposed the day before on former NYPD Lieutenant Paul Dean for his admitted role in gun permits for cash scam (see Inner City Press' story here).

  That sentencing drew a gaggle; that of Richard Sanchez for his role in the arson of a store in the Bronx did not. Pauley said to his mostly empty courtroom, The public must understand that people can't be going around burning down stores in their own neighborhood.

The case: United States v. Richard Sanchez, 18 Cr. 26 (WHP)

Upcoming in the SDNY is a just-filed complaint by the Bangladesh Central Bank for the $81 million hacking of its funds, which were then wired through the Federal Reserve Bank of New York, a case that Inner City Press will cover. Times change. Watch this site.

January 28, 2019

Amid Targeting of Community Reinvestment Act Centerstate Bank NCC Challenge Yields Fed Qs

By Matthew R. Lee, Video, story, FOIA docs

NEW YORK CITY, January 11 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. On January 7, Fair Finance Watch and Inner City Press filed comments and a Freedom of Information Act request with the Federal Reserve on Centerstate Bank's application to acquire National Bank of Commerce, despite Centerstate's disparate lending record, see below. On January 25, the Federal Reserve belatedly sent questions to CenterState, with a copy to Inner City Press: "This letter concerns the application filed under section 3 of the Bank Holding Company Act by CenterState Bank Corporation (“CenterState”), Winter Haven, Florida, to merge with National Commerce Corporation (“NCC”) and thereby acquire National Bank of Commerce (“Bank of Commerce”), both of Birmingham, Alabama. Based on staff’s review of the current record, the following additional information is requested. Respond to all requests, including those in the confidential annex. Supporting documentation, as appropriate, should be provided. 1. Indicate whether CenterState will discontinue or reduce any products or services of Bank of Commerce after consummation of the proposal. If so, discuss any efforts to mitigate the effects of such discontinuance or reduction.

2. Provide the address of any branches of Bank of Commerce that CenterState intends to close or consolidate after consummation of the proposal. Discuss any efforts to mitigate the effects of any such closing(s) or consolidation(s).

3. Discuss the efforts that CenterState will take to ensure a smooth transition for customers of Bank of Commerce to CenterState Bank, NA, Winter Haven, Florida. Your response should further elaborate on how CenterState will seek to avoid the types of issues alleged in the public comment concerning customer experiences during transitioning service to CenterState Bank, NA. Discuss also how CenterState will ensure a successful integration of others systems of NCC and Bank of Commerce with those of CenterState and CenterState Bank, NA.

4. Indicate to what extent CenterState Bank’s CRA and consumer compliance, including fair lending, programs would be implemented at Bank of Commerce. In addition, indicate the key individuals who would be responsible for these programs, as well as their qualifications and experience. Please submit your response to the Federal Reserve Bank of Atlanta within eight business days. In addition, in accordance with the Board’s procedures regarding ex parte communications, provide a copy of the public portion of your response, together with any attachments, directly to the commenter. 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 have more on this. On January 11, having been sent documents showing that Centerstate is trying to withhold most of its exhibits, Inner City Press filed "This is a second timely comment on the over-withheld Applications of Centerstate Bank Corporation, Winter Haven, Florida to merge with National Commerce Corporation, and thereby indirectly acquire National Bank of Commerce.    On January 7 Inner City Press / Fair Finance Watch submitted an initial comment and requested a copy of the full Application, under FOIA and through the Reserve Bank. So far, what has been sent to Inner City Press has no portion at all of the only substantive Exhibits, B, C and D. The only Exhibits provided are the merger agreements and the form of newspaper notice.  This is an abuse, and the comment period must be extended so that comment on the wrongfully withheld exhibits can be made. It is impossible to believe that there are no segregable non exempt portions of those exhibits. Inner City Press already has a FOIA request pending and so is not confusing the matter by submitting another FOIA request.  The FRB should not countenance such strategic secrecy by this applicant. This is a specific timely request that the comment period be extended and the information provided.

Fair Finance Watch has been tracking Centerstate Bank:

In 2017 in the Orlando, Florida MSA for home purchase loans, Centerstate made 108 such loans to whites - and only TWO to African Americans, and only ten to Latinos. Its denial rate for Latinos was 3.6 times higher than for whites, and for African Americans 2.66 times higher than for whites, both most disparate that the industry as a whole.

In 2017 in the Miami, Florida MSA for home purchase loans, Centerstate made 14 such loans to whites - and only three  to African Americans.

In 2017 in the Tampa, Florida MSA for conventional home purchase loans, Centerstate made 130 such loans to whites - and only 1 each to African Americans and to Latinos.

In 2017 in the Jacksonville, Florida MSA for conventional home purchase loans, Centerstate made 18 such loans to whites - and none to African Americans and to Latinos (it denied the only application which, based on its disparate outreach, it received from people of color, a Latino applicant.)

In 2017 in the Lakeland - Winter Haven, Florida MSA for conventional home purchase loans, Centerstate made 160 such loans to whites - and only four to African Americans and only eight to Latinos (it denied Latino applicants 2.7 time more frequently than whites.)

  This should also be address in this proceeding, including at the requested evidentiary hearing - CenterState has a history of mishandling mergers, and arrogantly ignoring consumer complaints, standing behind excuses rebutted by the consumers..

On Otting, there is and will be fight-back, under NCRC's TreasureCRA campaign and upcoming conference. Watch this site - including on actual enforcement of CRA.

January 21, 2019

As Otting Targets Community Reinvestment Act Inner City Press Requests His Calendar Under FOIA

By Matthew R. Lee, Video, story, FOIA docs

NEW YORK CITY, January 19 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is the Office of the Comptroller of the Currency's (OCC's) Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. And now on January 16 Inner City Press asked the OCC on the expedited basis for records to disclose Otting's meetings with the banking industry and others:  "Dear OCC FOIA Officer: Inner City Press / Fair Finance Watch (ICP) makes this request for records pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, and OCC regulations. ICP requests copies of records sufficient to show all of Comptroller Otting's scheduled meetings, appointments, and scheduled events from the date he became Comptroller to the date of your response including but not limited to Outlook calendar entries and daily briefing books for Comptroller Otting on those dates... ICP requests that you expedite the processing of this request. There is media interest and there exist possible questions concerning the OCC's integrity, which affect public confidence. See e.g. this article and the CRA ANPR since." We'll have more on this.

January 14, 2019

Amid Targeting of Community Reinvestment Act Centerstate Bank Takeover of NCC Challenged on Disparate Lending

By Matthew R. Lee, Video, story, FOIA docs

ORLANDO, January 7 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. On January 7, Fair Finance Watch and Inner City Press filed comments and a Freedom of Information Act request with the Federal Reserve on Centerstate Bank's application to acquire National Bank of Commerce, despite Centerstate's disparate lending record: "

This is a request for a full copy of, and a timely first comment on, the Applications of Centerstate Bank Corporation, Winter Haven, Florida to merge with National Commerce Corporation, and thereby indirectly acquire National Bank of Commerce.

As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.

Fair Finance Watch has been tracking Centerstate Bank:

In 2017 in the Orlando, Florida MSA for home purchase loans, Centerstate made 108 such loans to whites - and only TWO to African Americans, and only ten to Latinos. Its denial rate for Latinos was 3.6 times higher than for whites, and for African Americans 2.66 times higher than for whites, both most disparate that the industry as a whole.

In 2017 in the Miami, Florida MSA for home purchase loans, Centerstate made 14 such loans to whites - and only three  to African Americans.

In 2017 in the Tampa, Florida MSA for conventional home purchase loans, Centerstate made 130 such loans to whites - and only 1 each to African Americans and to Latinos.

In 2017 in the Jacksonville, Florida MSA for conventional home purchase loans, Centerstate made 18 such loans to whites - and none to African Americans and to Latinos (it denied the only application which, based on its disparate outreach, it received from people of color, a Latino applicant.)

In 2017 in the Lakeland - Winter Haven, Florida MSA for conventional home purchase loans, Centerstate made 160 such loans to whites - and only four to African Americans and only eight to Latinos (it denied Latino applicants 2.7 time more frequently than whites.)

  This should also be address in this proceeding, including at the requested evidentiary hearing - CenterState has a history of mishandling mergers, and arrogantly ignoring consumer complaints, standing behind excuses rebutted by the consumers, for example:

"For over a day, I haven't been able to access money in my account because CenterState is having issues transferring ********* accounts in their system I was a customer of**********************, which was recently acquired by CenterState Bank.

As of May 18th, I haven't been able to access my account online. I called customer services, and they told me that I would have access by May 19. I was also told that they could not provide me any information about my balance. I still didn't have any access on May 19, so I called again and was told to wait longer and then they rudely hung up on me. I still have no information on my account and cannot withdraw my money. I searched for the nearest branch so that I can visit it, get my money and close my account, but they are all closed until Monday. I am concerned because I rely on this money for emergencies and to pay for mine and my children's food, bills, and more. 

I expect CenterState bank to comply with their obligations to their customers by 1) providing me access to my account and my money, 2) allowing me to close my account immediately upon visiting their branch next Monday, 4) apologize for the inconvenience and mistreatment from their customer service employee. 

CenterState Bank of Florida, N.A. Response 05/25/2018  CenterState Bank sincerely appreciates the account relationship that Ms.******* had established with**********************. Leading up to and during the conversion process, the two banks worked closely together to make sure the conversion process went as smoothly as possible. Customer communication regarding products, services, online banking and debit cards was mailed to the address on file with********************** to all of their customers within the required thirty day timeframe before the conversion weekend, the systems were transferring files between the two banks, which resulted in certain services (such as a account balance information) being unavailable. Communication sent to all********************** customers in at least two mailings prior to the conversion date specifically addressed that account balances would not be available until the conversion process was complete sometime over the weekend or possibly the Monday morning of the 21st. Additional staff was added to our Customer Care call center to handle anticipated call volume over the weekend and into this week. The Bank sincerely apologizes for the alleged treatment received by our Customer Care team when Ms.******* called on Saturday, May 19th to inquire about her balance. It is never our intention to be rude to any of our customers. In an effort to answer as many calls as efficiently as possible, the team was perhaps less likely to encourage additional conversation than normal. Please be advised that account balances and all other functions were working as intended on Monday morning, May 21st. It has been noted that Ms.******* did close her account with our Bank on Monday, May 21st. We would like to extend the invitation to her to consider CenterState Bank for any additional banking needs that she might have in the future. 

Customer Response 06/07/2018  (The consumer indicated he/she DID NOT accept the response from the business.) CenterState Bank stated that "account balances and all other functions were working as intended on Monday morning, May 21st;" but it was not. Before closing my account, I was still unable to log in to my account. ... They also claim that "additional staff was added to their Customer Care call center to handle anticipated call volume over the weekend and into this week." However, their website stated that customer service were unavailable, and only branches or electronic forms were available. Please see attachment. As their response above indicates, I closed my account thereafter, but am disappointed with their service and lack of effort to try to make up for this inconvenience. Therefore, I have NO intention of recommending them or doing business with them in the future. 

CenterState Bank of Florida, N.A. Response CenterState Bank submitted a response in reference to *************'s complaint on May 25, 2018. We feel we have addressed her dissatisfaction and apologized for her inconvenience. We stand by our original response."

  This is indicative of the approach that would be taken to the new customers Centerstate is trying to acquire. Inner City Press is also concerned about the potential for branch closing(s), and loss of local accountability.

  ICP is requesting evidentiary hearings and that this proposed acquisition, on the current record, not be approved. There is no public benefit."

January 7, 2019

Amid Targeting of Community Reinvestment Act Fed Delays on FOIA for WSFS CRA Program

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, January 3 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. At the November 19 deadline, not yet posted was Inner City Press' November 17 fourth comment, just as Otting's OCC absurdly waited 13 days to try to rule it does not have to consider Fair Finance Watch's comments on WSFS Bank's application to acquire Beneficial. Now, after the OCC gleefully closed its comment period on that, WSFS on December 13 announced it will close 25 branches. One would think Otting would have to re-open the comment period. But that's not how Otting rolls. And the Fed, on FOIA, is absurd. On January 2 the Federal Reserve unilaterally extended its time to respond to Inner City Press' FOIA request about WSFS and CRA - without any commitment to no haul off and rubber stamp the application. Here's what the Fed wrote: "Mr. Matthew R. Lee  Inner City Press  P.O. Box 20047  Dag Hammarskjold Station  New York, NY 10017     Re:       Freedom of Information Act Request No. F-2019-00040     Dear Mr. Lee,     On December 3, 2018, the Board of Governors (“Board”) received your electronic message dated December 1, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, for all withheld portions of the applications by WSFS to acquire Beneficial, including but not limited to presumptively mis-labeled “Confidential” exhibits about WSFS's CRA program (“Confidential” Exhibit 9)... Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until January 16, 2019, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.     If a determination can be made before January 16, 2019, we will respond to you promptly. It is our policy to process FOIA requests as quickly as possible while ensuring that we disclose the requested information to the fullest extent of the law.     Thank you,     Freedom of Information Office  Board of Governors of the Federal Reserve System."

December 31, 2018

Mnuchin Calls Big Six Banks and Monday Convenes Powell and Otting Amid Targeting of Community Reinvestment Act

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, December 23 – US Treasury Department Steve Mnuchin on Sunday from Cabo called six big US banks: "Brian Moynihan, Bank of America; Michael Corbat, Citi; David Solomon, Goldman Sachs; Jamie Dimon, JP Morgan Chase, James Gorman, Morgan Stanley; Tim Sloan, Wells Fargo. The CEOs confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations. He also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly.

Tomorrow, the Secretary will convene a call with the President’s Working Group on financial markets, which he chairs. This includes the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Commodities Futures Trading Commission. He has also invited the office of the Comptroller of the Currency." That's Joseph Otting, with whom Mnuchin worked at and on selling OneWest Bank to CIT Group, complete with falsified pro-merger comments Inner City Press reported on. Otting's OCC is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. At the November 19 deadline, not (yet) posted was Inner City Press' November 17 fourth comment, just as Otting's OCC absurdly waited 13 days to try to rule it does not have to consider Fair Finance Watch's comments on WSFS Bank. But Inner City Press has timely protested WSFS to the Federal Reserve - and has now found out that WSFS is even trying to withhold its CRA information from the public, photo here. So Inner City Press has submitted this Freedom of Information Act request: "
This is a FOIA request for the all withheld portions of the applications by WSFS to acquire Beneficial, including but not limited to presumptively mis-labeled “Confidential” exhibits about WSFS's CRA program (“Confidential” Exhibit 9), (Beneficial's subsidiaries (“Confidential” Exhibit 3), Board of Directors resolutions, due diligence (“Confidential” Exhibit 10), operating economy / cost savings (there are branch closings projected), names of prospective managers (ages, requested on application, apparently not provided), and for all records reflecting FRS communications with WSFS or Beneficial or their affiliates for the past twelve (12) months." A fifth comment submitted including that "the OCC is already undermining CRA. Our comments to the OCC on WSFS - Beneficial have yet to be acted on. That comment was submitted on November 6. Now on November 19, two weeks later, the OCC has tellingly said it will not consider it - despite a Federal Reserve Board comment period on the same transaction remaining open until at least November 27. The OCC's attempt to ignore substantive criticism of some banks' performance, while Comptroller Otting previously solicited false comments support his OneWest Bank, are a symbol all what is wrong with this process, and today's OCC.
   While if the past is any guide the OCC will forwarded ICP's comment to the FRB by the FRB, we note in this connection that WSFS' comments on the ANPR favor, as Otting clearly does, dulling the LMI focus of CRA to make it easier for banks.  We oppose all of this.

December 24, 2018

Amid Targeting of Community Reinvestment Act FFW Protest of WSFS Leads to CRA Questions Here

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, December 18 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. At the November 19 deadline, not yet posted was Inner City Press' November 17 fourth comment, just as Otting's OCC absurdly waited 13 days to try to rule it does not have to consider Fair Finance Watch's comments on WSFS Bank's application to acquire Beneficial. Now, after the OCC gleefully closed its comment period on that, WSFS on December 13 announced it will close 25 branches. One would think Otting would have to re-open the comment period. But that's not how Otting rolls. Here now from the Federal Reserve, to which FFW also commented, are the Fed's Additional Information questions sent December 18 to WSFS and FFW: "This request refers to the application by WSFS Financial Corporation (“WSFS”),
Wilmington, Delaware, to acquire Beneficial Bancorp, Inc. (“Beneficial”), and thereby
indirectly acquire Beneficial Bank (“Beneficial Bank”), both of Philadelphia,
Pennsylvania, pursuant to section 10(e) of the Home Owners’ Loan Act following the
conversion of Beneficial from a bank holding company to a savings and loan holding
company. Following the proposed acquisition, WSFS plans to merge Beneficial Bank
into its subsidiary, Wilmington Savings Fund Society, FSB (“WSFS Bank”),
Wilmington, Delaware. Based on our review of the current record, the following
information, including the information in the Confidential Appendix, is requested.
Please provide relevant supporting documentation, as appropriate.
1. Provide a description of WSFS’s current non-banking activities, including any
commercial activities referenced in Item 210.50(a), and identify the authority
upon which WSFS relies to engage in such activities, as well as any supportive
analysis.
2. Provide the following required components of the H(e)-3 Application:
a. Confidential disclosure memoranda to the Merger Agreement, required as
part of Item 110.10(b)
b. Evidence of shareholder approval of the transaction, required as part of
Item 110.10(d)
c. Parent company (unconsolidated) cash flows statements, referenced in
Item 330.10(d)
d. The ages of WSFS’s and Beneficial’s directors and senior executive
officers, referenced in Item 410.10(c)-1
e. An amended charter and/or amended by-laws, if either will be revised as
a result of the proposed mergers, referenced in Exhibit B.1

3. To the extent not already provided, provide an update on WSFS Bank’s Community Reinvestment Act (“CRA”) activities since its August 2017 CRA Performance Evaluation and Beneficial Bank’s CRA activities since its July 2017 CRA Performance Evaluation, in assessment areas in which the banks operate. This response should include any significant CRA initiatives undertaken, particularly with respect to credit and deposit products and retail banking services targeted toward low- and moderate-income (“LMI”) geographies and individuals, as well as information on community development lending, investments, and services WSFS Bank and Beneficial Bank have made since the banks’ last evaluation period, including the total
number, dollar amount, and service hours, and a brief description of the banks’ most significant community development loans, investments, and services.
4. Revise the pro forma financial statements that were submitted on November
27, 2018, to reflect actual reported balance sheet information for Beneficial
(total assets balance should match the balance reported on FR-Y9C) and
update the relevant footnote adjustments based on information as of September
30, 2018 (footnote adjustments related to accumulated other comprehensive
income and retained earnings are currently based on information as of June 30,
2018).
5. Provide a parent company only (unconsolidated) balance sheet as of the end of
the most recent quarter, showing separately each principal group of assets,
liabilities, and capital account components (e.g., common stock and preferred
stock, surplus, accumulated other comprehensive income, and retained
earnings), debit and credit adjustments (explained by detailed footnotes)
reflecting the proposed transaction; and the resulting pro forma parent
company balance sheet. The pro forma balance sheet should reflect the
adjustments required under business combination and fair value accounting
standards.
6. Clarify whether any of WSFS’s Integration Plan activities discussed in
WSFS’s response to Question 5 of the OCC’s Additional Information Request
(dated November 15, 2018) would include integration of any of WSFS’s and
Beneficial’s IT systems prior to WSFS’s receipt of the Federal Reserve’s
approval of the transaction.
7. Provide a breakdown of the branches that the combined bank intends to retain
after the merger, including whether any will be in low- or moderate-income or
majority-minority census tracts.
8. In the H(e)-3 application, WSFS states that it will seek “to incorporate
Beneficial Bank’s highly successful strategies for meeting the needs of its
communities into the combined institution’s CRA programs.” Please elaborate
on this statement, including a discussion of what strategies WSFS plans to
incorporate. Please indicate whether the incorporated strategies will be utilized across the entire footprint of the combined bank or in the current footprint of Beneficial Bank.
9. Please confirm that, upon merger, WSFS will commit to comply with 12 CFR 239.62, as that section may be amended from time to time by the Board of Governors of the Federal Reserve System (the “Board”) with respect to
Beneficial’s liquidation account.
Please submit your response within ten business days, addressed to Eddy Hsiao at
the Federal Reserve Bank of Philadelphia. In addition, to facilitate more timely
distribution of information, please submit your full response on E-Apps, the Federal
Reserve’s web-based system for electronic submission of regulatory applications and
related documents.
In accordance with the Federal Reserve’s ex parte procedures, provide a copy of the public portion of your response (together with any attachments) directly to the commenter, Mr. Matthew Lee of Fair Finance Watch. In addition, please send a copy of your response to your application contacts at the Office of the Comptroller of the Currency." But wasn't the OCC's comment period closed?

December 17, 2018


At CFPB Kraninger Sworn In Without Press But Texas Bankers Present Now Electronic Media Out in 5 Minutes

By Matthew R. Lee, IMF Coverage

NEW YORK CITY / DC, December 11 – With the Consumer Financial Protection Bureau having sworn in Kathy Kraninger without any press present - but with the Texas Bankers Association in the house - on December 11 Kraninger will hold a strangely controlling media availability. Only the first five minutes will be on camera; after that all "electronic media" will be kicked out. This is 2018, and this is the agency ostensibly set up to protect the public. Here is CFPB's notice: "Kathy Kraninger, the new director of the Bureau of Consumer Financial Protection, will hold a media availability for credentialed press only at the Bureau’s headquarters at 2:30 p.m. Tuesday, Dec. 11.

Who: Kathleen Kraninger, Director, Bureau of Consumer Financial Protection.

Where: Bureau of Consumer Financial Protection, 1700 G St. NW, Washington, D.C., B-Level conference room area.

When: Dec. 11, 2:30 p.m.

Photo Ops: Up to five minute photo/video opportunity at beginning of the availability.

Reporters: Pen and pad Q&A with accredited media only. Members of the press attending must have a White House or congressional media credential. Electronic media will only be permitted during the first five minutes of the news availability." This is not an auspicious beginning.

December 10, 2018


Cadence Bank Urged OCC To Speed Regulatory Approvals And Gets It From The Fed Despite Jumping the Gun

By Matthew R. Lee, Video, 7/31 story

SOUTH BRONX, December 7 – Cadence Bancorporation which has a disparate lending record while apply to buy State Bank in Georgia and urging faster regulatory approvals, seemingly jumped the gun before having the required Federal Reserve Board approval. But the Fed in a December 7 order shrugged it off in a footnote (22), "The commenter’s allegation that the parties are operating as a single entity prior to theBoard’s approval of the proposal related to an investor conference call during which the Chief Executive Officer of Cadence stated that he intended to refer a Cadence customer to a division of State Bank. The Board does not generally view a customer referral,
without more, as constituting prior control of an entity." Fair Finance Watch is the commenter: On October 18, Fair Finance Watch submitted a timely comment to the Federal Reserve Board in Washington, below - and got back a copy of a letter from the Federal Reserve Bank of Dallas forwarding its comment to Cadence's outside counsel at Wachtell Lipton -- Patricia Robinson, who used to be with the Fed's Legal Division. Inner City Press will have more on that. Now on November 20 the Fed has extended its time to respond to Inner City Press' FOIA request, the day after Cadence commented to Joseph Otting's OCC's Advance Notice of Proposed Rulemaking urging his OCC to "make the application process for expansionary actions less contentious." How about not making frivolous requests to have regulators withhold information until they hope the "expansionary action" is consummated?  Here's from FFW's comment: "This is a request for a full copy of, and a timely first comment on, the Applications of Cadence Bancorporation, Houston, Texas; to acquire State Bank Financial Corporation, Atlanta, Georgia, and thereby indirectly acquire State Bank and Trust Company, Macon, Georgia

As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.

Fair Finance Watch has been tracking Cadence Bank: In 2017 in the Dallas, Texas MSA for convention home purchase loans, Cadence made 99 such loans to whites - and NONE, not a single origination, to African Americans.

In 2017 in the Houston Texas MSA for convention home purchase loans, Cadence made 236 such loans to whites - and only 15 to African Americans, and only 23 to Latinos. This is not in keeping with the aggregate, which made 37,128 such loans to whites, 3151 to African Americans and 8215 to Latinos.

In 2017 in the Birmingham, Alabama MSA for convention home purchase loans, Cadence made 66 such loans to whites - and only ONE to African Americans. Even combining in Table 4-1, it was 79 home purchase loans to whites and only THREE to African Americans.

This should also be address in this proceeding, including at the requested evidentiary hearing:

“Cadence Bank - Racist manager

2800 Post Oak Blvd Suite 101, Houston, TX 77056, USA

I had my 2 business accounts at the Williams tower location, I tried talking to the manager about small business loans she always avoided me looking at me kind of weird whenever I done withdrawals she always asked me why I'm taking money out after 3 months she sent me a Leter saying she's going to be closing my account because I take money out ones a week for payroll and she didn't like that.”

Inner City Press is also concerned about this statement imply gun-jumping, in the investors' call announcing the proposal, here.

Paul Murphy: “Oh boy, you’re right. It’s not in the model. It’s significant. I mean, there is just a lot of overlap. I’ve got a prospect for AloStar. I’m going to see them this afternoon. We can start it on a great potential new piece of business for them today. And there will be more and more of that.”

ICP is requesting evidentiary hearings and that this proposed acquisition, on the current record, not be approved. There is no public benefit." Here's how the Fed boiled it down, with FOIA issues outstanding: "One commenter objected to the proposal on the basis of alleged disparities
in the number of home mortgage loans made by Cadence Bank to African Americans in
the Dallas-Plano-Irving, Texas Metropolitan Division (“Dallas MD”) and the
Birmingham-Hoover, Alabama Metropolitan Statistical Area (“Birmingham MSA”), and
to African Americans and Latinos in the Houston-The Woodlands-Sugar Land, Texas
Metropolitan Statistical Area (“Houston MSA”), in each case as compared to whites inthe relevant areas, based on data reported under the Home Mortgage Disclosure Act of 1975 (“HMDA”). The commenter also cited a customer complaint alleging racist
management practices at Cadence Bank." And? On Synovus - FCB, the Fed brags that the Board consulted with the (its) Reserve Bank. And?

December 3, 2018


Targeting of Community Reinvestment Act by Otting Included Favor to WSFS Now Fed Protest by Fair Finance Watch

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, November 28 – The US Treasury Department is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. At the November 19 deadline, not (yet) posted was Inner City Press' November 17 fourth comment, just as Otting's OCC absurdly waited 13 days to try to rule it does not have to consider Fair Finance Watch's comments on WSFS Bank.A fifth comment submitted including that "the OCC is already undermining CRA. Our comments to the OCC on WSFS - Beneficial have yet to be acted on. That comment was submitted on November 6. Now on November 19, two weeks later, the OCC has tellingly said it will not consider it - despite a Federal Reserve Board comment period on the same transaction remaining open until at least November 27. The OCC's attempt to ignore substantive criticism of some banks' performance, while Comptroller Otting previously solicited false comments support his OneWest Bank, are a symbol all what is wrong with this process, and today's OCC.
   While if the past is any guide the OCC will forwarded ICP's comment to the FRB by the FRB, we note in this connection that WSFS' comments on the ANPR favor, as Otting clearly does, dulling the LMI focus of CRA to make it easier for banks.  We oppose all of this.

November 26, 2018

Targeting of Community Reinvestment Act by Otting Includes Favor to WSFS Which Disses LMI Focus

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, November 19 – The US Treasury Department is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. Now at the November 19 deadline, as of 4 pm, there was 773 comments online, but 802 listed. Among those not (yet?) posted is Inner City Press' November 17 fourth comment, just as Otting's OCC absurdly waited 13 days to try to rule it does not have to consider Fair Finance Watch's comments on WSFS Bank. So, a fifth comment just submitted including that "the OCC is already undermining CRA. Our comments to the OCC on WSFS - Beneficial have yet to be acted on. That comment was submitted on November 6. Now on November 19, two weeks later, the OCC has tellingly said it will not consider it - despite a Federal Reserve Board comment period on the same transaction remaining open until at least November 27. The OCC's attempt to ignore substantive criticism of some banks' performance, while Comptroller Otting previously solicited false comments support his OneWest Bank, are a symbol all what is wrong with this process, and today's OCC.
   While if the past is any guide the OCC will forwarded ICP's comment to the FRB by the FRB, we note in this connection that WSFS' comments on the ANPR favor, as Otting clearly does, dulling the LMI focus of CRA to make it easier for banks.  We oppose all of this.
   Since October 11 the OCC has denied expedited process to our FOIA request(s) for records essential in order to comment on this proposal. OCC Deputy Chief Counsel Charles Steele on November 7 wrote on that “merger between One West Bank and CIT Bank. You do not demonstrate how your request concerns a matter of current exigency to the American public or how a delay in the OCC's response to your request would compromise a significant recognized interest.” Given the false commenting issues in the OneWest - CIT proceeding, and the importance of CRA to our communities, this denial is insulting and further makes this ANPR commenting process, ostensibly closing now on November 19, illegitimate."  Among them, as reviewed by Inner City Press:
Fulton Financial, on which ICP has previously comment, perhaps understandably given its lending record urges “De-couple CRA from Fair Lending... CRA and Fair Lending have complementary but different social and policy objectives. CRA ratings should not be downgraded based on the results of a bank's fair lending performance and exam results.” FFW disagrees: racial discrimination in lending means a bank is NOT meeting the credit needs of its entire community.

The ABA writes that “'needs to improve' CRA rating and should clarify that such a rating will not be a de facto bar to opening new branches or engaging in other activities requiring regulatory approval.” FFW disagrees: a bank with a rare NTI (or Substantial Non-compliance) record should be barred from merging or expanding. This is the enforcement mechanism of CRA.

Th Association of Military Banks of America urges, “Because the financial challenges military communities face are less dependent on income distinctions than in geographically-defined communities, we recommend that all financial services to the military community should be presumed to qualify for CRA credit, regardless of whether the recipient fits within a classic LMI category.” FFW disagrees with this blurring of the lines. Loans to five star generals are not CRA loans.

Heartland Tri State Bank says “Any bank with assets less than One Billion Dollars should not be subject to CRA examinations.” FFW disagrees, precisely because such banks play (or don't play) such a role in the economies of some communities.

   Meanwhile the OCC is already undermining CRA.  The OCC has denied expedited process to our FOIA request(s) for records essential in order to comment on this proposal. OCC Deputy Chief Counsel Charles Steele on November 7 wrote on that “merger between One West Bank and CIT Bank. You do not demonstrate how your request concerns a matter of current exigency to the American public or how a delay in the OCC's response to your request would compromise a significant recognized interest.” Given the false commenting issues in the OneWest - CIT proceeding, and the importance of CRA to our communities, this denial is insulting and further makes this ANPR commenting process, ostensibly closing on November 19, illegitimate, we contend - while joining in NCRC's comments, see below. On November 6 at 5 pm, before any midterm elections results came in, Fair Finance Watch filed comments at deadline with Otting's OCC, on Wilmington Savings Fund Society (WSFS) Bank's application to acquire Beneficial Bank in Philadelphia and closed 30 branches, despite WSFS' disparate lending record: "This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by WSFS Bank to Acquire Beneficial Bank. In the the Wilmington MSA in 2017, WILMINGTON SAVINGS FUND SOCIETY, FSB (WSFS Bank) had a denial rate for the home purchase loan applications of African Americans that was 5.48 times higher than for whites - an outrage, significantly more disparate that other banks in the market. For Latinos, WSFS Bank was and is worse, with a denial rate for home purchase loans 7.43 times higher for Latinos than for whites.
   This is not a lending record and pattern to impose on Philadelphia. And consider this: if approved, WSFS “plans to close 30 WSFS and Beneficial Bank offices, a quarter."
   See, “WSFS bosses Mark Turner and Rodger Levenson plan to close 30 of the combined companies’ 120 branches and eliminate around 350 of their 2,100 jobs.”
   There is more to say, and there are more markets. But concerned as we are about the OCC seeming to take outrageous disparities even less seriously than before, we ar timely submitting this one, for your action. This is systematic redlining; this proposed acquisition could not legitimately be approved and WSFS Bank should be referred for prosecution for redlining by the Department of Justice and the CFPB. But will today's OCC do it? The branch closings provides a second ground for the requested evidentiary hearing." What will Otting's OCC do?

November 19, 2018

Community Reinvestment Act Targeting by Otting Urged On By ABA Fulton and Military Banks

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, November 17 – The US Treasury Department is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. Now just before the November 19 deadline, in a single hour on November 17 the reported number of comment suddenly dropped from 677 to 609. Among them, as reviewed by Inner City Press: Fulton Financial, on which ICP has previously comment, perhaps understandably given its lending record urges “De-couple CRA from Fair Lending... CRA and Fair Lending have complementary but different social and policy objectives. CRA ratings should not be downgraded based on the results of a bank's fair lending performance and exam results.” FFW disagrees: racial discrimination in lending means a bank is NOT meeting the credit needs of its entire community.

The ABA writes that “'needs to improve' CRA rating and should clarify that such a rating will not be a de facto bar to opening new branches or engaging in other activities requiring regulatory approval.” FFW disagrees: a bank with a rare NTI (or Substantial Non-compliance) record should be barred from merging or expanding. This is the enforcement mechanism of CRA.

Th Association of Military Banks of America urges, “Because the financial challenges military communities face are less dependent on income distinctions than in geographically-defined communities, we recommend that all financial services to the military community should be presumed to qualify for CRA credit, regardless of whether the recipient fits within a classic LMI category.” FFW disagrees with this blurring of the lines. Loans to five star generals are not CRA loans.

Heartland Tri State Bank says “Any bank with assets less than One Billion Dollars should not be subject to CRA examinations.” FFW disagrees, precisely because such banks play (or don't play) such a role in the economies of some communities.

   Meanwhile the OCC is already undermining CRA.  The OCC has denied expedited process to our FOIA request(s) for records essential in order to comment on this proposal. OCC Deputy Chief Counsel Charles Steele on November 7 wrote on that “merger between One West Bank and CIT Bank. You do not demonstrate how your request concerns a matter of current exigency to the American public or how a delay in the OCC's response to your request would compromise a significant recognized interest.” Given the false commenting issues in the OneWest - CIT proceeding, and the importance of CRA to our communities, this denial is insulting and further makes this ANPR commenting process, ostensibly closing on November 19, illegitimate, we contend - while joining in NCRC's comments, see below. On November 6 at 5 pm, before any midterm elections results came in, Fair Finance Watch filed comments at deadline with Otting's OCC, on Wilmington Savings Fund Society (WSFS) Bank's application to acquire Beneficial Bank in Philadelphia and closed 30 branches, despite WSFS' disparate lending record:

November 12, 2018

As Community Reinvestment Act Is Targeted by Otting Inner City Press FOIA Appeal Denied Nov 19 Scam

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, November 9 – The US Treasury Department is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency (and soon it would seem to be subject to greater oversight in the House Banking Committee), is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. On October 16, yet more on Otting's assault on the CRA became known. Under him, the OCC has ignored the rare racial redlining settlement by Klein Bank, rubber stamping Old National's acquisition of the bank over the timely and detailed objection and public hearing request of Fair Finance Watch. Otting doesn't like public hearings.  In April 2018 his OCC approved an application by E-Trade Saving Bank which Fair Finance Watch had challenged based on the bank having no fewer than six states rare "Needs to Improve" CRA ratings. FFW noted rare Needs to Improve ratings for the entire states of Arizona, Colorado, Florida, Georgia, Michigan and Oregon, and an undeserved “Satisfactory” for New York. Otting's OCC, after the approval, helpfully contacted E-Trade Bank to tell it that upon (Otting's) reflection, it was no longer even subject to the Community Reinvestment Act. Another institution was similarly contacted - the OCC under Otting is going through its roster of banks seeing which ones it can "free" from CRA even if they hadn't requested in. In one case, some in the bank still didn't want Otting's freedom and move more business into the bank to get a second reversal of Otting's orders. But it shows where Otting is coming from, beyond the unexplained comment-fraud for which he should be recused. Inner City Press on October 11 raised the E-Trade (and another bank) issue into the record on the Advanced Notice of Proposed Rulemaking. But, Otting being Otting, his OCC denied expedited processing for Inner City Press' Freedom of Information Act request bout his deregulation move, ruling that "You requested all records in the OCC's possession concerning the applicability of the Community Reinvestment Act to - or exemption there from - any affiliate of E-Trade or Bank of America California NA for the time period of October 11, 2016 to October 11, 2018. You also requested expedited processing of your request on the basis that the ANPR on CRA is open through November 19, 2018. Your request for expedited processing does not meet the criteria provided for in 5 U.S.C. 552(a)(6)(E) and Treasury disclosure regulations at 31 C.F.R. 1.5(e)." And that regulation... requires a formal certification. So Inner City Press appealed: "As a  a person primarily engaged in disseminating information, I am appealing the denial of expedited processing of my FOIA request, summarized by the OCC as for all records in the OCC's possession concerning the applicability of the Community Reinvestment Act to - or exemption there from - any affiliate of E-Trade or Bank of America California NA for the time period of October 11, 2016 to October 11, 2018.
...The OCC under Joseph Otting's actions to try to find banks to exempt from CRA outrageous and something on which there is an  urgency to inform the public concerning actual or alleged Federal Government activity. As noted in my request, this is particularly the case given the OCC's unilateral moves regarding the CRA. I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief. Executed on October 16, 2018." Now weeks later, the OCC's Deputy Chief Counsel Charles M. Steele has denied the appeal, claiming it is not clear why the public needs access to these records of Otting's current attacks on CRA before OCC closes its comment period on Otting's new, desperate attempt. The OCC's denial makes light of Otting's actions including soliciting false comments during the public review process of his sale of OneWest Bank to CIT - as if there is no connection to Otting's current gambit. FOIA Denial here and for download on Patreon.

November 5, 2018

  Cadence Bancorporation, who application to acquire State Bank in Georgia Fair Finance Watch challenged, has as its defense that the banks it chose to buy were "problematic." But Cadence chose to buy them. And if it hasn't fixed them yet, why though they get an approval to buy yet another bank? We'll have more on this.

October 29, 2018

As Community Reinvestment Act Is Targeted by Otting Murky Meeting With Citigroup TIAA Wells

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, October 24 – The US Treasury Department is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. Now on October 17, yet more on Otting's assault on the CRA has become known. He has taken to devaluing or lumping together and not putting in the docket or online the comments of community groups, calling them mass comments or form letters - when he himself not only solicited mass comments for the OneWest - CIT merger from which he personally profited, but even got some fraudulent comments. Inner City Press / Fair Finance Watch submitted the documents obtained under FOIA into the record before the OCC. Now, on a ten day delay, the OCC has put into the file a cursory memo of its October 12 meeting with bankers ranging from Citigroup (Lloyd Brown and Devika Murray Bacchus), Capital One (James Matthews), TIAA and Regions to Wells Fargo, Fifth Third, Huntington and PNC, among others. This has the trappings of transparency, but none of the substance. Topics of discussion are purportedly listed - but what was said, particularly by the OCC participants: Grovetta Gardineer, Senior Deputy Comptroller
for Compliance and Community Affairs
Beverly Cole, Deputy Comptroller for
Compliance Supervision
Donna Murphy, Deputy Comptroller for
Compliance Risk Policy
Allison Hester-Haddad, Counsel, Chief
Counsel’s Office
Daniel Sufranski, Law Clerk, Chief Counsel’s
Office. Listed but without further detail is, for example, "Logistical issues, including the interrelated nature of the issues raised by the ANPR, the timing of the rulemaking process, participation by the other federal banking agencies, and whether concepts not discussed in the ANPR would remain under a new rule." So what was said? And where is the OCC's response to Inner City Press' previous FOIA request? We will have more on this.

October 22, 2018

As Community Reinvestment Act Is Targeted by Otting He Devalues Comments He Earlier Gamed

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, October 17 – The US Treasury Department is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. Now on October 17, yet more on Otting's assault on the CRA has become known. He has taken to devaluing or lumping together and not putting in the docket or online the comments of community groups, calling them mass comments or form letters - when he himself not only solicited mass comments for the OneWest - CIT merger from which he personally profited, but even got some fraudulent comments. Inner City Press / Fair Finance Watch submitted the documents obtained under FOIA into the record before the OCC, stating that "These documents, which must be considered as part of this ANPR and any subsequent formal rulemaking, show that fraudulent comments supporting Otting's OneWest were submitted to the OCC - presumptively attributable to Otting.
The documents show that the OCC sought an explanation from Otting's / OneWest's outside counsel - and the OCC's and Justice Department's response to date reflect that no such explanation was ever provided. The OCC nevertheless approved the merger and even gave weight to the fraudulent comments.  But via the OCC and Regulations.gov websites, we are told "This count refers to the total comment / submissions received on this document, as of 11:59 PM yesterday. Note: Agencies review all submissions, however some agencies may choose to redact, or withhold, certain submissions (or portions thereof) such as those containing private or proprietary information, inappropriate language, or duplicate/near duplicate examples of a mass-mail campaign. This can result in discrepancies between this count and those displayed when conducting searches on the Public Submission document type." At least ten comments, all under the name Ceiba, were bundled as one. Otting is trying to have it both ways, or worse.
Under him, the OCC has ignored the rare racial redlining settlement by Klein Bank, rubber stamping Old National's acquisition of the bank over the timely and detailed objection and public hearing request of Fair Finance Watch. Otting doesn't like public hearings.  In April 2018 his OCC approved an application by E-Trade Saving Bank which Fair Finance Watch had challenged based on the bank having no fewer than six states rare "Needs to Improve" CRA ratings. FFW noted rare Needs to Improve ratings for the entire states of Arizona, Colorado, Florida, Georgia, Michigan and Oregon, and an undeserved “Satisfactory” for New York. Otting's OCC, after the approval, helpfully contacted E-Trade Bank to tell it that upon (Otting's) reflection, it was no longer even subject to the Community Reinvestment Act. Another institution was similarly contacted - the OCC under Otting is going through its roster of banks seeing which ones it can "free" from CRA even if they hadn't requested in. In one case, some in the bank still didn't want Otting's freedom and move more business into the bank to get a second reversal of Otting's orders. But it shows where Otting is coming from, beyond the unexplained comment-fraud for which he should be recused. Inner City Press on October 11 raised the E-Trade (and another bank) issue into the record on the Advanced Notice of Proposed Rulemaking. But, Otting being Otting, his OCC denied expedited processing for Inner City Press' Freedom of Information Act request bout his deregulation move, ruling that "You requested all records in the OCC's possession concerning the applicability of the Community Reinvestment Act to - or exemption there from - any affiliate of E-Trade or Bank of America California NA for the time period of October 11, 2016 to October 11, 2018. You also requested expedited processing of your request on the basis that the ANPR on CRA is open through November 19, 2018. Your request for expedited processing does not meet the criteria provided for in 5 U.S.C. 552(a)(6)(E) and Treasury disclosure regulations at 31 C.F.R. 1.5(e)." And that regulation... requires a formal certification. So Inner City Press has appealed: "As a  a person primarily engaged in disseminating information, I am appealing the denial of expedited processing of my FOIA request, summarized by the OCC as for all records in the OCC's possession concerning the applicability of the Community Reinvestment Act to - or exemption there from - any affiliate of E-Trade or Bank of America California NA for the time period of October 11, 2016 to October 11, 2018.
...The OCC under Joseph Otting's actions to try to find banks to exempt from CRA outrageous and something on which there is an  urgency to inform the public concerning actual or alleged Federal Government activity. As noted in my request, this is particularly the case given the OCC's unilateral moves regarding the CRA. I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief. Executed on October 16, 2018." Watch this site.

October 15, 2018

As Community Reinvestment Act Is Targeted by Otting Inner City Press Raises His Bid to Free E-Trade From CRA

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, October 11 – The US Treasury Department is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. Now on October 11, more on Otting's assault on the CRA has become known. In April 2018 his OCC approved an application by E-Trade Saving Bank which Fair Finance Watch had challenged based on the bank having no fewer than six states rare "Needs to Improve" CRA ratings. FFW noted rare Needs to Improve ratings for the entire states of Arizona, Colorado, Florida, Georgia, Michigan and Oregon, and an undeserved “Satisfactory” for New York. Otting's OCC, after the approval, helpfully contacted E-Trade Bank to tell it that upon (Otting's) reflection, it was no longer even subject to the Community Reinvestment Act. Another institution was similarly contacted - the OCC under Otting is going through its roster of banks seeing which ones it can "free" from CRA even if they hadn't requested in. In one case, some in the bank still didn't want Otting's freedom and move more business into the bank to get a second reversal of Otting's orders. But it shows where Otting is coming from, beyond the unexplained comment-fraud for which he should be recused. Inner City Press on October 11 raised the E-Trade (and another bank) issue into the record on the Advanced Notice of Proposed Rulemaking. Many more are resisting Otting, but Federal Reserve Bank of Cleveland President Loretta J. Mester on October 3 said that "the OCC, a part of Treasury, has put out an advance notice of proposed rule-making (ANPR) seeking comment on ways to modernize the CRA regulations. The Federal Reserve is also undertaking efforts aimed at ensuring that the CRA regulations continue to meet the goals of the legislation amid the evolving financial services environment" - with these as her footnotes for that: "Brainard, Lael, “Community Development in Baltimore and A Few Observations on Community Reinvestment Act Modernization,” Baltimore, Maryland, April 17, 2018a and Brainard, Lael, “Keeping Community at the Heart of the Community Reinvestment Act,” New York, NY, May 18, 2018b. Both of those Brainard speeches were before Otting's proposals. And since? In the docket file as of October 8 are 42 comments, now including the President of  First National Bank & Trust in Elk City, Oklahoma who writes, "I firmly believe that this form of oversite was meant for metropolitan areas and banks with multiple branches. There’s got to be a better way of monitoring and locating those banks that aren’t helping the population it serves. I would be surprised to find there are very many banks that fail the CRA examination." It's called grade inflation. On September 29 The Intercept has dug into it, citing FFW's formal request that Otting recuse himself - and so here now are some of the Freedom of Information Act documents.

October 8, 2018

As Community Reinvestment Act Is Targeted by Otting He Back Pedals in Senate As Inner City Press Urges Recusal

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, October 2 – The US Treasury Department has begun a process to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. On September 29 The Intercept has dug into it, citing FFW's formal request that Otting recuse himself - and so here now are some of the Freedom of Information Act documents. On October 2 in the Senate Banking Committee, Otting insisted he is not trying to weaken the CRA; he called the ANPR an "Advanced Notice of Public Rulemaking" instead of Proposed. He said he met with 1100 individuals - still undisclosed - and expects five to ten thousand comments on the ANPR. (So far there are 33 listed but only 29 visible). Senator Sherrod Brown began by asking him indirectly about the blogs at CFPB of Eric Blankenstein. We'll have more on this. And this - as obtained by Inner City Press and fellow NCRC member CRC, here are more of the documents, for (this time) free download on Patreon.

 Now on October 1 Inner City Press / Fair Finance Watch has submitted the documents obtained under FOIA into the record before the OCC, stating that "These documents, which must be considered as part of this ANPR and any subsequent formal rulemaking, show that fraudulent comments supporting Otting's OneWest were submitted to the OCC - presumptively attributable to Otting.
The documents show that the OCC sought an explanation from Otting's / OneWest's outside counsel - and the OCC's and Justice Department's response to date reflect that no such explanation was ever provided. The OCC nevertheless approved the merger and even gave weight to the fraudulent comments. On this record we again insist that Otting be recused from this ANPR and any related rulemaking or proceedings. We have other substantive concerns about this ANPR but view the question of Mr Otting's recusal (and of with whom he has met, on which Inner City Press has another long-pending FOIA request) as threshold matter than must be addressed as quickly as possible."


October 1, 2018

As Community Reinvestment Act Is Targeted by Otting The Intercept Notes Inner City Press Urging Recusal

By Matthew R. Lee, Video, story, FOIA docs

SOUTH BRONX, September 29 – The US Treasury Department has begun a process to weaken and take the community out of the 1977 Community Reinvestment Act. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. And now on September 29 The Intercept has dug into it, citing FFW's formal request that Otting recuse himself - and so here now are some of the FOIA documents, obtained by Inner City Press and fellow NCRC member CRC, and pro bono lawyer Lindsey Krause of Nichols Kaster.  Here are more of the documents, for (this time) free download on Patreon.

 One of the issues raised, that of Otting's role in previous fraudulent commenting to the OCC in support of his own bank OneWest's merger with CIT in 2015 has come to the fore. Relatedly, the FOIA document as provided by the OCC and US Department of Justice reflect that the OCC never follow up on its lone (and wan) question to Otting's counsel as Sullivan & Cromwell to explain the fraudulent comments. Nor did this counsel respond to questions from The Intercept's David Dayen, who reports: "AFTER A YEARLONG effort to obtain the information, which included ongoing litigation, the OCC made available 15 pages. They contain emails to and from David Finnegan, an OCC senior licensing analyst who was a point of contact for public comment on the merger.

Four individuals contended in emails to Finnegan that they never sent the comment letters supporting the merger. “This is to bring to your attention that I received an email from the office of OCC regarding a subject I am completely unaware of,” wrote one individual (the OCC redacted the emailers’ identifying information). “I DID NOT send the email below that you responded to. This is a fraudulent use of my email account.” The other three sent similar complaints.

The letter of support attributed to these individuals was identical to the letter posted at the OneWest Bank website.

Matthew Lee of Inner City Press expressed outrage at the fake comments. “There’s nothing more offensive of speech rights than artificially presenting someone as saying something you don’t believe,” Lee said. “You have the right to be silent. It’s so beyond the pale.”

FOIA Finds: OneWest CIT Ban... by on Scribd


Finnegan responded to these emailers, thanking them for letting him know. He also sent two emails to Stephen Salley, an attorney with Sullivan & Cromwell, who was representing OneWest in the merger. “FYI and review. We would appreciate any information you can provide regarding this submission,” Finnegan wrote to Salley on both occasions.

Presumably, Finnegan reached out to OneWest’s lawyer about the fake comments because they featured the same form letter that OneWest had written to encourage public support. But the two emails are the only record that OCC did any investigation of the fake comments. There is no reply from Salley or Sullivan & Cromwell to the OCC, at least not in written form. “By reaching out to the attorneys immediately, it suggests something serious, and yet there’s no follow-up that’s apparent whatsoever,” said Kevin Stein of the California Reinvestment Coalition...Olivia Weiss, a spokesperson for CIT, forwarded a request for comment to her colleague Gina Proia, who declined to comment. Salley did not respond when asked whether he or his law firm responded to the OCC....In his public comment for Inner City Press, Lee asked for Otting to recuse himself from the new rule-making, highlighting the fake comment controversy. “Public participation is key to CRA, on performance evaluations and crucially on bank merger and expansion applications,” Lee wrote. He added that it’s unclear whether the OCC has improved its processes to prevent fake comments from being submitted again in the CRA rule-making. The public comment period ends in November.

Otting is scheduled to appear at a Senate Banking Committee hearing on October 2, where his CRA push could be a topic of discussion." We'll have more on this Why didn't the OCC more seriously look into this fraud? What has been improved since? Shouldn't Otting be recused, as Fair Finance Watch has already timely requested?

September 24, 2018

As Community Reinvestment Act Is Targeted by Otting Net Neutrality Echo FFW Urges Recusal to OCC

By Matthew R. Lee, Video, 7/31 story

SOUTH BRONX, September 17 – The US Treasury Department has begun a process to weaken and take the community out of the 1977 Community Reinvestment Act. The protagonist, akin to Scott Pruitt until recently at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, the 14th comment so far, here. But one of the issues raised, that of Otting's role in previous fraudulent commenting to the OCC in support of his own bank OneWest's merger with CIT in 2015 has come to the fore. Why didn't the OCC more seriously look into this fraud? What has been improved since? Shouldn't Otting be recused, as Fair Finance Watch has already timely requested? One analogy is to the gaming of the FCC's process on net neutrality, when even Senator Jeff Merkley and Pat Toomey's identities were borrowed, as reported by the Washington Post's Hamza Shaban.  Unlike Otting to date, at least the FCC's Ajit Pai responded, if only to blame David Bray, as reported by Adam Jacobson in RBR. Otting simple refuses to answer - for now. From the Fair Finance Watch / Inner City Press comment: "Fair Finance Watch (and where applicable Inner City Press) appreciate the opportunity to comment on the Office of the Comptroller of the Currencys (OCC) Advance Notice of Proposed Rulemaking (ANPR) regarding the Community Reinvestment Act (CRA). CRA has leveraged significant amounts of loans and investments for low- and moderate-income communities.

We began enforcing the CRA in the South Bronx then beyond starting in 1994, in connection with the applications for mergers or expansions on which banks' records are considered. Numerous banks excluded the South Bronx and Upper Manhattan from their CRA assessment areas even though, as we proved, they collected substantial deposits from area residents. We got six banks to open branches and make lending commitments, in the Bronx and beyond.

We concerned that the OCC's proposal threatens to weaken CRA, see below. As as relevant here, we commented along with others on the CIT - OneWest proceeding, and were concerned both by OneWest's record under now-Comptroller Otting and by what emerged as the gaming of the system with pre-fabricated comments Otting openly solicited. We may comment in more detail on this later in his ANPR proceeding.

For now we wish raise particular concern about the approach signaled by Questions 21 and 15 and to emphasize that public participate is key to CRA, on performance evaluations and crucially on bank merger and expansion applications. Inner City Press, which often submits FOIA requests to the OCC (which is, frankly, slow), the Federal Reserve, FDIC and even non-USA regulators many of whom are faster than the OCC, emphasizes that comment periods should never close while information that is not specifically exempt from disclosure under FOIA is being withheld. Inner City Press has pending with the OCC, but not yet responded to, FOIA requests related to this proceeding / process, that should be responded to in full, including any necessary appeal, during this proceeding.

If the OCC proceeds to significantly diminish the importance of assessment areas on CRA exams, the progress in increasing lending to low- and moderate-income neighborhoods will be halted. NCRC estimates that low- and moderate-income neighborhoods could lose up to $105 billion in home and small business lending nationally over a five year time period. We join in the comments of NCRC, of which we are members... We urge the OCC to go back to the drawing board and develop reform proposals with the Federal Reserve Board and the FDIC.

And, for the reasons above and yet to be submitted, we contend Comptroller Otting should be recused from this process. Thank you for your attention to this."

While Reuters blandly noted that he is "a former banker," the bank he headed, OneWest, was accused of predatory lending and when its acquisition by the CIT Group was challenged by Fair Finance Watch, CRC and others Otting arranged for seemingly counterfeit or compelled comments supporting the merger. In this light, Question 11 of his "Advanced Notice of Proposal Rulemaking" or ANPR is noteworthy: "11. How can community involvement be included in an evaluation process that uses a
metric-based framework?" How, indeed. Here's what Otting wrote as a banker, already long public, in support of his merger:

"From: Otting, Joseph M [at] owb.com
Sent: Wednesday, January 07, 2015 5:00 PM
Cc: Haas, Alesia Jeanne; Tran, Cindy; Kim, Glenn
Subject: Support For OneWest Bank
 
Dear Friends,
 
We were excited to announce on July 21, 2014, that IMB HoldCo LLC, the parent company of OneWest Bank entered into a merger agreement with CIT Group Inc. As part of the applications for regulatory approval of the transaction, our regulators are interested in the perspectives of the public. We are writing you to seek your support of the Bank and pending merger. This merger, if approved, would create the largest bank headquartered in Southern California with a full suite of banking products and services, which will allow us to better serve our customers. We would retain and grow jobs and are committed to continuing and expanding our efforts to serve the economic and development needs of our community. I would like to ask you to take a moment to click on the link below and submit a letter of support adding any of your own words or thoughts.
 
Please submit your letter by clicking here, or by visiting our website at www.OneWestBank.com/merger-support (if the link isn't clickable or part of the link is cut off, please copy and paste the entire URL into your browser's address bar and press Enter)
 
Thank you for your support.  Best wishes for a successful 2015 and please call on me if I can ever be of assistance.
 
Joseph M. Otting
President and CEO
OneWest Bank N.A.
888 East Walnut Street
Pasadena, CA 91101"

   There will be fight-back, under NCRC's TreasureCRA campaign. Watch this site - including on actual enforcement of CRA.

September 17, 2018

As Community Reinvestment Act Is Targeted by Otting Fair Finance Watch Urges Recusal to OCC

By Matthew R. Lee, Video, 7/31 story

SOUTH BRONX, September 12 – The US Treasury Department has begun a process to weaken and take the community out of the 1977 Community Reinvestment Act. The protagonist, akin to Scott Pruitt until recently at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, the 14th comment so far, here. From the comment: "Fair Finance Watch (and where applicable Inner City Press) appreciate the opportunity to comment on the Office of the Comptroller of the Currencys (OCC) Advance Notice of Proposed Rulemaking (ANPR) regarding the Community Reinvestment Act (CRA). CRA has leveraged significant amounts of loans and investments for low- and moderate-income communities.

We began enforcing the CRA in the South Bronx then beyond starting in 1994, in connection with the applications for mergers or expansions on which banks' records are considered. Numerous banks excluded the South Bronx and Upper Manhattan from their CRA assessment areas even though, as we proved, they collected substantial deposits from area residents. We got six banks to open branches and make lending commitments, in the Bronx and beyond.

We concerned that the OCC's proposal threatens to weaken CRA, see below. As as relevant here, we commented along with others on the CIT - OneWest proceeding, and were concerned both by OneWest's record under now-Comptroller Otting and by what emerged as the gaming of the system with pre-fabricated comments Otting openly solicited. We may comment in more detail on this later in his ANPR proceeding.

For now we wish raise particular concern about the approach signaled by Questions 21 and 15 and to emphasize that public participate is key to CRA, on performance evaluations and crucially on bank merger and expansion applications. Inner City Press, which often submits FOIA requests to the OCC (which is, frankly, slow), the Federal Reserve, FDIC and even non-USA regulators many of whom are faster than the OCC, emphasizes that comment periods should never close while information that is not specifically exempt from disclosure under FOIA is being withheld. Inner City Press has pending with the OCC, but not yet responded to, FOIA requests related to this proceeding / process, that should be responded to in full, including any necessary appeal, during this proceeding.

If the OCC proceeds to significantly diminish the importance of assessment areas on CRA exams, the progress in increasing lending to low- and moderate-income neighborhoods will be halted. NCRC estimates that low- and moderate-income neighborhoods could lose up to $105 billion in home and small business lending nationally over a five year time period. We join in the comments of NCRC, of which we are members... We urge the OCC to go back to the drawing board and develop reform proposals with the Federal Reserve Board and the FDIC.

And, for the reasons above and yet to be submitted, we contend Comptroller Otting should be recused from this process. Thank you for your attention to this."

While Reuters blandly noted that he is "a former banker," the bank he headed, OneWest, was accused of predatory lending and when its acquisition by the CIT Group was challenged by Fair Finance Watch, CRC and others Otting arranged for seemingly counterfeit or compelled comments supporting the merger. In this light, Question 11 of his "Advanced Notice of Proposal Rulemaking" or ANPR is noteworthy: "11. How can community involvement be included in an evaluation process that uses a
metric-based framework?" How, indeed. Here's what Otting wrote as a banker, already long public, in support of his merger:

"From: Otting, Joseph M [at] owb.com
Sent: Wednesday, January 07, 2015 5:00 PM
Cc: Haas, Alesia Jeanne; Tran, Cindy; Kim, Glenn
Subject: Support For OneWest Bank
 
Dear Friends,
 
We were excited to announce on July 21, 2014, that IMB HoldCo LLC, the parent company of OneWest Bank entered into a merger agreement with CIT Group Inc. As part of the applications for regulatory approval of the transaction, our regulators are interested in the perspectives of the public. We are writing you to seek your support of the Bank and pending merger. This merger, if approved, would create the largest bank headquartered in Southern California with a full suite of banking products and services, which will allow us to better serve our customers. We would retain and grow jobs and are committed to continuing and expanding our efforts to serve the economic and development needs of our community. I would like to ask you to take a moment to click on the link below and submit a letter of support adding any of your own words or thoughts.
 
Please submit your letter by clicking here, or by visiting our website at www.OneWestBank.com/merger-support (if the link isn't clickable or part of the link is cut off, please copy and paste the entire URL into your browser's address bar and press Enter)
 
Thank you for your support.  Best wishes for a successful 2015 and please call on me if I can ever be of assistance.
 
Joseph M. Otting
President and CEO
OneWest Bank N.A.
888 East Walnut Street
Pasadena, CA 91101"

   There will be fight-back, under NCRC's TreasureCRA campaign. Watch this site - including on actual enforcement of CRA. A bank that was sued by the US Justice Department in 2017 for redlining and discrimination is trying to sell itself to Old National, and Fair Finance Watch has formally challenged it under the Community Reinvestment Act in a filing to the Federal Reserve on the last day of the comment period.

September 10, 2018

Mulvaney's Moves Against Disparate Impact At CFPB Opposed As CRA Targeted by Otting at OCC

By Matthew R. Lee, Video, 7/31 story

SOUTH BRONX, September 6 – With the Consumer Financial Protection Bureau under Mick Mulvaney moving to undermine liability for disparate impact discrimination, state Attorneys General from New York and 13 other states have delivered a letter of opposition, on September 5. NY AG Barbara Underwood said, "the Equal Credit Opportunity Act was enacted because of our country’s sordid history of credit discrimination — and it’s unbelievable that the CFPB is considering refusing to use it to protect consumers." The letter  signed by the attorneys general of North Carolina, California, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, Virginia and the District of Columbia stated that they "will not hesitate to uphold the law if CFPB acts in a manner contrary to law with respect to interpreting ECOA." We'll have more on that - and this: the US Office of the Comptroller of the Currency Joseph Otting on August 28 began a process to weaken and take the community out of the 1977 Community Reinvestment Act. Now in September he has given conditional approval to a fintech bank, Varo Bank of Varo Money, which will include only Salt Lake City, Utah in its CRA assessment area. The CEO is Colin Walsh, previously of scandal plagued Wells Fargo. But will the FDIC, which has not for now joined Otting's crusade, hand out deposit insurance?

September 3, 2018

As Community Reinvestment Act Is Targeted by Otting His OCC's Notice to Community Is Silent As Banks Cheer

By Matthew R. Lee, Video, 7/31 story

SOUTH BRONX, August 29 – The US Office of the Comptroller of the Currency Joseph Otting on August 28 began a process to weaken and take the community out of the 1977 Community Reinvestment Act. But on August 29 when the OCC purported to solicit public comments for the CRA evaluation of banks in the fourth quarter of 2018 and even first quarter of 2019, the OCC's notice did not even mention or link to Otting's proposal to change the CRA. Here is what the OCC e-mailed out on August 29. So the community is not informed - but the industy is. Even open sources are full of banks and their lobbying groups celebrating and preparing to support Otting's proposal(s). From Louisiana, there is this: "GAME FACE ConsumerBankers GC Steve Zeisel is ready for today’s Membership Call regarding the @USOCC ANPR on #cra. #intense. #focus." On the other hands, there's this, on and of which we'll have more. The protagonist, akin to Scott Pruitt until recently at the US Environmental Protection Agency, is Joe Otting. While Reuters blandly noted that he is "a former banker," the bank he headed, OneWest, was accused of predatory lending and when its acquisition by the CIT Group was challenged by Fair Finance Watch, CRC and others Otting arranged for seemingly counterfeit or compelled comments supporting the merger. In this light, Question 11 of his "Advanced Notice of Proposal Rulemaking" or ANPR is noteworthy: "11. How can community involvement be included in an evaluation process that uses a
metric-based framework?" How, indeed. Here's what Otting wrote as a banker, already long public, in support of his merger:

"From: Otting, Joseph M [at] owb.com
Sent: Wednesday, January 07, 2015 5:00 PM
Cc: Haas, Alesia Jeanne; Tran, Cindy; Kim, Glenn
Subject: Support For OneWest Bank
 
Dear Friends,
 
We were excited to announce on July 21, 2014, that IMB HoldCo LLC, the parent company of OneWest Bank entered into a merger agreement with CIT Group Inc. As part of the applications for regulatory approval of the transaction, our regulators are interested in the perspectives of the public. We are writing you to seek your support of the Bank and pending merger. This merger, if approved, would create the largest bank headquartered in Southern California with a full suite of banking products and services, which will allow us to better serve our customers. We would retain and grow jobs and are committed to continuing and expanding our efforts to serve the economic and development needs of our community. I would like to ask you to take a moment to click on the link below and submit a letter of support adding any of your own words or thoughts.
 
Please submit your letter by clicking here, or by visiting our website at www.OneWestBank.com/merger-support (if the link isn't clickable or part of the link is cut off, please copy and paste the entire URL into your browser's address bar and press Enter)
 
Thank you for your support.  Best wishes for a successful 2015 and please call on me if I can ever be of assistance.
 
Joseph M. Otting
President and CEO
OneWest Bank N.A.
888 East Walnut Street
Pasadena, CA 91101"

   There will be fight-back, under NCRC's TreasureCRA campaign. Watch this site

August 27, 2018

Redlining Klein Bank Wants to Sell Out to Old National But Fair Finance Watch Challenges to Fed

By Matthew R. Lee, Video, 7/31 story

NEW YORK, August 24 – A bank that was sued by the US Justice Department in 2017 for redlining and discrimination is trying to sell itself to Old National, and Fair Finance Watch has formally challenged it under the Community Reinvestment Act in a filing to the Federal Reserve on the last day of the comment period. From the filing: "This is a timely first comment opposing the Applications of Old National Bancorp to merge with Klein Financial, Inc., Chaska, Minnesota, and thereby indirectly acquire KleinBank, also of Chaska, Minnesota.

As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.

  It was only last year that “the U.S. Justice Department accused Chaska-based KleinBank of redlining, the illegal practice of denying mortgage loans to minority residents. Lawyers from the department's civil rights division said KleinBank engaged in discrimination in Minneapolis and St. Paul by failing to market its services and open bank branches in areas dominated by minorities. KleinBank, which operates 21 branches in mostly outer-ring suburbs of the Twin Cities, is one of Minnesota's largest community banks. 'KleinBank's discriminatory practices … have been intentional and willful, and implemented with reckless disregard for the rights of individuals on the basis of their race and/or national origin,' the complaint said.”

   Now, attempting to cash in / out of that discrimination, Klein Bank seeks to sell, to Old National which has its own insufficient records. Fair Finance Watch has been tracking Old National:
In 2012 in its Evansville (Headquarters) MSA for conventional home purchase loans back in 2012, Old National Bank made only six such loans to African Americans. In 2016, the most recent year for which data is available, Old National made only THREE such loans to African Americans.  In Table 4-1, in 2012 it made three such loans to African Americans. In 2016 this fell to one.
Old National has gotten worse. It cannot be allowed to acquire Klein so recently prosecuted for discrimination.
 (Separately, note that in Evansville MSA in 2016, Old National reported a 100% approved and originated rate for both African Americans and Latinos, until in other MSAs - this is not credible, presumptively indicates pre-screening and should be investigated in connection with this Klein proposal.)
   For refinance loans in Evansville in 2012, Old National made eight such loans to African Americans. This fell to four in 2016.
   For home improvement loans in the Evansville MSA, Old National in 2012 made five such loans to African Americans. This fell to four in 2016.
   For refinance loans in Indianapolis in 2012, Old National made 18 such loans to African Americans. This fell to a mere seven in 2016, when Old National denied 62% of applications from African Americans (see above). 
Old National has gotten much worse. It cannot be allowed to acquire Klein so recently prosecuted for discrimination.
  Also troubling regarding Old National is its history of branch closings. According to its hometown newspaper the Evansville Courier News & Press
 "since 2004 Old National has purchased 175 banking offices, either through acquiring smaller financial institutions or buying selected office locations. Old National has also shed 140 banking offices by consolidating 121 locations and by selling 19 other offices."
 Old National is a bank with a disparate lending record that specializes in buying and closing bank branches - now it seeks to acquire Klein Bank prosecuted only last year for redlining.
  ICP is requesting evidentiary hearings and that this proposed acquisition, on the current record, not be approved. There is no public benefit." We'll have more on this

August 20, 2018

The American Bankers Association loves Otting, this is their write up, on which we will have more, much more: "The OCC yesterday updated its policies and procedures manual to clarify its policy and methodology for determining how evidence of discrimination or illegal credit practices will affect a bank’s Community Reinvestment Act rating. The updated version replaces a previous edition of the manual issued in October 2017.

Importantly, the updated manual maintains the OCC’s position that there be a logical nexus between the CRA rating and evidence of discriminatory or illegal credit practices. The revisions clarify that in assigning a CRA rating, the OCC first evaluates a bank’s CRA performance for the applicable time period and then makes any adjustments that are warranted based on evidence of discriminatory or other illegal credit practices. The OCC also clarified that its general policy is to downgrade the rating by only one rating level unless such illegal practices are found to be particularly egregious.

The OCC reiterated that its policy is “generally not to penalize a bank by lowering its CRA rating when examiners have determined the bank has taken appropriate remedial actions." Outrageous.

August 13, 2018

We are following,at the CFPB,  the nomination of Kathy Kraninger to continue Mick Mulvaney's deconstruction of the agency now that

Leandra English has left, and the ongoing attempt by the OCC's Joe Otting to eliminate geographic assessment areas under the CRA, and to start handing out fintech bank charters. #TreasureCRA!


  See, "The Growing Power of Big Banks Like JPMorgan May Cause Community Banks to Merge," https://www.thestreet.com/video/growing-power-of-big-banks-like-jpmorgan-may-cause-community-banks-to-merge-14668270

  Globally, in India bank unions are fighting mergers: "Bank staffs take out rally in Kolkata against privatisation, merger of PSBs" https://www.business-standard.com/article/news-ians/bank-staffs-take-out-rally-in-kolkata-against-privatisation-merger-of-psbs-118072800758_1.html

Deutsche Bank Watch: "Deutsche Bank profit down on weak trading revenue" https://www.marketwatch.com/story/deutsche-bank-profit-down-on-weak-trading-revenue-2018-07-25

Merger and branch closing fall-out: "Associated Bank to sell 27 properties to two Milwaukee developers" https://www.bizjournals.com/milwaukee/news/2018/07/22/associated-bank-to-sell-27-properties-to-two.html

August 6, 2018

With OCC To Hand Out Fintech Bank Charters NY Regulator Slams It But Lets First Republic Redline

By Matthew R. Lee, Video, 7/31 story

NEW YORK, July 31 – The US Comptroller of the Currency Joseph Otting, who said he's never witnessed discrimination and is poised to attack the Community Reinvestment Act, today announced he'll be giving out "fintech" bank charters. CRA won't apply. Instead, the announcement vaguely says, "The expectations for promoting financial inclusion will depend on the company’s business model and the types of planned products, services, and activities." But what to expect of the OCC of Otting? When at OneWest, he arranged for Astro-turf and even fake public comments supporting its acquisition by the CIT Group. Later on July 31 New York regulator Maria T. Vullo issued this: "The New York State Department of Financial Services fiercely opposes the Department of Treasury’s endorsement of regulatory ‘sandboxes’ for financial technology companies. The idea that innovation will flourish only by allowing companies to evade laws that protect consumers, and which also safeguard markets and mitigate risk for the financial services industry, is preposterous. Toddlers play in sandboxes.  Adults play by the rules. Companies that truly want to create change and thrive over the long-term appreciate the importance of developing their ideas and protecting their customers within a strong state regulatory framework. DFS also strong opposes today’s decision by the Office of the Comptroller of the Currency to begin accepting applications for national bank charters from nondepository financial technology (fintech) companies.  DFS believes that this endeavor, which is also wrongly supported by the Treasury Department, is clearly not authorized under the National Bank Act. As DFS has noted since the OCC’s proposal, a national fintech charter will impose an entirely unjustified federal regulatory scheme on an already fully functional and deeply rooted state regulatory landscape." Sounds good -- but NYS DFS has for example allowed First Republic Bank to redline The Bronx, and hasn't even confirmed receipt of a timely comment opposing it. We'll have more on this - and on this: First Republic Bank, which excludes The Bronx as well as Brooklyn and Queens from its assessment area while funding outer borough slumlords, has applied to New York bank regulators to open another branch in Manhattan. Fair Finance Watch has filed opposition, along with Inner City Press, also citing FRB's record of displacement in California:  On behalf of Inner City Press / Fair Finance Watch (ICP), this is a timely comment opposing the application by First Republic Bank to open a new insured deposit-taking facility at 329 Tenth Avenue, Borough of Manhattan, City of New York 10001. First Republic Bank is engaged in redlining. Its branches in New York are entirely in Manhattan, and only in the most affluent sections. It excludes from its CRA Assessment Area, in their entirety, the boroughs of The Bronx, Brooklyn, Queens and Staten Island. This is an outrage, and that ICP had thought was no longer allowed by regulars. (ICP previously challenged and got changes such exclusionary Assessment Areas at Bank of New York, HSBC, predecessors of Bank of America and others). Cynically, while excluding the outer boroughs from its assessment area, First Republic Bank does business with landlords who have been described as slumlords, such as Moshe Piller. See, e.g., Daily News, “Moshe Piller, owner of the Hunts Point Ave. building in the Bronx where two children died when a faulty radiator spewed steam into their bedroom.” (ICP also takes note of the San Francisco analysis of its fellow NCRC member CRC). Fair Finance Watch has reviewed First Republic Bank's most recent publicly available HMDA data for the NYC MSA and, for home purchase loans, find that FRB made 283 such loans to whites, and only three each to Latino and  African American applicants. Its denial rate disparity is astronomical: 20% denial rate for African American, less than 1% for whites. Again: First Republic Bank is a redliner. For all of these reasons, First Republic Bank's applications should be denied." We'll have more on this

July 30, 2018


People's United Bank's Bid to Buy Farmington Challenged by Fair Finance Watch on Lending Disparities

By Matthew R. Lee, Video

NEW YORK, July 28 – People's United Bank, which has applied to buy Farmington Bank in Connecticut, has become more and not less disparate in its lending, as shown by analysis of U.S. Home Mortgage Disclosure Act data by Fair Finance Watch submitted to the US Office of the Comptroller of the Currency by Inner City Press in opposition to the proposed merger. From the timely July 27 filing: "This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by People's United Bank to acquire Farmington Bank.
  In the the New York City MSA in 2014, People's United made 82 home purchase loans to whites and NONE to African Americans or Latinos.   We note that People's has been in these markets since 2010 -- NOT “recently” -- and that New York City is not the “Lower Hudson Valley. Then we found that 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 2016, the most recent year for which HMDA data is publicly available, People's got even worse: in the NYC MSA it made 144 home purchase loans to whites (more than in 2015) and still only one to an African American.
   For refinance loans in the New York City MSA in 2014, People's United made 24 loans to whites, 1 to an African American and four to Hispanics. By 2016, it was again worse: 165 loans to whites and only two to African Americans.
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.
   People's United record is hardly sufficient in the Hartford MSA where it now proposes to acquire Farmington Bank. In 2016 in the Hartford MSA, People's United made 162 home purchase loans to whites and only 10 to African Americans and only 14 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.
     In this context, the comment period should be extended so that public evidentiary hearings can be held, and the application should be denied." We'll have more on this

July 23, 2018

 On July 19, When asked about Hurricane Maria, Kathy Kraninger wouldn’t address her role in providing disaster funds as part of the response in Puerto Rico. When asked about the matter, Kraninger responded that she didn't "'think it was appropriate to characterize…advice'" she gave to the administration...

July 16, 2018

First Republic Bank Excluding All Bronxites But Slumlords Wants 9th Manhattan Branch, Opposed

By Matthew R. Lee, Video

THE BRONX, July 14 – First Republic Bank, which excludes The Bronx as well as Brooklyn and Queens from its assessment area while funding outer borough slumlords, has applied to New York bank regulators to open another branch in Manhattan. Fair Finance Watch has filed opposition, along with Inner City Press, also citing FRB's record of displacement in California:  On behalf of Inner City Press / Fair Finance Watch (ICP), this is a timely comment opposing the application by First Republic Bank to open a new insured deposit-taking facility at 329 Tenth Avenue, Borough of Manhattan, City of New York 10001. First Republic Bank is engaged in redlining. Its branches in New York are entirely in Manhattan, and only in the most affluent sections. It excludes from its CRA Assessment Area, in their entirety, the boroughs of The Bronx, Brooklyn, Queens and Staten Island. This is an outrage, and that ICP had thought was no longer allowed by regulars. (ICP previously challenged and got changes such exclusionary Assessment Areas at Bank of New York, HSBC, predecessors of Bank of America and others). Cynically, while excluding the outer boroughs from its assessment area, First Republic Bank does business with landlords who have been described as slumlords, such as Moshe Piller. See, e.g., Daily News, “Moshe Piller, owner of the Hunts Point Ave. building in the Bronx where two children died when a faulty radiator spewed steam into their bedroom.” (ICP also takes note of the San Francisco analysis of its fellow NCRC member CRC). Fair Finance Watch has reviewed First Republic Bank's most recent publicly available HMDA data for the NYC MSA and, for home purchase loans, find that FRB made 283 such loans to whites, and only three each to Latino and  African American applicants. Its denial rate disparity is astronomical: 20% denial rate for African American, less than 1% for whites. Again: First Republic Bank is a redliner. For all of these reasons, First Republic Bank's applications should be denied." We'll have more on this

July 9, 2018

Last week Leandra English dropped her lawsuit against Mulvaney at the CFPB and said, “In light of the recent nomination of a new director. I will be stepping down from my position at the Consumer Financial Protection Bureau early next week.” But on Kathy Kraninger, see below...

July 2, 2018

Bank of America Gets Sued For Discriminatory Maintenance While Citigroup Brags At UN About Renewables

By Matthew R. Lee, Video

NEW YORK, June 27 – Bank of America has been sued for failure to maintain properties it forecloses on in communities of color. Nationwide, the lawsuit contends, 45 percent of the Bank of America properties in communities of color had 10 or more
maintenance or marketing deficiencies, while only 11 percent of the Bank of America properties in predominantly white neighborhoods had 10 or more maintenance or
marketing deficiencies. 64 percent of the Bank of America properties in communities of color had trash or debris visible on the property, while only 31 percent of the Bank of America properties in predominantly white neighborhoods had trash visible on the property. 37 percent of the Bank of America properties in communities of color had unsecured or broken doors, while only 16 percent of the Bank of America properties in predominantly
white neighborhoods had unsecured or broken doors. 49.6 percent of the Bank of America properties in communities of color had damaged, boarded, or unsecured windows, while only 23.5 percent of the Bank of America properties in white neighborhoods had damaged, boarded or unsecured windows.

  In Milwaukee, for example, recently profiled in the book "Evicted," the lawsuit cites 134 Bank of America REO properties. Of these 134 REO properties, 74 were located in African American neighborhoods, 21 were located in predominantly Latino neighborhoods, eight were located in predominantly nonwhite
neighborhoods, and 31 were located in predominantly white neighborhoods. 83.9% of the REO properties in predominantly white neighborhoods had fewer than five maintenance or marketing deficiencies, while only 21.4% of REO properties in neighborhoods of color had fewer than 5 maintenance or marketing deficiencies. 78.6% of REO properties in neighborhoods of color had 5 or more marketing or maintenance deficiencies, while only 16.1% of the REO properties in white neighborhoods had 5 or more marketing or maintenance deficiencies. 8.7% of REO properties in neighborhoods of color had 10 or more marketing or maintenance deficiencies, while none of the REO properties in white neighborhoods had 10 or more marketing or maintenance deficiencies. Some including the Fair Finance Watch notice similar disparities in Milwaukee when it comes to the placement of the Bublr bike share program. Maybe Bank of America will want to put its name on the disparate network, as Citibank has in New York with disparately placed CitiBike.

June 25, 2018

In NY Court CFPB Deemed Unconstitutional and Dropped from Case, Hold on Kraninger

By Matthew R. Lee, Patreon

NEW YORK, June 22 – The US Consumer Financial Protection Bureau under Mick Mulvany has moved to disband the statutory Consumer Advisory Board, Mulvaney told the 23 board members at 11 am on June 6. Now a Federal judge in the US District Court for the Southern District of New York has dropped the CFPB from the case against RD Legal Funding LLC, ruling that its structure is unconstitutional (contrary to decisions in the DC Circuit of Appeals). Judge Loretta Preska wrote that "because the CFPB’s structure is unconstitutional, it lacks the authority to bring claims under the [Consumer Financial Protection Act] and is hereby terminated as a party to this action." Then Judge Preska recommended eliminating the section in the 2010 Dodd-Frank law that established the CFPB.

June 18, 2018

In DC to Head CFPB Mulvaney OMB Staffer Kathy Kraninger Is Nominated, Experience Questioned

By Matthew R. Lee, Patreon

NEW YORK, June 16 – The US Consumer Financial Protection Bureau under Mick Mulvany has moved to disband the statutory Consumer Advisory Board, Mulvaney told the 23 board members at 11 am on June 6. Now on Saturday June 16 Kathy Kraninger, who works for Mulvaney at the Office of Management and Budget, has been nominated to take over the CFPB.  She previously worked at the Department of Homeland Security and, it seems, has no financial regulatory experience. How quickly will her (possible) confirmation hearing be held? Watch this site.

June 11, 2018

In DC at CFPB Mulvaney Disbands Consumer Advisory Board As OCC Cuts CRA, FOIA

By Matthew R. Lee, Patreon

NEW YORK, June 6 – The US Consumer Financial Protection Bureau under Mick Mulvany has moved to disband the statutory Consumer Advisory Board, Mulvaney told the 23 board members at 11 am on June 6. Mulvaney had cancelled an in-person meeting with the Board, mandated by the Dodd Frank act, proposing instead another telephone conference call - on which he fired the board members. On June 4 Inner City Press covered a media call by Consumer Advisory Board members, after asking Citigroup some questions at the UN - just as it covered the shift before the 2016 election of some regulatory functions of the Federal Reserve, which continued to rubber stamp bank mergers, to the CFPB. Now the CFPB is stepping further back from regulation, to put it mildly.

June 4, 2018

Weakening of Volcker Rule Promoted By Fed's Powell and Quarles Without Wells Fargo Recusal

By Matthew R. Lee, Audio

NEW YORK, May 30 – The US Federal Reserve Board, with more than half of its seats vacant and one of its three Governors conflicted out on Wells Fargo now wants to weaken the so-called Volcker Rule, for the benefit of the largest banks. This is the same Federal Reserve which recently delayed for months in responding to Inner City Press' request under the Freedom of Information Act, and which has taken to rubber stamping mergers even by banks with interest rates described as usurious, like Ameris Bank. Fed Chair Jerome Powell said, "Firms that do more modest amounts of trading will face fewer requirements." Randal K. Quarles, the Governor ostensibly recused on Wells Fargo which has an interest in the Volcker Rule said "I view this proposal as an important milestone in comprehensive Volcker rule reform, but not the completion of our work." There is a commnt period, here. We'll have more on this. When the International Monetary Fund reviews developed countries' banking sectors, particularly in Europe, some banks' participation in predatory lending gets over looked. Consider Deutsche Bank, and the IMF's May 14 assessment of the Germany banking sector, which Inner City Press published below when it was  just out from under embargo. Now consider the US Federal Reserve's solicitude, expressed by new Governor Randal Quarles: "Willingness by the United States to reconsider its calibration may prompt other jurisdictions to do the same, which could better the prospects of successful resolution for both foreign G-SIBs operating in the United States, and for U.S. G-SIBs operating abroad... Any such balance is likely to be improvable with experience, reflection, and debate. We are interested in views from the firms and the public on how the regimes can be improved." This while draft legislation pends that would allow global banks to low-ball their US holdings, and US Comptroller of the Currency Joseph Otting targets the Community Reinvestment Act of 1977.  We'll have more on this. From the IMF on May 14 "The German banking and life insurance sectors should accelerate their restructuring to bolster profitability and reduce risks. In the banking sector, the regulatory capital ratio has increased, but the cost-to-income ratio and leverage remain high. The high cost structure, alongside low net interest margins, provisions for compliance violations, and the need to adjust to the new regulatory environment, continue to weigh on profitability. Restructuring is ongoing in the banking sector, but the process must be accelerated through faster implementation of restructuring plans, continued development of fee-based income, and further consolidation. In the life insurance sector, low interest rates have dented solvency ratios, and further progress is needed to reduce reliance on guaranteed return products. In this context, supervisory attention to interest rate risk and progress in implementing restructuring plans both in banking and insurance should continue." What about abuse of consumers, participation in predatory lending schemes and other abuses? What about Greece? What about Deutsche bank as the riskiest bank?

May 28, 2018

We note that in Federal Reserve governor Brainard's speech on CRA there is no mention of enforcement of CRA, or of the word "merger" or "expansion" or "application" -- we'll have more on this. https://www.federalreserve.gov/newsevents/speech/brainard20180518a.htm

May 21, 2018

Payday Lending Scrutiny Survives Capitol Hill Review Period, US Comptroller Otting Eyes CRA

By Matthew R. Lee

NEW YORK, May 16 – A regulation against predatory payday lending, which was threatened with Congressional repeal up to today, has survived the threat: the deadline came and went on May 16. The Congressional Review Act resolution (S.J. Res. 56) to repeal it garnered only four sponsors. But threats to the Community Reinvestment Act continue: US Comptroller of the Currency Joseph Otting, who generated fake comments supporting his OneWest Bank's merger with CIT Group, is now seeking to remove the "community" from the US Community Reinvestment Act, eliminating any focus on the areas from which banks draw their insured deposits. Otting told the ABA he wants to make it  “easy and simple for banks to understand” the CRA. His OCC spokesperson spuns that "the comptroller has mentioned in numerous public settings that we need to revisit how assessment areas are defined." The WSJ, for now, did not mention Otting's previous history of undermining the CRA. Otting has also been shown to have continued buy and owning bank and insurance company stocks even after he was nominated, confirmed and began at the OCC. The stocks included Wells Fargo, Goldman Sachs, Morgan Stanley, Citigroup, KeyCorp and Prudential Financial. Now Otting has his eye on further weakening Community Reinvestment Act reviews of mergers. The OCC is still withholding documents requested by Inner City Press and CRC under FOIA including about how Otting's bank's lawyers responded to the fake comment issue. We'll have more on this.

May 14, 2018

A redlining case against Klein Bank in Minnesota was been dropped by DOJ in exchange for revision in the bank's CRA assessment area. The suit, filed by the DOJ in early 2017, alleged that from 2010 to at least 2015, KleinBank had structured its residential mortgage business – drawing a “horseshoe-shaped” assessment area around different census tracts– that allowed it to avoid serving neighborhoods with a predominantly minority population. Allegedly targeted for exclusion were all 37 majority-minority sections in Ramsey County and 39 of the 58 majority-minority areas in Hennepin County.
 
 KleinBank CEO Doug Hile spun that "we have decided this compromise allows us to channel our resources into serving the community, specifically where the needs are great and where our special approach to engagement and commitment will have a profound impact.”
 
Under the settlement stipulations, KleinBank – which runs 21 bank branches throughout Minnesota – must revise its main Community Reinvestment Act assessment area. The new area must include all of Hennepin County, and the company will open a new branch office within the county, as well as continue to expand community initiatives. We'll see.

May 7, 2018

US Comptroller Otting Moves To Strip Community from CRA, FOIA Docs Withheld

By Matthew R. Lee, Patreon

NEW YORK, May 1 – US Comptroller of the Currency Joseph Otting, who generated fake comments supporting his OneWest Bank's merger with CIT Group, is now seeking to remove the "community" from the US Community Reinvestment Act, eliminating any focus on the areas from which banks draw their insured deposits. Otting told the ABA he wants to make it  “easy and simple for banks to understand” the CRA. His OCC spokesperson spuns that "the comptroller has mentioned in numerous public settings that we need to revisit how assessment areas are defined." The WSJ, for now, did not mention Otting's previous history of undermining the CRA. Otting has also been shown to have continued buy and owning bank and insurance company stocks even after he was nominated, confirmed and began at the OCC. The stocks included Wells Fargo, Goldman Sachs, Morgan Stanley, Citigroup, KeyCorp and Prudential Financial. Now Otting has his eye on further weakening Community Reinvestment Act reviews of mergers. The OCC is still withholding documents requested by Inner City Press and CRC under FOIA including about how Otting's bank's lawyers responded to the fake comment issue. We'll have more on this.

April 30, 2018

US Comptroller Otting Bought Bank Stocks While Regulating Banks, FOIA Docs Withheld

By Matthew R. Lee, Patreon

NEW YORK, April 26 – US Comptroller of the Currency Joseph Otting, who generated fake comments supporting his OneWest Bank's merger with CIT Group, has now been shown to have continued buy and owning bank and insurance company stocks even after he was nominated, confirmed and began at the OCC. The stocks included Wells Fargo, Goldman Sachs, Morgan Stanley, Citigroup, KeyCorp and Prudential Financial. Now Otting has his eye on further weakening Community Reinvestment Act reviews of mergers. The OCC is still withholding documents requested by Inner City Press and CRC under FOIA including about how Otting's bank's lawyers responded to the fake comment issue. We'll have more on this.

April 23, 2018

Wells Fargo Fined $1B By Otting's OCC and Mulvaney's CFPB, End of An Era?

By Matthew R. Lee, Patreon

NEW YORK, April 20 – Even as Consumer Financial Protection Bureau chief Mick Mulvaney promises to scrap payday lending and other protections, on April 20 his CFPB with a new logo along with Joseph Otting's OCC announced a $1 billion fine against Wells Fargo. As one Inner City Press agency source put it, imagine what the fine would be under anyone else. Others noted how unspecific the press release of the CFPB - apparently being renamed the Bureau of Consumer Financial Protection - is, compared to those which came before. On April 9 the payday lenders' lobbying group Community Financial Services Association of America sued to overturn the rule, in the U.S. District Court for the Western District of Texas, Austin Division. This comes as the US Office of the Comptroller of the Currency's Joseph Otting has ended the ban on payday lender ACE Cash Express working with national banks...

April 16, 2018

US Payday Lending Protections Sued by Industry Group, Otting and ACE

By Matthew R. Lee, Patreon

BRONX, NEW YORK, April 9 – Even as Consumer Financial Protection Bureau chief Mick Mulvaney promises to scrap payday lending protections, on April 9 the payday lenders' lobbying group Community Financial Services Association of America sued to overturn the rule, in the U.S. District Court for the Western District of Texas, Austin Division. This comes as the US Office of the Comptroller of the Currency's Joseph Otting has ended the ban on payday lender ACE Cash Express working with national banks

April 9, 2018

The Consumer Financial Protection Bureau is in the cross hairs. Now in its mid-year report Mick Mulvaney requests four changes: (i) subject the Bureau to Congressional appropriations; (ii) require Congressional approval for major rules; (iii) make the director accountable to the President’s exercise of executive authority; and (iv) create an independent Inspector General for the agency. Mulvaney writes that the cycle of Congressional frustration with the CFPB will repeat “ ad infinitum unless Congress acts to make [the Bureau] accountable to the American people.” Mulvaney is set to testify on April 11 before the full House Financial Services Committee. Watch this site.

As BancorpSouth Pays $13M To Shareholders Misled on Redlining & Money Laundering, Pay To Play

By Matthew R. Lee

South Bronx, New York, April 3 – The lack of seriousness in US bank regulation, the mechanical repeating of whatever a challenged bank says, has been exemplified by the gambit by BancorpSouth, which Inner City Press / Fair Finance Watch challenged on disparities and which settled racial redlining charges, to drop its Federal Reserve charter and evade regulation. Now BancorpSouth is paying $13 million to settle a lawsuit in Federal court by shareholders who say the bank misled them about not only money laundering but also its fair lending record. Pay to continue to play. We'll have more on this. ICP/FFW timely protested that application to the FDIC: "Dear Regional Director Elmquist, Ass't Regional Director Finnegan and others at the FDIC: "This is a first timely comment opposing, requesting hearings and an extension of the comment period on BancorpSouth's cynical application to evade regulation after its redlining and settlement. Inner City Press / Fair Finance Watch protested the applications of BancorpSouth to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independent Bank, and with Central Community Corporation, and thereby indirectly acquire First State Bank Central Texas, Austin, Texas. - based on racial discrimination in lending... Now BancorpSouth makes this application, and its CEO Dan Rollins states that it wants to “alleviate... regulatory oversight,” and become the “only state-chartered bank not a part of the Federal Reserve system.” We oppose this cynical evasion, particularly by one of the few banks having settled redlining charges.

April 1, 2018

As NY Fed's Dudley Calls $250B Banks Small, Murky Process to Replace Him Called Out

By Matthew R. Lee, Patreon

NEW YORK, March 30 – Amid focus on who at the Federal Reserve Bank of New York should replace outgoing William Dudley, on March 30 Dudley himself misrepresented the bill S.2155 as offering relief to "small banks" -- actually, it's banks up to $250 billion in assets, and foreign mega-banks larger than that. Dudley's misleading comment came on the New York public radio show of Brian Lehrer, who erroneously said that the bill has been enacted "by Congress" when it has only passed the Senate. Meanwhile everyone from Mayor Bill de Blasio to Senator Kirsten Gillibrand is saying the Fed's process for naming the President of its Reserve Bank is not transparent enough. We'll have more on this. Collusion between payday lenders and national banks has been invited by US Comptroller of the Currency Joseph Otting, under whose watch OneWest Bank generated fake public comments urging approval of its merger with CIT. Otting has lifted the 2002 consent order prohibiting ACE Cash Express from "partnering" with national banks. Speaking earlier in, where else, Las Vegas Otting said, "We think there’s a big market there that’s underserved, that really has the ability to be served by capital going forward." When he was selling off OneWest, those whose e-mail addresses and identities were stolen in order to promote the merger were thanked by David Finnegan of the OCC Otting now runs. Finnegan then asked OneWest's and Otting's lawyer Stephen M. Salley at Sullivan & Cromwell to explain. We'll have more on this - there's a lot of explaining to do. On March 14 as what was presented as a community bank regulatory relief bill was passed in the U.S. Senate 67-31 as S.2155, along with undercutting fair lending enforcement the bill would provide particular benefit to the US subsidiaries of some of the largest global banks. These include at least one which helped evade North Korea sanctions: Bank of Tokyo - Mitsubishi...

March 24, 2018

Payday Lender Invited Back As Banks' Predatory Partner by OCC's Otting, OneWest Echo

By Matthew R. Lee, Patreon

NEW YORK, March 24 – Collusion between payday lenders and national banks has been invited by US Comptroller of the Currency Joseph Otting, under whose watch OneWest Bank generated fake public comments urging approval of its merger with CIT. Otting has lifted the 2002 consent order prohibiting ACE Cash Express from "partnering" with national banks. Speaking earlier in, where else, Las Vegas Otting said, "We think there’s a big market there that’s underserved, that really has the ability to be served by capital going forward." When he was selling off OneWest, those whose e-mail addresses and identities were stolen in order to promote the merger were thanked by David Finnegan of the OCC Otting now runs. Finnegan then asked OneWest's and Otting's lawyer Stephen M. Salley at Sullivan & Cromwell to explain. We'll have more on this - there's a lot of explaining to do.

March 19, 2018

As US Senate Passes S.2155 Which Serves BOT Mitsubishi, North Korea Sanctions Evader, Ironic Praise

By Matthew R. Lee, Patreon

NEW YORK, March 14 – As what was presented as a community bank regulatory relief bill was passed in the U.S. Senate 67-31 as S.2155, along with undercutting fair lending enforcement the bill would provide particular benefit to the US subsidiaries of some of the largest global banks. These include at least one which helped evade North Korea sanctions: Bank of Tokyo - Mitsubishi. But on the evening of March 14, this from the White House: "President Donald J. Trump commends the Senate, led by Chairman Mike Crapo (R-ID) for passing S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. The President supports this bill, and as recently noted in a Statement  of Administration Policy (SAP), he would sign it into law. The bill provides much-needed relief from the Dodd-Frank Act for thousands of community banks and credit unions and will spur lending and economic growth without creating risks to the financial system. By tailoring regulation, the bill seeks to prevent excessive regulation from undermining the viability of local and regional banks and their ability to serve their communities. The President looks forward to discussing any further revisions the House is interested in making, with the goal of bipartisan, pro-growth Dodd-Frank relief reaching his desk as soon as possible."

Relief for foreign banks violating North Korea sanctions? These are banks with over $250 billion in assets which, by using "intermediary holding companies," would be evading regulation: Barclays, BBVA, Credit Suisse, RBC, Deutsche Bank, UBS, Santander, BNP Paribas and, notably, MUFG a/k/a Bank of Tokyo Mitsubishi. This last, as Inner City Press has reported on, already switched regulator to escape an including into non-enforcement of North Korea sanctions, in a process that included no public comment period at all.
The OCC gave its approval in a week even while belatedly listing Bank of Tokyo - Mitsubishi's filings under "THESE APPLICATIONS APPEARED INCORRECTLY IN A PRIOR WEEKLY BULLETIN." Photo here; link to Bulletin here. The public, as is the trend under the OCC, was cut out.  Something to keep in mind as S.2155 is portrayed as all about community banks. While Inner City Press has been most focused on the proposed changes to the Home Mortgage Disclosure Act rules (NCRC op-ed here), the august New York Times appears to have lifted from the detailed earlier reporting of The Intercept. This happens at the United Nations all the time, with the added twist of the corporate thieves them working with the UN to evict and restrict the Press with the scoops. But it's particularly ironic hear, when predatory lending is the underlying topic. So we'll run these quotes to explicitly credit The Intercept: "The bill raises that threshold to $100 billion immediately, and to $250 billion within 18 months. That would relieve 25 of the 38 largest U.S. banks from enhanced regulations, including Citizens Bank (Philadelphia Phillies), Comerica (Detroit Tigers), M&T Bank (Baltimore Ravens), SunTrust (Atlanta Braves), KeyBank (Buffalo Sabres), BB&T (Wake Forest University), Regions Bank (AA baseball’s Birmingham Barons), and Zions Bank (Salt Lake City’s Real Monarchs of Major League Soccer).... The bill raises that threshold to $100 billion immediately, and to $250 billion within 18 months. That would relieve 25 of the 38 largest U.S. banks from enhanced regulations, including Citizens Bank (Philadelphia Phillies), Comerica (Detroit Tigers), M&T Bank (Baltimore Ravens), SunTrust (Atlanta Braves), KeyBank (Buffalo Sabres), BB&T (Wake Forest University), Regions Bank (AA baseball’s Birmingham Barons), and Zions Bank (Salt Lake City’s Real Monarchs of Major League Soccer)... Raising the threshold for stadium banks will likely also affect the U.S. operations of globally systemic foreign banks, companies like Barclays (Brooklyn Nets), Bank of Montreal (Toronto FC of Major League Soccer), BBVA Compass (Houston Dynamo, MLS), Santander (minor-league baseball’s York Revolution), and Deutsche Bank (an equestrian stadium in Aachen, Germany)." The bill is S.2155, the "Economic Growth, Regulatory Relief, and Consumer Protection Act." Meanwhile, the bank with the worst record in the United States for gouging consumers with overdraft fees, Ameris, has applied to the Federal Reserve to buy  Hamilton State Bancshares - which, in the Atlanta MSA in 2016 for home purchase loans received 52 applications from whites, originated 37 of those as loans, denying only 12 applications. But for African Americans for home purchase loans, Hamilton State Bank denied every single on of the five applications that, based on its disparate marketing, it received or acknowledged. This is outrageous (as is Ameris' record...

March 12, 2018

Banking on the Bomb Are Citi, Chase, BofA, Wells and Goldman Sachs, ICP Asks Why In UN Global Compact?

By Matthew Russell Lee, photos

UNITED NATIONS, March 7 – Among the top ten investors in nuclear weapons are banks which stand to benefit from the de-regulatory bill S.2155 in Washington, including JP Morgan Chase, Bank of America, Citigroup, Wells Fargo, State Street and Goldman Sachs. This is according to a just released study by the International Campaign to Abolish Nuclear Weapons (ICAN), here. Should this move them out of the UN Global Compact, administered by Secretary General Antonio Guterres? On March 7 Inner City Press asked Guterres' deputy spokesman Farhan Haq, UN transcript here: Inner City Press: The ICAN, the Nobel Prize-winning group on nuclear weapons, has put out a list of companies that are… that they say are profiting from the nuclear weapons manufacturing industry.  So, I guess it made me wonder, in connection with the oil company question  that Stéphane [Dujarric] responded to yesterday, whether the UN Global Compact views… how it views funding and profiting from nuclear weapons production.  These are, like, major American banks — Citi, Chase, Goldman Sachs, State Street.  And… and, given that the Secretary-General… I know that, when he was in Europe, he said, this is going to be a big drive for nuclear disarmament.  Does he think this should be a criterion?  Do you think that companies should have to come up with some kind of plan to divest? Deputy Spokesman:  The criteria for the Global Compact and what it is intended to achieve are very clear on their website, and so I would just refer you to what they, themselves, state as both their mandate and the criteria for inclusion.  So that's about that.  Of course, we do encourage all companies to act in as socially responsible way as possible, and we hope that they will do so in questions of disarmament, as well. Inner City Press: Right.  Okay.  I mean, I guess I'm just wondering if he has a view since this is an issue that he says is important to him and he seems to have some input into those criteria.  They're not voted by Member States.  They're a UN Secretariat... Deputy Spokesman:  Yes.  I mean, well, it's clear what the criteria are, but the Secretary-General has made it clear that he wants all parties, including big business, to behave with a… an attitude of social responsibility, and that includes when it comes to nuclear disarmament." So will anyone be kicked out or suspended, as CEFC belatedly was?

March 5, 2018

 With Capital One now being sued for racial discrimination - closing bank branches in communities of color and steering protected classes disproportionately into debit cards - it's worth nothing CapOne is seeking to sell over $260 million in deposits to Whitney, in an almost absurdly complicated and murky transaction. We hope to have more on this.

February 26, 2018

After ICP Protest to Ameris Bank Merger With Atlantic Coast, Ameris Admits Application False

By Matthew R. Lee, Patreon

NEW YORK, February 24 – The bank with the worst record in the United States for gouging consumers with overdraft fees, Ameris, has applied to the Federal Reserve to buy Atlantic Coast Bank in Florida, and thereafter Hamilton State Bancshares. On January 29, Fair Finance Watch filed formal opposition to both with the Federal Reserve, citing the gouging, Ameris' disparate mortgage lending record in Atlanta, Georgia and Florida, and the Community Reinvestment Act. See below. It turns out, from Ameris' response, that its application was false when it said it would continue the CRA policies of Atlantic - see full response on Patreon, here, question 3. Inner City Press has requested records under the Freedom of Information Act. Now the Federal Reserve has asked Ameris a series of question, full copy here on Patreon

February 19, 2018

On CFPB, Mulvaney Dodges on Equifax Probe As Fee Gouger Ameris Is Challenged by FFW

By Matthew R. Lee

NEW YORK, February 11 – When Mick Mulvaney appeared on CBS's Face the Nation on February 11, it was largely about Rob Porter, Trump chief of staff John Kelly and the recent budget deal. But new host Major Garrett then turned to Mulvaney's "other job" at the Consumer Financial Protection Bureau, and asked if Mulvaney is dropping the investigation into Equifax. Mulvaney, describing himself as lawyerly, refused to answer, telling the 30 Senators who have written to him to wait to see Equifax' next quarterly 10Q filing with the SEC. He said he'll enforce the law, not make it like Richard Cordray. Garrett got animated - to make sure he got called "Major" and not "John."  Meanwhile the bank with the worst record in the United States for gouging consumers with overdraft fees, Ameris, has applied to the Federal Reserve and FDIC to buy Atlantic Coast Bank in Florida, and thereafter Hamilton State Bancshares. On January 29, Fair Finance Watch filed formal opposition to both with the Federal Reserve, citing the gouging, Ameris' disparate mortgage lending record in Atlanta, Georgia and Florida, and the Community Reinvestment Act. Inner City Press has requested records under the Freedom of Information Act. The Fed acknowledged the filing on January 30 and sent it to Ameris' lawyer Jody L. Spencer at Rogers & Hardin, LLP. On February 6, the FDIC ruled that it is a formal protest, letter here on Patreon.

February 12, 2018

FDIC Deems Challenge to Ameris Bank Merger With Atlantic Coast A Formal Protest, Radio Silence

By Matthew R. Lee

NEW YORK, February 10 – The bank with the worst record in the United States for gouging consumers with overdraft fees, Ameris, has applied to the Federal Reserve and FDIC to buy Atlantic Coast Bank in Florida, and thereafter Hamilton State Bancshares. On January 29, Fair Finance Watch filed formal opposition to both with the Federal Reserve, citing the gouging, Ameris' disparate mortgage lending record in Atlanta, Georgia and Florida, and the Community Reinvestment Act. Inner City Press has requested records under the Freedom of Information Act. The Fed acknowledged the filing on January 30 and sent it to Ameris' lawyer Jody L. Spencer at Rogers & Hardin, LLP. On February 6, the FDIC ruled that it is a formal protest, letter here on Patreon. And still no response at all from Ameris, which says it wants to the deal(s) done fast... 

February 5, 2018

ICP Challenged E Trade-Trust Co of America, Banks Scoffs at Needs to Improve, FINRA Settlement

By Matthew R. Lee

WASHINGTON, January 29 – On January 12, Inner City Press / Fair Finance Watch filed with the Office of the Comptroller of the Currency a challenge to the application by E Trade Savings Bank to acquire Trust Company of America. Inner City Press found and wrote: "E Trade Savings Bank's most recent CRA Evaluation, on its website, gives it for example a rare Needs to Improve rating for the entire states of Arizona, Colorado, Florida, Georgia, Michigan and Oregon, and an undeserved “Satisfactory” for New York. How can a bank be “Needs to Improve” in six states - of its only 13 states, including DC - and be moving for this acquisition? Notwithstanding the OCC's recent pronouncement about banks with Needs to Improve ratings, which ICP contends should have been subject to notice and comment, this low performance level militates for the extension of the comment period and hearing(s) ICP is requesting. Also, for the record: “FINRA Fines E*Trade Securities LLC $900,000 for Supervisory Violations Related to Best Execution and Protection of Customer Order Information."  Taken together, these violations militate for the extension of the comment period and hearing(s) ICP is requesting - and for the denial of the application. On January 29, Etrade's lawyers at Skadden Arps downplayed the needs to improve CRA ratings (their full filing here, since Scribd often disappears), then argues that even a settlement with FINRA "does not bear on the statutory factors." Juvenile thinking seems to be spreading.

January 29, 2018

Bank Of America To Raise Fees on Low Income People, Critics Cite Predatory BofA

By Matthew R. Lee

WASHINGTON, January 23 – Fresh from the tax cut, Bank of America has announced it will charge "low-balance" (low-income) cosumers $12 a month for a checking account unless they have a $1,500 account balance or monthly direct deposits of at least $250. Meanwhile Bank of America is closing branches in low and moderate income census tracts, for example in Dallas and Decatur, Georgia, Worchester, Massachusetts and elsewhere. In New York and elsewhere, Bank of America in being denounced. But what will its regulators including the Office of the Comptroller of the Currency do?

January 22, 2018

In DC, Mulvaney Says CFPB To Reconsider Payday Rule, Critics Cite Predatory Lending

By Matthew R. Lee

WASHINGTON, January 16 – In the battle for the US Consumer Financial Protection Bureau, on January 10 US District Judge Timothy Kelly ruled that Leandra English lacks a likelihood of success on the merits in removing Mick Mulvaney as acting director. Meanwhile Mulvaney on January 16 issued this, on the Payday Rule: "January 16, 2018 is the effective date of the Bureau of Consumer Financial Protection’s final rule entitled “Payday, Vehicle Title, and Certain High-Cost Installment Loans" ("Payday Rule").  The Bureau intends to engage in a rulemaking process so that the Bureau may reconsider the Payday Rule.  Although most provisions of the Payday Rule do not require compliance until August 19, 2019, the effective date marks codification of the Payday Rule in the Code of Federal Regulations.  Today’s effective date also establishes April 16, 2018, as the deadline to submit an application for preliminary approval to become a registered information system ("RIS") under the Payday Rule. However, the Bureau may waive this deadline pursuant to 12 C.F.R. 1041.11(c)(3)(iii). Recognizing that this preliminary application deadline might cause some entities to engage in work in preparing an application to become a RIS, the Bureau will entertain waiver requests from any potential applicant." Oppositio came quickly: The rule release was years in the making, and it wouldn’t have been possible without the tireless
effort of community and faith leaders, consumer and civil rights advocates, and countless people
across the country who organized and spoke out against the devastating payday loan debt trap. There is no reason to reopen the rule, and doing so shows disdain for consumer protection and low-income communities that are targeted by these debt trap loans.” We'll have more on this.

January 15, 2018

In DC, Mulvaney Still at CFPB, Fair Finance Watch Challenges E Trade-Trust Co of America

By Matthew R. Lee

WASHINGTON, January 13 – In the battle for the US Consumer Financial Protection Bureau, on January 10 US District Judge Timothy Kelly ruled that  Leandra English lacks a likelihood of success on the merits in removing Mick Mulvaney as acting director. Meanwhile Mulvaney is putting under “strictest review” the CFPB's fund to compensate victims of fraud. And fraud is more and more pervasive. On January 12, Inner City Press / Fair Finance Watch filed with the Office of the Comptroller of the Currency a challenge to the application by E Trade Savings Bank to acquire Trust Company of America. Inner City Press found and wrote: "E Trade Savings Bank's most recent CRA Evaluation, on its website, gives it for example a rare Needs to Improve rating for the entire states of Arizona, Colorado, Florida, Georgia, Michigan and Oregon, and an undeserved “Satisfactory” for New York. How can a bank be “Needs to Improve” in six states - of its only 13 states, including DC - and be moving for this acquisition? Notwithstanding the OCC's recent pronouncement about banks with Needs to Improve ratings, which ICP contends should have been subject to notice and comment, this low performance level militates for the extension of the comment period and hearing(s) ICP is requesting. Also, for the record: “FINRA Fines E*Trade Securities LLC $900,000 for Supervisory Violations Related to Best Execution and Protection of Customer Order Information."  Taken together, these violations militate for the extension of the comment period and hearing(s) ICP is requesting - and for the denial of the application. Earlier in January Inner City Press / Fair Finance Watch filed with the Federal Reserve for evidentiary hearings on the application by Charles Schwab Corporation to set up Charles Schwab Trust Bank in Henderson, Nevada. It has been reported that this bank would “focus on Schwab’s workplace benefit plan clients, such as employers who offer 401k plans, and the intermediaries who serve them.” But Schwab has been sued by its own employees, about 401k plans. See, e.g., Severson v. Charles Schwab Corp. , N.D. Cal., No. 3:17-cv-00285-JCS, complaint filed 1/19/17 ). Schwab “larded” its own 401(k) plan with expensive and poorly performing investment funds and services that earned fees for the company at the expense of workers’ retirement savings, according to the new lawsuit, filed Jan. 19. The lawsuit also targets the performance of Schwab’s stable value fund and claims that Schwab executives allowed the plan’s trustee to profit from the unallocated plan assets it held. It is also noteworthy that, Inner City Press wrote to the Fed, despite the issues there, Schwab reportedly held merger talks with SoFi earlier this year. Fair Finance Watch has also reviewed, in Nevada, Charles Schwab Bank's lending in the Reno MSA. For home purchase loans, all of the loans were to whites (none to Latinos or African Americans), all to applicants over 120% of MSA median income. The same is true of refinance lending. On the current record, these applications should not be approved." We'll have more on this.

January 8, 2018

They call it the National Law Review, and it's signed by a big M&A lawfirm, but they mistake HMDA for CRA in reporting on a New York credit union's CFPB lawsuit: " People’s spent considerable time arguing that Mulvaney’s decision to pause HMDA-related enforcement actions was causing People’s concrete harm. Banks know that regulators use HMDA data to evaluate Community Reinvestment Act (“CRA”) compliance. People’s claims that, to satisfy their CRA obligations, Banks often make deposits at People’s that pay no or low interest. People’s uses those deposits to make loans in the community.  People’s argued that Mulvaney’s policy with respect to HMDA enforcement will give banks an incentive to falsify their HMDA data to appear compliant with the CRA without actually making the deposits. This, People’s argues, will have an adverse interest on its bottom line. To call the argument “strained” is beyond generous." Well, no. Such deposits are entirely different than HMDA data. We'll have more on this - and on recent applications for trust banks and trust business and how CRA should be considered.

January 1, 2018

After Covering Up Sterling Bank Scam, OCC Withholds Records, ICP's FOIA Appeal

By Matthew R. Lee

NEW YORK, December 30 – Amid the ongoing scandal of the Office of the Comptroller of the Currency covering up Sterling Bank's unreliable Community Reinvestment Act data by withholding most of 400 pages released to Inner City Press under the Freedom of Information the OCC is now trying to strong-arm Inner City Press into scaling back its request to exclude "internal OCC communications." On November 30 the OCC wrote to Inner City Press, "Since the Federal Reserve Board has already submitted its final response to you regarding your FOIA request to them, would you consider modifying your OCC request to receiving: 1) All communications between the OCC and the Bank minus the Federal Reserve Board application transmittal documents; 2) Bank CRA Data; 3) Public Comments received by OCC on the merger application. Please respond to this email if you concur as soon as practicable." Inner City Press replied, "The problem Inner City Press has with this proposed limitation of FOIA request is we don't know what we are waiving - what beyond this that is responsive to our request are you asking us to waive our request to?" Now on December 5, this response: "OCC internal communications." But this is a purpose of FOIA, to see how government actually works, and for who. On December 27, the OCC provided Inner City Press a "final" response with virtually all information about the CRA data redacted. Inner City Press has submitted a FOIA appeal "of the OCC's December 27, 2017 (and any other) Denials of ICP's FOIA Request regarding the application Sterling to acquire Astoria and in particular Sterling's unreliable CRA data and the [OCC's] awareness of this unreliability." This is UNacceptable.

December 25, 2017

After ICP Bank Merger Challenge, Fed Asked Associated of Green Bay Market, Reply Here

By Matthew R. Lee, Associated reply here

NEW YORK, December 21 – When Associated Banc-Corp to merge with Bank Mutual Corporation, Inner City Press / Fair Finance Watch on October 11 filed comments with the Federal Reserve on the 36 branch closings and the anti-competitive effects, also stating that "Fair Finance Watch has reviewed applicant Associated's home purchase lending in the just-out 2016 HMDA data in the Milwaukee MSA and finds serious disparities militating for evidentiary hearings and the denial of this application. For conventional home purchase loans, Associated denied the applications of African Americans 4.16 times more frequently than those of whites; it made 807 such loans to whites and only 41 to African Americans. Even cumulating Table 4-1 loans with Table 4-2, Associated's denial rate disparity in 2016 was 3.71; it made 861 loans to whites and only 48 to African Americans." Two months later, the Federal Reserve asked the banks (letter online here on Patreon): "Based on 2017 Summary of Deposits data, the proposed transaction would exceed the concentration thresholds under the Board’s Rules Regarding Delegation of Authority (12 CFR 265.11(c)(11)(v)) and the Department of Justice Bank Merger Competitive Review Guidelines in the Green Bay, Wisconsin banking market (the “Green Bay market”). Specifically, Associated would control approximately 36.6% of deposits in the Green Bay market upon consummation of the proposal. Discuss the effects of the proposed transaction on competition in the Green Bay market, including any factors that would mitigate the potentially adverse competitive effects of the proposal in the Green Bay market." A week later, Associated's counsel submitted a response, citing among others Denmark Bancshares and a slew of credit unions. Reply here on Patreon. The battle for the US Consumer Financial Protection Bureau is not over. Leandra English on December 6 asked U.S. District Judge Timothy J. Kelly of the federal district court in Washington to issue a preliminary and permanent injunction against President Trump that would block his appointment of Office of Management and Budget Director Mick Mulvaney. Meanwhile, the low percentage of banks being given less than satisfactory Community Reinvestment Act rating has become infinitesimal. The Office of the Comptroller of the Currency has signaled that even those few low scores will have no impact.

In a "Policy and Procedures Manual" quietly issued on November 8, with no notice or comment, the OCC says "An overall less than satisfactory CRA rating is not a bar to approval of an application. Rather, the facts and
circumstances of the application must be evaluated as discussed in this PPM." (PPM 6300-2). Now the American Bankers Association has issued a ironically termed white paper congratulating the OCC for this and urging it and the other agencies, including the FDIC for which a Fifth Third lawyer is nominated to become chief, to go even further. We'll have more on this- and this: Seven months after Wells Fargo Bank's CRA rating was dropped two levels to "Needs to Improve," barring it from acquisitions, the Office of the Comptroller of the Currency has quietly said, in a footnote to a Bulletin issued on October 12, that "The OCC’s policy is not to lower a bank’s CRA composite or component rating by more than one rating level." See here, footnote 8. So when did this become the OCC's policy, after it dropped Wells by two levels? Call it a stealth sop to Wells Fargo - and seemingly a violation of the Administrative Procedures Act. We'll have more on this.

December 18, 2017

After ICP Bank Merger Challenge, Fed Asks Associated About Green Bay Market, CFPB Statis?

By Matthew R. Lee, Fed letter here

NEW YORK, December 14– When Associated Banc-Corp to merge with Bank Mutual Corporation, Inner City Press / Fair Finance Watch and others on October 11 filed comments with the Federal Reserve on the 36 branch closings and the anti-competitive effects, also stating that "Fair Finance Watch has reviewed applicant Associated's home purchase lending in the just-out 2016 HMDA data in the Milwaukee MSA and finds serious disparities militating for evidentiary hearings and the denial of this application. For conventional home purchase loans, Associated denied the applications of African Americans 4.16 times more frequently than those of whites; it made 807 such loans to whites and only 41 to African Americans. Even cumulating Table 4-1 loans with Table 4-2, Associated's denial rate disparity in 2016 was 3.71; it made 861 loans to whites and only 48 to African Americans." Now two months later, the Federal Reserve has asked the banks (letter online here on Patreon): "Based on 2017 Summary of Deposits data, the proposed transaction would exceed the concentration thresholds under the Board’s Rules Regarding Delegation of Authority (12 CFR 265.11(c)(11)(v)) and the Department of Justice Bank Merger Competitive Review Guidelines in the Green Bay, Wisconsin banking market (the “Green Bay market”). Specifically, Associated would control approximately 36.6% of deposits in the Green Bay market upon consummation of the proposal. Discuss the effects of the proposed transaction on competition in the Green Bay market, including any factors that would mitigate the potentially adverse competitive effects of the proposal in the Green Bay market." So is the Fed inviting arguments that a 36.6% market share would be fine? We'll have more on this.

December 11, 2017

In DC, Battle for CFPB Continues As English Sues Again, ABA Cheers OCC Undercutting CRA

By Matthew R. Lee

NEW YORK, December 7– The battle for the US Consumer Financial Protection Bureau is not over. Leandra English on December 6 asked U.S. District Judge Timothy J. Kelly of the federal district court in Washington to issue a preliminary and permanent injunction against President Trump that would block his appointment of Office of Management and Budget Director Mick Mulvaney. Meanwhile, the low percentage of banks being given less than satisfactory Community Reinvestment Act rating has become infinitesimal. The Office of the Comptroller of the Currency has signaled that even those few low scores will have no impact.

In a "Policy and Procedures Manual" quietly issued on November 8, with no notice or comment, the OCC says "An overall less than satisfactory CRA rating is not a bar to approval of an application. Rather, the facts and
circumstances of the application must be evaluated as discussed in this PPM." (PPM 6300-2). Now the American Bankers Association has issued a ironically termed white paper congratulating the OCC for this and urging it and the other agencies, including the FDIC for which a Fifth Third lawyer is nominated to become chief, to go even further. We'll have more on this- and this: Seven months after Wells Fargo Bank's CRA rating was dropped two levels to "Needs to Improve," barring it from acquisitions, the Office of the Comptroller of the Currency has quietly said, in a footnote to a Bulletin issued on October 12, that "The OCC’s policy is not to lower a bank’s CRA composite or component rating by more than one rating level." See here, footnote 8. So when did this become the OCC's policy, after it dropped Wells by two levels? Call it a stealth sop to Wells Fargo - and seemingly a violation of the Administrative Procedures Act. We'll have more on this.

December 4, 2017

Trump Taps Fifth Third Bank Lawyer For FDIC Amid OCC Scams on CRA & Sanctions, CFPB

By Matthew R. Lee

NEW YORK, December 1 – Amid the scandal of the Office of the Comptroller of the Currency covering up Sterling Bank's unreliable Community Reinvestment Act data (see below) by withholding most of 400 pages released to Inner City Press under the Freedom of Information (and now trying to strong-arm Inner City Press into scaling back its request), the FDIC is primed to take as its leader the lawyer of Fifth Third Bank, Jelena McWilliams. When Fair Finance Watch asked Fifth Third for its Home Mortgage Disclosure Act data, Fifth Third insisted on only giving the data in paper form, unlike nearly all other banks which gave it electronically. The effect was to make it impossible to analyze patterns in the data, the purpose of the HMDA law. Meanwhile the Consumer Financial Protection Bureau has become a battlefield. In order to run in Ohio, Richard Cordray stepped down at the head of the CFPB, naming as his successor Leandra English. Hours later, Trump issued a statement that "he is designating Director of the Office of Management and Budget (OMB) Mick Mulvaney as Acting Director of the Consumer Financial Protection Bureau (CFPB)." On November 25 the White House held a background press call, on which opposition to the naming of Mulvaney was characterized coming from "blog-posts." Still, the Senior Administration Officials were asked if they plan to have Leandra English removed from the premises. No, was the answer: she should show up at the Deputy. But have they spoken with Ms English? No, was the answer.  On Sunday English filed suit against Mulvany "in his capacity as the person claiming to be the acting director of the CFPB." But a preliminary injunction has been denied. Watch this site. After non-response by the OCC even has it promises merger approvals to banks with Needs to Improve CRA ratings and allows Bank of Tokyo - Mitsubishi to skirt North Korea sanctions review by fast approving applications for which effective public notice was never provided (ICP scoop on notice here), now ICP and CRC have filed suit

November 27, 2017

Amid OCC Scams on Sanctions & CRA, Cordray Taps English, Trump Mulvaney, Showdown?

By Matthew R. Lee

NEW YORK, November 25 – Amid the scandal of the Office of the Comptroller of the Currency covering up Sterling Bank's unreliable Community Reinvestment Act data (see below) by withholding most of 400 pages released to Inner City Press under the Freedom of Information after the nomination of Joseph Otting, formerly of OneWest Bank to be Comptroller, back in July Inner City Press / Fair Finance Watch and the California Reinvestment Coalition submitted this FOIA request. But now, beyond the OCC, the Consumer Financial Protection Bureau has become the battlefield. In order to run in Ohio, Richard Cordray stepped down at the head of the CFPB, naming as his successor Leandra English. Hours later, Trump issued a statement that "he is designating Director of the Office of Management and Budget (OMB) Mick Mulvaney as Acting Director of the Consumer Financial Protection Bureau (CFPB)." On November 25 the White House held a background press call, on which opposition to the naming of Mulvaney was characterized coming from "blog-posts." Still, the Senior Administration Officials were asked if they plan to have Leandra English removed from the premises. No, was the answer: she should show up at the Deputy. But have they spoken with Ms English? No, was the answer. So show down on Monday? Watch this site. After non-response by the OCC even has it promises merger approvals to banks with Needs to Improve CRA ratings and allows Bank of Tokyo - Mitsubishi to skirt North Korea sanctions review by fast approving applications for which effective public notice was never provided (ICP scoop on notice here),

November 20, 2017

Amid OCC Scams on Sanctions & CRA, Withhold Otting Documents, ICP & CRC Sue

By Matthew R. Lee

NEW YORK, November 17 – Amid the scandal of the Office of the Comptroller of the Currency covering up Sterling Bank's unreliable Community Reinvestment Act data (see below) by withholding most of 400 pages released to Inner City Press under the Freedom of Information after the nomination of Joseph Otting, formerly of OneWest Bank to be Comptroller, back in July Inner City Press / Fair Finance Watch and the California Reinvestment Coalition submitted this FOIA request. Now, after non-response by the OCC even has it promises merger approvals to banks with Needs to Improve CRA ratings and allows Bank of Tokyo - Mitsubishi to skirt North Korea sanctions review by fast approving applications for which effective public notice was never provided (ICP scoop on notice here), now ICP and CRC have filed suit, stating "No formal response was ever received from the OCC in response to Plaintiffs’ FOIA Request. To date, the OCC has not disclosed any records responsive to Plaintiffs’ FOIA Request nor has sent any correspondence to Plaintiffs informing
them of the OCC’s need for an extension of time to process the FOIA Request. As of November 10, 2017, Plaintiffs’ FOIA Request was listed as 'In Process' on the OCC’s FOIA request portal... Defendant has far exceeded the 20-working day statutory time limit for the processing of FOIA requests, as required by 5 U.S.C. § 552(a)(6)(A).
12. Plaintiffs have a statutory right to the records sought in its requests... WHEREFORE, Plaintiff prays for relief as follows: A. Order Defendant to conduct a reasonable search for all records responsive to Plaintiffs’ FOIA Request, and to immediately disclose all records or portions of records responsive to the FOIA Request in their entirety that are non- exempt; B. Issue a declaratory judgment that Plaintiffs are entitled to disclosure of the records responsive to Plaintiffs’ FOIA Request; C. Enjoin Defendant from continuing to withhold responsive, non-exempt records or portions of records from Plaintiffs; D. Provide for expeditious proceedings of this action... Dated: November 17, 2017 By: s/ James H. Kaster." Watch this site. As to Otting, beyond his gaming of the CRA system, another problem has arisen: Otting misrepresented his resume on education. He listed a degree on his resume from the "School of Credit and Financial Management at Dartmouth College." It's a fraud. "Joseph Otting is not a Dartmouth graduate," Dartmouth spokeswoman Diana Lawrence said. "Dartmouth does not have a school of credit and financial management." In turns out the school is a four-week program spread over two years, which rented space from Dartmouth. It's not only Sterling's CRA data is an unreliable. While at OneWest, as reported by Inner City Press in 2015, Otting was best know for trying to get his own employees, fundees and investors to submit comments to the OCC to support OneWest's purchase by CIT.  Click here. Otting wrote: From: Otting, Joseph M [at] owb.com
Sent: Wednesday, January 07, 2015 5:00 PM
Cc: Haas, Alesia Jeanne; Tran, Cindy; Kim, Glenn
Subject: Support For OneWest Bank
 
Dear Friends,
 
We were excited to announce on July 21, 2014, that IMB HoldCo LLC, the parent company of OneWest Bank entered into a merger agreement with CIT Group Inc. As part of the applications for regulatory approval of the transaction, our regulators are interested in the perspectives of the public. We are writing you to seek your support of the Bank and pending merger. This merger, if approved, would create the largest bank headquartered in Southern California with a full suite of banking products and services, which will allow us to better serve our customers. We would retain and grow jobs and are committed to continuing and expanding our efforts to serve the economic and development needs of our community. I would like to ask you to take a moment to click on the link below and submit a letter of support adding any of your own words or thoughts.
 
Please submit your letter by clicking here, or by visiting our website at www.OneWestBank.com/merger-support (if the link isn't clickable or part of the link is cut off, please copy and paste the entire URL into your browser's address bar and press Enter)
 
Thank you for your support.  Best wishes for a successful 2015 and please call on me if I can ever be of assistance.
 
Joseph M. Otting
President and CEO
OneWest Bank N.A.
888 East Walnut Street
Pasadena, CA 91101

  Inner City Press and the California Reinvestment Coalition, both members of the National Community Reinvestment Coalition (NCRC) will have more on this.

November 13, 2017

And now a new outrage at the OCC:  "An overall less than satisfactory CRA rating is not a bar to approval of an application. Rather, the facts and circumstances of the application must be evaluated as discussed in this PPM." With grade inflation, very very few banks get less than satisfactory ratings. And now at the OCC, even that hardly matters. https://occ.gov/publications/publications-by-type/other-publications-reports/ppms/ppm-6300-2.pdf We'll have more on this. 

November 6, 2017

BancorpSouth, after settling redlining charges, has escaped Federal Reserve regulation, announcing on Oct 31 it has approvals from the "Federal Deposit Insurance Corporation and the Mississippi Department of Banking and Consumer Finance... to improve efficiency through the elimination of redundant corporate infrastructure and duplicative regulatory oversight." Meanwhile in Montana, Glacier Bancorp proposes acquiring First Security Bank - a combination which would control 35% of the local Bozeman banking market...

October 30, 2017

Shameful: Mid America Bank and Trust Company has a Needs to Improve CRA rating but was allowed to pay $5 million and get acquired by Reliable Community Bancshares. Impunity.

October 23, 2017

Wells Fargo Was Dropped 2 Levels by OCC, Which Now Says Only 1 Level Is Its Policy, Sop

By Matthew R. Lee

NEW YORK, October 21 – Seven months after Wells Fargo Bank's Community Reinvestment Act rating was dropped two levels to "Needs to Improve," barring it from acquisitions, the Office of the Comptroller of the Currency has quietly said, in a footnote to a Bulletin issued on October 12, that "The OCC’s policy is not to lower a bank’s CRA composite or component rating by more than one rating level." See here, footnote 8. So when did this become the OCC's policy, after it dropped Wells by two levels? Call it a stealth sop to Wells Fargo - and seemingly a violation of the Administrative Procedures Act. We'll have more on this. In July it emerged that over 800,000 people who took car loans from Wells were charged for needless auto insurance, pushing 274,000 Wells Fargo customers into delinquency and triggering nearly 25,000 wrongful vehicle repossessions. So much for the industry having cleaned itself up after the predatory lending meltdown.

October 16, 2017

Inner City Press / Fair Finance Watch filed: "This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Applications by Associated Banc-Corp to merge with Bank Mutual Corporation, Milwaukee, Wisconsin and acquire Bank Mutual. The Fed has received many substantive comments on this application and should hold public hearings, including on the prospective impacts of the 36 branches that Associated would close or consolidate. See, http://www.jsonline.com/story/money/2017/09/01/branch-network-pared-36-locations-associated-bank-takes-over-bank-mutual/624805001/

Fair Finance Watch has reviewed applicant Associated's home purchase lending in the just-out 2016 HMDA data in the Milwaukee MSA and finds serious disparities militating for evidentiary hearings and the denial of this application. For conventional home purchase loans, Associated denied the applications of African Americans 4.16 times more frequently than those of whites; it made 807 such loans to whites and only 41 to African Americans. Even cumulating Table 4-1 loans with Table 4-2, Associated's denial rate disparity in 2016 was 3.71; it made 861 loans to whites and only 48 to African Americans. This is outrageous. On the current record, these applications should not be approved."

October 9, 2017

In Puerto Rico, Disparate Bank Lending, Predatory Investors, UN's Maria Photo Ops

By Matthew Russell Lee

PUERTO RICO, October 3 – The UN system's International Monetary Fund has yet to announce any debt moratorium for countries impacted by the recent hurricanes, and despite photo op trips by those who could speak to and of the IMF, nothing is changing. Most holders of Puerto Rico's debt are doing nothing to help. Even in 2016 before Hurricane Maria, according to Home Mortgage Disclosure Act data just released, Banco Santander Puerto Rico made 88 conventional home purchase loans in upper income tracts in the San Juan MSA, 50 in middle income tracts, seven in moderate income tracts and NONE in low-income census tracts. Citibank made a single large loans in San Juan, for a multi-family apartment building. The UNironically named Whitebox Advisors, which has sued on Puerto Rico debt, has "a policy of not discussing Puerto Rico." We don't. Watch this site. Back on September 18 UN Secretary General Antonio Guterres' spokesman Stephane Dujarric gave the press a mere three minutes to sign up to attend the UN's meeting about Irma, see below. As the meeting began, Inner City Press asked not Dujarric but the spokesman for the President of the General Assembly for the PGA's view of the IMF's position on (no) debt moratorium. From the PGA Office's summary: "Asked for the President’s reaction to comments by an International Monetary Fund (IMF) official, in which the official allegedly said that the IMF would not be open to instituting a debt moratorium for hurricane-hit Antigua and Barbuda, the Spokesperson replied that the President would not want to second-guess the comments of an IMF official in an area of the IMF’s expertise. The Spokesperson reiterated that the President was committed to the recovery of Antigua and Barbuda, which is why he had convened the high-level meeting on Hurricane Irma and invited the Government of Antigua and Barbuda to speak there." In the meeting, Achim Steiner of UNDP told even Caribbean nations they could not speak, so that Robert De Niro could. You talkin' to me? When the IMF re-started its biweekly embargoed press briefings on September 14, Inner City Press submitted a question about Hurricane Irma and moratoria: "On Antigua and Barbuda, and Hurricane Irma impacted countries more generally... will there be no moratoria? What is the IMF doing?" IMF spokesperson Gerry Rice said, "There's a question from Matthew Lee on moratorium... on that, I would refer to what Mme Lagarde said a few days ago, of course the IMF has tremendous sympathy. She also said we stand ready to help. There are a number of options we can look at in that context. At the moment we are still trying to make an assessment. As a factual member, none of our members including Antigua and Barbuda have formally requested assistance from the Fund." Oh. On September 15, when Inner City Press at the UN asked Patti Smith about it, UN spokesman Stephane Dujarric cut off the question saying he would answer it at his forthcoming briefing. He did not.

October 2, 2017

  While there are many toxic proposed bank mergers across the USA, the proposed in-market Wisconsin combination of Associated and Bank Mutual which would close branches is our focus this week - more than 300 comments filed, with the Federal Reserve comment period open until October 11 -- fire away!

September 25, 2017

South State Corporation, to the Federal Reserve, is making excuses for its record in the Atlanta MSA, and trying to withhold obviously public information. We'll have more on this.

September 18, 2017

Inner City Press / Fair Finance Watch has filed a second comment against SoFi getting into banking: "On behalf of Inner City Press / Fair Finance Watch, this is a second comment on the application by fintech company SoFi to open an FDIC-insured industrial bank in Utah, to limited its CRA assessment area to (part of) Utah while project business nationwide, and to claim that a secure credit card with interest rate north of 20% is a CRA program. We request public hearings and denial of the application, including now on the basis of the ouster of the CEO and the abuses that have come to light, including but not only financial abuses. See, for the record, https://mobile.nytimes.com/2017/09/12/technology/sofi-chief-executive-toxic-workplace.html

Yet Mr. Cagney’s position had become increasingly delicate after the filing of the sexual harassment suit, which accused him of “empowering other managers to engage in sexual conduct in the workplace.”

His situation was also exacerbated by claims about his approach to SoFi’s business, which uses money from Wall Street investors to fund student loans, personal loans and mortgages. At several points, Mr. Cagney ignored warnings from colleagues that he was being too aggressive with the business, according to more than a dozen employees who were involved in the conversations.

That included a time when Mr. Cagney decided to put customer service representatives in charge of lending determinations, despite them having no experience in the area. Another time, he told investors that SoFi had $90 million in debt financing for a loan product; the company did not in fact have the money, according to the internal emails reviewed by The Times.

SoFi’s board, which includes representatives of Japanese conglomerate SoftBank and the influential hedge fund Third Point Capital, now faces questions about whether it needed more checks and balances on Mr. Cagney.

Companies like SoFi show how boards are incentivized to prioritize cash flow and growth over governance, said David F. Larcker, a professor at Stanford University’s Graduate School of Business who specializes in corporate governance. “The board now has a duty to correct for things that have gone wrong,” he said.”

This application should not - cannot - be approved.

As you know, the drive by fintech companies to get into banking is a matter of controversy, with the OCC have proposed a new type of charter. This end run would set a bad precedent, of gerrymandered CRA and even predatory lending as CRA."


September 11, 2017

On Synovus - Cabela, Fed Rubber Stamps Despite "Confidential Matter," Cap One Scam

By Matthew R. Lee, Full Doc on Patreon Here

NEW YORK, September 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 opposed this, in a filing to the Federal Reserve, below. And the Federal Reserve has, with all formality, informed Fair Finance Watch and Inner City Press of a July 21 meeting with Synovus, to discuss a "confidential supervisory matter," Fed "memo to file, on Patreon here. But on September 6, covering up the supervisory matter and with Stanley Fischer leaving, the Fed approved the deal, stating among other things that "Commenters alleged that the proposal has been structured to evade the requirements of the Bank Merger Act. Commenters also object to the involvement of Capital One Bank in the transaction, alleging that Capital One Bank has managerial weaknesses and deficiencies in its compliance and anti-money-laundering programs. Capital One Bank is a national bank; the Office of the Comptroller of the Currency (“OCC”), and not the Board, determines whether a combination resulting in a national bank requires prior approval under the Bank Merger Act. The Board has consulted with the OCC in connection with this proposal and understands that the OCC does not object to Capital One Bank’s acquisition of the credit-card loans and related assets and assumption of nondeposit liabilities of World’s Foremost Bank from Synovus Bank."This transaction is a fraud. We'll have more on this.

September 4, 2017

Federal Reserve Asks South State 5 Park Sterling Qs, Here, After ICP/Fair Finance Watch Protest

By Matthew R. Lee, on Patreon, here

SOUTH BRONX USA, September 1 -- Three weeks ago Fair Finance Watch challenged to the Federal Reserve the application by South State to acquire Park Sterling, under the US Community Reinvestment Act. Today September 1 the Federal Reserve asked South State, or its lawyers at Wachtell, Lipton, Rosen & Katz, five questions and told them to send their answers to Fair Finance Watch (Inner City Press will request, under FOIA and otherwise, withheld relevant portions). Here and attached are the Federal Reserve's question, followed by FFW's August 10 challenge:

 September 1, 2017

Jeffrey A. Watiker, Esq. Wachtell, Lipton, Rosen & Katz 51 West 52nd Street New York, New York 10019-6150

Dear Mr. Watiker: This correspondence is in connection with the application by South State Corporation (“SSC”), Columbia, South Carolina, requesting the prior approval of the Board of Governors of the Federal Reserve System (“Board”) to acquire Park Sterling Corporation (“PSC”) and thereby indirectly acquire Park Sterling Bank, both of Charlotte, North Carolina, pursuant to section 3 of the Bank Holding Company Act, as amended. In connection with that application, Federal Reserve staff requests the following additional information. Supporting documentation, as appropriate, should be provided.

1. Describe in greater detail any expected benefits to the communities currently served by SSC and PSC as a result of the proposed transaction, including any specific new products and services that would be made available to customers of SSC and/or PSC. Please also describe any plans to retain products or services offered by PSC after consummation.

 2. Provide a description of any due diligence conducted by SSC regarding convenience and needs and CRA with respect to the communities currently served by Park Sterling Bank, such as: a. SSC’s ascertainment of any identified needs relating to credit and/or deposit products or services; b. SSC’s plans to offer products or services that address the financial service or credit needs of the communities currently served by Park Sterling Bank. c. SSC’s plans to conduct marketing or outreach in the communities presently served by Park Sterling Bank upon consummation of the proposal.

3. In its August 22, 2017 letter (“August Letter”) to the Federal Reserve Bank of Richmond, SSC represented that its presence in the Atlanta MSA was the result of the acquisition of failed financial institutions in 2011 and that SSC “has continued to rebuild the reputation of the branches in the area, establish the South State brand, and expand outreach.” Please provide a more detailed discussion of any specific steps SSC has taken to increase its activity in the market and any plans for increasing its activity as it becomes more established in the market. Please include any efforts and/or plans related to marketing and outreach to minority and low- or moderate-income individuals and census tracts in the Atlanta MSA.

4. In the August Letter, SSC also described various affordable home mortgage programs it offers or in which it participates. For each of those programs, please provide the number of loans originated or individuals that were provided assistance for 2015 and 2016.

5. Discuss any pending or recently resolved litigation by private parties or regulators and investigations by regulators, including, but not limited to, those pertaining to consumer protection laws and regulations against SSC or PSC.

Please address your responses within eight business days to Kathy Eike at the Federal Reserve Bank of Richmond. In addition, in accordance with the Federal Reserve’s ex parte procedures, provide a copy of the public portion of your response (together with any attachments) directly to the commenter, Matthew Lee of Fair Finance Watch. Any information for which you desire confidential treatment should be so labeled and separately bound in accordance with the Board’s rules regarding confidential treatment of information at 12 CFR 261.15. 
August 28, 2017

Watchdogging Fair Lending Evasion, FFW Challenges Redliner BancorpSouth at FDIC

By Matthew Russell Lee

South Bronx, New York, August 26 – The lack of seriousness in US bank regulation, the mechanical repeating of whatever a challanged bank says, is exemplified by the application by BancorpSouth, which Inner City Press / Fair Finance Watch challenged on disparities and which settled racial redlining charges, to drop its Federal Reserve charter and evade regulation. Now ICP/FFW has timely protested that application to the FDIC: "Dear Regional Director Elmquist, Ass't Regional Director Finnegan and others at the FDIC: "This is a first timely comment opposing, requesting hearings and an extension of the comment period on BancorpSouth's cynical application to evade regulation after its redlining and settlement. Inner City Press / Fair Finance Watch protested the applications of BancorpSouth to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independent Bank, and with Central Community Corporation, and thereby indirectly acquire First State Bank Central Texas, Austin, Texas. - based on racial discrimination in lending... Now BancorpSouth makes this application, and its CEO Dan Rollins states that it wants to “alleviate... regulatory oversight,” and become the “only state-chartered bank not a part of the Federal Reserve system.” We oppose this cynical evasion, particularly by one of the few banks having settled redlining charges. Let's compare: reviewing the 2015 HMDA data released by the FFIEC, ICP examined BancorpSouth's conventional home purchase lending in the Jackson, Mississippi and Baton Rouge, Louisiana and finds them troubling. In 2015 in the Jackson MS MSA for conventional home purchase loans, BancorpSouth made 346 loans to whites, only 53 to African Americans. BancorpSouth's denial rate for whites was 7% while for African Americans it was 19% -- 2.71 times higher. This was troubling. In 2015 in the Baton Rouge LA MSA for conventional home purchase loans, BancorpSouth made 47 such loans to whites and NONE to African Americans, even less than the three it made in 2012. BancorpSouth has grown more disparate. ICP is requesting evidentiary hearings and that this proposed acquisition, on the current record, not be approved. There is no public benefit."

August 21, 2017

  Inner City Press / Fair Finance Watch has filed this: This is a timely first comment opposing and requesting an extension of the FRS's public comment period on the Application by South State Corporation to acquire Park Sterling Corporation, and thereby indirectly acquire Park Sterling Bank.

Fair Finance Watch has reviewed applicant South State's home purchase lending in three MSAs in three states - its heardquarters in Colombia SC, the targets Charlotte NC, and Atlanta GA - and finds serious disparities militating for evidentiary hearings and the denial of this application.

And, significantly, the specifics of which branches would be closed have not been publicized.

In the Atlanta, Georgia MSA in 2015 for home purchase loans, South State denied the applications of African Americans and Latinos 4.23 times more frequently than the applications of whites. Its lending did not reflect the market or other lenders: 54 home purchase loans to whites, only two to Latinos, and only ONE to an African American applicant. This is disparate.

In the Colombia SC MSA in 2015 for home purchase loans, South State denied the applications of African Americans 2.79 times more frequently than the applications of whites, and denied the applications of Latinos' 3.75 times more frequently than whites. Its lending did not reflect the market or other lenders: 179 home purchase loans to whites, only ten to African Americans and only one to a Latino applicant. This is disparate.

In the Charlotte NC MSA for home purchase loans in 2015, South State denied the applications of African Americans 2.22 times more frequently than the applications of whites, and denied the applications of Latinos' 6.58 times more frequently than whites. Its lending did not reflect the market or other lenders: 382 home purchase loans to whites, only thirteen to African Americans and only four to Latino applicants. This is disparate, and a pattern militating for evidentiary hearings and the denial of this application.

Meanwhile, see http://www.gastongazette.com/news/20170728/park-sterling-bank-head-says-merger-will-bring-little-fallout-for-gaston-employees: “employees in any branch that closes or is affected might have to relocate to keep their job, to places, for example, such as Charleston, South Carolina... Since last year, Park Sterling had been carrying out a local expansion that involved consolidating back-office operations and bringing jobs from South Carolina to Gastonia. Cherry said their branches on Main Avenue and South New Hope Road have seen the effects of that, and one of the decisions essentially made prior to the announced merger was to close the Main Avenue branch. 'It has limited hours and is really just handling commercial customers,' said Cherry. 'That was likely going to be closed as a result of our moves beforehand.'” South State should be asked for information and criteria about the closings and the comment period must be extended to allow entry of this information into the record and to allow comment thereon.

On the current record, hearings should be held and the application(s) should not be approved. The comment period must be extended.

August 14, 2017

  People should comment on the CFPB collecting and releasing small business lending data: https://www.regulations.gov/comment?D=CFPB-2017-0011-0017

August 7, 2017

  Inner City Press / Fair Finance Watch last week filed this: "This is a timely first comment opposing and requesting an extension of the FRS's public comment period on the Application by Sandy Springs Sandy Spring Bancorp to acquire WashingtonFirst Bankshares, WashingtonFirst Bank and lst Portfolio, Inc., Fairfax, Virginia.

These transaction raises troubling Community Reinvestment Act issues. Sandy Spring has a disparate lending record, as does WashingtonFirst.

And, significantly, the specifics of which branches would be closed have not been made public, see below. The comment period must be extended.

In the Baltimore MSA in 2015 for home purchase loans, Sandy Spring denied the applications of African Americans TWENTY TWO times more frequently than the applications of whites. For refinance loans in the Washington MSA, Sandy Spring denied the applications of African Americans 8.8 times more frequently than the applications of whites. In the Washington DC MSA in 2015 for home purchase loans, Sandy Spring denied the applications of African Americans 2.8 times more frequently than the applications of whites.

In the Washington DC MSA for home purchase loans in 2015, WashingtonFirst made 13 loans to whites and NONE to African Americans or Latinos (there were similar zeroes for people of people for home improvement loans).

Meanwhile, see http://wtop.com/business-finance/2017/05/sandy-spring-buying-washingtonfirst-becoming-largest-locally-based-community-bank/: “Sandy Spring said there will be branch closings as part of the merger, though it says it is too soon to determine where overlap will require closings.” That is not acceptable: Sandy Springs should be asked for information and criteria about the closings and the comment period must be extended to allow entry of this information into the record and to allow comment thereon."

July 31, 2017

Amid Fed & OCC Sterling CRA Scam, Otting & Quarles In Senate July 27, ICP & CRC FOIA

By Matthew R. Lee, New Platform

NEW YORK, July 26 – Amid the scandal of the Federal Reserve and Office of the Comptroller of the Currency covering up Sterling Bank's unreliable Community Reinvestment Act data (see below) by withholding most of 400 pages released to Inner City Press under the Freedom of Information this month, in advance of the July US Senate hearing on the nominations of Joseph Otting, formerly of Bank of America, Union Bank, US Bancorp and OneWest to be Comptroller and of Randal Quarles formerly of the Carlyle Group to head the Fed's Supervision unit, Inner City Press / Fair Finance Watch and the California Reinvestment Coalition submitted this FOIA request.

While still awaiting any of the responsive documents, on July 26 the Federal Reserve asked Sterling to "Please provide an update on Sterling Bank's CRA activities since its last CRA Performance Evaluation in January 2017 in every banking market in which the bank operates, including any significant CRA initiatives undertaken, particularly with respect to credit and deposit products and retail banking services targeted toward LMI and minority geographies and individuals." What about the unreliable data already submitted? As to Otting, beyond his gaming of the CRA system, another problem has arisen: Otting misrepresented his resume on education. He listed a degree on his resume from the "School of Credit and Financial Management at Dartmouth College." It's a fraud. "Joseph Otting is not a Dartmouth graduate," Dartmouth spokeswoman Diana Lawrence said. "Dartmouth does not have a school of credit and financial management." In turns out the school is a four-week program spread over two years, which rented space from Dartmouth. It's not only Sterling's CRA data is an unreliable. While at OneWest, as reported by Inner City Press in 2015, Otting was best know for trying to get his own employees, fundees and investors to submit comments to the OCC to support OneWest's purchase by CIT.  Click here.

July 24, 2017


While Fed & OCC Paper Over Sterling's CRA Scam, Otting & Quarles In Senate July 27

By Matthew R. Lee, New Platform

NEW YORK, July 22 – Amid the scandal of the Federal Reserve and Office of the Comptroller of the Currency covering up Sterling Bank's unreliable Community Reinvestment Act data by withholding most of 400 pages released to Inner City Press under the Freedom of Information this month, on July 27 the US Senate will take up the nominations of Joseph Otting, formerly of Bank of America, Union Bank, US Bancorp and OneWest to be Comptroller and of Randal Quarles formerly of the Carlyle Group to head the Fed's Supervision unit. What would it portend for evasions by Sterling and larger banks?  Beyond Otting's gaming of the CAR system, another problem has arisen: Otting misrepresented his resume on education. He listed a degree on his resume from the "School of Credit and Financial Management at Dartmouth College." It's a fraud. "Joseph Otting is not a Dartmouth graduate," Dartmouth spokeswoman Diana Lawrence said. "Dartmouth does not have a school of credit and financial management." In turns out the school is a four-week program spread over two years, which rented space from Dartmouth. It's not only Sterling's CRA data is an unreliable. While at OneWest, as reported by Inner City Press in 2015, Otting was best know for trying to get his own employees, fundees and investors to submit comments to the OCC to support OneWest's purchase by CIT.  Click here. Otting wrote: From: Otting, Joseph M [at] owb.com
Sent: Wednesday, January 07, 2015 5:00 PM
Cc: Haas, Alesia Jeanne; Tran, Cindy; Kim, Glenn
Subject: Support For OneWest Bank
 
Dear Friends,
 
We were excited to announce on July 21, 2014, that IMB HoldCo LLC, the parent company of OneWest Bank entered into a merger agreement with CIT Group Inc. As part of the applications for regulatory approval of the transaction, our regulators are interested in the perspectives of the public. We are writing you to seek your support of the Bank and pending merger. This merger, if approved, would create the largest bank headquartered in Southern California with a full suite of banking products and services, which will allow us to better serve our customers. We would retain and grow jobs and are committed to continuing and expanding our efforts to serve the economic and development needs of our community. I would like to ask you to take a moment to click on the link below and submit a letter of support adding any of your own words or thoughts.
 
Please submit your letter by clicking here, or by visiting our website at www.OneWestBank.com/merger-support (if the link isn't clickable or part of the link is cut off, please copy and paste the entire URL into your browser's address bar and press Enter)
 
Thank you for your support.  Best wishes for a successful 2015 and please call on me if I can ever be of assistance.
 
Joseph M. Otting
President and CEO
OneWest Bank N.A.

July 17, 2017

While Federal Reserve Papers Over Sterling's CRA Scam, Quarles Nominated as to Board

By Matthew R. Lee, New Platform

NEW YORK, July 10 – Amid the scandal of the Federal Reserve's covering up Sterling Bank's
unreliable Community Reinvestment Act data by withholding most of 400 pages released to Inner City Press under the Freedom of Information last week, on the evening of July 10 Randal Quarles formerly of the Carlyle Group was nominated to head the Fed's Supervision unit. What would it portend for evasions by Sterling and larger banks? The other shoe still hasn't dropped on / for Marvin Goodfriend... Meanwhile amid the scandal of the US Office of the Comptroller of the Currency covering up Sterling's data by quickly issuing a Satisfactory CRA rating, on June 5 a new head of the OCC was nominated: Joseph Otting, previously of OneWest Bank. Now beyond Otting's gaming of the CAR system, another problem has arisen: Otting misrepresented his resume on education. He listed a degree on his resume from the "School of Credit and Financial Management at Dartmouth College." It's a fraud. "Joseph Otting is not a Dartmouth graduate," Dartmouth spokeswoman Diana Lawrence said. "Dartmouth does not have a school of credit and financial management." In turns out the school is a four-week program spread over two years. The White House now syas this characterization of Mr. Otting’s credentials is correct. So who will be Comptroller of the Currency? While at OneWest, as reported by Inner City Press in 2015, Otting was best know for trying to get his own employees, fundees and investors to submit comments to the OCC to support OneWest's purchase by CIT.  Click here.

July 10, 2017

Regulators Said Sterling's CRA Data Unreliable, Under FOIA Fed Blacks-Out Most of 400 Pages

By Matthew R. Lee, New Platform

NEW YORK, July 8 – 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, was picked up by the American Banker newspaper here, by Paul Davis and Allison Prang, crediting Inner City Press - and Sterling Bank had no comment. Inner City Press immediately on May 13 submitted a Freedom of Information Act request to the Federal Reserve. The Fed repeatedly extended its time to respond then finally on July 7 provided more than 400 pages - almost entirely redacted. All references to the unreliable CRA data (and needs to improve rating) have been redacted. Sample here; the rest on Patreon, here. Inner City Press immediately submitted a FOIA appeal: "Amazingly, despite taking seven weeks to respond to ICP's immediate FOIA request, all information about this consumer compliance / CRA issue has been redacted from the records produced. CRA and CRA data are presumptively of public interest and public impact. The redacted response implies that the public could be entirely excluded from the FRS' review of this important CRA issues. It is unacceptable and inconsistent with the purpose, spirit and letter of FOIA. ICP is hereby appealing each and every redaction in the records belated provided to ICP on July 7. This should be ruled on before the comment period closed; the comment period should be extended." Watch this site.

July 3, 2017

Regulators Said Sterling's CRA Data Unreliable, Now Admits Needs to Improve 2017, Denial?

By Matthew R. Lee, New Platform

NEW YORK, July 1 – 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. Now another snail-mailed response from Sterling's Wachtel, which we've put online here on Patreon: "Please see Exhibit 1 and Confidential Exhibit C" -- Inner City Press has now requested it under FOIA, but the agencies have already repeatedly extended their time. This is a scam. But crucially, even Wachtel says "Sterling did receive a Needs to Improve rating for the State of New York in Sterling Bank's most recent CRA Performance Evaluation dated January 18, 2017." We'll have more on this - the application must be denied. The OCC has now put up a roadblock to releasing the records Inner City Press has requested under the Freedom of Information Act, writing: "The purpose of this letter is to seek additional information pertaining to your recent request for information from the Office of the Comptroller of the Currency. Your request dated May 13, 2017 was received in my office on May 15, 2017. You requested any and all records related to Sterling Bank's application(s) to acquire Astoria and Sterling Bank's CRA data. Upon further review, we determined that we need clarification on the date range for search of Sterling Bank’s CRA data. If I have not received this information by COB June 19th I will assume that you no longer seek this information and consider your request closed." Inner City Press has responded: "   In response to Inner City Press' now month-old FOIA request concerning the CRA data the OCC knew and knows to be unreliable, you have asked that by June 19 ICP specify the date range for the request. While not understanding the OCC's delay in requesting this, we hereby timely specify that the date range is from three years ago to the date of your response. Please confirm receipt of this (including explaining your letter since you wrote “we need clarification on the date range for search”) and please provide the records as we intend to comment on them, for obvious reasons. Thank you." Meanwhile, Sterling's lawyers at Wachtell Lipton chose to snail mail their response to Fair Finance Watch, putting it in the mail three days after it was dated (now online via Patreon here.) How did it take the OCC a full MONTH to come up with its request? Why was the response snail mailed? 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 then the Fed, in a June 1 letter, unilaterally extended its time to June 22. First Fed letter on Scribd, here.

June 26, 2017

Some mergers we're looking at, and aftermath(s):

Carolina Financial Corporation announced a proposal to acquire First South Bancorp and First South Bank;

June 12: Texas: Southside Bancshares announced a proposal to acquire Diboll State Bancshares, Inc., the holding company for Diboll, Texas-based First Bank & Trust East Texas;

June 7: New Jersey: BCB Bancorp announced a proposal to acquire IAB and its wholly owned subsidiary, Indus-American Bank;

June 6, Montana into Colorado: Glacier Bancorp announced a proposal to acquire Columbine Capital Corp. and  Collegiate Peaks Bank, a community bank based in Buena Vista, Colorado;

June 5, Pennsylvania: : Penn Community Bank announced a proposal to acquire Chelten Hills Savings Bank, of Abington.

May 31, Utah: People's Utah Bancorp announced a proposal to acquire Town & Country Bank, based in St. George Utah...

"Chase reduced its branch presence by 190 locations, a 3.4 percent decline, from 2012 to 2016. Wells Fargo closed 98 branches, a 1.6 percent decline in the same period. Its peers are even more aggressive. Bank of America closed 243 branches (16 percent) in that period and Citi closed 302 (28.5 percent)." 

June 19, 2017

As SoFi Applies For Bank, FFW Opposes Evasion, Interest Rate North of 20%, FinTech

By Matthew R. Lee, New Platform

NEW YORK, June 15 – As the fintech industry in the US tries to move into banking, either through a new charter or, like SoFi, an end-run using the Utah industrial bank loophole, Fair Finance Watch and others are raising issues. Fair Finance has commented to the FDIC, and Inner City Press made requests citing FOIA: "Re: Timely Opposition to the Application by FinTech Company SoFi to Open a Bank, Including Offering a Secured Credit Card at Upward of 20% interest and trying to limited CRA to Utah
To the Addressees at the FDIC:
  On behalf of Inner City Press / Fair Finance Watch, this is a timely comment on the application by fintech company SoFi to open an FDIC-insured industrial bank in Utah, to limited its CRA assessment area to (part of) Utah while project business nationwide, and to claim that a secure credit card with interest rate north of 20% is a CRA program. We request public hearings and denial of the application.
   As you know, the drive by fintech companies to get into banking is a matter of controversy, with the OCC have proposed a new type of charter. This end run would set a bad precedent, of gerrymandered CRA and even predatory lending as CRA.
  The application - with portions apparently withheld that should be released under FOIA and now whatever ex-parte rules the FDIC has - states twice that “the bank will offer a secured credit card utilizing its credit card and deposit infrastructure to the LMI community and the    members with a 'shallow credit' file [with] the following features... a much higher interest rate north of 20% percent.”  This is outrageous.
  For the record, also in support of the public hearing request, from the WSJ: “the entire sector is in trouble. Growth has slowed dramatically because of deeper worries about consumer-loan defaults and shifting preferences among some investors for other kinds of debt. Some of the largest online lenders have cut jobs, with Avant Inc. and Prosper Marketplace Inc. shrinking their number of employees by more than 25%. Confidence also was bruised badly when LendingClub pushed out its chief executive in May because of a scandal involving fabricated loan data. In the second quarter, venture-capital investments into lending startups fell by nearly half from a year earlier.. SoFi itself stumbled when consumers flooded its website after the lender ran an ad during the Super Bowl in February. Applicants who didn’t hear from SoFi for days blasted it in online ratings.”
Ready for prime time and FDIC insurance?
  Again, we request public hearings, and on the current record the denial of SoFi's application."

June 12, 2017

While OCC Papers Over Sterling's CRA Scam, Otting Nominated as Head, Resume Fraud

By Matthew R. Lee, New Platform

NEW YORK, June 10 – Amid the scandal of the US Office of the Comptroller of the Currency covering up Sterling National Bank's unreliable Community Reinvestment Act data by quickly issuing a Satisfactory CRA rating, on June 5 a new head of the OCC was nominated: Joseph Otting, previously of OneWest Bank. Now beyond Otting's gaming of the CAR system, another problem has arisen: Otting misrepresented his resume on education. He listed a degree on his resume from the "School of Credit and Financial Management at Dartmouth College." It's a fraud. "Joseph Otting is not a Dartmouth graduate," Dartmouth spokeswoman Diana Lawrence said. "Dartmouth does not have a school of credit and financial management." In turns out the school is a four-week program spread over two years. The White House now syas this characterization of Mr. Otting’s credentials is correct. So who will be Comptroller of the Currency? While at OneWest, as reported by Inner City Press in 2015, Otting was best know for trying to get his own employees, fundees and investors to submit comments to the OCC to support OneWest's purchase by CIT.  Click here.

June 5, 2017

Wells Fargo Gets Cut Off from New NYC Business After CRA Downgrade, Sterling Next?

By Matthew R. Lee

WASHINGTON, May 31– Two months after Wells Fargo Bank's Community Reinvestment Act rating was dropped to "Needs to Improve," barring it from acquisitions, New York City announced it will not enter any new relationships with the bank, also suspending Wells Fargo's role as a senior book-running manager for NYC General Obligation and Transactional Finance Authority bond sales. A statement by Mayor Bill de Blasio and Controller Scott Stringer noted that "Currently, Wells Fargo holds contracts with the City to provide banking services, including to operate 'Lock Box' services that hold taxes and fees collected by the City. There is approximately $227 million of City dollars held in Wells Fargo accounts." Bu will they get involved in opposing Sterling National Bank, which Inner City Press and Fair Finance Watch have exposed as having "unreliable" CRA data, notwithstanding the OCC's scam "Satisfactory" rating on May 30? Click here. We'll have more on this. Back in late March, the bank settled for $110 million a class action lawsuit for having opened fake accounts without customers' knowledge or approval. But will Wells Fargo, which Inner City Press has covered through its acquisition of First Union and even before, from Washington to Alaska, still be allowed to go forward with its reported plan to close 400 bank branches, including in low and moderate income areas? The question reverberated, with others, on Capitol Hill on March 29 - and we'll have more on it.

  Meanwhile 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.

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."

So on April 26 in Sterling's analysts' call, did CEO Jack Kopnisky or Senior EVP Luis Massiani disclose the “unreliable” CRA data to, among others, Dave Bishop – FIG Partners, Casey Haire – Jefferies, Alex Twerdahl – Sandler O'Neill,, Collyn Gilbert – KBW, Matthew Breese – Piper Jaffray and Erik Zwick – Stephens Inc? Questions about this deal (here) and the Fed's commitment to public scrutiny are raised by its simultaneous denial of FFW's request for a hearing and to extend the comment period. There is no indication that the "corrected" CRA data would ever be made available to the public, or that this issue would not have been swept under the US bank regulators' carpet, like so many others. We'll have more on this. 

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."

So on April 26 in Sterling's analysts' call, did CEO Jack Kopnisky or Senior EVP Luis Massiani disclose the “unreliable” CRA data to, among others, Dave Bishop – FIG Partners, Casey Haire – Jefferies, Alex Twerdahl – Sandler O'Neill,, Collyn Gilbert – KBW, Matthew Breese – Piper Jaffray and Erik Zwick – Stephens Inc? Questions about this deal (here) and the Fed's commitment to public scrutiny are raised by its simultaneous denial of FFW's request for a hearing and to extend the comment period. There is no indication that the "corrected" CRA data would ever be made available to the public, or that this issue would not have been swept under the US bank regulators' carpet, like so many others. We've submitted FOIA requests. We'll have more on this. 

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.
Meanwhile, Capital One is “closing branches in Laurel, Gaithersburg, Frederick and Merrifield.”
As to Synovus' Bank, in 2015 in the Atlanta GA MSA it made 53 home purchase loans to whites and only seven to African Americans, NONE to Latinos. In the Birmingham Alabama MSA it made 45 home purchase loans to whites and only three to African Americans. If the bank cites Synovus Mortgage, note that in the Charlotte NC MSA in 2015 for home purchase loans, it lend to whites but not African Americans much less Latinos. Fair Finance Watch will submit further comments in the extended comment period. On the current record, the application(s) should be denied."

May 1, 2017

After FFW Protests Sterling's Application To Buy Damaged Astoria, Fed Confirms Receipt

By Matthew R. Lee, New Platform

NEW YORK, April 28 – After Astoria Bank's protested proposal to be acquired by New York Community Bank fell apart in late 2016, it found a new, equally controversial suitor: Sterling Bancorp. Now Fair Finance Watch has submitted a first Community Reinvestment Act challenge to the proposed merger, receipt of which the Federal Reserve has now confirmed, here. Inner City Press' summary of FFW's filing: "Dear Chair Yellen, Secretary Misback and others in the FRS: This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Application by Sterling Bancorp, Montebello, New York (“Sterling”) to merge with Astoria Financial Corporation, Lake Success, New York, and indirectly acquire Astoria Bank (“Astoria”).
This would be a combination of banks with disparate and in places highly irregular Home Mortgage Disclosure Act (“HMDA”) data. The proposal is the desperate result of the failure of Astoria's attempted merger with NYCB. That is no reason to approve this mis-conceived combination. The applicant's Sterling National Bank (“Sterling”) in the New York City MSA in 2015 for African Americans for home purchase loans denied the applications of African Americans 3.58 times more frequently than those of whites - much worse than other lenders. Sterling made only 22 such home purchase loans to African Americans, versus 495 to whites (and only 37 to Latinos) - again, much more disparate than other lenders. This bank should not buy Astoria. Remember: in the Nassau Suffolk MSA in 2013, Sterling made 149 home purchase loans to whites – and only one to an African American. For home improvement loans, Sterling made 30 to whites, none to African Americans. Taken together, this is unacceptable. The comment period should be extended to clarify – or refile – the HMDA data; evidentiary hearings should be held; and on the current record, the application should not be approved.
For the record, the CRA plan required after Fair Finance Watch's previous protest, we contend has not been complied with, and request evidentiary and public hearings on that basis.
Also for the record:  'The NYCB-Astoria Financial Merger is Kaput: Consumer advocates were among the groups that opposed NYCB’s acquisition of Astoria…'"

   In January, disparate lender Investor Bancorp, on which Fair Finance Watch previously got a condition imposed saw its proposal with Bank of Princeton fall apart.

April 24, 2017

  The beginning of something? "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

We devote this week's Community Reinvestment Reporter to Jeff Williams, valiant CRA activist and public interest lawyer in Kansas City who has died of an apparent heart attack. Inner City Press and Fair Finance Watch worked with him on many campaigns and learned a lot. Here's from a recent filing: "I represent the Concerned Clergy Coalition, (“CCC”), a ministerial alliance of several dozen inner city churches in Kansas City, Missouri and the Historic East Neighborhood Coalition, (“HENC”), a group of thirteen inner urban core neighborhood associations in the area roughly bounded by Truman Road on the North, Brush Creek Boulevard on the South, Troost Avenue on the West, and Interstate 435 on the East in Kansas City, Missouri. For a number of years CCC has worked on issues concerning community reinvestment as part of its efforts to improve the economic condition of the community it serves. This has included periodically commenting on applications by banks to regulatory agencies for permission to consummate changes in their organizations. It has also included having an ongoing dialogue with local banks and regulators on community reinvestment needs and programming in what is commonly known as Kansas City, Missouri’s Eastside. HENC has for the past several years worked with various agencies to improve housing, public safety, health, and economic conditions in the various neighborhoods it serves. Its activities have recently included working on community reinvestment issues in their member neighborhoods... In the course of reviewing the CRA activities of local banks our clients were surprised to find that UMB Bank has not had a CRA Public Evaluation release since..." To be carried on. RIP.

April 3, 2017

Wells Fargo Paying $110 Million For Fake Accounts, 400 Branch Closures Still On?

By Matthew R. Lee

WASHINGTON, March 29 – The day after Wells Fargo Bank's Community Reinvestment Act rate was dropped to "Needs to Improve," barring it from acquisitions, the bank settled for $110 million a class action lawsuit for having opened fake accounts without customers' knowledge or approval. But will Wells Fargo, which Inner City Press has covered through its acquisition of First Union and even before, from Washington to Alaska, still be allowed to go forward with its reported plan to close 400 bank branches, including in low and moderate income areas? The question reverberated, with others, on Capitol Hill on March 29 - and we'll have more on it.

  Meanwhile 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...

March 27, 2017

  So the CFPB finally fined Nationstar Mortgage LLC $1.75 million for violating the Home Mortgage Disclosure Act (HMDA). And the other lenders violating HMDA?

March 20, 2017

Amid DC Ideas of Glass-Steagall, Acquisitive Simmons Is Asked by Fed of FFW's CRA Protest

By Matthew R. Lee

NEW YORK, March 14 – Amid proposals in Washington even for a re-instituted modified Glass Steagall Act (Inner City Press is following the proposals of Tom Hoenig, even reported overseas), acquisitive bankers and their hangers-on around the United States are getting sassy.

  As an example of acquisitive sass, Arkansas-based Simmons National's CEO George Makris in a January conference call was dismissive of the abuses raised by Fair Finance Watch to the Federal Reserve in opposition to his bank's application to acquire Hardeman Investments. Simmons has announced yet another proposed acquisition, of Southwest Bancorp in Texas.

  Well, now the Federal Reserve has asked Makris' Simmons questions including this on the Community Reinvestment Act issues Fair Finance Watch has raised: "“This letter concerns the application dated November 23, 2016, by Simmons First National Corporation, Pine Bluff, Arkansas, to merge with Hardeman County Investment Company, Inc., and thereby indirectly acquire its subsidiary, First South Bank, both of Jackson, Tennessee, pursuant to section 3 of the Bank Holding Company Act of 1956, as amended. Upon review of the information in the record, staff of the Board of Governors of the Federal Reserve System (“Board”) requests the following additional information. Supporting documentation should be provided as appropriate.
1. Describe in depth the Community Reinvestment Act (“CRA”) related initiatives of Simmons Bank, Pine Bluff, Arkansas, in both the Little Rock, Arkansas, metropolitan statistical area (“MSA”), and the Memphis, Tennessee-Mississippi-Arkansas, MSA, since the bank’s 2013 CRA performance evaluation, performed by the Office of the Comptroller of the Currency. Your response should describe the specific CRA-related initiatives that Simmons Bank has undertook in these MSAs since its 2013 evaluation, as well as its CRA-related plans in both MSAs after consummation of the proposal. Please address your responses within eight business days...”

 This follows a February letter, here, from the Federal Reserve to Simmons, posing questions about the issues FFW has raised, such as these:

"This is a timely first comment by Fair Finance Watch opposing the Application by Simmons First National Corporation to acquire Hardeman County Investment Company Inc., and thereby indirectly acquire First South Bank.

    Simmons First has a presumptive not-credible Home Mortgage Disclosure Act reporting record, which may in turn violate Equal Credit Opportunity Act rights. Now that it reports some denials, they are disparate.

   In essence, the HMDA data still reflect that Simmons First “cooks the books” to not issue or acknowledge denials. For conventional home purchase loans in the Little Rock MSA in 2015, Simmons First reported 394 applications from whites, with fully 329 originations and 12 denials, a 3% denial rate. For African Americans, Simmons First's denial rate was 19% -- more than six times higher than for whites.

 In the Memphis MSA for conventional home purchase loans in 2015, Simmons First's denial rate for African Americans was 100%, while it was only 4% for whites - an incalculable disparity.

Simmons First “plans to reduce Hardeman's annual noninterest expenses by $5.3 million.” How?

  This acquisition application should be denied."

March 13, 2017

After FFW Protest Stopped NYCB Bid, Astoria Wants To Be Bought By Disparate Sterling

By Matthew R. Lee

NEW YORK, March 7 – After Astoria Bank's protested proposal to be acquired by New York Community Bank fell apart in late 2016, now it has found a new, equally controversial suitor: Sterling Bancorp. Fair Finance Watch showed in 2015 that Sterling's lending record was so disparate that the Office of the Comptroller of the Currency imposed a Community Reinvestment Act condition on Sterling. Now Inner City Press' review of the most recent Home Mortgage Disclosure Act data from that in the New York City Metropolitan Statistical Area Sterling denied the home purchase loan applications of African Americans more than 3.5 times more frequently that those of whites, worse that the rest of the industry. It denied Latinos 2.15 times more frequently than whites, also worse than other lenders. We'll have more on this.

   In January, disparate lender Investor Bancorp, on which Fair Finance Watch previously got a condition imposed saw its proposal with Bank of Princeton fall apart.

  There's also Capital One - Cabela, on which Inner City Press commented: "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.

  Meanwhile, Capital One is “closing branches in Laurel, Gaithersburg, Frederick and Merrifield.”

   Capital One came back with snark, as has Simmons National -- but then announced including to NCRC that  it will withdrawn its application. Onward.

March 6, 2017

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.”

  This time, it went to the CEO Mark Tryniski, who in January 2017 told stock analysts that "despite the baseless protest filed with the Fed Reserve by a serial activist, we expect to close in the second" question. We'll see. Among the nine questions: "Community Bank states that, to the extent it does not intend to continue to offer certain loan products and services offered by Merchants Bank post-merger, it does not believe that not offering such products and services would have a significant impact on the target bank's communities. As an example, Community Bank cites the fact that Merchants Bank would no longer accept applications for FHA/VA loans (on behalf of a mortgage company), but that Community Bank would offer loan products and programs which are not currently offered by Merchants Bank that Community Bank believes are comparable and 'equally valuable' to its communities, such as FNMA's Home Ready Program, Community Bank's Affordable Housing Program, and the USDA loan program. Compare the features of FHA and VA loans for which applications are presently taken by Merchants Bank with the features of the products and programs that Community Bank asserts are comparable, including any features of FHA and VA loans that are not covered by Community Bank's offerings."  Watch this site.

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

While stock arbitrageurs continue to ask Fair Finance Watch and Inner City Press to confirm, this: "Capital One withdrew its application to acquire the card business late last month, according to the U.S. Office of the Comptroller of the Currency, a government bank regulator that also is in charge of approving such an acquisition as the Capital One-Cabela’s tie-up."

February 13, 2017

Amid DC Moves On CFPB, Acquisitive Simmons Is Asked by Fed of FFW's Protest

By Matthew R. Lee

NEW YORK, February 9 – Amid de-regulatory moves in Washington, acquisitive bankers and their hangers-on around the United States are getting sassy.

  From Washington -- K Street to be exact -- comes this memo, which Fair Finance Watch is putting online here. And as an example of acquisitive sass, Arkansas-based Simmons National's CEO George Makris in a January conference call was dismissive of the abuses raised by Fair Finance Watch to the Federal Reserve in opposition to his bank's application to acquire Hardeman Investments. Simmons has announced yet another proposed acquisition, of Southwest Bancorp in Texas.

  Well, here now is a question-letter from the Federal Reserve to Simmons, posing questions about the issues FFW has raised, such as these:

"This is a timely first comment by Fair Finance Watch opposing the Application by Simmons First National Corporation to acquire Hardeman County Investment Company Inc., and thereby indirectly acquire First South Bank.

    Simmons First has a presumptive not-credible Home Mortgage Disclosure Act reporting record, which may in turn violate Equal Credit Opportunity Act rights. Now that it reports some denials, they are disparate.

   In essence, the HMDA data still reflect that Simmons First “cooks the books” to not issue or acknowledge denials. For conventional home purchase loans in the Little Rock MSA in 2015, Simmons First reported 394 applications from whites, with fully 329 originations and 12 denials, a 3% denial rate. For African Americans, Simmons First's denial rate was 19% -- more than six times higher than for whites.

 In the Memphis MSA for conventional home purchase loans in 2015, Simmons First's denial rate for African Americans was 100%, while it was only 4% for whites - an incalculable disparity.

Simmons First “plans to reduce Hardeman's annual noninterest expenses by $5.3 million.” How?

  This acquisition application should be denied."

February 6, 2017

  The branch closing are coming fast and furious. Scandal plagued Wells Fargo is set to close 400 by 2018; the Huntington closures are looming, starting with 39. FFW protested the latter and will the former - watch this site.

January 30, 2017

  After saying his bank's proposed merger will be delayed, Community Bank System President and CEO Mark Tryniski said Fair Finance Watch's is a "baseless protest." No, it's that the bank's record is still terrible - as it was when Fair Finace Watch got a condition imposed on it in connection with Oneida. Will this one go the way of Investors - Bank of Princeton?

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

Fair Finance Watch has timely raised issues on TD - Scottrade. Some of them:

"On behalf of Inner City Press/Fair Finance Watch (ICP), this is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by TD BANK, NA To Acquire SCOTTRADE BANK. This comment is timely.

As you should know, the overall deal faces challenges. See, e.g, “TD Ameritrade faces scrutiny over Scottrade purchase,” http://finance.yahoo.com/news/td-ameritrade-buy-scottrade-two-110347591.html, including that

“As part of those plans, Hockey said around 25 percent of the combined business's 600 branches will be closed. TD Ameritrade currently has 100 branches while Scottrade has 500. Hockey said in the interview the combined workforce of 10,000 will be reduced by about 20 percent.”

For purposes of this initial comment -- the link to the application in the OCC's FOIA Reading Room has not been working, and the comment period should be extended on that ground as well - we focused on Scottrade Bank's HMDA reporting, of purchased loads in Alabama, Arizona - and that's just in the A's.

Because the loans are purchased and sold, they do not contain the identifying information we are requesting. But how this nationwide purchase of mortgages, presumably from brokerage clients, complies with the Community Reinvestment Act is one of the issues we intend to address at the request hearing(s).

See, e.g., from Scottrade bank's Disclosure Supplemental Table 2 for 2015, in NYS:
NY/BRONX COUNTY/0293.02 1 687"
etc

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

Bank Merger Called Off After ICP Protested  NYCB - Astoria on Disparities

By Matthew R. Lee

NEW YORK, December 20 -- In January of this year, Inner City Press / Fair Finance Watch submitted a protest to the Federal Reserve to New York Community Bank's application to acquire Astoria.

 And now on December 20 the companies have called off the merger, after being told they would not get any approval before the end of the year. Inside Mortgage Finance, for example, cites Inner City Press / Fair Finance Watch as the slayer of the deal. It's about time.

 On July 20, the Fed 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. Inner City Press' protest set forth that  NYCB in the New York City MSA in 2014 made 109 home purchase loans to whites -- and only THREE to African Americans. For refinance loans, NYBC in the the NYC MSA in 2014 made 27 loans to whites and only ONE to an African American.
 
  In the Cleveland, Ohio MSA (where NYCB bought Ohio Savings - and in the new this week), NYCB in 2014 made 17 refinance loans to whites in 2014 and only one to an African American, while denying African Americans, while denying African Americans three times more frequently than whites.

 " In the Nassau Suffolk (Long Island) MSA in 2014 NYCB made 107 home purchase loans to whites -- and only ONE to an African American, while denying African Americans 4.7 times more frequently than whites.

Aggregate / all lenders on Long Island 2014, conventional home purchase loans:

Unlike NYCB's 4.7 denial rate disparity between African Americans and whites, for all lenders it is (substantially) below 2 to 1: by all lenders on Long Island in 2014 for conventional home purchase loans, African Americans were denied 1.62 times more frequently then whites.

  Unlike NYCB's 107 loans to whites for each (1) loan(s) to African Americans, for the aggregate there are 23 loans to whites for each loan to African Americans.

" For refinance loans, NYCB in the the Long Island MSA in 2014 made 52 loans to whites and only three to African Americans and only TWO to Latinos, while denying Latinos 2.32 times more frequently than whites."

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

OCC
Comptroller: Thomas Curry, Term Expires April 2017

FDIC
Chairman: Martin J. Gruenberg, Term (as Chair) Expires November 2017
Vice Chairman: Thomas M. Hoenig, Term (as Commissioner) Expires April 2018
Director: Seat Currently Vacant
Outside Directors: Comptroller of the Currency

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."

  Ah, the United Nations... We'll have more on this.

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...

And this:

This is a timely first comment opposing and requesting an extension of the FRS's public comment period on the Application by United Bankshares and UBV Holding Company to acquire 100 percent of the voting shares of Cardinal Financial Corporation and Cardinal Bank

These transaction raises troubling Community Reinvestment Act issues. United Bank has a disparate lending record and is growing worse, as does Cardinal's George Mason Mortgage.

And, significantly, the specifics of which branches would be closed have not been publicized.

In the Washington DC MSA in 2015 for home purchase loans, United Bank (Virginia) made 96 such loans to whites and only five to African American applicants, and only seven to Latinos.

In the Silver Spring - Rockville MSA in 2015, for home purchase loans High Point made 14 loans to whites and NONE to African Americans or Latinos.

Consider also the record of Cardinal's George Mason Morgage, which United wants to buy.
In the Washington DC MSA in 2015 for conventional home purchase loans, George Mason denied the applications of African Americans 3.17 times more frequently than whites, and those of Lationos 2.17 times more frequently than whites.

See also, http://www.wvgazettemail.com/news-business/20160827/united-bankshares-buys-cardinal-now-largest-company-headquartered-in-wv#sthash.8FhbkxWN.dpuf:

“Cardinal is based in Tysons Corner, Virginia, with 30 branches of its subsidiary Cardinal Bank in the Washington, D.C., metro area.... As with most mergers, there’s potential for overlap whether it’s in branch-based or corporate positions, but Adams said it’s too soon to tell how many positions will overlap... Adams said United has also seen the effect of this trend. 'In all of our locations, five states and the nation’s capital, there is a trend toward customers not using the branches as much as they used to, and I think that trend will continue.'”

On the current record, hearings should be held and the application(s) should not be approved. The comment period must be extended.

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.

Now the Federal Reserve, as released to Inner City Press on October 31, has asked People's United a series of questions, including for Community Reinvestment Act information from 2013, 2014, 2015 and 2016 year to date, it's (lack of) lending to African Americans and small businesses, its claims about  RBS Citizens Bank branches and restrictions imposed in connection with the still only proposed - and opposed - merger. We'll have more on this.

And on this: People's United Bank, if allowed to acquire Suffolk National Bank, would layoff at least 76 workers, according to a Worker Adjustment and Retraining Notification under the WARN Act, to the NYS Dep't of Labor....

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."

  Responding to ICP and NCRC, People's claims that acquiring another suburban bank would improve this disparate record in New York City. How?

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?

In the Baltimore MSA in 2015, the most recent year for which Home Mortgage Disclosure Act data is publicly available and not taken into account in any FNB CRA example, FNB made 86 home purchase loans to whites and only 3 to African Americans, only two to Latinos. This is inconsistent with the demographics of Baltimore, to put it mildly. FNB's denial rate for African Americans was 2.75 times higher than for whites; it was 3.13 times higher than for whites. This is redlining; this proposed acquisition could not legitimately be approved and FNB should be referred for prosecution for redlining by the Department of Justice and CFPB.

People's United record is scarcely better in the Cleveland MSA, another out-of-Pennsylvania market that would be a predictor of how FNB would (under) perform in the Carolinas. In the Cleveland MSA in 2015, FNB made 297 home purchase loans to whites and only 12 to Africans and only 3 to Latinos, applications from which it denied 4.13 times more frequently than whites.

In the Akron, Ohio MSA in 2015, FNB made 41 home purchase loans to whites, only one to an African American (in Table 4-1) and none to Latinos.

In this context, the comment period should be extended so that public evidentiary hearings can be held, and the application should be denied.

Please also note for the record: “Using Tuesday’s closing price on the NYSE, here’s how much more the top 10 individual backers’ stakes will be worth at close, according to FactSet Research:

Adam Abram, lead independent director: $14,298,826.15

Michael Patterson, director: $6,969,354.35

Scott Custer, CEO: $3,836,876.80

Harry Spell, board member: $3,453,074.25

Joseph Towell, chairman: $2,705,434.65

David Brody, board member: $1,645,403.35

Steven Lerner, board member: $1,311,405.15

Steven Jones, chief banking officer: $1,285,450.00

Barry Dodson, board member: $1,117,767.15

Terry Earley, CFO: $1,030,739.45

Insiders currently own about 12 percent of Yadkin, with the bulk, at 67 percent, owned by institutional investors.”

See also:

"The prominent level of private-equity ownership in the Raleigh bank had many analysts and financial experts convinced that it would be sold sooner than later, even though Yadkin just completed on March 1 its $456 million purchase of Greensboro-based NewBridge Bancorp. NewBridge went on a three-bank buying spree after securing $56 million in new private-equity capital in November 2012.

Meanwhile, Yadkin gained $45 million in private-equity capital in October 2012 and subsequently bought VantageSouth Bancshares Inc. of Raleigh and NewBridge. Those private-equity infused deals provided Yadkin with a sufficient branch coverage of North Carolina’s three urban areas to convince FNB Corp. executives to leapfrog over Virginia to make its $1.4 billion offer.

Stone Point Capital LLC, LY Holdings LLC and Lightyear Capital LLC each own 4.46 percent of Yadkin’s 50.84 million outstanding shares. Stone Point and Lightyear were provided with a representative on Yadkin’s board of directors. At $27.35 a share, the sale could be worth $61.2 million for each firm.”

This is a proposal driven by these private equity investors: but what is the public benefit?
 

October 10, 2016

ICP Protests BNC - High Point, 2015 Lending Fell 80% from 2014

By Matthew R. Lee

NEW YORK, October 4 -- 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."

Now while BNC brags it will close its deal by the end of October, Inner City Press has just submitted a second comment with the just released 2015 HMDA data. BNC's conventional home purchase lending to African Americans in the Charleston MSA has falling by over 80% from 2014 to 2015. Inner City Press has today submitted to the Federal Reserve:

"this, with Compliance Plan withheld, is the record of the proposal acquirer: 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.

  In 2015, things got substantially worse. For conventional home purchase loans in the Charleston MSA in 2015, while BNC made 45 such loans to whites, it made only ONE to an African American (down from six in 2014).  This application should be denied. We ask for more time to comment on this 2015 data.

On the current record, hearings should be held and the application(s) should not be approved. The comment period must be extended."

 The Winston-Salem Journal reported: "regulatory approval was delayed in part by two New York advocate groups challenging BNC's lending practices involving minority and underserved applicants in its markets. Inner City Press and affiliate Fair Finance Watch filed a protest with the Federal Reserve under the federal Community Reinvestment Act. It is a normal practice of those groups to challenge minority-lending practices when a significant bank purchase is announced. Fed officials asked for additional information Dec. 2. BNC responded and asked that its minority-lending data remain confidential. Rick Callicutt, the bank's chief executive and president, said in April that because BNC has surpassed $5 billion in total assets, it faces "a higher level of expectation to market more heavily to the underserved in its markets. All our Community Reinvestment Act exams have been good."

  Really? BNC's conventional home purchase lending to African Americans in the Charleston MSA has falling by over 80% from 2014 to 2015.

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 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 in what markets it will improve. It has now named cities in six states. We'll see....

September 12, 2016

After ICP Challenges Its Suffolk Bid, People's United Calls NYC "Lower Hudson," Recent

By Matthew R. Lee

NEW YORK, September 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 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.

On September 7, the General Counsel of People's United Robert E. Trautmann filed a response, which as to the analysis of New York City redlining submitted by Inner City Press / Fair Finance Watch argues that the disparities are OK because People's supposedly only recently entered the market.

  But it entered in 2010. How long can it call this recent? And why should it be permitted to build itself up on Long Island while this redlining of New York City's lower income communities of color persists?

Tellingly, People's United Bank's purported response to Inner City Press' redlining analysis calls New York Times the “Lower Hudson Valley region.”

  Inner City Press / Fair Finance Watch 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.

For refinance loans in the New York City MSA in 2013, People's United made 24 loans to whites, 1 to an African American and four to Hispanics. For home improvement loans in the New York City MSA in 2013, People's United made eight loans to whites, and NONE to African Americans or Latinos.

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 the Nassau-Suffolk MSA in 2014, People's United made 48 home purchase loans to whites and NONE to African Americans. For home improvement loans it made 16 loans to whites and NONE to African American or Latinos.

In this context, the comment period should be extended so that public evidentiary hearings can be held, and the application should be denied."

September 5, 2016

Inner City Press / Fair Finance Watch has been looking at the Bank of Oklahoma, noting that

In the Kansas City MSA in 2014 for home purchase loans, BOK for Table 4-2 made 242 loans to whites and only eight to African Americans. People of color were confined to Table 4-1 loans: 35 to African Americans, and 36 to Latinos, versus 204 to whites.

In the Houston MSA in 2014 for refinance loans, BOK made 126 loans to whites and only six to African Americans; it had a denial rate for African Americans of 55%, and for Latinos of 52%, versus only 30% for whites.

In the Phoenix MSA in 2014 for refinance loans, BOK made 168 loans to whites and only THREE to African Americans and 11 to Latinos; it had a denial rate for Latinos of 36%, versus only 26% for whites.

Now, as if on cue, BOK serves up a new Community Reinvestment Act performance evaluation as a rebuttal. But even it lists Low Satisfactory rating in Arizona and Texas for lending, in Arkansas and Colorado for service, and in Maryland for both lending AND service.

So what rating do you think the OCC gave Bank of Oklahoma, which is trying to buy Missouri Bank and Trust in Kansas City? And what Kansas City bank do you think hasn't had a CRA exam in nine years? Watch this site.

August 29, 2016

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)."

  We'll have more on this.

August 22, 2016

Last week, Inner City Press / Fair Finance Watch challenged People's United - Suffolk County National Bank. Now: "Elizabeth Montgomery, a People’s United spokeswoman, said the bank does not comment on pending litigation, but noted that it feels “comfortable” with its lending practices. “We’re a highly regulated institution and we’re very proud of our history of residential lending and we’re comfortable with our practices,” she said. Suffolk did not return a call for comment."

  We'll have more on this.

For BancorpSouth, which Inner City Press has challenged for some time, the other shoe has dropped. It announced: "As a result of the retroactive downgrade of the bank’s CRA rating, the company and the bank likely will be unable to obtain the necessary Federal Reserve or FDIC regulatory approvals to complete the two pending mergers with Ouachita Bancshares Corp. and Central Community Corporation and their respective affiliated banks until such time as the bank’s CRA rating is improved to “satisfactory.” The company presently understands that the FDIC expects to begin its next CRA evaluation of the bank later this year and to complete that evaluation during the first quarter of 2017; however, the company cannot make any assurances as to the timing or outcome of its next CRA evaluation."

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.

For refinance loans in the New York City MSA in 2013, People's United made 24 loans to whites, 1 to an African American and four to Hispanics. For home improvement loans in the New York City MSA in 2013, People's United made eight loans to whites, and NONE to African Americans or Latinos.

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 the Nassau-Suffolk MSA in 2014, People's United made 48 home purchase loans to whites and NONE to African Americans. For home improvement loans it made 16 loans to whites and NONE to African American or Latinos.

In this context, the comment period should be extended so that public evidentiary hearings can be held, and the application should be denied."

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."

 Absurdly, when on January 22 Goldman Sachs sent Inner City Press a copy of its January 18 answer to the Fed, it withheld whole pages and exhibits.

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:

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

ICP Protested  NYCB - Astoria on Disparities from NY to Cleveland, Fed Qs

By Matthew R. Lee

NEW YORK, July 20 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - down to New York Community Bank, Chemical Bank in Michigan, Bank of North Carolina and BancorpSouth, which Inner City Press / Fair Finance Watch protested for discrimination in 2014, and has now been charged by the Department of Justice and CFPB.

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. Inner City Press' protest set forth that  NYCB in the New York City MSA in 2014 made 109 home purchase loans to whites -- and only THREE to African Americans. For refinance loans, NYBC in the the NYC MSA in 2014 made 27 loans to whites and only ONE to an African American.
 
  In the Cleveland, Ohio MSA (where NYCB bought Ohio Savings - and in the new this week), NYCB in 2014 made 17 refinance loans to whites in 2014 and only one to an African American, while denying African Americans, while denying African Americans three times more frequently than whites.

 " In the Nassau Suffolk (Long Island) MSA in 2014 NYCB made 107 home purchase loans to whites -- and only ONE to an African American, while denying African Americans 4.7 times more frequently than whites.

Aggregate / all lenders on Long Island 2014, conventional home purchase loans:

Unlike NYCB's 4.7 denial rate disparity between African Americans and whites, for all lenders it is (substantially) below 2 to 1: by all lenders on Long Island in 2014 for conventional home purchase loans, African Americans were denied 1.62 times more frequently then whites.

  Unlike NYCB's 107 loans to whites for each (1) loan(s) to African Americans, for the aggregate there are 23 loans to whites for each loan to African Americans.

" For refinance loans, NYCB in the the Long Island MSA in 2014 made 52 loans to whites and only three to African Americans and only TWO to Latinos, while denying Latinos 2.32 times more frequently than whites."

In April 2014, Inner City Press submitted a protest to the Federal Reserve of the "Applications of BancorpSouth to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independent Bank, and with Central Community Corporation, and thereby indirectly acquire First State Bank Central Texas, Austin, Texas - Round Two."

Fair Finance Watch's analysis to the Fed showed that "in the Jackson MS MSA for conventional home purchase loans, BancorpSouth made 258 loans to whites, only 17 to African Americans and five to Latinos. BancorpSouth's denial rate for whites was 7.4% while for African Americans it was 25.8% -- 3.49 times higher. This was troubling.

NOW, more troubling: in 2013 for conventional home purchase loans in the Jackson MS, BancorpSouth's denial rate for whites was 4.5% while for African Americans it was 26.4% -- now 5.87 times higher.

  In 2012 in the Baton Rouge LA MSA for conventional home purchase loans in 2012, BancorpSouth made 60 such loans to whites; only three to African Americans and one to a Latino.
NOW, more troubling: in 2013 for conventional home purchase loans in the Baton Rouge MSA, BancorpSouth was up to 72 loans to whites - but NONE to African Americans."

Now BancorpSouth is changed by the government with "redlining by placing its branches in the Memphis area outside of minority neighborhoods and directing nearly all its marketing away from such neighborhoods."

July 18, 2016

In a proposed $1 bbillion merger, the applicant (Chemical) has... misunderstood, telling the Federal Reserve "Applicant misunderstood the initial question in the June 21, 2016, request for information and included in Exhibit B only that space used for teller lines and platform branch staff. The Exhibit did not include other portions of the buildings by the bank in its operations. Attached is a Revised Exhibit B that shows the correct percentage of the space occupied by Talmer. Only three parcels of owned real estate are occupied less than 100 percent by Talmer. Those three are Elyria, Ohio – Downtown (73.8%), Muskegon, Michigan (67.2%) and Portage, Michigan (77.42%)."

July 11, 2016

ICP Protested BancorpSouth, Now Sued by DOJ, Chemical & BNC

By Matthew R. Lee

NEW YORK, July 9 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - down to Chemical Bank in Michigan, Bank of North Carolina and BancorpSouth, which Inner City Press / Fair Finance Watch protested for discrimination in 2014, and has now been charged by the Department of Justice and CFPB.

In April 2014, Inner City Press submitted a protest to the Federal Reserve of the "Applications of BancorpSouth to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independent Bank, and with Central Community Corporation, and thereby indirectly acquire First State Bank Central Texas, Austin, Texas - Round Two."

Fair Finance Watch's analysis to the Fed showed that "in the Jackson MS MSA for conventional home purchase loans, BancorpSouth made 258 loans to whites, only 17 to African Americans and five to Latinos. BancorpSouth's denial rate for whites was 7.4% while for African Americans it was 25.8% -- 3.49 times higher. This was troubling.

NOW, more troubling: in 2013 for conventional home purchase loans in the Jackson MS, BancorpSouth's denial rate for whites was 4.5% while for African Americans it was 26.4% -- now 5.87 times higher.

  In 2012 in the Baton Rouge LA MSA for conventional home purchase loans in 2012, BancorpSouth made 60 such loans to whites; only three to African Americans and one to a Latino.
NOW, more troubling: in 2013 for conventional home purchase loans in the Baton Rouge MSA, BancorpSouth was up to 72 loans to whites - but NONE to African Americans."

Now BancorpSouth is changed by the government with "redlining by placing its branches in the Memphis area outside of minority neighborhoods and directing nearly all its marketing away from such neighborhoods."

July 4, 2016

On Bank of North Carolina's application to acquire and merge with High Point Bank and Trust, the FDIC has given Inner City Press / Fair Finance Watch until July 8 to submit comments - but will they be releasing the until-now withheld (but FRB-relied on) compliance plan of BNC?

June 27, 2016

  What's (not) in your wallet? Capital One is closing branches in New Jersey: "Capital One will close five of its six branches at the Shore on July 23, a company spokesperson said Thursday, in a sign that giant banks are re-evaluating how they serve their customers.The bank is closing branches in Aberdeen, Lakewood, Marlboro, Toms River and Wall." Wallet...

June 20, 2016

Inner City Press / Fair Finance Watch has submitted a "timely first comment opposing and requesting an extension of the FDIC's public comment period on the Application by Bank of North Carolina (BNC) to acquire and merge with High Point Bank and Trust.

These transaction raises troubling Community Reinvestment Act issues. Bank of North Carolina (BNC) has a disparate lending record and is growing worse. The lack of transparency concerning BNC's “Compliance Plan” must end on this transaction: the plan must be publicly released.

Consider also the record of High Point, which BNC wants to buy.

In the Greensboro MSA in 2014 for conventional home purchase loans, High Point made 39 such loans to whites and only ONE to an African American applicant, and none to Latinos. For refinance loans, it made 23 loans to whites and only ONE to an African American, while denying the applications of African Americans FIVE times more frequently than those of whites.

For home improvement loans in the Greensboro MSA in 2014, High Point made 8 loans to whites and only one to an African American applicant.

In the Winston Salem MSA in 2014, for home purchase loans High Point made 11 loans to whites and only one to an African American applicant.

And this, with Compliance Plan withheld, is the record of the proposal acquirer: 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.

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.

The Federal Reserve recently relied on this withheld compliance plan and commitments from BNC we've yet to see: "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.

The Winston Salem Journal of June 3, 2016 reported: “Inner City Press and affiliate Fair Finance Watch filed a protest with the Federal Reserve under the federal Community Reinvestment Act. It is a normal practice of those groups to challenge minority-lending practices when a significant bank purchase is announced.

Fed officials asked for additional information Dec. 2. BNC responded and asked that its minority-lending data remain confidential.

Rick Callicutt, the bank’s chief executive and president, said in April that senior management “has been actively working with our banking regulators to gain the necessary approvals for the Southcoast transaction.”

Because BNC has surpassed $5 billion in total assets, Callicutt said, it faces “a higher level of expectation to market more heavily to the underserved in its markets. All our Community Reinvestment Act exams have been good.”

He said that as part of the Southcoast approval process, “we have allocated additional planning, marketing, outreach and credit resources to the underserved within our markets.”

Callicutt said the bank is “confident that the significant progress we have made in this area will position us for more expeditious regulatory approvals in the future.”

Without releasing the compliance plan? And with High Point's weak record? This cannot be. We request evidentary hearings.

On the current record, hearings should be held and the application(s) should not be approved. The comment period must be extended."

June 13, 2016

Chemical Bank in Michigan tells the Federal Reserve, in a response late-provided to Inner City Press, that its 100% denial rate for Latinos in the Flint MSA is okay, citing a case in which they asked for an unexpired resident alien card and none was provided. Toxic like that water....

June 6, 2016

Federal Reserve Gives BNC An Approval Based on Secret Compliance Plan

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. The Fed 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.

Inner City Press has immediately filed a Freedom of Information Act request, and a second comment with the Fed.

May 30, 2016

  Why should proposed bank mergers be commented on and fought? Consider Old National - Anchor bank, announced in January and just closed - as soon as they consummated, but not before, Old National filed that it will lay off 138 people. We'll have more on this.

May 23, 2016

Now looking into merger agreement that calls them Frontier (First Cash) and Cowboy (Cash America):

"(a) Regulatory Authorizations. All consents, authorizations, orders or approvals of each Governmental Authority necessary for the consummation
of the Merger and the other transactions contemplated by this Agreement set forth in Section 8.1(a) of the Frontier Disclosure Letter and Section 8.1(a) of the
Cowboy Disclosure Letter shall have been obtained.

(b) Antitrust Approvals. Any waiting period (and any extension thereof) applicable to the Merger and the other transactions contemplated by this
Agreement under the HSR Act shall have been terminated or shall have expired, and any other antitrust, competition, investment, trade regulation or similar
consents, authorizations, orders or approvals that are required under any other material Antitrust Law, the absence of which would prohibit the consummation
of the Merger and the other transactions contemplated by this Agreement, shall have been obtained or made or any applicable waiting period with respect
thereof shall have expired or been terminated."

  Can you say, unfair and deceptive?

May 16, 2016

 Despite the Federal Reserve saying that, after it extended its response time, it would provide Huntington - FirstMerit documents Inner City Press requested under FOIA by May 2 (see below), none of been provided. The comment period should not be closed by the Fed. Consider:

April 18, 2016

Re: Freedom of Information Act Request No. F-2016-0152

Dear Mr. Lee,

On March 21, 2016, the Board of Governors (“Board”) received your electronic message dated March 20, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, for the entire[t]y of the “[a]pplication by Huntington to acquire FirstMerit” and all records reflecting FRS communications with Huntington or FirstMerit for the past twelve (12) months.

Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until May 2, 2016, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.

If a determination can be made before May 2, 2016, we will respond to you promptly. It is our policy to process FOIA requests as quickly as possible while ensuring that we disclose the requested information to the fullest extent of the law.

Very truly yours,

Jeanne M. McLaughlin

Manager, Freedom of Information Office

And then... nothing.

May 9, 2016

  Inner City Press / Fair Finance Watch, which has protested Huntington - FirstMerit, was sent this by the Federal Reserve:

Dear Mr. Lee:
Attached is a memorandum summarizing staff’s telephone conversation with Ms. Patricia A. Robinson of April 25, 2016, counsel for Huntington Bancshares Incorporated (“Huntington”), regarding the application by Huntington to acquire all the voting shares of, and to merge with, FirstMerit Corporation and thereby indirectly acquire FirstMerit Bank, N.A., pursuant to section 3 of the Bank Holding Company Act of 1956, as amended.  We send this memorandum to you in accordance with the Board’s procedures regarding ex parte communications.

Date: May 3, 2016
To: File
From: Federal Reserve staff
Subject: Telephone Conversation with Patricia A. Robinson, Esq.
re:Application by Huntington Bancshares Incorporated to Acquire Shares of, and to Merge with, FirstMerit Corporation

On April 25, 2016, staff of the Board of Governors of the Federal Reserve System (Benjamin McDonough, Pam Nardolilli, Mark Buresh, Andrew Hartlage, and Brian Phillips) had a telephone conversation with Ms. Patricia A. Robinson, counsel for Huntington Bancshares Incorporated (“Huntington”), Columbus, in connection with the application filed by Huntington to acquire all the voting shares of, and to merge with, FirstMerit Corporation (“FirstMerit”) 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, as amended.

Staff discussed with Ms. Robinson a capital-related matter regarding the issuance of Huntington preferred shares in exchange for currently outstanding FirstMerit preferred shares.

  UNsaid: Robinson used to work in the Fed's Legal Division...

May 2, 2016

Inner City Press / Fair Finance Watch has filed this:

This is a timely first comment opposing and requesting a complete copy of an and an extension of the FRB's public comment period on the Application by Chemical Financial Corporation to merge with Talmer Bancorp and thereby acquire voting shares of Talmer Bank and Trust.

This over $1 billion proposal is by a bank with a weak record of people to people of color and lower income people, and of consumer compliance.

In the Flint, Michigan MSA in 2014 Chemical Bank for home purchase loans had a 100% denial rate for Latinos; it made 14 such loans to whites and only three to African Americans. Chemical Bank's home refinance lending in the Flint MSA in 2014 was all to whites: 11 loans to whites, NONE to African Americans or Latinos. Similiarly for home improvement loans, 10 loans to whites, none to Latinos; African Americans submitted two applications, one denied, the other “withdrawn.”

In the Battle Creek MSA in 2014, Chemical Bank made 26 loans to whites and none to African Americans (again, two applications, one denied and the other “withdrawn”).

This is unacceptable. So is this:

La Michigan: “Oddly I had enough money in both of my Chemical Bank accounts and they charged me a $64 over draft fee for my smaller account. I HATE that BANK! It used to be Northwestern Bank, but Chemical bought them. I am getting ALL my money out of there as soon as my debit card comes from the credit union.”

The stated rationale of Northwestern selling out to Chemical was the same, increase compliance costs, etc. Chemical promises to increase lending. But has it? What of its public statements that is will be opening branches? Hearings are needed.

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
 
Mr. Matthew R. Lee
Inner City Press
PO Box 20047
New York, NY 10017
 
Re:       Freedom of Information Act Request No. F-2016-0152
 
Dear Mr. Lee,
 
On March 21, 2016, the Board of Governors (“Board”) received your electronic message dated March 20, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552... Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until May 2, 2016, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.
 
If a determination can be made before May 2, 2016, we will respond to you promptly.  It is our policy to process FOIA requests as quickly as possible while ensuring that we disclose the requested information to the fullest extent of the law.
 
  So the documents should come in before May 16. Watch this site.

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

ICP Zeroes In On Huntington Bank, Shutting Low Income FirstMerit Branches

By Matthew R. Lee

NEW YORK, April 2 -- 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.

  Now Inner City Press has received Huntington's response to the Fed, and it is woefully inadequate. Inner City Press has replied:

"Huntington's Response to ICP, written by former Federal Reserve Board legal counsel Patricia Robinson -- we are concerned about this revolving door -- is dismissive of the issues raised.

 The Response states that 'Of the 107 consolidations / closings, a strong majority (62 of 107 or 58%) are short distance branch consolidations' -- but includes actions forcing consumers to travel more than one mile among these “consolidations.”

Even using this definition, Huntington in its Response to ICP admits to no fewer than 45 prospective branch closures, an extraordinary number militating for the requested public hearings.

Section D.1 of Huntington's Response to ICP lists low and moderate income branches and the income demographics of the branches that would “receive” them. Significantly, in every instance where the income demographics of the branches being shuttered and the “receiving” branch, Huntington has chosen to shutter the lower income branch.

There's moderate into middle, for example

Legacy FirstMerit Bank branch at:
430 Northfield Rd., Bedford, Ohio
44146
(Cuyahoga County)
– moderate-income census tract

“moving to”

Legacy Huntington Bank branch at:
5321 Warrensville Rd., Maple
Heights, Ohio 44137
(Cuyahoga County)
– middle-income census tract

There's low income into middle:

Legacy Huntington Bank Branch at:
1500 East Main Street, Kent, Ohio
44240
(Portage County)
– low-income census tract

moving to

Legacy FirstMerit Bank branch at:
1729 State Rt. 59, Kent, Ohio 44240
(Portage County)
– middle-income census tract

There's even moderate into upper:

Legacy FirstMerit Bank branch at:
3505 Lee Rd., Shaker Heights, Ohio
44120
(Cuyahoga County)
– moderate-income census tract

“moving to”

Legacy Huntington Bank branch at:
17121 Chagrin Blvd., Shaker
Heights, Ohio 44120
(Cuyahoga County)
– upper-income census tract

But there is NOTHING moving the other way. Hearings are necessary.

March 28, 2016

  Drilling in more closely into the negative impacts of the proposed Huntington - FirstMerit merger, covered here and here, Inner City Press / Fair Finance Watch has now looking at FirstMerit's record in 2014 in Akron:

  FirstMerit in the Akron MSA in 2014 made 214 home purchase loans to whites -- and only 13 to African Americans and only two to Latinos. Troublingly, FirstMerit denied the applications of African American for home purchase loans 4.14 times more frequently than for white: a 9.2% denial rate for whites versus a whopping 38.1% denial rate for African Americans.

For refinance loans, FirstMerit in the Akron MSA in 2014 made 158 loans to whites and only six to African Americans and none to Latinos. Its denial rate for African Americans was 35.7%, versus only 20.6% for whites.

For home improvement loans, Huntington in the Akron MSA in 2014 made 47 loans to whites and only two to African Americans and NONE to Latinos. Its denial rate for Latinos was 100%. Its denial rate for African Americans was 77%, versus 50% for whites.
 
  Not pretty. We'll have more on this.

March 21, 2016

 Inner City Press / Fair Finance Watch has filed a timely first comment opposing / requesting public hearings on the application by Huntington Bancshares to acquire FirstMerit Corporation.  This proposed merger would, if approved, result in the closure of more than 100 branches -- nearly 50 are in the Cleveland, Akron and Canton areas  Two of these areas are analyzed below; more will follow. These closures would cause harm; what would be the countervailing public benefit? Public hearings are needed.

  Huntington in the Akron MSA in 2014 made 197 home purchase loans to whites -- and only nine to African Americans and only three to Latinos. 

For refinance loans, Huntington in the Akron MSA in 2014 made 263 loans to whites and only nine to African Americans and only ONE to Latinos. Its denial rate for Latinos was 77.8%, versus only 50.7% for whites.

For home improvement loans, Huntington in the Akron MSA in 2014 made 23 loans to whites and only FOUR to African Americans and NONE to Latinos. Its denial rate for Latinos was 100%.

    Huntington in the Cleveland MSA in 2014 made 582 home purchase loans to whites -- and only 37 to African Americans and only nine to Latinos. 

For refinance loans, Huntington in the Cleveland MSA in 2014 made 680 loans to whites and only 58 to African Americans and only 14 to Latinos. Its denial rate for Latinos was 80%, versus only 54% for whites; Huntington's denial rate for African Americans was 72%.

For home improvement loans, Huntington in the Cleveland MSA in 2014 made 88 loans to whites and only NINE to African Americans and only one to Latinos. Its denial rate for Latinos was 96.4%, versus only 72.8% for whites; its denial rate for whites was fully 94%.

    We will have more comments, but for now the comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.

March 14, 2016

Good news / work in Kansas City: "Redlining complaints against First Federal Bank of Kansas City have led to a settlement aimed at creating $2.5 million worth of home loans in majority African-American neighborhoods. The U.S. Department of Housing and Urban Development mediated the settlement, which originated from complaints by the Concerned Clergy Coalition of Kansas City and the Historic East Neighborhoods Coalition of Kansas City."

  Inner City Press has protested BNC Bancorp and its proposed expansion for some time, based on lending disparities and lack of transparency. The Federal Reserve, while purporting to be transparent until its Rules on Ex Parte Communication, on March 11 provided Inner City Press with another terse memo that disclosed... nothing. Here it is:

On March 2, 2016, staff of the Federal Reserve System met with executives of BNC Bancorp (“BNC”), High Point, North Carolina at the Federal Reserve Bank of Richmond (“Reserve Bank”) to discuss financial, managerial, and supervisory related matters that the Board would need to consider in its review of BNC’s proposal to acquire Southcoast Financial Corporation (“Southcoast”), and its subsidiary bank, Southcoast Community Bank, both of Mount Pleasant, South Carolina, pursuant to section 3(a)(5) of the Bank Holding Company Act of 1956.

 Participants of the in-person meeting consisted of the following: Richard Callicutt (Chief Executive Officer and President) and David Spencer (Chief Financial Officer) of BNC, and Keith Larkin (Assistant Vice President of Supervision, Regulation and Credit), Paul Frey (Managing Examiner of Supervision, Regulation and Credit), Adam Drimer (Assistant Vice President in Applications), Richard Gilbert (Vice President of Supervision, Regulation and Credit) and Wayne Cox (Banking Applications Manager) of the Reserve Bank. Stuart C. Stock, Esq. (counsel for BNC) participated via teleconference. The following staff of the Board participated via teleconference: Patrick Grant of the Board’s Division of Banking Supervision and Regulation; and Victoria Szybillo and Amber Hay of the Board’s Legal Division.
 At the beginning of the meeting, staff of the Board’s Legal Division discussed the Board’s rules on Ex Parte communications that would govern any discussions related to BNC’s proposal to acquire Southcoast.
Discussion: The meeting was scheduled as a follow-up item to the Reserve Bank’s inspection of BNC and its subsidiary bank, Bank of North Carolina (“Bank”), Thomasville, North Carolina. The meeting centered on topics that would be considered by the Board in its review of an application under the financial, managerial, and supervisory factors of section 3 of the BHC Act. During the meeting, BNC’s executives shared information regarding (i) BNC’s plans for handling the integration of acquired entities into BNC’s banking organization, (ii) the Bank’s and BNC’s capital levels, and (iii) the Bank’s and BNC’s future plans
 Due to the receipt of a public comment alleging that BNC and Southcoast have engaged in discriminatory lending practices in certain metropolitan statistical areas, the Board’s rules on Ex Parte communications precluded discussion with BNC concerning the convenience and needs factor under section 3 of the BHC Act. Staff of the Board’s Legal Division remained throughout the meeting to ensure compliance with the Board’s rules on Ex Parte communications.March 7, 2016

Federal Reserve Gives ICP Memo of BNC Meeting, from Jan 28, Faux Ex Parte

By Matthew R. Lee

NEW YORK, March 1 -- 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, currently seeking to acquire Southcoast Financial in South Carolina and, after that, High Point Bank & Trust.

 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.

Inner City Press has immediately filed a Freedom of Information Act request, and a second comment with the Fed.

February 29, 2016

On First Niagara, Key Says It'll Address Branches Later, Withholds, ICP FOIAs

By Matthew R. Lee

NEW YORK, February 23 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - and those in the upper bulge like KeyCorp, seeking to buy First Niagara and close a lot of branches.

 In a submission to the Federal Reserve dated February 12 but only mailed to Inner City Press on February 20, Key answers questions about branch closings by saying "Additional information will be provided supplementally." Key withholds a Community Reinvestment Act and other answers. See here.

 Inner City Press on February 23 submitted a FOIA request:

This is a FOIA request for the entirety of the February 12, 2016 submission in connection with the Application by Application by KeyCorp to acquire First Niagara Financial Group of which a heavily redacted copy was received by Inner City Press on February 22-23, as a timely commenter, by Goldman Sachs. (The cover letter to ICP says February 12, but the USPS Express envelope says Feb 20, notice received Feb 22, picked up Feb 23.)

   Key's answer has many exhibits withheld -- all of which we are hereby requesting under FOIA. Simply as examples:  Page 1 referes to Confidential Exhibit 1 and 2(a); Page 2 refers to Confidential Exhibits 2(b), 3, 4 and 5; in the Community Reinvestment Acti section, “Confidential” Exhibit 10 is withheld. We also note that the Fed still owes ICP a FOIA response on this application, and that Key's answer on branch closings is 'Additional information will be provided supplementally.' The comment period must be extended; we request this information in advance."

February 22, 2016

As Regions Bank CRA Cut, ICP Protests Republic Bank, Key - First Niagara

By Matthew R. Lee

NEW YORK, February 17 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - through those in the upper bulge like KeyCorp, seeking to buy First Niagara and close a lot of branches, down to Kentucky-based Republic Bank, back in the tax loan business including in New York City.

  One development pointing in the other direction is the Community Reinvestment Act downgrade of Regions Bank. Inner City Press has previously commented to the regulators on disparities in Regions' record, while noting that the bank has timely provided its Home Mortgage Disclosure Act Loan Application Register data.

  As simply one example, in the Jackson, Mississippi MSA in 2014, Regions Bank denied the applications for convention home purchase loans of African Americans 3.21 times more frequently than whites.

Now, no new mergers. Shouldn't this apply to some other banks as well?

February 15, 2016

After ICP's Protest of NYCB - Astoria Bank, Fed Asks Qs Due Feb 26

By Matthew R. Lee

NEW YORK, February 13 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - and those in the middle, seeking to become a Systemically Important Financial Institution like New York Community Bancorp is, applying to buy Astoria Bank.

 After Inner City Press / Fair Finance Watch filed a timely protest, the Federal Reserve on January 8 asked NYCB 14 questions. Inner City Press has put the Additional Information letter online here, including a request to know which branches NYCB would close, how it would try to sell of Astoria's loans, etc. Inner City Press said, there should now be more fair lending questions, and the comment period should be extended.

 On January 21, the Federal Reserve has informed Inner City Press / Fair Finance Watch that the Fed is re-opening and extending its comment period on NYCB - Astoria until February 16.

 But on February 12, the Federal Reserve asked NYCB a series of questions, due February 26, telling NYCB to send a copy of its response then to Inner City Press. How can the comment period close ten days before that? On February 13 Inner City Press commented to the Fed in New York and Washington:

"This is a second timely comment opposing and requesting a further extension of the FRB's public comment period on the Application by New York Community Bancorp (“NYCB) to acquire 100% of the voting shares of Astoria Financial Corp and indirectly acquire Astoria Bank.

ICP commented on this application on January 6. On February 12, the Fed asked NYCB questions including

“Please describe in further detail NYCB’s business model with respect to mortgage loans secured by one-to-four family residential properties. In your description, discuss the channels NYCB uses to originate or acquire such loans, and describe the key elements of NYCB’s policies, procedures, and practices to ensure compliance with fair lending and consumer protection laws as they relate to such lending. Where such policies, procedures, and practices differ by channel, explain the key differences. Your response should discuss NYCB’s third party vendor management program, to the extent NYCB relies on third parties to originate or acquire such loans.”

ICP has commented on those issues and wishes to comment on NYCB's response, due on February 26. The comment period should be extended.

Furthermore on February 2 NYCB in an investors' presentation (here) bragged about how many of Astoria's branches are within one mile of an NYCB branch (52%). Clearly, the issue of which branches NYCB should be address before the comment period closed, including at the public meeting ICP is requesting.

Note for the record how NYCB's (and Astoria's) branching pattern disproportionately excludes Upper Manhattan and especially The Bronx, the most predominantly minority and the lowest income community in New York State. This map is incorporated into the record by reference. Action should be taken on this pattern, including on this merger application (which should be denied.)"

February 8, 2016

Huntington's CEO has already spoken of “significant” branch closings if allowed to acquire FirstMerit -- more than 100? We'll have more on this.

February 1, 2016

  Inner City Press waited and waited but has now filed this:

Dear Chair Yellen, Secretary deV. Frierson and others in the FRS:
This is a timely first comment opposing and requesting an extension of the FRB's public comment period on the Application by KeyCorp to Acquire First Niagara.
First, the comment period must be extended. All the way back on December 16, 2015, Inner City Press submitted a FOIA request for documents related to this proposal. It was assigned number F-2016-00073 by the Federal Reserve.
But on January 20 the Manager of the FRB's Freedom of Information Office wrote to Inner City Press that “pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until February 2, 2016, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.” Full text below, for the record.
The comment period is set to expire on January 31 -- six weeks after ICP's FOIA request, but days BEFORE the Fed's response. This request to extend the comment period is being submitted on January 30 and must in context be granted.
In the interim, in support of ICP's request for public hearings, consider that in 2014, the most recent year for which Home Mortgage Disclosure Act data is available, Key Bank National Association in the Buffalo Metropolitan Statistical Area made 258 home purchase loans to whites but only seven to African Americans, while denying the applications of African Americans 2.56 times more frequently than those of whites. For refinance loans, Key's denial rate disparity for African Americans was 2.28.

In the New York City MSA, Key Bank National Association made 21 home purchase loans to whites and only ONE to an African American applicant. Key made 43 refinance loans to whites and NONE to African Americans. These disparities are not acceptable.

Nor is the lack of transparency, as the comment period is set to close, on branch closures or “consolidations.” The comment period must be extended and public hearings held.

Here for the record is the Fed's January 20 letter to ICP:

“Re: Freedom of Information Act Request No. F-2016-00073

Dear Mr. Lee,

On December 17, 2015, the Board of Governors (“Board”) received your electronic message dated December 16, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, for the entire[t]y of the “Application by KeyCorp to acquire First Niagara Financial Group,” and for all records reflecting [Federal Reserve System] communications with KeyCorp or First Niagara for the past twelve (12) months. In an e-mail communication on December 17, 2015, you were provided with the public portion of the application by KeyCorp to acquire First Niagara Financial Group, Inc.

Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until February 2, 2016, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.

If a determination can be made before February 2, 2016, we will respond to you promptly.”

But on the eve of the closing of the comment period, nothing has been received. The comment period must be extended; on the current record, public hearings should be held and the application denied.

January 25, 2016

After ICP's Protest of NYCB - Astoria Bank, Fed Extends to Feb 16

By Matthew R. Lee

NEW YORK, January 21 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - and those in the middle, seeking to become a Systemically Important Financial Institution like New York Community Bancorp is, applying to buy Astoria Bank.

 After Inner City Press / Fair Finance Watch filed a timely protest, the Federal Reserve On January 8 asked NYCB 14 questions. Inner City Press has put the Additional Information letter online here, including a request to know which branches NYCB would close, how it would try to sell of Astoria's loans, etc. Inner City Press said, there should now be more fair lending questions, and the comment period should be extended.

 Now on January 21, the Federal Reserve has informed Inner City Press / Fair Finance Watch that the Fed is re-opening and extending its comment period on NYCB - Astoria until Tuesday, February 16. We'll have more on this.

January 18, 2016

After ICP's Protest of NYCB - Astoria Bank, FDIC Denies Expedited Processing

By Matthew R. Lee

NEW YORK, January 15 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - and those in the middle, seeking to become a Systemically Important Financial Institution like New York Community Bancorp is, applying to buy Astoria Bank.

 After Inner City Press / Fair Finance Watch filed a timely protest, the Federal Reserve On January 8 asked NYCB 14 questions. Inner City Press has put the Additional Information letter online here, including a request to know which branches NYCB would close, how it would try to sell of Astoria's loans, etc. There should now be more fair lending questions.

Now on January 15, after Inner City Press / Fair Finance Watch also filed comments with the FDIC, that agency has written to NYCB's Joseph Ficalora asking for a response, and stating that

"We are writing in reference to the enclosed e-mail that we received from Executive Director Matthew Lee, of Inner City Press/Fair Finance Watch concerning your institution's application to acquire Astoria Bank. We reviewed the subject e-mail in accordance with the guidelines of 12 C.F.R. Section 303, and deemed it a Community Reinvestment Act (CRA) protest for the purpose of your application. The subject e-mail raises issues regarding your institution's record of lending to African American and Latino persons. The anticipated time and research required to investigate these issues has contributed to the removal of your institution's application from expedited processing."

 NYCB's home mortgage lending is extremely disparate; its multi-family lending, some to slumlords, is no defense.

January 11, 2016

Protest of NYCB - Astoria Merger to Fed, Which Plays FOIA Games for Goldman

By Matthew R. Lee

NEW YORK, January 7 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - and those in the middle, seeking to become a Systemically Important Financial Institution like New York Community Bancorp is, applying to buy Astoria Bank.

 NYCB's home mortgage lending is extremely disparate; its multi-family lending, some to slumlords, is no defense. Inner City Press / Fair Finance Watch has filed this with the Fed:

  “On behalf of Inner City Press / Fair Finance Watch, this is a timely first comment opposing and requesting a complete copy of an and an extension of the FRB's public comment period on the Application by New York Community Bancorp ('NYCB') to acquire 100% of the voting shares of Astoria Financial Corp and indirectly acquire Astoria Bank.

  The applicant NYCB in the New York City MSA in 2014 made 109 home purchase loans to whites -- and only THREE to African Americans. For refinance loans, NYBC in the the NYC MSA in 2014 made 27 loans to whites and only ONE to an African American.

  While NYCB may attempt to minimize these severe disparities by pointing to multi-family loans, there are significant complaints about that lending; note also this account of the CFPB which lists the ostensibly mostly multi-family NYCB with more complaints against it than banks that are both larger and more “retail."

  In the Nassau Suffolk (Long Island) MSA in 2014 NYCB made 107 home purchase loans to whites -- and only ONE to an African American, while denying African Americans 4.7 times more frequently than whites. For refinance loans, NYBC in the the Long Island MSA in 2014 made 52 loans to whites and only three to African Americans and only TWO to Latinos, while denying Latinos 2.32 times more frequently than whites.
 
  In the Cleveland, Ohio MSA (where NYCB bought Ohio Savings), NYCB in 2014 made 17 refinance loans to whites in 2014 and only one to an African American, while denying African Americans, while denying African Americans three times more frequently than whites. Similar disparities exist for NYCB in New Jersey, Arizona and Florida -- ICP is requesting public hearings on this ill-conceived proposed merger.
 
  As the Federal Reserve surely knows, this proposal was driving by activist investor pressure on Astoria (by Basswood Capital Management LLC); both institutions' securities fell significantly in price when it was announced. The price to consumers would include the closure of branches, disclosure of which should be demanded during the extended comment period and at the requested public hearing(s).

 The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.”

 Meanwhile Goldman Sachs is trying to speed through 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. But now the Fed has given itself an extension to respond to Inner City Press' December 3 FOIA request for Goldman Sachs' withheld December 2 submission, writing this to Inner City Press:

"Re: Freedom of Information Act Request No. F-2016-0056
 
Dear Mr. Lee,
 
On December 3, 2015, the Board of Governors (“Board”) received your electronic message dated December 2, 2015, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, for the entirety of the December 2 submission in connection with the “Application by Goldman Sachs Bank USA for the Acquisition by Purchase and Assumption of Certain Deposit Liabilities and Certain Very Limited Non-Financial Assets of GE Capital Bank.”
 
Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until January 19, 2016, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.
 
If a determination can be made before January 19, 2016, we will respond to you promptly.  It is our policy to process FOIA requests as quickly as possible while ensuring that we disclose the requested information to the fullest extent of the law."

January 4, 2016

Inner City Press / Fair Finance Watch has commented, on Republic Bank, quoting the WSJ: "“Washington-based Fenway Summer LLC, in January reached a deal with Louisville, Ky.-based Republic Bancorp Inc. to offer a credit card that is being pitched as a more affordable alternative to payday loans, which are short-term loans that often charge triple-digit interest rates. The Build Card, which is being rolled out later this year, will charge an annualized interest rate of 25% to 30% and will cap borrowers’ initial credit lines at $500.”

Thirty percent interest? In New York, that's called usury.

But Republic has told the Federal Reserve (and FDIC) that it's just "adequately priced for risk." We'll have more on this.

December 28, 2015

Federal Reserve Asked BNC for CRA Info, Which Withholds It, Ozarks Inquiry

By Matthew R. Lee

NEW YORK, December 21 -- 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, currently seeking to acquire Southcoast Financial in South Carolina and, prospectively, High Point Bank & Trust.

  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.

Inner City Press has immediately filed a Freedom of Information Act request, and a second comment with the Fed.

 Separately, Inner City Press / Fair Finance Watch has filed the second of two comments to the St Louis Fed:

"This is a timely first comment opposing and requesting an extension of the FRS's public comment period on the Application by Bank of the Ozarks to acquire Community & Southern.

This proposed transaction raises troubling Community Reinvestment Act issues. Bank of the Ozarks has a disparate lending record, including in the Atlanta MSA where it proposes to acquire C&S (which itself just acquired branches from CertusBank while leaving behind others to be closed, evading any review).

In the Atlanta MSA in 2014 for home purchase loans, Bank of the Ozarks made 25 such loans to whites and NONE to African Americans -- it had a 100% denial rate for African Americans.

For refinance loans, it made 17 loans to whites and NONE to African Americans -- it had a 100% denial rate for African Americans.

There is more to be said, but this is outrageous, and in the MSA in which Bank of the Ozark proposes to make this acquisition.

In the Little Rock MSA in 2014 for home purchase loans, Bank of the Ozarks made 332 such loans to whites and only 13 to African Americans -- it denied the applications of African Americans 4.3 times more frequently than those of whites.

This is outrageous, and systematic. Bank of the Ozarks has also had consumer compliance issues."

On BNC, 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)."  FFW has requested a copy of the High Point application.

  Now the Federal Reserve has asked BNC for, among other things, for information about its Community Reinvestment Act compliance, and consumer compliance more generally. Inner City Press is putting the Fed's December 2 Additional Information letter online, here.

December 21, 2015

Inner City Press / Fair Finance Watch has filed the second of two comments to the St Louis Fed:

"This is a timely first comment opposing and requesting an extension of the FRS's public comment period on the Application by Bank of the Ozarks to acquire Community & Southern.

This proposed transaction raises troubling Community Reinvestment Act issues. Bank of the Ozarks has a disparate lending record, including in the Atlanta MSA where it proposes to acquire C&S (which itself just acquired branches from CertusBank while leaving behind others to be closed, evading any review).

In the Atlanta MSA in 2014 for home purchase loans, Bank of the Ozarks made 25 such loans to whites and NONE to African Americans -- it had a 100% denial rate for African Americans.

For refinance loans, it made 17 loans to whites and NONE to African Americans -- it had a 100% denial rate for African Americans.

There is more to be said, but this is outrageous, and in the MSA in which Bank of the Ozark proposes to make this acquisition.

In the Little Rock MSA in 2014 for home purchase loans, Bank of the Ozarks made 332 such loans to whites and only 13 to African Americans -- it denied the applications of African Americans 4.3 times more frequently than those of whites.

This is outrageous, and systematic. Bank of the Ozarks has also had consumer compliance issues."

December 14, 2015

Inner City Press / Fair Finance Watch has filed a timely first comment opposing and requesting an extension of the FRS's public comment period on the Application by Republic Bancorp, Inc. to acquire 100 percent of the voting shares of Cornerstone Bancorp

These transaction raises troubling Community Reinvestment Act issues. Republic has a disparate lending record and is growing worse. Significantly, after its rogue-like tax refund anticipation lending, now Republic is back with subprime cards. This should be reviewed, before this or any other acquisitions (see, e.g.http://www.bizjournals.com/tampabay/blog/morning-edition/2015/10/exclusive-republic-bancorp-eyes-1-operation-in.html) and ICP is requesting public evidentiary hearings on this. See, e.g., WSJ of Feb 18, 2015:

Washington-based Fenway Summer LLC, in January reached a deal with Louisville, Ky.-based Republic Bancorp Inc. to offer a credit card that is being pitched as a more affordable alternative to payday loans, which are short-term loans that often charge triple-digit interest rates. The Build Card, which is being rolled out later this year, will charge an annualized interest rate of 25% to 30% and will cap borrowers’ initial credit lines at $500.”

Thirty percent interest? In New York, that's called usury.

In the Louisville MSA in 2014 for home purchase loans, Republic made 651 such loans to whites and only 22 to African Americans, and only13 to Latinos. It denied the applications of African Americans 2.15 times more frequently than those of whites. For refinance loans, it made 215 loans to whites and only 10 to African Americans; for home improvement loans it made 129 loans to whites and only ONE to an African American, while denying 7 of 10 applications received from African Americans.

In Nashville in 2014, Republic made 13 home purchase loans to whites, NONE to African Americans or Latinos.

December 7, 2015

Inner City Press / Fair Finance Watch has commented to the Fed, "On October 22, Inner City Press / Fair Finance Watch belatedly received from the Fed SOME of the documents about this proposal as early as it could, on September 2. Dated December 3, and provided to Inner City Press on December 4, Governor Powell belatedly ruled on ICP's FOIA appeal - and while continuing to wrongfully (for ICP's perspective) withhold much information, acknowledged that basic information about what was to be acquired for wrongfully withheld. Accordingly, the comment period must be re-opened. We submit this at the earliest possible time and await confirmation that the comment period has been re-opened."

November 30, 2015

Inner City Press / Fair Finance Watch has commented to the Federal Reserve:

...The irregularities in this proceeding, including under FOIA, have been noted for example in http://www.americanbanker.com/news/law-regulation/fed-under-the-microscope-in-goldmans-deal-for-ge-deposits-1077968-1.html -- for which the Federal Reserve declined any comment. For the record:

"Fed Under the Microscope in Goldman's Deal for GE Deposits

November 23, 2015

WASHINGTON — The criticism by consumer advocates of Goldman Sachs' acquisition of GE Capital's online deposits has now given way to questions over how the Federal Reserve Board has handled the application... "They're kind of preapproving something before the public can learn anything about it," said Matthew Lee, founder of Inner City Press and Fair Finance Watch. "This is not the way it's supposed to be. It's just wrong. Wrong, wrong, wrong."

...The Fed declined to comment on the record and Goldman Sachs declined to comment beyond what it has said in public materials... The National Community Action Foundation — a Washington-based coalition of community groups — said in a Sept. 28 letter to the New York Fed that Goldman Sachs has "been a leader in helping develop effective and innovative programs to better our fight against poverty." The Carver Federal Savings Bank, which describes itself as "one of the largest African- and Caribbean-American managed banks in the United States," said in its Sept. 30 letter that it supports Goldman's application based on its investment in Carver and support in construction investment in its service area in Brooklyn.”

Note: ICP did not receive either of those submissions, nor it appears other parts of the record. These should be provided, and the comment period must be extended.

The rogue-like culture of Goldman Sachs has been further on display since ICP's last comment, see, e.g., https://www.sec.gov/news/pressrelease/2015-267.html

Washington D.C., Nov. 25, 2015 — The Securities and Exchange Commission today announced insider trading charges against a former Goldman Sachs employee accused of stealing nonpublic information in the firm’s e-mail system so he could trade illegally in advance of client mergers and make more than $450,000 in illicit profits.

November 23, 2015

Goldman Sachs Uses Small Bank Relief For Federal Reserve Pre-Review on GE

By Matthew R. Lee

NEW YORK, November 19 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent example.

Goldman is trying to speed through 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 show, is inappropriately bent on helping, including by closing its comment period.

 On November 19, Goldman Sachs submitted a purported reply to the Federal Reserve, stating among other things that "Certain Comment Letters express concern with the contact between GS Bank and Board staff prior to GS Bank submitting the Application. GS Bank respectfully submits that the contact was both appropriate and ordinary in the context of the Board’s own guidance on pre-filing communications.11 Additionally, the allegations of contact are not germane to the scope of the statutory factors set forth for Board consideration under the Bank Merger Act."

  The 2012 Fed letter Goldman Sachs cites was meant to benefit smaller banks - and did not envision Additional Information letters before the public was even notified of the proposal. The misuse of small bank "regulatory relief" by the likes of Goldman Sachs casts new light of legislative riders being considered for the US spending bill due December 11.

 Going forward, KeyCorp is trying to buy First Niagara, and NY Community Bank wants to buy Astoria; there will be opposition.

November 16, 2015

 There are yet more adverse developments regarding Goldman Sachs:

Goldman Sachs faces investigation over auction of securities,” November 3, 2015, Bloomberg and Chicago Tribune: http://www.chicagotribune.com/news/sns-wp-blm-goldman-e45af72c-8242-11e5-8bd2-680fff868306-20151103-story.html

Goldman Sachs added the offering and auction of securities, as well as 'when-issued trading,' to a list of activities that regulators and other government bodies are investigating.The bank made the disclosure Tuesday in a quarterly regulatory filing, without specifying which agencies or regulators are probing the items on the list.”

See also, Nov 3, 2015, “Goldman Sachs settles CDO class action,”http://www.lexology.com/library/detail.aspx?g=d1e75f3f-239c-42d9-8eea-8f68c8a41152

On November 3, 2015, Goldman Sachs Group Inc. agreed to settle a lawsuit brought by a class of investors over Goldman’s sale of two collateralized debt obligations.”

 And the Fed has STILL not ruled on Inner City Press' October 24 FOIA appeal...

November 9, 2015

Key Bank - First Niagara Would Trigger Branch Closing, Lending Disparities, FFW Says

By Matthew R. Lee

NEW YORK, November 3 -- The lack of seriousness in US bank regulation continues, even as new mergers portending significant branch closing impacts are announced.

 Inner City Press / Fair Finance Watch, which has previously expressed its concerns about both KeyCorp and First Niagara, sees no public benefit in the proposed merger of the two for $4.1 billion, announced on October 30.

  First Niagara already closed more than a dozen branches after it acquired them from HSBC (here were some of Fair Finance Watch' concerns when it grabbed New Alliance).  KeyCorp would closed yet more branches (here's some of Fair Finance Watch's analysis of KeyCorp's lending).

  In 2014, the most recent year for which Home Mortgage Disclosure Act data is available, Key Bank National Association in the Buffalo Metropolitan Statistical Area made 258 home purchase loans to whites but only seven to African Americans, while denying the applications of African Americans 2.56 times more frequently than those of whites. For refinance loans, Key's denial rate disparity for African Americans was 2.28.

 In the New York City MSA, Key Bank National Association made 21 home purchase loans to whites and only ONE to an African American applicant. Key made 43 refinance loans to whites and NONE to African Americans. These disparities are not acceptable.

 In other upstate / Western New York work, after Fair Finance Watch advocacy, Community Bank System Inc is expanding its Community Reinvestment Act assessment area, here.

  As to Goldman Sachs, Inner City Press / Fair Finance Watch filed a supplement comment on October 30 including Goldman's new and troubling settlement with the NYS Department of Financial Services regarding a former Federal Reserve employee impermissibly using Fed information for them. Public hearings and an extension of the comment period are needed.

 As detailed below, the Federal Reserve's General Counsel Scott Alvarez solicitiously agreed to weekend phone calls with Goldman's outside council Rodgin "Rodge" Cohen at Sullivan & Cromwell, and the Fed submitted its "Additional Information" request to Goldman in July, a full month before any application was submitted or the deal publicly announced.

  Thus there was no way for the public to be involved in the Fed's review, which is required by the Bank Merger Act (and the Administrative Procedures Act). The Fed began trying to essentially pre-approve some applications with a 2012 letter to banks, here - but it said no major issues could be addressed this way, and the interchanged would be subject to FOIA.

  In this case, though, where Inner City Press submitted its FOIA request as soon as it became aware of Goldman's GE proposal and application, none of the information would have been available until after the comment period was set to close on September. It has been extended to October 30, due to requests from ICP and other NCRC members, but the Fed is still withholding portions of its communication with Goldman in the face of the FOIA Appeal Inner City Press immediately filed. (ICP has also submitted a timely additional comment on these issues.)

  Inner City Press has previously litigated FOIA requests with the Fed and won, at least in part, for example in obtaining subprime lending information the Fed wanted to withhold, here.  But this should not be necessary in order for the public to have this basic information, during the comment period. Will members of Congress and other chime in? Watch this site.

  This process began by overbroad withholding of basic parts of Goldman's application, click here to view, which Goldman in an October 14 submission to the Fed, here, says has been cured (it has not been).

  Now 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


November 2, 2015

ICP Comments on Goldman Sachs, Will on Key & NY Community Bank

By Matthew R. Lee

NEW YORK, October 30 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent example.

Goldman is trying to speed through 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 show, is inappropriately bent on helping, including by closing its comment period.  At the other end of the spectrum, after Fair Finance Watch advocacy, Community Bank System Inc is expanding its Community Reinvestment Act assessment area, here.

 In between, and going forward, KeyCorp is trying to buy First Niagara in the same area as CBSI, and NY Community Bank wants to buy Astoria; there will be opposition.

  As to Goldman Sachs, Inner City Press / Fair Finance Watch filed a supplement comment on October 30 including Goldman's new and troubling settlement with the NYS Department of Financial Services regarding a former Federal Reserve employee impermissibly using Fed information for them. Public hearings and an extension of the comment period are needed.

 As detailed below, the Federal Reserve's General Counsel Scott Alvarez solicitiously agreed to weekend phone calls with Goldman's outside council Rodgin "Rodge" Cohen at Sullivan & Cromwell, and the Fed submitted its "Additional Information" request to Goldman in July, a full month before any application was submitted or the deal publicly announced.

  Thus there was no way for the public to be involved in the Fed's review, which is required by the Bank Merger Act (and the Administrative Procedures Act). The Fed began trying to essentially pre-approve some applications with a 2012 letter to banks, here - but it said no major issues could be addressed this way, and the interchanged would be subject to FOIA.

  In this case, though, where Inner City Press submitted its FOIA request as soon as it became aware of Goldman's GE proposal and application, none of the information would have been available until after the comment period was set to close on September. It has been extended to October 30, due to requests from ICP and other NCRC members, but the Fed is still withholding portions of its communication with Goldman in the face of the FOIA Appeal Inner City Press immediately filed. (ICP has also submitted a timely additional comment on these issues.)

  Inner City Press has previously litigated FOIA requests with the Fed and won, at least in part, for example in obtaining subprime lending information the Fed wanted to withhold, here.  But this should not be necessary in order for the public to have this basic information, during the comment period. Will members of Congress and other chime in? Watch this site.

October 26, 2015

FOIA Response to ICP Shows Goldman Met Fed in May on GE, Pre-Reviewed

By Matthew R. Lee, Exclusive

NEW YORK, October 23 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent, example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed, documents just released to Inner City Press under the Freedom of Information Act show, is inappropriately bent on helping.

  It began by overbroad withholding of basic parts of Goldman's application, click here to view, which Goldman in an October 14 submission to the Fed, here, says has been cured (it has not been).

  Now 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.

 While Inner City Press is appealing, even as released the documents show that Goldman Sachs through its law firm Sullivan & Cromwell reached out to Fed General Counsel Scott Alvarez in May 2015 about the transaction, and was largely able to vet it with the Fed's staff by July, even receiving an "additional information" request before any application was filed.

  Since the public cannot comment or ask questions before a transaction is announced, this "pre-review" by the Fed in essence cuts public review and transparency out of the process. The Fed's rules against ex-parte communications can't be triggered before there is an application. But should Fed review be held, and apparently completed, before there is any public notice?

  The documents Inner City Press has obtained under FOIA show that on May 14 and May 18, Goldman Sachs and its outside counsel Rodgin "Rodge" Cohen of Sullivan & Cromwell told the Fed and its General Counsel Scott Alvarez of their plans for GE Capital Bank.

 On May 28, the Fed met with Goldman which presented a "deck" of information about "Project Apple," much of it still redacted as provided to Inner City Press (which is appealing under FOIA).

  As precedents, Goldman Sachs cited Capital One - ING and RBC - City National (see below).

 This was followed by a May 29, 2015 letter from "Rodge" to the Fed's Scott Alvarez, asking for confidential treatment of everything including the letter, and including from any Governmental inquiry. (Page 28 of FOIA response to ICP.) A similar letter was submitted by Cohen on June 16, attaching a letter the Fed has redacted in full from Goldman Sachs' Esta E. Stecher.

  Scott Alvarez took the conversation onto the telephone, not subject to FOIA, on June 16. His accompanying e-mails, as redacted, only say "Thanks! Scott."

 On June 26, the Fed' Alison Thro wrote that "Rodgin Cohen was in today briefly to discuss, among other things, GS’s plans to acquire the deposits of GE’s ILC. He asked what the next steps might be." What were those "other things"?

 On July 13, the Fed sent Cohen a "request for additional information concerning the proposal by GS Bank to purchase certain assets and assume the deposit liabilities of GE Capital Bank."

  A request for additional information is usually what the Fed sends a bank or bank holding company after it has submitted an application; a commenter would get a copy. Here, the Fed was pre-reviewing Goldman Sachs' proposal, entirely outside of any public scrutiny. (The later public questions are as if by rote: the fix was already in.)

  On Friday, July 17 the Fed's Thomas Baxter wrote to Scott Alvarez that the transaction would be public announced the next Monday -- AFTER the Fed's "additional information request" -- based on a long voicemail from Harvey Schwartz of Goldman Sachs. (Page 59 of FOIA response to ICP). Alvarez was on the phone with "Esta of GA and Rodge Cohen."

  Alvarez said he was willing to talk with Goldman Sachs on Sunday, July 19. Cohen had written to Alvarez:

"In view of the various communications on Friday and the intended announcement of the deposit assumption transaction on Monday, GS believes that it must decide over this weekend whether it can proceed as scheduled and, as a matter of fairness and transparency, what it can tell GE. As we have discussed, this transaction appears to be a centerpiece of the GE restructuring. We would therefore most appreciate the opportunity to have a conference call as soon as possible over the weekend to obtain as much clarity as possible as to timing and other relevant matters.
We apologize for intruding into your weekend and thank you your consideration of this request." (Page 65 of FOIA response.)

   The reference to "fairness and transparency" was apparently without irony. But Goldman stood the Fed up.

  But this announcement was postponed. Alvarez wrote on July 20 that "Rodge just sent a note that GS wants to postpone signing the deal with GE and the announcement for 2 to 3 weeks." More review continued, outside of public scrutiny. Alvarez made himself available on Sunday, July 26. But to no avail.

 The deal was publicly announced on August 13 and Goldman Sachs on August 18 submitted the apparently pre-approved application. Inner City Press / Fair Finance Watch submitted a comment and FOIA request (delayed until now); the end of the FOIA response has a redacted reaction to the "public comment." Now others have commented and a campaign has begun. But has the Fed already made up its mind?

On Goldman Sachs, Federal Reserve's Initial FOIA Response to Inner City Press on GE Capital Bank by Matthew Russell Lee

October 19, 2015

On Goldman, Federal Reserve Ignores Oct 16 FOIA Deadline, Collusion Like CIT?

By Matthew R. Lee

NEW YORK, October 17 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with CIT and OneWest a major, and Goldman Sachs the most recent, example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed so far seems bent on helping. It began by overbroad withholding of basic parts of Goldman's application, click here to view, which Goldman in an October 14 submission to the Fed, here, says has been cured (it has not been).

  Inner City Press still has a pending Freedom of Information Act request; Fair Finance Watch and others, including NCRC, asked the Fed to extend its comment period, which has now been done, until October 30, with the Fed's FOIA response to Inner City Press due on October 16. But as of October 17, no response from the Fed, despite this letter:

"Re:       Freedom of Information Act Request No. F-2015-0336
 
Dear Mr. Lee,
 
On September 2, 2015, the Board of Governors (“Board”) received your electronic message dated September 2, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, for the entirely of the “Application by Goldman Sachs Bank USA for the Acquisition by Purchase and Assumption of Certain Deposit Liabilities and Certain Very Limited Non-Financial Assets of GE Capital Bank,” and for all records reflecting FRS communications with Goldman Sachs for the past twelve (12) months. On September 3 and September 9, the Board provided you with the public portions of the application.
 
Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until October 16, 2015, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.
 
If a determination can be made before October 16, 2015, we will respond to you promptly.  It is our policy to process FOIA requests as quickly as possible while ensuring that we disclose the requested information to the fullest extent of the law.
 
Very truly yours,
 
/signed/
 
Jeanne M. McLaughlin
Manager, Freedom of Information Office"

 But even by October 16, no response from the Fed. Only this from Goldman Sachs, only snail-mailed by its counsel:

Goldman Sachs' 2d Reply to Inner City Press, As Fed Withholds FOIA Documents by Matthew Russell Lee

October 12, 2015

Federal Reserve Re-opens Comment on Goldman Sachs-GE to Oct 30

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, with Goldman Sachs the most recent example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed so far seems bent on helping. It began by withholding basic parts of Goldman's application, click here to view.

  Inner City Press still has a pending Freedom of Information Act request; Fair Finance Watch and others, including NCRC, asked the Fed to extend its comment period, responded to today:

"The Federal Reserve Board on Monday announced that the public comment period has been extended through October 30, 2015, on the application by Goldman Sachs Bank USA, New York, New York, to assume certain liabilities and acquire certain assets of GE Capital Bank, Holladay, Utah, under section 18(c) of the Federal Deposit Insurance Act... The original comment period, which closed on September 19, 2015, is being extended to allow interested persons more time to review the proposal and to provide comments... Comments regarding this application must be received at the Federal Reserve Bank of New York (Attention: Bank Applications Officer, 33 Liberty Street, New York, New York 10045; comments.applications@ny.frb.org) or the Office of the Secretary of the Board (20th Street and Constitution Avenue, NW, Washington, D.C. 20551) on or before October 30, 2015."

  Just last week, the Fed told Inner City Press a comment it submitted on Goldman Sachs, with new Home Mortgage Disclosure Act data, was "untimely" --

"Dear Mr. Matthew Lee, Executive Director Inner City Press/Fair Finance Watch

We acknowledge receipt on September 22, 2015 of your email dated September 22, 2015  ("Comment Letter"), commenting on the application filed by Goldman Sachs Bank USA... The public comment period for this application ended on September 19, 2015. Since your Comment Letter was received after the end of the public comment period, it will not be made a part of the record of this application unless the Board in its sole discretion determines to consider your late comments. However, you previously submitted timely comments that have been made part of the application record that the Board will consider."

October 5, 2015

Fed Won't Answer ICP's Goldman Sachs FOIA Request Until October 16

By Matthew R. Lee

NEW YORK, October 2 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed so far seems bent on helping. It began by withholding basic parts of Goldman's application, click here to view.

  Inner City Press still has a pending Freedom of Information Act request; Fair Finance Watch and others, including NCRC, have asked the Fed to extend its comment period, with no response.

September 28, 2015

Financial Inclusion, Now Pitched by IMF, UNsolved in US, SDGs Reviewed

By Matthew Russell Lee

UN GENERAL ASSEMBLY -- A new International Monetary Fund study, just out from embargo today, says that  "financial inclusion is mentioned under several of the United
Nations Sustainable Development Goals (SDGs)" and that "this year’s post-2015 Development Agenda squarely puts financial inclusion as a key objective for United Nations member countries."
 
  So how will real financial inclusion be addressed during the UN General Assembly ministerial week, from on September 28 with Presidents Obama of the US and Buhari of Nigeria, through Peru on September 29 and India on October 1?

  Inner City Press asked the IMF on September 3, and will be asking countries. Of the above named countries, the IMF report ("Financial Inclusion: Can It Meet Multiple Macroeconomic Goals?" by Ratna Sahay, Martin Cihák, Papa N’Diaye, Adolfo Barajas, Srobona Mitra, Annette Kyobe, Yen Nian Mooi, and Seyed Reza Yousefi) states

"Nigeria: The comprehensive Financial Inclusion Strategy in 2012 aims to reduce the exclusion rate from 46 percent of the adult population (in 2010) to 20 percent by 2020. Working across key
stakeholders, the strategy seeks to address five major barriers to financial inclusion: (1) income; (2) physical access; (3) financial literacy; (4) affordability; and (5) eligibility.

"Peru: e-money. The authorities have taken various measures to expand access and usage of financial services. In 2014 the “financial inclusion opportunities map,” an interactive tool, was launched. It promotes an innovative “Peruvian model” based on the 2012 electronic e-money legislation and a new unified mobile payments platform that links various providers of financial services with customers.

"India: the Reserve Bank of India’s long-standing policy on priority sector lending (PSL) requires banks to set aside 40 percent of their assets to priority sectors. Most public sector
banks meet this requirement, but end up with high nonperforming loans and concentrated credit risk.  Recently, the Pradhan
Mantri Jan Dhan Yojana [PMPDY], a financial inclusion initiative, was launched with the goal of opening a bank account for every household."

India's seems like a particularly illuminating approach, including to the US, of which the report states

"The United States: the recently completed Financial Sector
Assessment Program (FSAP) (IMF, 2015d) calls for financial inclusion to feature more prominently on the U.S. policy
agenda. The Global Findex survey ranks the United States 27th out of 147 countries in terms of the percentage of adults with a bank account in a formal financial institution, and a 2013 Federal Deposit Insurance Corporation (FDIC) survey finds that 20 percent of U.S. households are 'underbanked' and 8 percent are 'unbanked.' More work is needed."

We, and NCRC, will have more on this.

September 21, 2015

Goldman Sachs Tells Fed to Ignore Segarra Leak & Settlements, ICP Reply

By Matthew R. Lee

NEW YORK, September 19 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed so far seems bent on helping. It began by withholding basic parts of Goldman's application, click here to view.

  Now Goldman Sachs has purported to respond to the comments of Inner City Press / Fair Finance Watch by releasing a small amount of the withheld information, and arguing that what the wider Goldman Sachs does cannot or will no be considered by the Federal Reserve on this Bank Merger Act application by Goldman Sachs Bank. We've put Goldman Sachs' response online, here. It says:

“FFW states that the audio released by examiner Ms. Carmen Segara requires an extension of the comment period and a public hearing... GS Bank believes the issue is outside the scope of the statutory factors for Board consideration under the Bank Merger Act... Goldman Sachs Bank USA ('GS Bank') hereby submits its response to the three comment letters, submitted on September 2, September 3 and September 9, 2015 (the 'Comment Letters'), by the Inner City Press's Fair Finance Watch ('FFW')....

"FFW makes accusations of 'predatory practices' in the 'mortgage field' and 'municipal finance,' and states that there are a number of compliance settlements that must be reviewed in connection with the Application. FFW references several articles related to lawsuits, settlements and other events, all but one of which involve Goldman Sachs but not GS Bank. GS Bank respectfully submits that such comments are not substantiated by specific arguments or facts. GS Bank notes that none of the articles relate to GS Bank itself, and believes these issues are outside the scope of the statutory factors for Board consideration under the Bank Merger Act.”

  Goldman Sachs is arguing that the acts of a parent company cannot be considered when its bank applies to buy ($16 billion) in insured deposits, an absurd argument. FFW has submitted another comment to the Fed, including that

"ICP has received by mail from Goldman Sachs' counsel a purported response which claims that issues ranging from conflict of interest and under-regulation by the FRB (evidenced for example by the audio leaked by whistleblower Carmen Segarra) is not cognizable under the Bank Merger Act - an absurd argument. The FRB would be the decision maker, therefore such issues must be addressed.

 "Goldman Sachs cavalierly states that since it withdrew some of its indefensible requests for confidential treatment of its application, that issues is resolved. It is not - too much is still being withheld. Significantly, Goldman Sachs has offered no explanation of the specious requests for confidential treatment it made, denying commenters access to information during the comment period. As others now argue, the comment period would be extended and hearing held."

  Inner City Press will be covering this wider National (Community Reinvestment Coalition) protest, in which it joins; it has also submitted more comments to the New York State regulator, in a proceeding currently slated to come to a head on September 28, the first day of the UN General Assembly debate.

September 14, 2015

So M&T, noted discriminator, has settled a Fair Housing Act case. But its purported partner Hudson County has not - the merger should not be considered for any approval. Time for a hearing.

On Goldman Sachs - GE Capital, ICP has formally demanded that the Fed provide a FOIA ruling that can be appealed, before the comment period closes, whether on September 19 or later...

September 7, 2015

Goldman Sachs Blacks Out Basic Parts of Application to Buy $16B from GE

By Matthew R. Lee

NEW YORK -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks, with Goldman Sachs the most recent example. Goldman is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed so far seems bent on helping. It is withholding basic parts of Goldman's application, click here to view.

 As Inner City Press exposed last month, Royal Bank of Canada jumped the gun and began doing business with City National Bank without any Federal Reserve approval (see Los Angeles Times, here.)

 Now, even as New York regulators says their comment period on Goldman Sachs' GE Capital proposal extends at least through September 28, Goldman has published fine print notices in the New York Post and a newspaper in Utah saying the Federal Reserve will stop listening on September 19.

  Really? After the Fed made Goldman Sachs a bank holding company with no public comment period at all, so Goldman could get a bail-out? After the Fed's coziness with Goldman Sachs was again demonstrated, by the audio taped by then-Fed examiner Carmen Segarra?

  Inner City Press immediately submitted a Freedom of Information Act request for all of Goldman Sachs' GE Capital application and related records. The Federal Reserve has provided a heavily redacted copy, on which Inner City Press / Fair Finance Watch has commented to the FRB in Washington:

"Among many other things, Goldman Sachs believes it can withhold the volume of deposits it seeks to acquire from GE Capital Bank, WHAT is seeks to acquire (and what not to acquire) from GE Capital Bank, its number of employees in Utah, the contact people on its application, the number of non profit organizations it tells the FRB it serves on the board of -- presumptively public -- and even the NAMES of the exhibits it seeks to withhold entirely. This is abusive and unprecedented and the FRB must, in response, have the comment period begin again. Otherwise, applicants only benefit by making absurd and abusive requests for confidential treatment. There is much more to be said, including at the public hearings ICP is requesting, but it is imperative that the Board act on this as quickly as possible."

When Goldman Sachs became a bank holding company literally overnight in 2008, Inner City Press / Fair Finance Watch and others including NCRC asked the Fed how this was done with no public comment period at all.

In other news,

Now Community Bank System has been asked, by the Federal Reserve:

On May 23, 2015, Inner City Press/Fair Finance Watch ('ICP') submitted a comment (Comment Letter) in protest of CBSI's proposed transaction, and in the Comment Letter, ICP alleged that: 'When the planned merger of Oneida Savings ·Bank and Community Bank, N.A., occurs in July, about 60 employees could be out of a job.' Our records do not reflect a response from CB SI to ICP's allegation. If you wish to provide a response, please do so within 7 business days.”

August 31, 2015

Fallout of a merger in Ohio: “A century-old tradition came to an end this week as Lorain National Bank officially ceased to exist because of to a merger with Pennsylvania-based Northwest Bank. The transition didn’t occur without problems, according to Lorain National Bank customers... One man described the changeover as 'a screwed-up mess' in a voicemail left with the paper. He said customers could not access their accounts online, while others went to various bank branches and found them closed, which bank officials say wasn’t the case. 'As far as we know all of our branches are open,' said Melanie Clabaugh, Northwest Bank’s manager of communications. 'As is the case with any transition, you can run into a couple of issues.'”

A couple of issues? Where are the regulators on this?

Well, the Federal Reserve produced a video purporting to say what the Community Reinvestment Act is - without any description of the public comment on merger process. Hmm...

August 24, 2015

As ICP begins new campaigns as well, Community Bank System continues anti-CRA moves in its proposal to acquire Oneida. ICP has just put in this comment:

This is a interim supplemental comment opposing and again requesting an extension of the FRB's public comment period on this application:

Community Bank, Inc., DeWitt, New York to acquire Oneida Financial Corp, Oneida, NY, & indirectly acquire State Bank of Chittenango, Chittenango, NY, & Oneida Savings Bank, Oneida, NYk, & thereby engage in the operation of a savings association pursuant to section 225.28(b)(4) 4 Chicago 05/26/2015

ICP is a timely protestant to the application; as such CBSI was required to send it copies of its submissions to the FRS including its responses to Additional Information letters.

The record reflects that CBSI incorrectly withheld the majority of its July 29, submission. ICP complained and FOIA-ed, and CBSI's counsel emailed it a second version of the response with less information removed.

Now by regular mail ICP has received CBSI's Associate General Counsel's supplemental letter purporting to further reduce or gerrymander the bank's proposed future CRA assessment area.

ICP opposes such gerrymandering. CBSI's main defense to its disparate lending record is to claim that its community is less diverse than the counties it is in. Now it seeks to further limit its assessment areas -- this is precisely the problem

CBSI, on which as noted ICP has previously commented, has been getting worse. In 2013 for conventional home purchase loans in the Buffalo MSA, Community Bank NA made 44 such loans to whites, NONE to African Americans or Latinos.

CBSI's focus is exemplified by this August 11 report: “Community Bank System's wealth management subsidiary has a new office now open in the North Country. The new location opened Aug. 3 in Plattsburgh. It offers investments, insurance and trust planning and management.”

Here for the record is another August 11 report: “In a letter dated Aug. 7, the Fed instructs Community Bank System Inc. to sign a document declaring that it will not control expenses or hiring at Oneida Financial before the deal closes. If Community Bank signs off, it agrees to not interfere with Oneida Financial’s normal course of business.”

See, http://www.bizjournals.com/buffalo/blog/morning_roundup/2015/08/community-banks-oneida-deal-must-meet-new.html

ICP has not received any copy of any such signed commitment, which in any event it contends would not comply with antitrust law or the Bank Holding Company Act

August 17, 2015

That a federal judge, Katherine Polk Failla, opined that New York City's Responsible Banking Act was preempted by the US and NYS Community Reinvestment Act is not surprising. But will the De Blasio administration appeal?

Julian Bond called #PredatoryLending “legalized extortion,” here in 2011: http://www.stlamerican.com/business/local_business/article_de13df1c-31a3-11e1-be27-001871e3ce6c.html …. #RestInPeace

August 10, 2015

Fed Asks Community Bank System - Oneida To Drop Two Merger Agreement Provisions

By Matthew R. Lee

NEW YORK, August 8 -- The lack of seriousness in US bank regulation extends from large to smaller banks. As Inner City Press exposed last month, Royal Bank of Canada jumped the gun and began doing business with City National Bank without any Federal Reserve approval (see Los Angeles Times, here.)

  Community Bank System of upstate New York filed with the Fed nine answers to questions asked after Inner City Press' challenge -- and tried to withhold fully eight of the nine responses. More here.

  Now an August 7 letter from the Federal Reserve to Community Bank System indicates problems with its February merger agreement, specifically Sections 5.7(b)(9) and (10). Click here to view Fed letter, uploaded by Inner City Press.

  How could a bank of this size, that wants to become bigger, write and sign a merger agreement like this?

 To find out, Inner City Press immediately filed a Freedom of Information Act request for the whole submission - and even the Federal Reserve has seen through Community Bank System's absurdly -- and tellingly -- overbroad withholding, releasing all but one part of one of the eight withheld responses.

  Here's is the Federal Reserve's letter to Inner City Press granting most of its FOIA request

August 3, 2015

Fed Rejects Community Bank System - Oneida Withholding 8 of 9 Responses

By Matthew R. Lee

NEW YORK, August 1 -- The lack of seriousness in US bank regulation extends from large to smaller banks. As Inner City Press exposed last month, Royal Bank of Canada jumped the gun and began doing business with City National Bank without any Federal Reserve approval (see Los Angeles Times, here.)

  Community Bank System of upstate New York filed with the Fed nine answers to questions asked after Inner City Press' challenge -- and tried to withhold fully eight of the nine responses. More here.

  Inner City Press immediately filed a Freedom of Information Act request for the whole submission - and even the Federal Reserve has seen through Community Bank System's absurdly -- and tellingly -- overbroad withholding, releasing all but one part of one of the eight withheld responses.

  Here's is the Federal Reserve's letter to Inner City Press granting most of its FOIA request: here is the now unredacted version of Community Bank System's submission.

July 27, 2015

To FRB, Community Bank System - Oneida Withhold 8 of 9 Responses

By Matthew R. Lee

NEW YORK, July 25 -- The lack of seriousness in US bank regulation extends from large to smaller banks. Last week the Federal Reserve hauled off and approved CIT - One West, with whose executives the Fed met before the deal was even announced a year ago.

  Further down the food chain, Community Bank System of upstate New York filed with the Fed nine answers to questions asked after Inner City Press' challenge -- and is trying to withhold fully eight of the nine responses. More here.

  Inner City Press is challenging this under the Freedom of Information Act, comparing Community Bank System's outrageous withholding at the Fed with other banks, and with Community Bank System's to the OCC, more here.

July 20, 2015

RBC - City National Gun Jumping Covered by LAT, After FFW Raised It, CBSI Contrasted

By Matthew R. Lee

NEW YORK, July 18 -- The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused Los Angeles-based City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch.

  Now the LA Times has reported on the "letter from the Fed [which] asks the banks to respond to questions raised in written comments by [FFW]. Spokesmen for the banks declined to comment.... Fair Finance Watch, a New York advocacy group for minorities, questioned a deal between the banks in a June 11 comment letter to the Fed."

  Inner City Press first put that Fed letter online, here; then Canada's National / Financial Post reported without credit it had "obtained" it.

  By contrast, in another pending proposal, CBSI - Oneida, the Syracuse Post-Standard disclosed that "Inner City Press forwarded the letter to news outlets. Some of the Fed's questions focus on whether Community could improperly control matters at Oneida in advance of the acquisition. Community is working on Fed's questions, said Hal Wentworth, Community's senior vice president for retail banking."

  One common theme is that non-control (and therefore antitrust) laws are being violated. One difference is that CBSI does comment to the media -- if only to blame the messenger -- while larger RBC and CNB do not. Arrogance?

 On CBSI's blaming the messenger, FFW has commented to the Fed that it will "will comment again when CBSI has provided a copy of its response to the FRS' questions of July 13. Beyond the CRA and impermissible “control” questions raised therein, we wish at this time to raise the issues that, in a public response to ICP's comments, CBSI's SVP for retail banking said the following, in a prepared statement no less:

'In a statement today, Hal Wentworth, Community's senior vice president for retail banking, 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."'

If it would be inappropriate for CBSI to comment on or disclose information about its customers, in this context the same applies to the above-quoted, which, separately, is reminiscent of human rights abusing countries emphasizing where the rights groups who study and report on them are based."

  On June 6, FFW submitted into the record before the Fed:

"RBC, City National off to friendly start ahead of $5.4B takeover Globe and Mail, May 26, 2015

July 13, 2015

On Dodd-Frank, ICP Asks IMF Of Redefining SIFI to $500B, Of Somalia Remittances

By Matthew Russell Lee

UNITED NATIONS, June 8 -- When the International Monetary Fund released reviews and papers about the United States, complete with support of the Dodd Frank Act and mentions of anti money laundering protection on June 8 Inner City Press asked about the proposal to raise the definition of Systemically Important Financial Institution from $50 billion up to $500 billion and if tight AML strictures are to blame for cutting off remittances to Somalia.

  Aditya Narain, IMF mission chief for the Financial Sector Assessment Program and deputy director, Monetary and Capital Markets department, told Inner City Press that the IMF believes such definition should give predictability, but should be based on risk and not necessarily only asset size.

  Narain told Inner City Press, "On the first one, our general belief is that supervisory approaches should be risk based, and therefore the materiality and proportionality of institutions should be taken into account for to develop supervisory frameworks. At the same time, we also recognize that it’s important to have some clear rules, regarding a unit, in this case size of institutions, because not only does it set a aseline of expectations, but it also provides a useful framework for people to anchor their expectations on. So that’s why, in a sense we would agree that it’s important to make these approaches risk based and therefore not dependent on size alone. I should add also, that our only political ideology is financial stability, for the purpose of this exercise.

  But will this be used FOR the Senator Richard Shelby draft bill?

  On remittances, Aditya Narain said it is an important question but one that the IMF is dealing with in other venues; it apparently wasn't raised to the US during this process. Why not?

 Narain told Inner City Press, "On the regulatory question, this is an issue which is being discussed in several forums where the IMF has been participating, and this is an issue not just for the US, although it has been most discussed in the context of the US, but the effects of the AML on remittances and the result, the stringent adherence to standards has led to a concern more globally that might be affecting the flow of remittances to those jurisdictions... where such remittances and the channels through which they flow are more important. We have not discussed this... there is work ongoing in the Fund, including in collaboration with other institutions like the World Bank... and we expect to be able to have more information on this in a few months time."

   In the embargoed media conference call, two questions in a row went to the Financial Times, which opined that the IMF report takes the side of the Democratic Party. The IMF disagreed. The IMF said, in writing, “As the epicenter of the global financial crisis that began in 2008, the United States passed a major law in 2010, the Dodd-Frank Act, to reform its financial system. Officials need to complete the rulemaking under the law, while parts of reform agenda face legislative proposals to water them down.”

   Central Banking asked two questions and Reuters one, on federal insurance regulation. The underlying papers will go online on the IMF's website. Watch this site.

Also: When the Fed acted on BB&T  - Susquehanna with FOIA issues not satisfactorily resolved, it said "in the first quarter of 2015, the FDIC also approved a proposal by Branch Bank to acquire 41 branches of Citibank, National Association, in Texas. In connection with that proposal, the FDIC directed Branch Bank to develop a CRA strategic plan." We'll have more on this.

July 6, 2015

RBC - City National Gun Jumping Questioned by Fed, After FFW Raised It

By Matthew R. Lee

NEW YORK, July 3 -- The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch.

  Now Royal Bank of Canada has been asked more questions by the Federal Reserve. Inner City Press has uploaded the letter, here.

  On June 6, FFW submitted into the record before the Fed:

"RBC, City National off to friendly start ahead of $5.4B takeover Globe and Mail, May 26, 2015, quoted from below.

  Now the Federal Reserve has asked RBC:

"A commenter alleged that in May 2015 RBC and CNB collaborated to extend credit to a customer of CNB.  Please address this claim. In your response, discuss in detail in detail whether RBC exercises a controlling influence over the management or policies of CNC or CNB without prior approval of the Board. In addition, discuss whether, since entering into the proposed transaction, RBC and CNB have collaborated, or plan to collaborate, on extending credit to any other borrower, and describe the nature and circumstances of those collaborations."

  There are other problems, including RBC's non-compete agreement with PNC Financial Services. But this gun-jumping should be fatal to the proposed merger.

June 29, 2015

ICP Asks Of Tax Evader HSBC & Remittance Cutter Westpac In UN Global Compact

By Matthew Russell Lee

UNITED NATIONS, June 25 -- The UN Global Compact was studied and praised in a 205 page study by DNL-GL, launched on June 25. Inner City Press asked DNL-GL's Henrik Madsen if he has listened to critics of the Compact as "bluewashing," having as members banks like HSBC which engage in tax evasion and predatory lending.

  Madsen replied that he would be telling companies later in the day that they should pay their taxes. Fine - but HSBC has helped its customer to evade taxes. What about that?

  Georg Kell of the Compact said Madsen will be joining the Compact board of directors; earlier he said he's told the Compact principles are in the Koran.

 Inner City Press asked about Westpac, which cut remittances to Somalia. This was not directly answered.

Back on June 5 financial inclusion was the topic at the UN when Queen Maxima of the Netherlands held a press conference at the UN, for which she's the the “Special Advocate for Inclusive Finance for Development.”

  Inner City Press asked Queen Maxima what she has done on the issue of banks like Barclays and Westpac cutting of remittances to Somalia. Video here.

Note: 
So rather than trying to explain to the Federal Reserve why it violated the law and began to collaborate with City National it hasn't been approved to acquire, Royal Bank of Canada on June 24 told the Fed it had managed to get another comment withdrawn. Well, not that of Inner City Press / Fair Finance Watch. Lawless....

June 22, 2015

Talk about phoning it in. The Fed on June 15 wrote or ruled, on an application where Inner City Press / Fair Finance Watch was the commenter:

The Board received two comments from a single commenter who objected to the proposal principally on the basis of Sterling Bank’s record of extending home mortgage credit to minority individuals in the New York-Wayne-White Plains, New York-New Jersey Metropolitan Division (“New York City MSA”) and the NassauSuffolk Metropolitan Division (“Nassau-Suffolk MD”), as reflected in data reported under the Home Mortgage Disclosure Act (“HMDA”)17 for 2013. The commenter expressed concerns that, based on 2013 HMDA data, Sterling Bank was not meeting th credit needs of minority individuals in the communities served by the bank.18 The commenter also contended that Sterling Bank’s HMDA data are “irregular.” The commenter noted that the bank reported three withdrawn and three incomplete applications for refinance loans to African Americans in the New York City MSA and no denials, suggesting that the bank is prescreening minority borrowers.

Fn 18: Sterling represented that Hudson Valley Bank is primarily a commercial lender and does not have a material mortgage program. Mortgage loans represented approximately 14 percent of the bank’s overall lending portfolio as of December 31, 2014.”

FN 19: Sterling asserted that three loan applications were withdrawn at the prospective borrowers’ request because they did not wish to continue the transaction and that the three other applications were deemed incomplete because the prospective borrowers did not provide the requested property, asset, or income documentation needed by the bank to make a lending decision.”

So the Fed accepts 14% as “not material”? And that all people of color “requested” to withdraw their applications is acceptable? This vague commitment does not make up for it:

Sterling Bank has determined to increase its marketing and outreach efforts to better serve the needs of its communities and has adopted its revised CRA Plan. Although the bank intends to remain primarily a commercial lender, it expects to increase its outreach efforts for residential mortgages. Sterling Bank also stated that it will continue pursuing the other community development and CRA-related initiatives set forth in its revised CRA Plan. Sterling plans to reassess the goals and objectives in its CRA Plan to determine if any adjustments are necessary to reflect the acquisition of Hudson Valley.”

We'll have more on this. And this - on another application ICP has commented on, this was reported:

In a statement today, Hal Wentworth, Community's senior vice president for retail banking, 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.'”

If it would be illegal for CBSI to so disclose information, for its own purposes, about those who have accounts with it, how is this not illegal too? And from a human rights perspective, what a pathetic and telling response. We'll have more on this.

June 15, 2015

  Inner City Press / Fair Finance Watch filed a fourth timely comment on RBC - City National on June 11:

By letter date June 1, the FRB granted FFW an extension of the comment period through June 11.
 
  Please note that RBC's belated release of some documents it improperly sought confidential treatment for does not resolve ICP's FOIA request - we are awaiting an FRB ruling in order to, if need be, appeal. We object, for example, to the continued redaction of “holder and interest” as to subsidiaries; even the ADDRESS of “Independence Investments, LCC,” even the description of Aston / LMCG and of City National Rochdale Hong Kong and RIM Securities and all of CNB Wealth Management; an unspecified volume of “Confidential” Exhibit 10; portions of the “Source of Funds” and “Interconnectedness” analysis; etc.

 Released (improperly withheld) information shows that RBC Bank did not make any community development loans, for example...

Meanwhile in Iowa, Farmers State Bank is planning on selling their closed branch property in Raymond -- with a 20 year deed restriction that another financial institution can not open in that location.
It's said the Union State Bank from Greenfield, Iowa is interested if the building was available. We'll have more on this.

June 8, 2015

RBC - City National Comment Period Extended, Banks Jumped the Gun

By Matthew R. Lee

NEW YORK, June 6 -- The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch.

  Now the Federal Reserve Board has granted FFW an extension of the comment period on the proposed merger, through June 11, FRB letter here, due to RBC improperly withholding information which was subsequently released after a Freedom of Information Act (FOIA) request by Inner City Press.

   FFW will comment by June 11 - but has submitted to the Fed an objection dated June 6 noting the two banks admitted they are already working together on transactions, without any authorization.

   FFW on June 6 submitted into the record before the Fed:

"RBC, City National off to friendly start ahead of $5.4B takeover Globe and Mail, May 26, 2015

June 1, 2015

After CRA protest, First Tennessee has told the Fed that “First Tennessee is committed to achieving the targeted 30% of originated mortgage loans to LMI borrowers and is preparing plans accordingly. First Tennessee has formed a project team and is developing a detailed execution plan including initiatives to leverage marketing programs, review underwriting guidelines, and assess product design. First Tennessee anticipates the detailed plan will be completed by August 31, 2015.” But why should any merger be ruled on before then? And why are the applicants trying to withhold information about HMDA and a mortgage company relationship?

May 25, 2015

While the Senate is debate letting “community” banks out of most regulations, with both parties more or less on board, here's a snapshop from the field:

in Raymond, Iowa the last branch was closed by Farmers State Bank, whose only loan denial was to a moderate income applicant. The (part time) mayor of the town complained to the FDIC, which held a tele-conference that left him feeling (seeing) the rubber stamp. And so it goes.

May 18, 2015

   So now in the Senate, a proposal to move the definition of Systemically Important Financial Institution from $50 billion up to... $500 billion.

  The Federal Reserve Board has hit a new low on Freedom of Information Act compliance. On May 15, its Governor Jerome Powell, put in charge of FOIA appeals after joining the Fed from Deutsche Bank and the Carlyle Ground, rubber stamped by rote all of the Fed's FOIA withholdings, for example on CIT - OneWest. Previous Governor in that post have most often overturned parts of the underlying denial, but Powell upholds each and every withholding -- like a FISA court, some say, or a court in Egypt. Inner City Press predicted this back in 2011-2012, and noted it on Capital One. But it has gotten worse.

  When New York Fed president William Dudley read a prepared speech to the Bronx Bankers earlier this month, he had a lot of canned advice on how to help the borough. He didn't say what he would do to actually enforce the Community Reinvestment Act and resist regulatory capture by Citi, Chase and Goldman Sachs...

May 11, 2015

Fed Withholds OneWest Branch Closing, CIT Internet Deposit Info, ICP Appeals

By Matthew Russell Lee

NEW YORK, May 9 -- Federal bank regulators remain captured by large and becoming-large banks like the CIT Group, a Freedom of Information Act response to Inner City Press from the Federal Reserve this week shows.

  Like the Fed's previous FOIA response, exclusively published here, that showed its officials met CIT and OneWest before their proposed merger was announced, this time the Fed is withholding information on services and branches to be shuttered by OneWest.

  These include a low income branch at 390 W. Valley Parkway, Escondido, CA 92025 and another at 2245-B Ventura Blvd, Camarillo, CA 93010.

  For another branch to be shuttered, the address is entirely redacted, blacked out. Inner City Press has submitted an appeal under FOIA, also for information withheld about CIT Bank's Internet Deposit Data by County. How can the Community Reinvestment Act be enforced in this way? Even the names of the counties have been withheld.

  Now that the US House Oversight Committee, though spokesperson Melissa Subbotin Sillin, is asking for FOIA horror stories, the Federal Reserve and the other bank regulators -- and the US State Department, on delay -- should and will be looked at.

May 4, 2015

  Last week Inner City Press / Fair Finance Watch filed opposition to the proposed merger of Royal Bank of Canada and City National Bank, which focuses on the most affluent. Click here for that. Now it emerges that others have opposed the deal too, noting that a focus on the affluent is inconsistent with the CRA.

 On this deal, the Federal Reserve has hit a new low - Inner City Press' request under FOIA of April 11, it waited to acknowledge until the stated end of the comment period. More than a week later, still none of the requested documents have been provided. We'll have more on this.

April 27, 2015

CRA Protest to RBC - City National, FFW on Lending Disparities

By Matthew R. Lee

NEW YORK, April 18 -- The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused City National Bank, is the subject of a Community Reinvestment Act challenge by Fair Finance Watch.

  This comes after the M&T - Hudson City merger stalled after similar filings by FFW. On Royal Bank of Canada / City National, the April 23 filing with the Federal Reserve says

City National Bank is known as a bank directed at the (most) affluent. RBC is that as well:

In the New York City MSA in 2013, for conventional home purchase loans, RBC made no loans to African Americans or Latinos. It made one loan to a white applicant (for $1.8 million) and six to “race not available” applicants, for a total of over $36 million.

RBC Bank (Georgia), in the Atlanta MSA in 2013 for conventional home purchase loans made one such loan to an African American, six to whites, and none to Hispanics. In the Raleigh NC MSA in 2013, RBC Bank (Georgia) made two loans to whites, none to African Americans or Latinos.

City National Bank, in the NYC MSA in 2013 for home purchase loans, made no loans to African American or Latino borrowers. It made 10 loans to whites - none denied -- and 35 to “race not available.” By income, there were 36 loans to upper income borrowers, and only one to the other income tranches.

City National Bank, in the Los Angeles MSA in 2013 for home purchase loans, made two loans each to African Americans and Latinos. It made fully 45 loans to whites.

City National Bank, in the Nashville MSA in 2013 for home purchase loans, made no loans to African American or Latino borrowers. It made one loan to a white borrower - none denied -- and six to “race not available.” FFW contests City National Bank's compliance with HMDA.

How is this consistent with the CRA? For the record, RBC previously bumbled in the USA with Centura and Alabama BanCorporation. Now it returns, only for the affluent. Hearings are necessary.

 Under the Freedom of Information Act, Inner City Press / FFW has submitted a

"a formal request under FOIA for the exhibits that Royal Bank of Canada has claimed are confidential and that the Federal Reserve has withheld from Inner City Press on its April 8 response to Inner City Press / Fair Finance Watch's April 4 request, including but not limited to the 'RBC Bank (Georgia), N.A. CRA Plan,' the list of subsidiaries, information pertaining to the U.S. structure of Royal Bank."

The withholding of this CRA plan - hearkening to the Federal Reserve rejected CIT's request to withhold such a plan, and extension of the comment period and holding of public hearing(s) - is outrageous; it must be released sufficiently before any closing of the comment period such that ICP can comment on it. We are therefore requesting all of the withheld exhibits (listed below)

AND all Federal Reserve communication with or about Royal Bank of Canada or City National since July 1, 2014.

Beyond the request for communications, including emails and text messages, these exhibits:

City National Corporation Subsidiaries; Information Pertaining to the U.S. Structure of Royal Bank; Integration Framework; Due Diligence Summary; Royal Bank of Canada Organizational Chart; RBC USA Holdco Corporation Organizational Charts; City National Corporation Organizational Chart; Pro Forma Financial and Related Information; Asset Quality Information; Risk Management Information; Royal Bank of Canada BSA/AML Compliance Program; Information pertaining to BSA/AML Integration; Interconnectedness Analysis; RBC Bank (Georgia), N.A. CRA Plan; Source of Funds; City National Corporation Dividend Information; Principal Information Information Pertaining to Item 3(2) and Item 12 of Form FR Y-3F

None of this information has been provided, even the CRA plan. The comment period must be extended and on the current record, the application must be denied.
 
  Inner City Press previously reported that filing by FFW with the Federal Reserve against M&T's application, that Hudson City in the New York City Metropolitan Statistical Area in 2011 made only five home purchase loans to African Americans, compared to hundreds to whites while denying the applications of African Americans 3.21 times more frequently than whites.

  That 2011 data was quoted by Bloomberg News earlier this month reporting that now the Department of Justice and Consumer Financial Protection Bureau are investigating Hudson City, putting the M&T deal, also challenged by NCRC and others, in doubt. Click here for that, here for the NJ Bergen Record, also citing Inner City Press / Fair Finance Watch.

April 20, 2015

After CRA Protest, Hudson City Probed, M&T Slowed, Updated Data Here from Fair Finance Watch

By Matthew Russell Lee, Exclusive

NEW YORK, April 18 -- Federal bank regulators remain captured by large and becoming-large banks like M&T, but less so relatively smaller institutions like M&T's target Hudson City Saving Bank.

  Inner City Press previously reported the filing by Fair Finance Watch with the Federal Reserve against the merger, that Hudson City in the New York City Metropolitan Statistical Area in 2011 made only five home purchase loans to African Americans, compared to hundreds to whites while denying the applications of African Americans 3.21 times more frequently than whites.

  That 2011 data was quoted by Bloomberg News last week, reporting that now the Department of Justice and Consumer Financial Protection Bureau are investigating Hudson City, putting the M&T deal in doubt. Click here for that, here for the NJ Bergen Record, also citing Inner City Press / Fair Finance Watch.

 But there's more, and its worse. FFW has just filed this comparison to 2013 with the Federal Reserve:

"Hudson City's record was even worse in 2013 than in the 2011 data cited above. In the NYC MSA for conventional home purchase loans, while Hudson City made (only) five such loans to African Americans in 2011, this fell to only FOUR such loans to African Americans in 2013, compared in 2013 to 427 such loans to whites: a more than one hundred to one ratio, totally out of step with the demographics and other lenders' records.

"For refinance loans in the NYC MSA, while Hudson City in 2011 made 8 such loans to African Americans in 2011, this fell to only SEVEN such loans to African Americans in 2013, compared in 2013 to 801 such loans to whites: again a more than one hundred to one ratio, totally out of step with the demographics and other lenders' records.

"This is presumptive discrimination and the reported DOJ and CFPB investigations are entirely appropriate and should be deferred to by the FRB. What does this say, as well, about M&T's due diligence and managerial resources?"

  Why has the Federal Reserve not dismissed M&T's application?

  The Office of the Comptroller of the Currency, part of the US Treasury, is scarcely better, releasing to Inner City Press on March 9 a redacted copy of Sterling's CRA presentation, here.

 Now on April 17 the Federal Reserve has asked Sterling questions about inconsistencies in its previous responses, and about Green Campus Partners. We'll have more on this.

  See here on the CIT Group and another belated Freedom of Information Act response to Inner City Press from the Federal Reserve on February 20. Uploaded exclusively here

April 13, 2015

Since 2012 Inner City Press / Fair Finance Watch has opposed M&T's proposal acquisition of Hudson City Bank. On (Good) Friday April 3, M&T announced it would not close by April 30. On April 6, Hudson City CEO Denis J. Salamone issued a statement that “given the unexpected notice of delay over a holiday weekend, the board of Hudson City needs more time to understand the nature and timing of the delay and its potential impact on the transaction before the board can determine its course of action.” Ouch...

April 6, 2015

Here are two comment periods: RBC - City National to April 23 to the New York Fed (Inner City Press / Fair Finance Watch has already commented), and Pac West - 1 Square to May 1 to the San Francisco Fed - watch this site for more on this and other applications...

March 30, 2015

Among community-based groups there's more and more talk about bank branch closing, how to find out about them in advance and try to stop them or reduce the negative impact.

Inner City Press / Fair Finance Watch notes that while the Office of the Comptroller of the Currency includes branch closures in its old-school “Weekly Bulletin” along with pending mergers, the Federal Reserve and FDIC do not include branch closures in their online lists of pending applications. This shield state banks, along with their branch closures, in secrecy. It is something we aim to address.

March 23, 2015

Here's something wrong - M&T Bank, when it submitted CRA answers to the Federal Reserve on March 4 by its Group Vice President Brian R. Yoshida did NOT send copies to Inner City Press / Fair Finance Watch, NCRC and the other commenters. This was only done more than a week later by M&T's outside counsel at Wachtell, Lipton who is Patricia A. Robinson, who used to work in the Fed's Legal Division. Something's wrong here...

March 16, 2015

Fed Belatedly Asks M&T About Discrimination, Sterling on CRA

By Matthew Russell Lee, Exclusive

NEW YORK, March 9 -- Federal bank regulators remain captured by large and becoming-large banks like M&T and even Sterling Bancorp, belated responses to Inner City Press under the Freedom of Information Act show.

  On M&T's pending application to acquire Hudson, on March 9 the Federal Reserve belatedly informed Inner City Press / Fair Finance Watch that it spoke by telephone with M&T on February 19, about a discrimination in lending lawsuit against it. Published by Inner City Press online here.

  The Office of the Comptroller of the Currency, part of the US Treasury, is scarcely better, releasing to Inner City Press on March 9 a redacted copy of Sterling's CRA presentation, here.

  See here on the CIT Group and another belated Freedom of Information Act response to Inner City Press from the Federal Reserve on February 20. Uploaded exclusively here, embedded below.

March 9, 2015

When Citigroup finally dumped its subprime CitiFinancial, renamed OneMain, who was it to? Why, the old predator American General, about which Inner City Press also received many complaints, since renamed Springleaf. Plus ca change...

March 2, 2015

  While there are other challenges going forward, here was Inner City Press / Fair Finance Watch testimony read into the record in Los Angeles by CRC (thanks) on February 26:

Inner City Press / Fair Finance Watch

Testimony in Opposition to CIT / OneWest by Inner City Press / Fair Finance Watch

February 26, 2015

Good afternoon, Presiding Officers and Panelists. This is the testimony of Inner City Press / Fair Finance Watch and its director Matthew Lee, which CRC has been kind enough to read into the record for us.

When this proposed merger was announced Inner City Press asked the Federal Reserve for information about it, due to concerns about CIT and OneWest's roots in the failed IndyMac.

Inner City Press raised to the Fed, and later the OCC, that just for example here in the Los Angeles MSA, OneWest had made 28 home purchase loans to whites and NONE to African Africans; it had made 12 home improvement loans to whites and NONE to African Americans.

There was and is also the question of the agreement the FDIC reached with IndyMac / OneWest, and whether wannabe SIFI CIT would assume it, as a windfall.

But things got worse. First, CIT tried to withhold even its Community Reinvestment Act plan. Inner City Press pursued this and more documents under the Freedom of Information Act.

The CRA Plan was released, but only last Friday did the Federal Reserve finally response to Inner City Press' August 26 FOIA request for CIT's and OneWest's communications with the Federal Reserve System since January 1, 2014.

While many, many pages have been withheld, and Inner City Press has appealed that under, what was released shows an insider process which, we believe, this single belated public meeting cannot cure.

While today John Thain of CIT testified to this public hearing, back on July 1, three full weeks before the merger was publicly announced, Thain met about it with senior Federal Reserve officials in Washington about it. OneWest's Joseph Otting was there too, and M&A lawyers from Sullivan & Cromwell and Wachtel Lipton.

Otting earlier this year solicited colleagues to oppose the holding of this public meeting and now, apparently, to testify at it.

In fact, there are documents inside the Fed as far back as April 24 -- three months before the merger was announced -- the Federal Reserve's Michael Lipman wrote to three others that, quote

Based on details from the most recent CIT April BOD meeting, there is a likelihood CIT may approach FRB in the near term to discuss an acquisition of OneWest NA (Private, ~$23B in assets ). Couple points [REDACTION]. I will keep you updated as discussions develop. [REDACTION].”

Inner City Press has appealed these and all other redactions.

Perhaps worst of all, there appear to be redactions to the Loss Loss Agreements -- all withheld information should be released, and the comment period extended.

Many of the documents provided are STILL being redacted and withheld, even seven months later as this single public hearing is taking place. Inner City Press asked that given the issues, additional public hearings be held, in New York where CIT is based, and elsewhere, where other members of the National Community Reinvestment Coalition, of which Inner City Press, CRC and others here are members, have requested them.

    This was apparently denied. Freedom of Information Act appeals are pending, and more comments will be forthcoming.

This insider merger should not be approved.


February 23, 2015

CIT's Thain Met Fed 3 Weeks Before OneWest Merger, FOIA Shows, Redactions

By Matthew Russell Lee, Exclusive

NEW YORK, February 20 -- Federal bank regulators remain captured by large and becoming-large banks like the CIT Group, a belated Freedom of Information Act response to Inner City Press from the Federal Reserve on February 20 shows. Uploaded exclusively here, embedded below.

   Back on August 26, 2014, Inner City Press submitted a FOIA request to the Federal Reserve Board for CIT's application to acquire OneWest and for the Federal Reserve's communications with or about the companies since January 1, 2014.

  After Inner City Press and Fair Finance Watch repeatedly complained about the withholding even of CIT's Community Reinvestment Act plan, and after the Fed and the Office of the Comptroller of the Currency had agreed to ICP's and others' request for a public hearing, now scheduled for February 26, only on February 20 -- seven months after the request -- did the Fed provide the responsive documents, over one thousands pages.

  Many of the released pages are redacted in full, others have redacts to for example sentences referring to documents about CIT's [REDACTED]. Inner City Press has submitted a Freedom of Information Act appeal and request that the comment period be extended.

  But even as released, and exclusively uploaded today here, the document show the degree of insider treatment CIT, its CEO John Thain and its lawyers including Rodgin Cohen of Sullivan & Cromwell are given by the Federal Reserve.

   While the proposed merger was only announced to the public on July 22, 2014, it appears in Federal Reserve correspondence as far back at April 24, 2014.

  On that day, Michael Lipman of the Federal Reserve Board's Banking Supervision and Regulation (BS&R) department wrote to three others that “Based on details from the most recent CIT April BOD meeting, there is a likelihood CIT may approach FRB in the near term to discuss an acquisition of OneWest NA (Private, ~$23B in assets ). Couple points [REDACTION]. I will keep you updated as discussions develop. [REDACTION].” Page 1 of ICP upload; appealed.

   Then in June, Rodgin Cohen of Sullivan & Cromwell and CIT's John Thain arranged to meet with the Federal Reserve, to some it appears to receive a form of pre-approval of the proposal.

   On June 24 senior Fed staff were asked to hold time to meet with Rodgin Cohen. On June 25, Lipman wrote again:

“CIT is meeting with FRBNY (John Ricketti and others) next Monday at 11am to discuss a potentially large acquisition. CIT has yet to send a discussion deck but will have more details later this week (OneWest continues to be the assumed target: $22B out of CA). John Thain’s secretary has bee guided to me to help set up a meeting in DC and I am expecting to hear from her by Friday. That said, it is also possible that they may reach out to one of you; CPC Cheatham is under the impression they have a different contact in DC as well (he is not sure who).” Page 6 of ICP upload.

  Later that day it was said that “the meeting with be in Scott's office so space will be limited.” Scott is Scott Alvarez, the Fed's longtime general counsel.

  On June 30, the Fed's Richard Naylor wrote to Lipman, “ I wouldn’t worry about any briefing material for Scott. Most likely Rodgin will do all the talking...”

   Scott Alvarez's self-described Gate-keeper told Lipman who would come: “The Chairman and CEO of CIT and 6 other guests; 3 from One West; 1 from Wachtell, Lipton, Rosen & Katz and 2 from Sullivan and Cromwell. Total of 13 outsiders.” Page 163 of ICP upload.

    These “outsiders” sound like insiders.

Exclusive: CIT's Thain Met Fed Staff 3 Weeks Before OneWest Merger, FOIA Response Shows, Loan Loss Redactio... by Matthew Russell Lee


  The next day the attendees were described:

Readout of Meeting on Proposed Merger between CIT and OneWest Tue 7/1/2014 12p-1p, B-4001

Outside Attenders: ~13

Executives from CIT (~7-8) included CEO John Thain, formerly CEO of Merrill Lynch

Executives from OneWest (~3) included CEO

Lawyers (~2-3) included Rodgin Cohen (Sullivan Cromwell) and a Wachtell Lipton lawyer

Board Attenders: ~10-12

  So the “outsiders” from Wall Street had more attendees that the Fed, even insider the Fed.

    The Fed's Alison Thro put it in context: “Rodgin is coming in to preview the proposed acquisition because it will be the first transaction to create a more than $50 billion institution since Dodd-Frank was enacted.”

  Also on June 30, the Fed's Elizabeth Kiser wrote to Fed economist Jacob Gramlich, “I dug a bit and found some materials on CIT’s [REDACTED].” There follow more than 100 pages of redacted material. Page 25 to 149 of ICP upload; appealed.

   By July 9, still before any public announcement by CIT, the project had been code-named Carbon / Oxygen and the Fed was reviewing (and now apparently redacting) the OneWest / Indymac / FDIC Loan Loss Agreements. These will be discussed at the February 26 public hearing, and beyond.

  Once they applied for approval and groups like Inner City Press / Fair Finance Watch, NCRC, CRC and others submitted comments in opposition, the Fed was required to follow its rules against ex parte communications.

  But the extensive communications that took place before then were withheld for seven months, and some are still being withheld.  Today, Inner City Press / Fair Finance Watch exclusively uploads these documents, in preparation for the public hearing, and beyond. Watch this site.

February 16, 2015

Amid the reporting on HSBC's money laundering, too little has been said that at the same time, HSBC was buying and running predatory lender Household Finance / HFC. Abusing consumers is apparently not as newsy -- but it is related.

February 9, 2015

With CIT OneWest Merger Under Fire, Hearing Feb 26 by Fed & OCC

By Matthew Russell Lee

UNITED NATIONS, February 6 -- The US government's ongoing corporate bailout following the 2008 meltdown triggered by predatory lending continues to reverberate in one of the largest proposed mergers of 2014 now into 2015.
 
  Now on February 6, a public hearing has been announced:

"The Federal Reserve Board and the Office of the Comptroller of the Currency (OCC) on Friday announced a joint public meeting on the proposal for CIT Group, Inc., Livingston, New Jersey, to acquire IMB Holdco and its subsidiary, OneWest Bank, National
Association, both of Pasadena, California. The proposal also includes the merger of CIT Bank into OneWest Bank.

"The purpose of the meeting is to collect information relating to the convenience and needs of the communities to be served, including a review of the insured depository institutions’ performance under the Community Reinvestment Act. The agencies also will consider and collect information on other factors in making a decision on the application, including the effects of the proposal on the stability of the U.S. banking or
financial system, the financial and managerial resources and future prospects of the companies and banks involved in the proposal, and competition in the relevant markets.

The public meeting will be held at the Los Angeles Branch of the Federal Reserve Bank of San Francisco, 950 South Grand Avenue, Los Angeles, California, on Thursday, February 26, 2015, beginning at 8:00 a.m. PST."

February 2, 2015

In New York fair lending news, the State AG has settled with Five Star, for “two new Rochester-area branch offices in neighborhoods with a minority population of at least 30 percent. Five Star also will create a special financing program that will provide $500,000 in discounts or subsidies on loans to residents of majority-minority neighborhoods in the Rochester metro area, as well as a marketing program that will commit $250,000 to advertising aimed at minority communities. Other elements of the agreement call for Five Star to pay $150,000 in costs to the state, provide fair-lending training to employees, and submit to reporting and monitoring for a three-year period.”

The case against Evans Bancorp continues...

January 26, 2015

Ghoulish: OneWest, seeking to be bought by CIT, has in a response to the Federal Reserve sent to Inner City Press admitted that on its reverse mortgages, when the borrower dies and if his or her spouse was not a co-borrower, they get evicted. OneWest is blaming this on HUD. Combined with OneWest's CEO's pitch to Wall Street cronies to oppose any public hearings - now public hearings should absolutely be held. We'll have more on this.

January 19, 2015

This week we note that Antonio Weiss' nomination requiring confirmation has been withdrawn. When he was nominated in November, @InnerCityPress questioned it, here: Fox, Henhouse. The withdrawal shows that, belatedly, there's some questioning of just moving people from Wall Street (at Lazard, he was head of mergers) into the regulatory agencies. That Teasury Secretary Jack Lew was at Citigroup, seems nothing can be done about that for now.

But while his nomination requiring confirmation has been withdrawn, Weiss is still in line to become a senior adviser to Lew. How is that OK? We'll have more on this.

January 12, 2015

With CIT Merger Under Fire, OneWest Asks Wall Street to Lobby Yellen

By Matthew Russell Lee

UNITED NATIONS, January 10 -- The US government's ongoing corporate bailout following the 2008 meltdown triggered by predatory lending continues to reverberate in one of the largest proposed mergers of 2014 now into 2015.

  On December 22, pressing for approval of its application to acquire OneWest, CIT told the Federal Reserve, "CITB and OWB are not yet able to provide specific details about the expanded Community Reinvestment Act portfolio because this will be based, in part, on input from CITBNA’s to-be-formed Community Development Advisory Board following the closing of the Transaction."

  That's basically saying, approve our merger (on which the Fed is required to consider CRA), and THEN we'll tell you about CRA.

 Now it gets worse. Here is an email that OneWest CEO Joseph Otting sent to Wall Street and other financiers, to lobby the Fed, h/t CRC:

From: Otting, Joseph M [at] owb.com
Sent: Wednesday, January 07, 2015 5:00 PM
Cc: Haas, Alesia Jeanne; Tran, Cindy; Kim, Glenn
Subject: Support For OneWest Bank
 
Dear Friends,
 
We were excited to announce on July 21, 2014, that IMB HoldCo LLC, the parent company of OneWest Bank entered into a merger agreement with CIT Group Inc. As part of the applications for regulatory approval of the transaction, our regulators are interested in the perspectives of the public. We are writing you to seek your support of the Bank and pending merger. This merger, if approved, would create the largest bank headquartered in Southern California with a full suite of banking products and services, which will allow us to better serve our customers. We would retain and grow jobs and are committed to continuing and expanding our efforts to serve the economic and development needs of our community. I would like to ask you to take a moment to click on the link below and submit a letter of support adding any of your own words or thoughts.
 
Please submit your letter by clicking here, or by visiting our website at www.OneWestBank.com/merger-support (if the link isn't clickable or part of the link is cut off, please copy and paste the entire URL into your browser's address bar and press Enter)
 
Thank you for your support.  Best wishes for a successful 2015 and please call on me if I can ever be of assistance.
 
Joseph M. Otting
President and CEO
OneWest Bank N.A.
888 East Walnut Street
Pasadena, CA 91101

  Now Inner City Press / Fair Finance Watch, along it's sure with the California Reinvestment Coalition, has submitted this to the Fed demanding that public hearing in fact be held, after what an independent bank consultant told Bloomberg News is "unusual" outreach to Wall Street contacts by OneWest.  What will the Fed do?

* * *

Tellingly, when lawyers leave the Federal Reserve's Legal Division, many go to white shoe law firms that submit bank merger applications to the same people they until recently worked with or supervised.

  Inner City Press, Bronx-based Fair Finance Watch and NCRC have repeatedly raised this to the Fed, without meaningful response.

January 5, 2015

How can it be that the Office of the Comptroller of the Currency, even after the first of the year, has its most recent “Weekly Bulletin” of applications pending dated December 13, even though the comment periods run 30 days or less? Do they want to receive comments?

December 29, 2014

  The Federal Home Loan Bank of Des Moines on December 22 announced, with the and the Federal Home Loan Bank of Seattle that "the Federal Housing Finance Agency (FHFA) has approved their merger application submitted on October 31, 2014, subject to satisfaction of specific closing conditions set forth in the FHFA approval letter, including the receipt of approvals by members of both Banks. Details are included in the Banks’ related Form 8-K filings with the Securities and Exchange Commission. “This is a critical milestone in the merger approval process,” said FHLB Des Moines President and CEO Dick Swanson. “We appreciate the care and attention the FHFA has shown, not only in its review of our merger application, but throughout this entire process" -

 Care including ignoring comments from the public. We'll have more on this.

December 22, 2014

CIT Says Don't Worry About Loss Shares

By Matthew Russell Lee

UNITED NATIONS, December 18 -- The US government's ongoing corporate bailout following the 2008 meltdown triggered by predatory lending continues to reverberate in one of the largest proposed mergers of 2014.

 On December 18 the CIT Group submitted to the Federal Reserve statements from the FDIC, in essence not to worry about the Loss Share Agreements OneWest has won from the FDIC:

"OWB acquired assets from three failed banks — IndyMac Federal Bank, FSB ('IMFB'), First Federal Bank of California, and La Jolla Bank, FSB (the 'Failed Banks'). The FDIC entered into Shared-Loss Agreements with OWB in these acquisitions with respect to certain of the acquired assets."

  Now the regulators say, don't worry as CIT seeks to take these loss-shares over, although their value will not for now be disclosed:

The FDIC's Division of Resolutions and Receiverships does not release shared-loss payment information on individual acquirers or assets because those records often contain material, non-public information, and their release could harm the negotiating posture of the acquirer with respect to a particular borrower or asset, thereby potentially increasing the amount of a covered loss to the FDIC.”

  This is called stonewalling, or a cover-up. We'll have more on this.

December 15, 2014

With FOIA Reforms Blocked by Bank Lobbyists, Silence by NYT, Reuters

By Matthew Russell Lee

UNITED NATIONS, December 10 -- With the window closing on a bill to improve the US Freedom of Information Act, after outgoing Democratic Senator from West Virginia Jay Rockefeller put a block on the bill, S. 2520 (statement here), which he then removed, now bank lobbyists are in the way. 

   And STILL there's been little coverage by media like the New York Times and Reuters.

 Here is the Senate report, providing multiple assurances to banks on FOIA Exemption 8:

"Extreme care should be taken with respect to disclosure under Exemption 8 which protects matters that are 'contained in or related to examination, operating, or condition reports prepared by, on behalf of, or for the use of an agency responsible for the regulation or supervision of financial institutions.' [FN 20: 5 U.S.C. § 552(b)(8)]

  Here is the official summary of the FOIA Improvement Act of 2014:

FOIA Improvement Act of 2014 - Amends the Freedom of Information Act (FOIA) to:

(1) require federal agencies to make agency records that can be disclosed under such Act available for public inspection in an electronic format,

(2) limit the authority of an agency to charge a fee if the agency misses a deadline for complying with a FOIA request,

(3) establish a presumption in favor of disclosure and prohibit the application of exemptions from FOIA based on technicalities,

(4) expand the authority and duties of the Chief FOIA Officer of each agency for promoting compliance with the FOIA disclosure requirements, and

(5) establish a Chief FOIA Officers Council to develop recommendations for increasing compliance with FOIA
requirements. Requires the head of each federal agency to:

(1) review agency regulations and issue regulations for the disclosure of records in accordance with the amendments to FOIA made by this Act, and

(2) include in such regulations procedures for engaging in dispute resolution through the FOIA Public Liaison and the Office of Government Information Services. Expands the program for the efficient management of federal agency records to require agency heads to establish procedures for:

(1) identifying records of general interest or use to the public that are appropriate for public disclosure, and

(2) posting such records in a publicly-accessible electronic format. Prohibits the authorization of additional funds to carry out the requirements of this Act.

 Now, even after Senator Rockefeller under pressure removed his block and then the House is lobbied not to take it up, where is the coverage, for example in the New York Times and Reuters? 

  Back in July, US Voice of America as propaganda was belatedly covered by the Times, but ignoring the role of VOA and its Broadcasting Board of Governors as censors, trying for example to get the investigative Press thrown out of the United Nations (where it and the Free UN Coalition for the Access are pushing for a FOIA for the UN. At the UN, Reuters is in the business of censoring information, such as its "for the record" complaint to the UN trying to get the investigative Press thrown out, via ChillingEffects.org, here.)

December 8, 2014

When the Economic Growth and Regulatory Paperwork Reduction Act hearing was held in Los Angeles in December 2, the Office of the Comptroller of the Currency took a unique approach -- its Tom Curry tried to tell the public commenters what they could comment on. When the CIT - OneWest merger, which the OCC “erroneously” listed as approved then corrected, was brought up, Curry said that should not be a topic of testimony. Why not? We'll have more on this.

December 1, 2014

After regulatory laxity led to a predatory-lending triggered global financial meltdown, what's the move in 2015? Deregulation. It starts this week in Los Angeles, a hearing under the Economic Growth and Regulatory Paperwork Reduction Act of 1996.

It moves on in 2015 to Dallas on February 4, Boston on May 4, Chicago in October (at a date to be determined), and Washington, D.C. on December 2.

We note: anyone can comment, during the comment period(s) http://egrpra.ffiec.gov/submit-comment/submit-comment-index.html

We'll have more on this.

Update: from the OCC: THESE APPLICATIONS APPEARED INCORRECTLY IN A PRIOR WEEKLY BULLETIN

Details APPROVED 11/3/2014 BUSINESS COMBINATIONS 2014-WECOMBINATION-

139872 ONEWEST BANK, N.A. CIT BANK 2180 SOUTH 1300 EAST SUITE 250 SALT LAKE CITY UT SALT LAKE

Whatever...

November 24, 2014

  After our report last week, below, asking "How low at the Office of the Comptroller of the Currency go? On the application by CIT to acquire OneWest Bank, with issues of abuse of the bailout and evasion of CRA raised not only by Fair Finance Watch but also groups across California and NCRC in DC, the OCC quietly approved the application on November 3, providing notice only in its archaic 'Weekly Bulletin.' We'll have more on this," the OCC has responded:

"Matthew, I understand that you identified this entry, below, on the OCC’s Weekly Bulletin. I wanted to let you know that this entry was in error and that this case has NOT been decided. There will be a correction in the next Weekly Bulletin."

 We'll keep any eye out of that - the Bulletin for the week ending November 15 has an approval for Webster - JPM Chase. Does that one stand? Was "send" hit prematurely? Watch this site.

November 17, 2014

How low at the Office of the Comptroller of the Currency go? On the application by CIT to acquire OneWest Bank, with issues of abuse of the bailout and evasion of CRA raised not only by Fair Finance Watch but also groups across California and NCRC in DC, the OCC quietly approved the application on November 3, providing notice only in its archaic “Weekly Bulletin.” We'll have more on this.

November 10, 2014

Submitted on the CRA Q&A:

RE: Proposed Changes to the Interagency Q&A Regarding Community Reinvestment

Fair Finance Watch is writing to respond to the request for comments on the proposed changes to the “Interagency Questions and Answers Regarding Community Reinvestment.” We focus this timely comment on urging the agencies to reconsider the suggestions regarding alternative service delivery methods.

The notice states that “The Agencies propose deleting language that states 'performance standards place primary emphasis on full service branches' and further deleting the statement that provides that alternative systems are considered 'only to the extent' that they are effective alternatives in providing needed services to low- and moderate-income geographies and individuals.”

In many low and moderate income neighborhoods, particularly communities of color, bank branches remain need and too-few. Whereas mergers and acquisitions result in numerous branch closings, the Agencies most often decline to make applicants public disclose which branches they would close. Now the Agencies propose to stop place “primary focus on full service branches.” We oppose this.

For the record, US Bank closed branches; First Niagara is closing 17 branches, Citibank is closing branches: see final section of http://www.occ.gov/topics/licensing/corporate-activities-weekly-bulletin/wb-10122014-10182014.pdf

November 3, 2014

Now CIT says, “In the four comment letters submitted by Matthew Lee/Inner City Press/Fair Finance Watch, dated September 6, 2014, October 9, 2014, October 11, 2014, and October 22, 2014, Mr. Lee, relying on HMDA data, notes that, in 2012, OWB did not originate any single family mortgage purchase loans or home improvement loans to African Americans in the Los Angeles-Long Beach-Glendale MD.” CIT does not dispute that fact. Instead, it submits “letters of support” from, among others, the Los Angeles Police Department, and the Boys & Girls Clubs of Santa Monica and Pasadena, each paid $75,000.

October 27, 2014

So, "First Niagara Financial Group announced it will close 17 branches and two off-premise drive-through locations across its four-state footprint early next year." This is after they were allowed to buy a slew of HSBC branches - this is how it works, or doesn't...

October 20, 2014

After CIT Is Forced To Release CRA Plan, ICP Slams It & "Clawback" Redactions

By Matthew Russell Lee

UNITED NATIONS, October 18 -- The secret recordings of then Federal Reserve examiner Carmen Segarra about Goldman Sachs and regulatory capture have given rise to calls for oversight hearings by at least two US Senators, and to spin from the Federal Reserve Bank of New York.

  On October 10, Inner City Press was sent heavily redacted copies of two letters from the CIT Group concerning its proposed acquisition of OneWest to the Federal Reserve Bank of New York, supposedly in compliance with the Freedom of Information Act - now uploaded to Scribd here and here.

   On October 18, Inner City Press & Fair Finance Watch challenged these redactions under FOIA, and submitted  comments on CIT's mockery of the Community Reinvestment Act to both the Federal Reserve and the Office of the Comptroller of the Currency.

  CIT sought to withhold even its CRA plan. Inner City Press raised the issue to Fed Chair Yellen in Washington - and on October 15, the Federal Reserve called Inner City Press and left a voice mail to say its request for extension of the comment period, because of the incorrectly withheld CIT documents, has been granted until October 22.

   While appreciating the Fed's comment period extension, the context and public policy questions recently raised must be noted.

  For now, on October 18 Inner City Press & Fair Finance Watch submitted a fourth timely comment to the Fed, critiquing the belatedly released CRA Plan, and demanding release of still - withheld information:

   The CIT CRA Plan which CIT improperly withheld states, in Section III, that “the Bank has lending and support operations primarily located in Florida, New York and New Jersey” -- then states its CRA Program is in Salt Lake City, Utah and “the western United States.”

  This is makes a mockery of CRA, explicitly separating the bank's lending operations from its “CRA” operations.

  In Section IV, CIT makes claims about outreach and “public participation” in its CRA Plan - but in outreach and participation excluded the communities in which CIT has its lending operations (FLA, NY and NJ) and from which, on information and belief, it collects insured deposits.  

  This is makes a mockery of CRA, explicitly separating the bank's deposit taking from its “CRA” operations and outreach. See limited list of contacts in Appendix C, and proof of publication in (only) the Salt Lake Tribute and Deseret News.

  Even in its artificial limited assessment area, CIT's “New CRA Assets” are less than 1% of its Assets.

  While still improper, the above provide a motive for CIT's attempt to withhold its CRA Plan from the public...

  As to CIT's October 8 letter, ICP has already timely commented “there is also the question of the agreement the FDIC reached with IndyMac / OneWest, and whether wannabe SIFI CIT would assume it, as a windfall. These are important questions militating for both the required extension of the comment period, and for public hearings.”
 
  In the October 8 letter, CIT begins a sentence on page 3 “Clawback provisions exist for the First Fed and La Jolla portfolios [REDACTED.]” CIT also redacts, on page 6, information related to the OnWest / IndyMac Consent Order; HAMP (Page 7); deposits collected over the Internet (Page 8); Lending (Page 9); Governance and Risk Management (page 10-12); and Resolution Plan (Page 12). CIT also heavily redacts what it calls “confidential questions” (pages 14-16), and exhibits. This information must be released, and the comment period extended.  In an abundance of caution, ICP has submitted a FOIA request to this effect.

October 13, 2014

As Valley National Bank Redlines, OCC Gets Vague Bronx Commitment, Rubber Stamps

By Matthew R. Lee

SOUTH BRONX, NY -- While the US Federal Reserve is subject to high profile accusations of being "captured" by those it regulates in the wake of staffer Carmen Segarra's leaking of Goldman Sachs related audio, the Office of the Comptroller of the Currency, by one measure, is even more captured.

   Since May Inner City Press and others have commented to the OCC about Valley National Bank's proposed acquisition of 1st United Bank in Florida. Valley National in New York City has no branches above 88th Street in Manhattan and none in the Bronx. It is old-school redlining, in its mortgage lending as well.

  After denying Inner City Press access to information responsive to its Freedom of Information Act requests, now the OCC has approved Valley National's application, saying as part of a condition that Valley National will do better in the Bronx, then admitting in a footnote that the bank provided no detail.

  The OCC's Conditional Approval says Valley National "committed to hiring a dedicated lending team to develop
commercial loans in the Bronx, New York (Bronx). Pursuant to this commitment, Valley National represented that it has hired two additional lending officers."

  But then in a footnote, the OCC says, "Valley National did not provide additional detail related to the work of the new dedicated lending team in the Bronx."

  Unlike the Federal Reserve, the OCC says it does not consider if there is any public benefit to mergers. The OCC says:

"the commenters refer to the need for the merger to create a "public benefit." Under 12 CFR 225.24(a)(2)(iii), which applies to proposals submitted to the Board of Governors ofthe Federal Reserve System by bank holding companies seeking to engage in nonbanking activities, the holding company is required to provide a "statement of the public benefits that can reasonably be expected to result from the proposal." In reviewing a financial institution's application to merge with another financial institution, in this instance the application to merge 1st United with and into Valley National, the OCC considers the "convenience and needs of the community to be served" as required under 12 U.S.C. § 1828(c)(5)."

  The OCC gives weight to it own Community Reinvestment Act exams, but consider its record, in data compiled by NCRC:

In the first eight months of 2014, the OCC conducted 266 CRA exams and did not award a single national bank a rate of substantial non-compliance or even "Needs to Improve." The FDIC and the Federal Reserve both awarded grades in each of these categories, albeit the Fed only one of each.

  Perhaps understandably, the OCC's Valley National Conditional Approval says, at footnote 4, "Some of the commenters' concerns were directed at the OCC's CRA performance evaluation process and, as such, are not addressed in this letter."

  So when will these concerns be addressed?

October 6, 2014

Back on August 26, Inner City Press / Fair Finance Watch began challenging the proposed acquisition of OneWest (that's IndyMac) by CIT. Now, the Office of the Comptroller of the Currency has its own comment period, through October 17, and the Federal Reserve's comment period has been extended from September 24 to October 10.

The Fed has asked CIT a series of questions, including “discuss CIT Group's plans to manage OneWest Bank's mortgage servicing assets and nontraditional mortgage loan portfolio, including CIT Group's plans to ensure compliance with relevant federal and state regulations.

As provided to Inner City Press so far, the application withholds the “CRA Plans” of both banks, while making claims about these plans:

Since the 2013 performance evaluation, CITB has implemented its CRA Plan covering 2013-2017, which is included in Confidential Exhibit 9;”

OWB has a strong CRA compliance program and has developed a CRA plan, included in Confidential Exhibit 9;” and

CITBNA will create and operate under a new CRA plan, which it will develop subject to regulatory review.”

This is a mis-reading, even a perversion of the Community Reinvestment Act, that these two documents and the projected third one can be withheld or subject only to “regulatory” review, and not public review. The documents, timely requested, must be released and the comment period must be extended.

For now, consider that OneWest in the Los Angeles MSA in 2012 made 28 home purchase loans to whites and NONE to African Africans; it made 12 home improvement loans to whites and NONE to African Americans.

September 29, 2014

As US Releases 2013 Mortgage Data, Disparities at Citi & Chase, Protests of CIT

By Matthew R. Lee

UNITED NATIONS, September 23 -- This week, after a UN report slammed the US for mortgage discrimation and with the UN General Assembly meeting in New York, the Federal Reserve has released the official 2013 Home Mortgage Disclosure Act data.

   Inner City Press has reviewed the data, finding for example that in the New York City Metropolitan Statistical Area in 2013 JPMorgan Chase made 12 conventional home purchase loans to whites to every loan to an African American borrower.

  2013 is the tenth year in which the data distinguishes which loans are higher cost, over a federally-defined rate spread of 1.5 percent over Treasury bill yields.

  Back in April releasing the first study of the then-unofficial 2013 data, Inner City Press / Fair Finance Watch found that  Chase was more disparate to Latinos then whites, confined them to higher-cost loans above the rate spread 1.81 times more frequently than whites in 2013, versus a 1.64 disparate for African Americans. Citi had a higher denial rate for Latinos (17.3%) than for African American (17.1%).

 Inner City Press and Bronx-based Fair Finance Watch also found that Wells Fargo confined African Americans to higher-cost loans above this rate spread 2.01 times more frequently than whites in 2013  Bank of America also had a 2.01 disparity between African Americans and whites; Citi was 1.83 and Chase 1.64.

  Looking at the official data on an aggregate basis, NCRC found that "reliance on government-backed Federal Housing Administration (FHA) lending for home purchase lending was reduced; the share of FHA home purchase lending declined from 31 percent in 2012 to 24 percent in 2013."

  This comes after the UN Committee on the Elimination of Racial Discrimination recommended

Undertaking prompt, independent and thorough investigation into all cases of discriminatory practices by private actors, including in relation to discriminatory mortgage lending practices, steering, and redlining; holding those responsible to account; and providing effective remedies, including appropriate compensation, guarantees of non-repetition and changes in relevant laws and practices.

  Private actors means banks.

   At Capital One, now the fifth largest bank after the regulators apparently ignored CERD approved its acquisitions from ING and HSBC, African Americans got denied for HMDA-reported loans 61.5% of the time, and Latinos 63.4% of the time.

  At M&T, whose application to acquire Hudson City Savings Bank Fair Finance Watch and NCRC have opposed since October 2012, African American were confirmed to high cost loans 1.81 times more frequently than whites in 2013, and were denied 1.97 times more frequently than whites.

  And so Fair Finance Watch and Inner City Press have re-doubled watchdogging. Challenged by the groups in 2014 and still pending, with FOIA issues, are applications by Valley National Bank, CIT - OneWest and others.

Further studies will follow: watch this site.

September 22, 2014

The new Community Reinvestment Act Q&A would de-emphasize branches - at a time when bank applying for merger try to conceal or withhold which branches they would close until the public comment period expires. Neither is accceptable.

September 15, 2014

We note, for now, BB&T's proposal to buy Bank of Kentucky for $363 million announced last week, and to buy 41 branches Citibank in Texas, announced earlier this month...

And this, on JPMorgan Chase:

At UN, JPMorgan Chase Closed Accounts, Name Dropped from Resolution

By Matthew Russell Lee

UNITED NATIONS, September 10 -- On the same day the banking industry's lawsuit against New York City's responsible banking ordinance was dismissed, at the UN on First Avenue the General Assembly issued muted criticism of JPMorgan Chase. Video here, from Minute 2:59:35.

  Back on March 18 JPMorgan Chase came up as a topic, and target, in a closed door meeting at the UN of the Group of 77 and China on March 18, several Permanent Representative then exclusively told Inner City Press. They marveled that the UN does business with JPM Chase while the bank cuts off many of the member states of the UN.

  In April, a G77-agreed draft resolution emerged, including a review of the UN's relations with JPM Chase -- by name. Inner City Press has publishing the full text of that draft, below.

  But in the months since April, the resolution got watered down, until it was adopted without opposition or debate at the end of a three-hour UN General Assembly session on September 9. (There was debate about Argentina and sovereign debt restructuring, which Inner City Press covered yesterday here.)

   Introducing the resolution was Bolivia, as chair of the Group of 77 and China; their speech said that banks in the City of New York have "humiliated" several nation's UN missions.

  Here is the adopted text of the resolution, seen in advance by IPS, which also quoted Sri Lanka's ambassador Palitha Kohona about it. Kohona was previously, among other things, a UN official, so he should know.

  Still, the idea that asking Ban Ki-moon to press the US to do almost anything is dubious. Will JPMorgan Chase view a UNGA resolution in which it is not directly named, only "sub-tweeted," as a threat to its reputation? After its behavior during the subprime lending meltdown -- the predatory bender -- does that even have to be asked?

September 8, 2014

On August 26, Inner City Press & Fair Finance Watch requesting from the Federal Reserve System the entire application, and the FRS' communications with the companies since January 1, 2014.

As provided so far, the application withholds the “CRA Plans” of both banks, while making claims about these plans:

Since the 2013 performance evaluation, CITB has implemented its CRA Plan covering 2013-2017, which is included in Confidential Exhibit 9;”

OWB has a strong CRA compliance program and has developed a CRA plan, included in Confidential Exhibit 9;” and

CITBNA will create and operate under a new CRA plan, which it will develop subject to regulatory review.”

This is a mis-reading, even a perversion of the Community Reinvestment Act, that these two documents and the projected third one can be withheld or subject only to “regulatory” review, and not public review. The documents, timely requested, must be released and the comment period must be extended.

For now, consider that OneWest in the Los Angeles MSA in 2012 made 28 home purchase loans to whites and NONE to African Africans; it made 12 home improvement loans to whites and NONE to African Americans.

September 1, 2014

UN Review of US on Race Includes Redlining, Foreclosures & Stand Your Ground

By Matthew Russell Lee

UNITED NATIONS, August 30 -- The crackdown in Ferguson, Missouri, after the killing of unarmed African American teenager Michael Brown was the context of the just-concluded UN Committee on the Elimination of Racial Discrimination review of the US, along with unfair lending. Report here.

  After the Trayvon Martin case, the UN CERD said it "is concerned at the high number of gun-related deaths and injuries which disproportionately affect members of racial and ethnic minorities, particularly African Americans. It is also concerned at the proliferation of 'Stand Your Ground' laws, which are used to circumvent the limits of legitimate self-defense in violation of the Stateparty’s duty to protect life, and has a disproportionate and discriminatory impact on members of racial and ethnic minorities."

   As to housing and lending discrimination, the UN CERD's "Concluding observations on the combined seventh to ninth periodic reports of United States of America," published on August 29, 2014, said

"the Committee remains concerned at: (a) the persistence of discrimination in access to housing on the basis of race, colour, ethnicity or national origin; (b) the high degree of racial segregation and concentrated poverty in neighborhoods characterized by sub-standard conditions and services, including poor housing conditions, limited employment opportunities, inadequate access to health-care facilities, under-resourced schools and high exposure to crime and violence; and (c) discriminatory mortgage lending practices and the foreclosure crisis which disproportionately affected and continues to affect racial and ethnic minorities (arts. 3 and 5(e))."

  The UN CERD Committee's Concerns and Recommendations included:

The Committee urges the State party to intensify its efforts to eliminate discrimination in access to housing and residential segregation based on race, colour ethnicity or national origin, including by:

(a) Ensuring the availability of affordable and adequate housing for all, including by effectively implementing the Affirmatively Furthering Fair Housing requirement by the Department of Housing and Urban Development and across all agencies administering housing programmes;

(b) Strengthening the implementation of legislation to combat discrimination in housing, such as the Fair Housing Act and Title VIII of the Civil Rights Act of 1968, including through the provision of adequate resources and increasing the capacity of the Department of Housing and Urban Development; and

(c) Undertaking prompt, independent and thorough investigation into all cases of discriminatory practices by private actors, including in relation to discriminatory mortgage lending practices, steering, and redlining; holding those responsible to account; and providing effective remedies, including appropriate compensation, guarantees of non-repetition and changes in relevant laws and practices.

  Private actors means banks. But why were the bank regulatory agencies and CFPB not included in the US' delegation to the CERD? We - and NCRC - will have more on this.

August 25, 2014

Bad settlement on the cheap, (badly) reported by the Denver Post:

some details emerge in the settlement's fine print, such as donations for community reinvestment and neighborhood stabilization. Specifically, Bank of America agrees to pay demolition and property-remediation costs of abandoned or uninhabitable residential properties, although where and how much are undetermined. Those properties will be donated to local nonprofits to either rehab or reduce blight. Again, location details are scant.”

Note: CRA is *not* donations....

August 18, 2014

On the CRA protested application by Valley National to buy 1st United, the OCC's FOIA games continue. They have written to Inner City Press:

I received your voice message on August 13th regarding the scope of your appeal. I understand that you are appealing the four pages that the OCC withheld from Valley National Bank’s merger application. Additionally, you are seeking communications between the OCC and Valley National Bank regarding the merger application. In the OCC’s July 2, 2014 response to your FOIA request, we provided you 19 pages of correspondence between the OCC and Valley National Bank regarding its merger. In your Appeal, you state that too limited a search was performed and seem to believe that there should be more correspondence documents related to the merger. However, your original FOIA request specified that the date range of the record search should be from 1/1/2013 to 5/24/2014. On Appeal, are you now asking for a different date range to be used? And, if that is the case, perhaps a new FOIA request would be more appropriate... If you are staying with the original date range, we will confirm the adequacy of our search for your responsive records and respond to your Appeal as soon as possible.

But the issue is not (only) the cut-off date. Inner City Press has replied:

As stated in Inner City Press' initial FOIA request, and as I explained by phone when called about the request, it is for OCC communications with either institution since Jan 1, 2013 not only about the merger, but also about “ CRA or fair lending or consumer compliance.”

Despite the wording of the request, which I've just retrieved from the OCC' system, and despite me explaining by phone when called, this seems to still be misunderstood. You state: “we provided you 19 pages of correspondence between the OCC and Valley National Bank regarding its merger. In your Appeal, you state that too limited a search was performed and seem to believe that there should be more correspondence documents related to the merger.”

The request was not just about the merger. As to documents since May 24, they should be provided under the principle against ex parte communications...Awaiting the documents

This is a request for the entirety of the application by Valley National (NJ) to acquire 1st United (FLA), and all records reflecting OCC communications with Valley National or 1st United concerning the proposed merger, or CRA or fair lending or consumer compliance

Watch this site.

August 11, 2014

As Valley National Bank Redlines, OCC's Runaround on FOIA, Captured

By Matthew R. Lee

NEW YORK, August 4 -- Some have wondered how large US national banks were allowed to get into predatory lending, why community groups' warnings were ignored, and the meltdown happened.  Well, here is a partial explanation.

   US bank regulators, then as now, find way to exclude public review. Take for example the US Office of the Comptroller of the Currency, part of the Department of Treasury, and its recent denial of access to bank information under the Freedom of Information Act, and on appeal.

  Beginning in May, Inner City Press began requesting information from the OCC about Valley National Bank and its proposed acquisition of Florida-based 1st United Bank.

  Fair Finance Watch and other NCRC members showed that Valley National's lending was disparate:  In 2012 in the New York City MSA for refinance loans, Valley National made 2152 such loans to whites and only 38 to African Americans -- entirely of keeping with the demographics and demographics of home ownership in the New York City MSA. Valley National denied 67% of such applications from African Americans, versus only 34.5% of such application from white.

  A first Inner City Press FOIA request about Valley National, the OCC's Rosalye Settles said she mis-understand, putting the entire request on hold then threatening to dismiss it.

  On June 8, Fair Finance Watch filed a second comment, including that:

Valley National has branches only below 88th Street in Manhattan (in which, intriguingly, a "Yellowbrick Real Estate Capital" breaks into the top five in pre-foreclosures).

  Valley National has no branches in Harlem, Washington Heights or The Bronx, predominantly African American and Latinos, low and moderate income areas.

  In Queens, it's Middle Village and Kew Gardens. In Brooklyn, Valley National's branches are along Ocean Parkway and in Bay Ridge. What about East New York, Brownsville, Bushwick and Bedford Stuyvesant?

  On July 16, Valley National submitted a response to the OCC, giving the OCC a full copy and a "redacted" or partially blacked out copy, as provided to Inner City Press, here.
  
  Inner City Press submitted a FOIA request to the OCC challenging the redactions. But the OCC's Marilyn Burton denied the FOIA request, saying it did not request any documents.
Click here for the OCC's FOIA denial.

 So Inner City Press submitted an appeal, linking to exactly the redacted documents as Valley National provided to the OCC. But the OCC Frank Vance ruled that this was not an appeal, copy here. All of this while the OCC could haul off and rubber stamp Valley National's merger application any day.

  This is why banks get over. And Fair Finance Watch, and Inner City Press, aim to expose and end these practices. Watch this site.

August 4, 2014

  On the CRA-protested application by Valley National Bank to acquire 1st United, the Office of the Comptroller of the Currency is hitting new lows. Here's from Inner City Press' August 2 Freedom of Information Act appeal:

This is an appeal of the evasive denial in full of Inner City Press' request to the OCC for the many portions of Valley National Bank's July 16 submission to the OCC, which Valley National mailed to Inner City Press in redacted form. Inner City Press submitted its request to the OCC challenging whether the redactions comply with FOIA - and instead of reviewing the redactions, the OCC's Marilyn Burton rules that Inner City Press has not requested any records -- this is evasive and absurd, and is hereby appealed. This delay only benefits the applicant bank; there is no confusion which records Inner City Press is requesting. This has happened before the OCC, and stands at odds with how the Federal Reserve, for example, addresses FOIA requests for information redacted by applicant banks. Given the tight timelines of bank merger applications, it is inappropriate and Inner City Press is appealing it and for all of the withheld information. See, for the record on this appeal: http://innercitypress.org/valleynat1occredacted071614.pdf

The entire unredacted document, in the possession of the OCC, is what Inner City Press requested and is now appealing to get.

Watch this site.

July 28, 2014

When Valley National belatedly answered questions from the Office of the Comptroller of the Currency on July 18, it tried to black-out and withhold parts of its response. Inner City Press has challenged these under the Freedom of Information Act to the Office of the Comptroller of the Currency, including “on pages 19-20, transactions for which Valley National seeks or has obtained CRA credit, for example in connection with Fannie Mae Delegated in New York; ways to apply for mortgages and FHLB of NY and other transactions presented for CRA credit (pages 22-32), etc.”

July 21, 2014

JPMorgan Chase being JPMorgan Chase: last week Jaime Dimon told analysts, “We collected $600 million on [FHA] insurance. They disputed $200 million. The government called that fraud. We reimbursed $600 million to get out of the lawsuit. So the real question to me is, should we be in the FHA business at all?” We'll have more on this.

July 14, 2014

If as reported Citigroup settles yet more predatory lending related charges for $7 billion, the question will be, how does this help the victims of the lending? It's not rocket science here: one could compare by geography with Home Mortgage Disclosure Act data, or with complaint data from the CFPB...

Already settled, but no less outrageous, is GE which excluded from its debt relief programs all customers who speak primarily Spanish, or live in Puerto Rico. That's not disparate impact: that's outright discrimination.

July 7, 2014

  Valley National told the Office of the Comptroller of the Currency that it wanted approval to acquire 1st United by June 30. But the OCC didn't even initially rule on Inner City Press' May 24 Freedom of Information Act request until July 2. Now this has been filed:

On behalf of Inner City Press / Fair Finance Watch (ICP) this is a fourth timely-in-context comment requesting an extension of the OCC's public comment period on the Application by Valley National Bank to acquire 1st United Bank.

The OCC delayed until July 2 to rule on ICP's May 24 FOIA request regarding this proposal - and then, withheld whole pages citing exemptions 4 and 8. ICP has nearly immediately filed a FOIA appeal for improperly withheld information; the comment period should be extended:

This is a FOIA appeal for all of the still withheld / redacted information responsive to Inner City Press' May 24 FOIA request regarding Valley National Bank - 1st United.

Only on July 2 did the OCC rule -- that is, after the stated close of the comment period - and then, it withhold whole pages, citing exemptions 4 and 8. This is an appeal of those withholdings. From the documents provided it also appears that too limited a search was performed, given the documents requested in ICP's FOIA request.

Please provide all wrongfully withheld information as quickly as possible, as Inner City Press / Fair Finance Watch intends to comment on the information before the OCC reaches any determination (other than denial) on Valley National's applications.


June 30, 2014

Some think that Community Reinvestment Act officers are progressive. But here in New York City, where new Mayor Bill De Blasio appointed the CRA Officer of M&T Bank -- apparently without knowing much about him or M&T -- to the Rent Guidelines Board, the banker blocked a rent freeze that his appointer De Blasio favored. Afterward De Blasio said, “From everything I’ve heard of him, he’s a person of integrity.” Heard?

June 23, 2014

U.S. government slapped SunTrust Banks Inc. with $968 million in fines and consumer relief as the Atlanta lender became the latest bank to settle allegations of abusive mortgage practices.

Here now is M&T Bank, laundering money for drug gangs in Baltimore -- CRA, anyone?

U.S. District Judge James Bredar in Baltimore on June 17 accepted the government’s claim in a February complaint that the teller converted proceeds of illegal drug sales from small denominations to $100 bills in at least eight transactions, ranging from $20,000 to $100,000, without notifying regulators. The M&T teller in the case, Sabrina Fitts, 29, was sentenced to a month in prison followed by eight months of home detention for her role in the failure to file the mandatory reports. She worked at the bank’s Perry Hall, Maryland, branch outside of Baltimore. Fitts was paid a 1 percent fee by a member of a drug trafficking organization for each transaction completed without a report, according to prosecutors. “Through the cooperation we provided to law enforcement during an investigation into the illegal activities perpetrated by a former employee, we have assisted the U.S. Attorney’s Office with this prosecution and recovery,” Mike Zabel, a spokesman for M&T, said in an e-mailed statement. “This case shows how banks work closely with law enforcement to prevent and detect money-laundering.”

Yeah, right...

Look who's hiring: Capital One, for CRA compliance. They need help... http://www.simplyhired.com/job/3i6pxeeu3w

June 16, 2014

The protest of Valley National Bank - 1st United continues, with this third comment filed:

On behalf of Inner City Press / Fair Finance Watch (ICP) this is a timely third comment requesting an extension of the OCC's public comment period on the Application by Valley National Bank to acquire 1st United Bank.

On June 11, Inner City Press went to a Valley National Bank in Manhattan to seek its CRA Assessment Area / Statement. At the VNB branch at 350 Park Avenue, Branch Service Manager Daniel Solomon when asked about the CAR Assessment Area at first tried to give Inner City Press a CD-ROM of the bank's 2013 Annual Report. Then after much back and forth he emerged with a binder that did not include the assessment area, directing the public elsewhere -- with the wrong address -- for that.

This is indicative of Valley National Bank's approach and attitude to CRA. There should be public hearings and on the current record, Valley National Bank's application should be denied.


June 9, 2014

Looking at Valley National Bank's pattern of branches in New York City, it is reminiscent of the Chevy Chase FSB case brought by the Justice Department.

Valley National has branches in Manhattan -- but only below 88th Street. It has no branches in The Bronx.

In Brooklyn, Valley National's branches are along Ocean Parkway and in Bay Ridge. In Queens, it's Middle Village and Kew Gardens. This is a redlining bank. And the Office of the Comptroller of the Currency, rather than provide the documents Inner City Press / Fair Finance Watch requested under FOIA, tried to cancel the FOIA request by claiming to mis-understand one part of it. We'll have more on this.

June 2, 2014

On the city of Providence, Rhode Island's case against Santander:

Santander's lending is disparate throughout its footprint. For example, in the New York City Metropolitan Statistical Area in 2012, the most recent year for which data is publicly available, Santander / Sovereign made 361 conventional home purchase loans to whites and only 16 to African Americans: entirely out of keeping with the demographics of homeownership of the community.

Likewise, for refinance loans, Santander / Sovereign made 438 loans to whites and only 28 to African Americans and only 39 to Latinos, again entirely out of keeping with the demographics of homeownership of the community.

While groups like ICP / Fair Finance Watch, raise such disparities under the Community Reinvestment Act when banks apply to their regulators to merge or expand, since the financial meltdown there have been fewer mergers.

It is because regulators are not going their jobs that cities like Providence have to go ahead and sue the banks themselves...

May 26, 2014

  Inner City Press / Fair Finance Watch has filed a timely first comment requesting an extension of the OCC's public comment period on the Application by Valley National Bank to acquire 1st United Bank.

Valley National has an extremely disparate lending record.

Reviewing the 2012 HMDA data released by the FFIEC (and largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP is hereby commenting on Valley National's home purchase, refinance and home improvement lending in the New York City and the Nassau - Suffolk (Long Island) MSAs and finds them outrageous.

In 2012 in the New York City MSA for refinance loans, Valley National made 2152 such loans to whites and only 38 to African Americans -- entirely of keeping with the demographics and demographics of home ownership in the New York City MSA. Valley National denied 67% of such applications from African Americans, versus only 34.5% of such application from white.

For home purchase loans in the NYC MSA in 2012, Valley National made 69 such loans to whites, only one to an African American and only two to Latinos, for which it had a denial rate of 62.5% versus only 36.6% for whites.

For home improvement loans in the NYC MSA, Valley National made 26 such loans to whites, only one to an African American and only two to Latinos, for which it had a denial rate of 50% versus only 21.9% for whites.

In 2012 in the Long Island NY MSA for refinance loans, Valley National made 43 such loans to whites and only one to an African American and only two to Latinos. It had a 75% denial rate for African Americans.

For home purchase loans in the Long Island MSA in 2012, Valley National lent only to whites, with a denial rate of 100% for Latinos.

According to a recent SEC filing, 1st United's top three executives would get over $6 million each for selling out to a bank with this record, whose CEO has said the rationale for the proposed acquisition is chasing affluent customers (“'Who’s moved there? It’s the wealthy people,' Lipkin said in a phone interview") - while excluding lower income consumers of color in its existing communities.

Public hearings are needed and an extension of the comment period. On the current record the application should be denied

ICP has submitted a FOIA request for the application and related records, all of which should be provided during the comment period and on which ICP will submit further comments.

May 19, 2014

As US Bank Gets  Rubber-Stamp to Buy & Close RBS Branches, FOIA Pends

By Matthew R. Lee

NEW YORK, May 15 -- When Royal Bank of Scotland proposed to sell its 93 Chicago-area branches to US Bank, Inner City Press asked US Bank's regulator the Office of the Comptroller of the Currency how many and which branches it would close.

  Now in a May 14 letter the OCC only sent to Inner City Press on May 15, the agency has approved US Bank's application, without addressing the impact of the branch closings or Inner City Press' pending Freedom of Information Act appeal.

  Inner City Press is putting the OCC approval letter, which does not seem to have been reported anywhere else at least according to Google News, online here.

  The comment period to the Office of the Comptroller of the Currency was set to expire on February 20. After Inner City Press' request is was extended to April 25.

  US Bank submitted a list but cynically asked for "confidential treatment" for all of it -- that is, to withhold it from the public. Inner City Press submitted a Freedom of Information Act request, as it has done to the Federal Reserve Board (and on other topics, to the US State Department) - and on April 25, the OCC responded.

  From the document Inner City Press has obtained under FOIA, and now exclusively puts online here, along with the OCC FOIA letter to Inner City Press which will be appealed, US Bank would close at least 13 branches. In the until-now confidential filing with the OCC, US Bank says it would close RBS / Charter One's 10200 S. Ewing Street, Chicago branch in a low income tracts and send customers to a "receiving" branches in a non-low income tract.

  US Bank would also close its own branch at 8905 S. Commercial Avenue, Chicago in a low income tract.

This comes after Fair Finance Watch and other community advocacy organizations in NCRC commented to the OCC about lending disparities.

FFW commented, back in January, that

While on this disclosure of branches which would be closed the OCC should extend the comment period, for now, to ensure consideration, US Bank NA (Ohio)'s 2012 HMDA data reflect that in the Chicago MSA for home purchase loans both conventional and subsidized, US Bank made a smaller portion of its loans to Latinos than did even the aggregate, including lenders not subject to the Community Reinvestment Act.

For conventional home purchase loans in the Chicago MSA in 2012, US Bank made 1083 such loans to whites, 78 to African Americans and only 77 to Latinos. That is, US Bank made 14 such loans to whites for each loan to a Latino, a bigger disparity than is the case with the aggregate.

For the home purchase loans in Table 4-1 in the Chicago MSA in 2012, US Bank made 268 such loans to whites, 68 to African Americans and only 60 to Latinos. That is, US Bank made 4.47 such loans to whites for each loan to a Latino, a significantly bigger disparity than is the case with the aggregate.

  US Bank replied that it needn't disclose which branches it would close. Fair Finance Watch reiterated its request in Washington DC in mid-March, along with NCRC, and in supplemental comments. And on March 26, the OCC confirmed that the comment period is extended to April 25, and portions of US Bank's response released.

  The problem is that large portions of US Bank's response are withheld, or simply redacted in black Magic Marker, first Tweeted here by @FinanceWatchOrg, click here to view. Fair Finance Watch and Inner City Press immediately filed with the OCC a Freedom of Information Act request

May 12, 2014

Now that Valley National, based in New Jersey and New York, is trying to expand in Florida, note its 2012 record:

In the New York City MSA for home purchase loans, Valley National made 69 loans to whites, one to an African American applicant, two to Latinos. In the Newark NJ MSA also for home purchase loans, Valley National 48 loans to whites, two to African Americans, one to a Latino applicant. More to follow...

May 5, 2014

After US Bank continued to withhold basic information about its proposed acquisition of 93 branches from Royal Bank of Scotland's Charter One (and plans to close at least 13 of them), Inner City Press / Fair Finance Watch has filed this FOIA appeal:

"for all of the still withheld / redacted information from US Bank's March 21, 2014 submission in connection with its application to acquire branches from RBS Charter One. Inner City Press / Fair Finance Watch commented on the application, and after a March 26 FOIA request received on April 25 a partially unredacted copy of the response, and a partial denial letter dated April 24 on 2014-00277-F.

Fully 53 pages and other information has been withheld or redacted, all purportedly under FOIA exemption 4. This is a timely appeal of all withholdings, submitted on May 3.

From the document you've titled Bank Unredacted Response, still withheld is presumptively public information about US Bank's cited engagements in Chicago [and] its Community Activities in Akron; its cited engagement with the Famicos Founcation in Cleveland; and its fair lending programs on pages 7, 16-19: full paragraphs and even a claim under the heading "Continual Improvement."

Please provide all wrongfully withheld information as quickly as possible, as Inner City Press / Fair Finance Watch intends to comment on the information before the OCC reaches any determination (other than denial) on US Bank's applications.

Meanwhile, here's a blind item: which major foundation not only invests in hedge funds but also in distress debt? Please send guesses -- and any information on these topics -- to Inner City Press. Asking for a friend.

April 28, 2014

On US Bank's proposal to acquire 93 branches from Royal Bank of Scotland / Charter One, Inner City Press by a Freedom of Information Act request has just learned that US Bank would close at least 13 of them, and has put in a fourth comment to the OCC:

On behalf of Inner City Press / Fair Finance Watch (ICP) this is a fourth timely comment on the application of US Bank to acquire 94 branches from RBS Citizens / Charter One and close or consolidate some still unknown number of them.

Since our first comment, ICP has demanded to know how many and which branches US Bank would close or "consolidate." US Bank cynically withheld and requested confidential treatment, resulting in Inner City Press only receiving the information midday on April 25. This comment is submitted the next day, and in context must be considered as timely.

As a first comment on the wrongfully withheld and delayed information, US Bank says it will close 13 of the branches, including in low income census tracts.

For example, US Bank says it would close RBS / Charter One's 10200 S. Ewing Street, Chicago branch in a low income tracts and send customers to a "receiving" branches in a non-low income tract.

US Bank would also close its own branch at 8905 S. Commercial Avenue, Chicago in a low income tract.

This militates for the public hearings ICP has request from its first comment. On the current record, US Bank's application should be denied.

On the current record, hearings should be held and the applications / notices should not be approved.

   Note: as a public service, Inner City Press is putting the US Bank branch closure list it obtained under FOIA online here.

April 21, 2014

HMDA fight in Western Michigan:

GRAND RAPIDS, MI – The head of a New York public interest group that has challenged Mercantile Bank of West Michigan’s plans to merge with Firstbank Corp. of Alma said he is outraged by Mercantile’s response to his request for its latest lending records.

The Grand Rapids-based bank sent its “Lending Application Register” in a paper document that cannot be easily analyzed, said Matthew Lee, executive director of Inner City Press/Fair Finance Watch.

Lee said the reports are generally submitted as CD-ROM-based data files whose numbers can be crunched by a computer. An earlier analysis of Mercantile’s 2012 lending records indicated the bank had written no mortgages, refinancing loans or commercial loans to minorities that year.

There’s something totally arrogant and outrageous when they’re flipping you off like this,” Lee said in a telephone interview on Monday, April 14. “As advocates, we can only conclude that the data will be much worse than the previous year.”

Lee said he has concluded approval of the $151 million merger is in trouble as far as the Federal Reserve is concerned. The group’s appeal is based on the Community Reinvestment Act, passed to encourage diversity in the lending community. The law only carries sanctions when banks seek approvals for bank mergers.

Mike Price, Mercantile’s chairman and CEO, maintained Mercantile complied with the letter of the law when it emailed the documents to Lee’s organization several weeks ago.

Mercantile Bank has complied with everything it’s supposed to have complied with,” Price said. “He may want electronic forms, but that’s the form we delivered it in.”

Price said Mercantile has won “outstanding” ratings for its compliance with the Community Reinvestment Act over the past two years.

Mr. Lee can interpret data anyway he wants,” Price said. “I don’t know what his goals are and I don’t pretend to know."

It's not complicated: stop discriminating, and then hiding it. Watch this site.

April 14, 2014

   Inner City Press / Fair Finance Watch has been challenging BancorpSouth, now this:

April 12, 2014

Board of Governors of the Federal Reserve System
Attn: Chairman Janet Yellen, Secretary Robert deV. Frierson
20th Street and Constitution Avenue, N.W.
Washington, DC 20551

Re: The Applications of BancorpSouth to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independent Bank, and with Central Community Corporation, and thereby indirectly acquire First State Bank Central Texas, Austin, Texas

Dear Chairman Yellen, Secretary Robert deV. Frierson and others in the FRS:

This concerns the Applications of BancorpSouth to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independent Bank, and with Central Community Corporation, and thereby indirectly acquire First State Bank Central Texas, Austin, Texas.

Back on March 24, ICP submitted comments on BancorpSouth's Ouachita / Louisiana application on March 24, receiving in the two week after only this:

From: Juanetta Price <juanetta.price@frb.gov>

Date: Mon, Mar 24, 2014 at 4:18 PM

Subject: Automatic reply: Request for Full Copy of, & Timely Comments On, Requesting Hearings & an Extension of the Comment Period On the Applications of BancorpSouth to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independ...

To: "Matthew R. Lee" at InnerCityPress.org

I am out of the office until March 31.

As noted in ICP's timely April 7 comments on BancorpSouth's Central Community Corporation proposal, the public portions of applications should be given on a timely basis, and timely comments acknowledged.

Then, on April 8 -- two weeks after ICP's March 24 request -- this arrived:

Subject: Public Portion of Application BancorpSouth - Ouachita
From: Windsor, Cathie [at] stls.frb.org
Date: Tue, Apr 8, 2014 at 5:53 PM
To: Lee [at] fairfinancewatch.org, Inner City Press
Cc: "Sparks, Yvonne S [at] stls.frb.org,Blase, Dennis [at] stls.frb.org, Goldberg, Amory R (Board) [at] frb.gov

Dear Mr. Lee:

Attached is the public portion of the application by BancorpSouth, Inc. to merge with Ouachita Bancshares Corporation and thereby indirectly acquire Ouachita Independent Bank.

There was no explanation of the two week delay. The next day, April 9, this arrived:

Subject: Revised Public Portion of Application BancorpSouth - Ouachita
From: Windsor, Cathie [at] stls.frb.org
Date: Wed, Apr 9, 2014 at 11:48 AM
To: Lee [at] fairfinancewatch.org, Inner City Press
Cc: Sparks, Yvonne S [at] stls.frb.org

Dear Mr. Lee:

Please disregard the public portion of the application sent to you yesterday for BancorpSouth, Inc. to merge with Ouachita Bancshares Corporation. It appears that pages 1-32 were left out.

Leaving out pages, it happens. But what of the two week gap in providing any of the public portion of the application? Inner City Press asserts and request that the comment periods be extended. ICP also notes that on April 10 BancorpSouth announced yet another proposed acquisition, of Lafayette, La.-based Knox Insurance Group, LLC.

Reviewing the 2012 HMDA data released by the FFIEC (and largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP has examined BancorpSouth's conventional home purchase lending in the Jackson, Mississippi, Baton Rouge, Louisiana and Memphis, Tennessee MSAs and finds them troubling.

In 2012 in the Jackson MS MSA for conventional home purchase loans, BancorpSouth made 258 loans to whites, only 17 to African Americans and five to Latinos. BancorpSouth's denial rate for whites was 7.4% while for African Americans it was 25.8% -- 3.49 times higher. This is troubling.

In 2012 in the Baton Rouge LA MSA for conventional home purchase loans in 2012, BancorpSouth made 60 such loans to whites; only three to African Americans and one to a Latino.

On March 24 we stated: next time we will analysis next-door Texas. But for now, in 2012 in the Memphis TN MSA for conventional home purchase loans, BancorpSouth made 243 loans to whites, only 14 to African Americans and four to Latinos. BancorpSouth's denial rate for whites was 4.2% while for African Americans it was 22.7% -- 5.4 times higher. This is outrageous.

On April 7 we stated: BancorpSouth in 2012 did not report any data in the Austin, Texas MSA. First State Bank Central Texas, for home purchase loans there, made 13 such loans to whites, NONE to African Americans or Latinos. Likewise, it made no refinance loans to African Americans or Latinos.

Now we note that BancorpSouth in the Lafayette, Louisiana MSA in 2012 for conventional home purchase loans, BancorpSouth made 37 loans to whites, NONE to African Americans or Latinos. In Table 4-1, BancorpSouth made 15 loans to whites and ONE to an African American applicant. That is, ALL of its home purchase loans to people of color were in Table 4-1, none in Table 4-2. This is troubling, and a pattern. The comment periods must be extended.

BancorpSouth should be required to fully disclose all branches it would close, and other changes, before the comment period closed. After for example the precedent of Huntington (and, in the Northeast, of Rockville and United in Connecticut and Massachusetts), both of which disclosed which branches they would close during the comment period, Huntington even re-starting the comment period to do so, to not extend this comment period on these five or more branches would be a major step backward for the Federal Reserve.

ICP is requesting evidentiary hearings and that this proposed acquisition, on the current record, not be approved. There is no public benefit.

If you have any questions, please immediately telephone the undersigned, at (718) 716-3540.

Very Truly Yours,

Matthew Lee, Executive Director, Inner City Press/Fair Finance Watch

April 5, 2014

In 2013 Disparities at Citi, Chase, BofA & Wells as Fed Lax on M&T, US Bank

By Matthew R. Lee

SOUTH BRONX NY, April 5, 2014 -- In the first study of the just-released 2013 mortgage lending data, Inner City Press and Bronx-based Fair Finance Watch have found that high cost loans and disparities by race and ethnicity in denials and higher-cost lending continued at the Big Four banking behemoths Citigroup, JPMorgan Chase, Bank of America and Wells Fargo - and spread to US Bank, M&T and Capital One.

  2013 is the tenth year in which the data distinguishes which loans are higher cost, over a federally-defined rate spread of 1.5 percent over Treasury bill yields.

  The just released data show that Wells Fargo confined African Americans to higher-cost loans above this rate spread 2.01 times more frequently than whites in 2013, Fair Finance Watch has found. Bank of America also had a 2.01 disparity between African Americans and whites; Citi was 1.83 and Chase 1.64.

  Wells was even more disparate to Latinos, confined them to higher-cost loans above the rate spread 2.12 times more frequently than whites in 2013, the data show.

  Chase, too, was more disparate to Latinos then whites, confined them to higher-cost loans above the rate spread 1.81 times more frequently than whites in 2013, versus a 1.64 disparate for African Americans. Citi had a higher denial rate for Latinos (17.3%) than for African American (17.1%).

  "Even after the bailouts, lending disparities grew worse and not better," said Fair Finance Watch. "Regulatory laxity, at least on fair lending, has continued despite the financial meltdown caused by predatory lending. Given the proposed changes to the housing finance system, these disparities must be addressed."

  At Capital One, now the fifth largest bank, African Americans got denied for HMDA-reported loans 61.5% of the time, and Latinos 63.4% of the time.

  At M&T, whose application to acquire Hudson City Savings Bank Fair Finance Watch and NCRC have opposed since October 2012, African American were confirmed to high cost loans 1.81 times more frequently than whites in 2013, and were denied 1.97 times more frequently than whites.

  "The Federal Reserve is becoming more and more bank-friendly, including recently saying it will not re-open its comment period on M&T - Hudson despite this new data," Fair Finance Watch said.

  Another bank FFW has challenged, Mercantile in Michigan, cynically provided its data only in paper form so that it could not be analyzed. "It remains unclear if the Consumer Financial Protection Bureau will get to this problem," Fair Finance Watch continued. "The disparities in the 2013 mortgage data of these banks further militate for aggressively watchdogging and breaking up the big banks."

  And so Fair Finance Watch and Inner City Press have re-doubled watchdogging. Challenged by the groups in 2014 and still pending, with FOIA issues, are applications by BancorpSouth, Old National and US Bank to acquire over 90 branches from Royal Bank of Scotland.

On that, Inner City Press has submitted a Freedom of Information Act request for the entirety of a largely redacted / black-out response by US Bank, showing that several RBS products would be dropped.

  Now that US Bank has admitted to the Federal Reserve that it would eliminate Charter One's Credit Builder and energy efficiency loan programs, and make it more difficult for the customers it would acquire to avoid fees, the Fed should schedule public hearings. So far, the comment period was re-opened and extended to April 25, when more analysis will be submitted.

  The Home Mortgage Disclosure Act required that the 2013 data be provided by March 31, following March 1 joint requests by Fair Finance Watch and Inner City Press. Some banks did not provide their data by the deadline, despite confirming receipt of the request. Further studies will follow: watch this site.

March 31, 2014

RBS Sale of 93 Branches to US Bank Stalled, Info Withheld, CRA Protests

By Matthew R. Lee

SOUTH BRONX, March 26 -- When Royal Bank of Scotland proposed to sell its 93 Chicago-area branches to US Bank, the comment period was set to expire on February 20. Today that was extended to April 25.

The extension or "re-publication of notice" came after Fair Finance Watch and other community advocacy organizations commented to the US Office of the Comptroller of the Currency, about lending disparities and US Bank's refusal to disclose how many and which of the 93 branches it would close.

FFW commented, back in January, that

While on this disclosure of branches which would be closed the OCC should extend the comment period, for now, to ensure consideration, US Bank NA (Ohio)'s 2012 HMDA data reflect that in the Chicago MSA for home purchase loans both conventional and subsidized, US Bank made a smaller portion of its loans to Latinos than did even the aggregate, including lenders not subject to the Community Reinvestment Act.

For conventional home purchase loans in the Chicago MSA in 2012, US Bank made 1083 such loans to whites, 78 to African Americans and only 77 to Latinos. That is, US Bank made 14 such loans to whites for each loan to a Latino, a bigger disparity than is the case with the aggregate.

For the home purchase loans in Table 4-1 in the Chicago MSA in 2012, US Bank made 268 such loans to whites, 68 to African Americans and only 60 to Latinos. That is, US Bank made 4.47 such loans to whites for each loan to a Latino, a significantly bigger disparity than is the case with the aggregate.

  US Bank replied that it needn't disclose which branches it would close. Fair Finance Watch reiterated its request in Washington DC in mid-March, along with NCRC, and in supplemental comments. And on March 26, the OCC confirmed that the comment period is extended to April 25, and portions of US Bank's response released.

  The problem is that large portions of US Bank's response are withheld, or simply redacted in black Magic Marker, first Tweeted here by @FinanceWatchOrg, click here to view. Fair Finance Watch and Inner City Press immediately filed with the OCC a Freedom of Information Act request

"for all withheld / redacted information from US Bank's March 21, 2014 submission in connection with its application to acquire branches from RBS Charter One. ICP / Fair Finance Watch commented on the application, and earlier today the OCC provided a redacted copy of US Bank's submission. Nearly the entire fair lending response is redacted, as is information about US Bank's claimed support to non-profits. Since such information is presumptively public, it must be unredacted and released. We are challenging each redaction, making this FOIA request for the entire, unredacted submission in this application process we timely challenged."

Now whether these withholdings can stand up must be ruled upon.

  In terms of commenting of what was released, ICP says "Now that US Bank has admitted to the Federal Reserve that it would eliminate Charter One's Credit Builder and energy efficiency loan programs, and make it more difficult for the customers it would acquire to avoid fees, the Fed should schedule public hearings."

  Prediction: the document put online yesterday will be reported in the Windy City.
Meanwhile Royal Bank of Scotland is looking to sell off its Citizen Bank unit in the Northeast, to Japan’s Sumitomo Mitsui Financial Group or another. Watch this site.

March 24, 2014

So the CFPB hearing on payday lending on the morning of March 26 in Nashville is being moved to the Country Music Hall of Fame. Lots of sad songs about payday lending...

Meanwhile the Federal Reserve has hit a new low: in its "public record" on M&T's stalled-out application to acquire Hudson City Savings Bank, the Fed has only 2012 HMDA data. So last week Inner City Press / Fair Finance Watch submitted analysis of the just-obtained 2013 data. But the Fed sends back essentially a form letter, you have not shown exceptional circumstances that would warrant providing additional time to comment on the proposal, cc-ing one of its former FRB Staff Counsels now representing M&T. Isn't getting up to date information, instead of data more than a year old, enough of a reason to put the comment in the record?

March 17, 2014

So Umpqua Bank has committed to commit - it has told the Federal Reserve that it will (or would) submit a CRA plan sixty days after it consummates its proposed acquisition of Sterling Bank. But will Umpqua's plan be made public? And will it be able to be enforced?

March 10, 2014

Inner City Press / Fair Finance Watch got M&T's 2013 HMDA LAR and filed supplemental comments:

On behalf of Inner City Press / Fair Finance Watch and its members and affiliates (collectively, "ICP"), this is a supplemental comment opposing, and requesting public hearings on, the applications by M&T to acquire Hudson City Savings Bank.

ICP is a timely commenter on this application. It has assumed that the comment period would be re-opened, based on the substantial adverse issues that have stalled the application. Now, we have begun analyzing the 2013 HMDA-LAR of M&T Bank and find disparities which the FRB must consider, and should inquire into.

In 2013, in data not taken into account in any CRA performance evaluation, M&T Bank made some 1849 loans to African Americans, 100 of them, or 5.41 percent, over the rate spread. It denied 26.26% of applications from African Americans.

To whites, by contrast, M&T Bank made fully 21,660 loans, only 648 of them or 2.99% over the rate spread. It denied only 13.3% of applications from whites.

Thus, M&T Bank was 1.81 times more likely to confine African Americans to loans over the rate spread than whites; M&T Bank denied the applications of African Americans 1.97 times more frequently than those of whites.

Also, M&T Bank has proposed closing 10 branches in New York. Comment should be accepted on these, as they impact the accessibility of banking services to low and moderate income communities.

March 3, 2014

Alongside the proposal(s) to have US Post Offices offer some banking services, in Montana they are exploring setting up a state-owned non-profit bank, based on State Bank of North Dakota...

In the United Kingdom, there are increasing calls for a community reinvestment act -- as Royal Bank of Scotland tries to sell its Chicago-land branches to US Bancorp, and to spin off Citizens Bank...

Under review in New York are Ocwen's affiliates Home Loan Servicing Solutions Ltd., which has bought mortgage-servicing rights from Ocwen, and Altisource Portfolio Solutions SA, which provides IT services to Ocwen...

February 24, 2014

Mercantile in denial: the bank's CFO Chuck Christmas said last week, of the protested and delayed and unresolved FirstBank proposed acquisition, "There's nothing that has come up as far as we know in our communications that could cause us any angst." That's part of the problem, that they don't care or is in denial... But is the Federal Reserve enabling it?

The Fed's Eric Kollig declined to comment when asked about Mercantile Bank of Michigan, whose CFO Chuck Christmas is dismissive of the CRA questions raised not only by Inner City Press / Fair Finance Watch, but also by the Fed (and FDIC)....

From @FinanceWatchOrg: Now responds, sort of, to Qs by on CRA plan, ICP/FFW protested Sterling:
see, https://twitter.com/FinanceWatchOrg

Inner City Press / Fair Finance Watch has put in a third comment on US Bank - RSB / Charter One:

On behalf of Inner City Press / Fair Finance Watch (ICP) this is a third timely comment on the application of US Bank to acquire 94 branches from RBS Citizens / Charter One and close or consolidate some still unknown number of them.

We write at the stated deadline for comments again requesting an extension of the comment period as, having belatedly received the "public" portion of the application, we find therein NO disclosure of the branches that would be closed.

After for example the precedent of Huntington (and, in the Northeast, of Rockville and United in Connecticut and Massachusetts), both of which disclosed which branches they would close during the comment period, Huntington even re-starting the comment period to do so, to not extend this comment period on 93 branches would be a major step backward for the OCC.

ICP submitted a first comment and request for at least the public portions of the application, on January 11. While the comment has been acknowledged, so far ICP has seen no questions put to US Bank by the OCC, nor any portion of the application. This stands in contrast to other Federal regulators processing of, for example, earlier still pending applications by Umpqua and Mercantile in Michigan. (The FDIC has also posed questions to Mercantile, see for the record http://www.innercitypress.org/merc1fdicicp012914.pdf).

The OCC should not be more lax, or less transparent. Information should be provided and the comment period should be extended.

On the current record, hearings should be held and the applications / notices should not be approved.

February 17, 2014

In Michigan, Mercantile Bank's initial response to the critique of its lending record levied by Inner City Press / Fair Finance Watch involved getting individual borrowers of color to submit to the Federal Reserve letter that seemed like the statements of captured pilots or more recently, Kenneth Bae in North Korea.

Now the FDIC has asked Mercantile some questions; click here for some of Mercantile's responses, provided to Inner City Press two weeks after they were submitted to the FDIC. We'll have more on this.

February 10, 2014

With the comment period on US Bank's application to acquire 94 branches from Royal Bank of Scotland set to expire on February 20, Inner City Press / Fair Finance Watch has put in a second comment:

Re: Second timely Comment Opposition and Requesting Hearings and an Extension of the Comment Period On the Applications of US Bank to Acquire 94 Branches from RBS Citizens' Charter One

Dear Director for District Licensing and others in the OCC:

On behalf of Inner City Press / Fair Finance Watch (ICP) this is a second timely comment on the application of US Bank to acquire 94 branches from RBS Citizens / Charter One and close or consolidate some still unknown number of them.

ICP submitted a first comment and request for at least the public portions of the application, on January 11. While the comment has been acknowledged, so far ICP has seen no questions put to US Bank by the OCC, nor any portion of the application...

In its January 11 comment, ICP analyzed the 2102 Chicago MSA HMDA data of US Bank NA (Ohio). In this second submission we look more closely at Ohio.

In the Cincinnati Ohio MSA for conventional home purchase loans in 2012, US Bank made 336 such loans to whites, only 16 to African Americans and only three to Latinos. For the home purchase loans in Table 4-1 in this MSA in 2012, US Bank made 225 such loans to whites, only 21 to African Americans and only three to Latinos. Thus, cumulated for all home purchase loans in this MSA in 2012, US Bank made 561 such loans to whites, only 37 to African Americans and only six to Latinos.

For refinance loans in the Cincinnati Ohio MSA in 2012, US Bank made 1232 such loans to whites, only 44 to African Americans and only six to Latinos. Its denial rate for whites was 18.2% but fully 35.7% to Latinos and 29.6% to African Americans. This is disparate.

In the Akron Ohio MSA for conventional home purchase loans in 2012, US Bank made 34 such loans to whites, only one to an African American and NONE to Latinos. For the home purchase loans in Table 4-1 in this MSA in 2012, US Bank made 13 such loans to whites, only one to anAfrican American and again none to Latinos. Thus, cumulated for all home purchase loans in this MSA in 2012, US Bank made 47 such loans to whites, only two to African Americans and NONE to Latinos.

For refinance loans in the Akron Ohio MSA in 2012, US Bank made 192 such loans to whites, only six to African Americans and again none to Latinos. Its denial rate for whites was 18.5% but fully 36.4% to African Americans. This is disparate.

In the Cleveland Ohio MSA for conventional home purchase loans in 2012, US Bank made 92 such loans to whites, only six to African Americans and NONE to Latinos. For the home purchase loans in Table 4-1 in this MSA in 2012, US Bank made 58 such loans to whites, five to African Americans and five to Latinos. Thus, cumulated for all home purchase loans in this MSA in 2012, US Bank made 150 such loans to whites, only 11 to African Americans and only five to Latinos.

For refinance loans in the Cleveland Ohio MSA in 2012, US Bank made 478 such loans to whites, only 21 to African Americans and only 14 to Latinos. This is disparate. Such disparities exist throughout US Bank's franchise, as we will further present including at the requested public hearings.

We are also timely putting into the record consumer complaint information [attachments]

Again, US Bank has a record of closing branches, and in connection with this proposed acquisition announced on January 7, US Bank spoke of "some overlap" between branches but "said it’s too early to say whether any will be closed." Chicago Tribune, January 7, 2014.

US Bank should have to disclose which branches it would close, during the comment period, as for example Huntington Bank recently had to do in connection with its smaller proposal to acquire Camco's Advance Bank. In that case, Huntington re-applied and gave public notice of which branches it would close -- that should be done here.


February 3, 2014

To those who claim predatory lending is over, note that the founder of First Franklin Andy Pollock is back, with a new subprime lender called WDB Funding. We'll have more on this.

January 27, 2014

In a speech to the ABS Vegas Conference on January 22, Michael Stegman said for the Obama administration, "We support the repeal of GSE affordable housing goals." This is progressive? Where Stegman saied "Owning a home is not right for everyone," it seemed to some that he was saying "Owning a home is not A right for everyone."

Why would Stegman, for the Administration, come out against localities trying to use eminent domain to protect underwater homeowners? Is putting these views in the mouth of an adviser like Stegman the Administration's trial balloon?

Finally, for now, on the continuation of predatory subprime lending, we note that the founder of First Franklin Andy Pollock is back, with a new subprime lender called WDB Funding...

January 20, 2014

Why do we press for disclosure of how many and which bank branches would be closed or consolidated DURING the regulators' comment periods on a proposed merger? Well, here is a recent example:

Simmons First National’s acquisition of Little Rock-based Metropolitan National bank to result in 28 branch closures, 12 in Northwest Arkansas

The anticipated list of branch closures resulting from Simmons First National’s acquisition of Little Rock-based Metropolitan National bank was made public by the Office of the Comptroller of the Currency this week.

Pine Bluff-based Simmons filed applications to close 27 branches with the OCC on Dec. 19.. The 27 branches are slated to cease operations on March 22.

Simmons operated 10 branches in Benton and Washington counties prior to the acquisition, having since opted to shutter five of those locations. Metropolitan operates 12 branches in Northwest Arkansas, fully seven of which will be shuttered. "Analysts have said Metropolitan was a real estate play in Northwest Arkansas given its physical property and inability to grow deposits to sustainable levels in this market." This was public benefit?

January 13, 2014

After US Bank announced on January 7 it would seek to acquire 94 branches from RBS Citizens' Charter One, but that it is "too early" to say which of these it would close, Inner City Press / Fair Finance Watch four days later filed an initial comment with the Office of the Comptroller of the Currency:

Dear Director for District Licensing and others in the OCC:

This is a request in advance for a full copy of, and a timely comment requesting an extension of the OCC's public comment period on the Applications of US Bank to acquire 94 Branches from RBS Citizens' Charter One and close some as yet unknown number of them.

US Bank has a record of closing branches, and in connection with this proposed acquisition announced on January 7, US Bank spoke of "some overlap" between branches but "said it’s too early to say whether any will be closed." Chicago Tribune, January 7, 2014.

US Bank should have to disclose which branches it would close, during the comment period, as for example Huntington Bank recently had to do in connection with its smaller proposal to acquire Camco's Advance Bank. See, e.g., "Huntington plans 9 branch closings in Camco deal," by Evan Weese, Columbus Business First, Dec 23, 2013. http://www.bizjournals.com/columbus/news/2013/12/23/huntington-plans-9-branch-closings-in.html

In that case, Huntington re-applied and gave public notice of which branches it would close -- that should be done here.

While this disclosure of branches which would be closed, the OCC should extend the comment period. For now, to ensure consideration, US Bank NA (Ohio)'s 2012 HMDA data reflect that in the Chicago MSA for home purchase loans both conventional and subsidized, US Bank made a smaller portion of its loans to Latinos than did even the aggregate, including lenders not subject to the Community Reinvestment Act.

For conventional home purchase loans in the Chicago MSA in 2012, US Bank made 1083 such loans to whites, 78 to African Americans and only 77 to Latinos. That is, US Bank made 14 such loans to whites for each loan to a Latino, a bigger disparity than is the case with the aggregate.

For the home purchase loans in Table 4-1 in the Chicago MSA in 2012, US Bank made 268 such loans to whites, 68 to African Americans and only 60 to Latinos. That is, US Bank made 4.47 such loans to whites for each loan to a Latino, a significantly bigger disparity than is the case with the aggregate.

Such disparities exist throughout US Bank's franchise, as we will further present along with RBS issues including at the now-requested public hearings. Also to ensure consideration and action as quickly as possible, we are entering this into the record, from the American Banker newspaper of January 4, three days before this proposal was announced:

Banks Keep Offering Deposit Advances, Six Weeks After Crackdown

U.S. Bank [is] still offering deposit advances six weeks after regulators finalized sweeping guidance that raised doubts about the product's viability. As of Friday afternoon, the two big banks were still offering the product — which bears a strong resemblance to the payday loan — on their websites, with terms that appear out of compliance with the guidance. Judging from public statements, the banks' primary regulator has not blessed the product's continuation, even in the short term. The Office of Comptroller of the Currency, which issued the guidance alongside the Federal Deposit Insurance Corp., says the document became effective in late November, and there is no grace period.

"Banks that fail to comply with the guidance should expect that the OCC will take appropriate supervisory action, and enforcement action if necessary, to prevent harm to consumers, ensure compliance with appliance laws, and address any unsafe or unsound banking practice or violations of law associated with these products," OCC spokesman Bryan Hubbard says in an email...

U.S. Bank declined to say whether they have made any changes to their deposit advance products since the guidance was issued in late November. But a review of their websites suggests that what they're currently offering is not in compliance with the guidance.

The guidance contains a provision stating that banks should allow at least one statement cycle (which is typically a month) to elapse between the repayment of one deposit advance and the offer of a second loan. Yet... U.S. Bank's site says that the bank may limit access to the product if a customer uses it in nine consecutive statement cycles.

So did the OCC mean what it said? This is a timely request for public hearings.

The comment period should be extended to accept further HMDA analysis as well as information on the prospective branch closings.

On the current record, hearings should be held and the applications should not be approved.

January 6, 2014

The Community Reinvestment Act should be enforced throughout the country (and world), and across the full spectrum of banks. On that principle, Inner City Press / Fair Finance Watch's challenge to Mercantile Bank's application to acquire FirstBank in Michigan proceeds. When last we reported, Mercantile tried to rebut FFW's analysis of its lending disparities by submitting self-serving letters, for example one from a borrower of saying, "I am a person of color."

Now we can report, as Mercantile did not, that the bank is being sued for alleged violations of the Fair Housing Act and Equal Credit Opportunity Act. The facts at issue are more relevant to the Federal Reserve, and on the merger, than the letter Mercantile solicited and submitted. Watch this site.

On January 3, the Federal Reserve announced that "the Board has enlisted the services of executive recruiting firm DiversifiedSearch to assemble a broad and diverse pool of candidates, both internal and external, from which to select Ms. [Sandra] Braunstein's successor." Given the financial industry's domination of the rest of the Federal Reserve System including several Governors, we believe that consumers and community groups should play a role in the selection process.

While Inner City Press is also focused on the Trans-Pacific Partnership Agreement's threat to globalize the US Digital Millennium Copyright Act circumvention of freedom of the press, exemplified by a August 14, 2013 bad faith DMCA complaint by Reuters UN bureau chief to get a document leaked to Inner City Press banned from Google's search, TPP would also institutionalize the type of deregulation which led to the 2008 predatory lending meltdown. So it should be opposed - watch this site.

Given "Needs to Improve" CRA ratings by the FDIC:


Bank of the South PENSACOLA FL - NI
Builders Bank CHICAGO IL - NI
Commercial Bank of California COSTA MESA CA - NI

December 30, 2013

There were deserved but too-small enforcement actions against PNC, Ocwen and Ally; on the smaller bank project, an industry consultant hyped it up:

A recent article published in American Banker,

Consumer Advocates force tougher CRA enforcement on smaller banks

demonstrates three important dynamics in the enforcement of the Community Reinvestment Act:

For 3 years GeoDataVision has advised clients that regulatory enforcement of CRA is getting more "robust" (a favorite Washington bureaucratic expression for tougher, more adversarial relations between bankers and their regulators). This more aggressive enforcement of CRA is not only borne out in the numbers of banks failing their CRA exams, it is now being reflected in the regulatory scrutiny of merger and acquisition deals too.

Perhaps even more troubling, is the growing focus of community activists on smaller banks too. Not only do these groups represent a public relations nightmare, they also can exacerbate the attitude of regulators too. Matthew Lee, the author of the American Banker article, is a good case in point. Mr. Lee not only terrorizes big banks, he intimidates regulators too. His fingerprints are on many public objections to bank mergers. He is a voice regulators find hard to ignore. And although he mostly focuses on the major banks, he has been demonstrating a growing interest in smaller banks too.

This makes it all the more imperative that your bank have a formal CRA Risk Management program in place. As the old saying goes, "Forewarned is Fair warned". Neglect your CRA performance at your own peril and the consequences could be very big and very costly.

  We actually agree with that...

December 23, 2013

Inner City Press / Fair Finance Watch commented to the Office of the Comptroller of the Currency on Huntington / Advantage, saying that they must be made to disclose how much branches, with 22 to be acquired, would be closed or consolidated, and now received this (and publishes it) --

Regarding the public comment period for the merger of Advantage Bank, Cambridge, OH with and into The Huntington National Bank, Columbus, OH, please be advised that the bank has republished the merger and therefore, the new public comment period end date is January 8, 2014. As indicated previously, public comments should be submitted to: Director for District Licensing, One Financial Place, Suite 2700, 440 South LaSalle Street, Chicago, IL 60605

What is behind this? 


   Inner City Press / Fair Finance Watch has now received a copy of Huntington's (or its law firm Wachtell Lipton's) December 18 submission disclosing that it would close or consolidate fully NINE of the 22 branches it would acquire along with Camco's Advantage: nearly half of the branches.

We have just put Huntington's filing online here: http://www.innercitypress.org/huntingtonadv1icp121813.pdf

What would be the benefit of this proposed merger to consumers? Some of the planned closures are more than two miles apart.

Inner City Press' initial November 29 filing asked for an extension of the OCC "comment period particularly because there is as yet no Federal Reserve Board comment period. Huntington has said it is acquiring the holding company, Camco, so one expects an FRB application. But so far, none."

Huntington's December 18 submission to the OCC argues that no Federal Reserve application should be required, and states that "Huntington will seek confirmation from the Federal Reserve that no application is required."

Inner City Press has (Dec 21) opposed that, in a filing with the Federal Reserve Board in Washington arguing that "an application should be required, particularly because it is now belatedly disclosed that Huntington would close or consolidate fully 9 over the 22 branches it would acquire along with Camco. There are also holding company issues that ICP intends to raise once the FRB application is filed. As simply one example, managerial issues are raised by embezzlement of elderly customers' funds: http://www.wdtv.com/wdtv.cfm?func=view&section=5-News&item=Former-Bank-Manager-Sentenced-for-Embezzlement13431

Inner City Press has now (Dec 21) told the Fed what it told the OCC on November 29:

Huntington's 2012 HMDA data reflect that in the sample MSA of Toledo, Ohio, for conventional home purchase loans Huntington made 287 such loans to white, and only ONE each to African American and Latino applicants. In Table 4-1, Huntington made 97 such loans to white, and only seven to African Americans and one to a Latino applicant.

Cumulated for all home purchase loans in 2012 in the Toledo MSA, Huntington made 384 loans to whites, only EIGHT loans to African Americans and only TWO loans to Latinos. This is outrageous.

In a second sample MSA of Detroit, Michigan for conventional home purchase loans in 2012 Huntington made 68 such loans to white, and only THREE to African Americans and one to a Latino applicant. In Table 4-1, Huntington made 24 such loans to white, and only one to an African American and NONE to Latino applicants.

Cumulated for all home purchase loans in 2012 in the Detroit MSA, Huntington made 92 loans to whites, only FOUR loans to African Americans and only ONE loan to a Latino applicant. Huntington denied 8 of 12 applicants from African Americans. This is outrageous.

On the current record, the FRS should - must -- require an application from Huntington. And the OCC should hold public hearings, and on the current record deny, Huntington's application to acquire Advantage and close / consolidate fully NINE of its 22 branches. Watch this site.


December 16, 2013

Inner City Press / Fair Finance Watch commented to the Federal Reserve about the lending record of Michigan's Mercantile Bank back in October; in November after begging the Fed to essentially ignore the issues raised, the bank told the SEC it would probably not close the deal by the end of the year.

Now, Mercantile has gone low. Its submissions to the Fed have gotten shrill; it has reached out to individual borrowers of color (and to ostensible civil rights and even religious groupings) asking them for letters to CEO Michael Price to give the Fed about how they never felt discriminated against. Click here for one sample letter: http://www.innercitypress.org/mercbankasia120213.pdf

This approach cannot be allowed to prevail. Watch this site.

December 9, 2013

CRA Shifts to Smaller Banks, With Conditions Imposed on Investors Bancorp, Delay for Mercantile and VCBI: Why?

By Matthew R. Lee

With fewer mergers by big banks, Community Reinvestment Act focus has shifted to mid-sized banks and, on at least three proposed deals, the regulators have taken additional time to review lending disparities identified by CRA commenters.

The Investors Bancorp - Roma Financial Corporation, MHC deal to which the Federal Reserve Board gave conditional approval on December 3 was protested back on March 1 by Inner City Press (Fair Finance Watch), which also commented in October on the proposed Mercantile - FirstBank deal in Michigan.

The Fed's Investors - Roma order says that

"as a condition of its approval, the Board has determined that the audit committee of the board of directors of Investors Bancorp must issue a written report to the board of directors of Investors Bancorp that shall include: an assessment of Investors Bank’s consumer compliance risk systems, processes, and procedures; an assessment of compliance with any reports or recommendations made by any state or federal agency issued in the last five years with respect to consumer compliance; and recommendations for improving the consumer compliance risk program, if necessary."

This is a rare condition for the Federal Reserve to impose, at least on consumer compliance. But as Inner City Press' March 1 comment set forth, in the New York City Metropolitan Statistical Area in 2011, Investors made 220 home purchase loans to whites, and only two such loans to African Americans. That's hard to do in New York.

Likewise, in examining the 2012 Home Mortgage Disclosure Act data of Michigan's Mercantile Bank, Inner City Press found that in the Grand Rapids MSA for conventional home purchase loans, Mercantile Bank lent only to whites. Its mortgage company made 42 such loans to whites, none to African Americans or Latinos.

After Inner City Press put this and other date in an October comment on Mercantile's application to acquire Alma, Michigan-based FirstBank, the Federal Reserve asked Mercantile a round of questions on November 6, and another on November 26. These included:

"Describe any other community outreach efforts (e.g., credit needs ascertainment, marketing / advertising, and product development) by Mercantile to make credit available to residents throughout the bank's assessment areas, including to African America or Hispanic individuals or residents of minority census tracts in those areas, including in the Grand Rapids MSA.

"Mercantile stated (page 11) that, effective in 2013, the monthly reports to the bank's CRA Committee include the number of minority loan applications and originations and that these changes were implemented to bring focus to the bank's efforts to increase the number of minority loan applications. Indicate when this expanded reporting began..."

Could it be too little, too late? On November 26, Mercantile filed with the Securities and Exchange Commission that its plan to close the deal by the end of the year, and for FirstBank to not file a 2013 SEC Form 10-K, no longer held.

Another proposed merger in Virginia, of United Bancshares and Virginia Commerce Bancshares (VCBI) has similarly been delayed by comments by NCRC and members, including Inner City Press. United Bancshares went out and hired the Sullivan & Cromwell law firm, to try to push its application through with the Federal Reserve.

Is this a trend? It would seem so. In discussions between Inner City Press and a pro-industry cynic (that is, an arbitrageur), theories emerged such as that regulators have "excess capacity" or feel some responsibility for the subprime lending triggered meltdown of 2008.

In the alternative, as community and consumer groups turn their attention to smaller banks and find disparities that had heretofore escaped their scrutiny, they bring them to the attention of regulators who, at least for now, seem to take them more seriously.

The lesson for banks might be to clean up and improve their lending records before applying for mergers. Or to not set aggressive closing dates and then have to extend them. On this, we agree with the arbitrageur.

December 2, 2013

Back in October, Inner City Press / Fair Finance Watch commented to the Federal Reserve against Michigan's Mercantile Bank's application to acquire FirstBank, highlighting disparities in Mercantile's lending.

The Federal Reserve asked Mercantile a first round of questions on it; Mercantile told the Fed it really, really needed to close the deal by the end of the year, so FirstBank wouldn't have to file an SEC 10-K for 2013.

Conversing with the media in Michigan, Inner City Press noted that for example in the Warren-Troy MSA, Mercantile in 2012 made 17 refinance loans to whites, none to African Americans.

November 29, 2013: "Mercantile and Firstbank merger will likely be delayed, Consumer protection group alleges Mercantile Bank loaned no money to minorities in 2012," by Eric Young, Ogemaw County Herald


November 25, 2103, "Federal Reserve holds up merger of Mercantile Bank Corp. and FirstBank Corp. over minority lending practices," by Jim Harger, MLive/Grand Rapids Press

The Fed has asked more questions, click here, and Mercantile has now told the SEC:

"Due to the timing of certain regulatory processes and approvals, Mercantile Bank Corporation expects that its previously announced merger with Firstbank Corporation will not be completed on January 1, 2014, as previously disclosed."

Watch this site.

November 25, 2013

Inner City Press / Fair Finance Watch commented on Mercantile Bank's application to the Federal Reserve to acquire First Bank, based on disparate lending in Michigan. Now (November 20) Mercantile argues against the Fed having extended its review, arguing that to go beyond December 31 might mean First Bank would have have file an SEC Form 10-K for 2013. But what would giving in to this kind of argument mean for CRA?

On Michigan-based Talmer's proposal to acquire MICHIGAN COMMERCE BANK, BANK OF LAS VEGAS, INDIANA COMMUNITY BANK and SUNRISE BANK OF ALBUQUERQUE, ICP also commented to the FDIC, thusly:

With a comment period running to November 24, the FDIC has provided notice of this (no mention of Talmer)

Prepared On: Saturday, November 23, 2013

20132291 MICHIGAN COMMERCE BANK 2950 STATE STREET SOUTH

ANN ARBOR , MI Regular Merger 10-28-2013 11-24-2013 Chicago

Merger Information: Institutions Involved in this Merger:

BANK OF LAS VEGAS

1700 WEST HORIZON RIDGE PARKWAY, SUITE 101

HENDERSON , NV


INDIANA COMMUNITY BANK

511 WEST LINCOLN AVENUE

GOSHEN , IN


SUNRISE BANK OF ALBUQUERQUE

219 CENTRAL AVENUE NORTHWEST

ALBUQUERQUE , NM

As an initial matter, this is a request that the FDIC immediately send by email all non-exempt portions of the above-noticed applications / notices for which the Applicants have requested confidential treatment -- as well as any application(s) by Talmer, and if this IS the Talmer application, an explanation why Talmer is not mentioned. If that it the case, new notice (and an extended comment period) must be provided.

Reviewing the 2012 HMDA data just released by the FFIEC (and largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP has examined Talmer's and Michigan Commerce Bank's home purchase and refinance lending.

In the Warren-Troy MSA for conventional home purchase loans in 2012, Talmer made 401 such loans to whites, and only eight to African Americans, only four to Latinos. In Table 4-1, Talmer made 88 loans to whites, two to African Americans and NONE to Latinos.

In the Detroit MSA for conventional home purchase loans in 2012, Talmer made 38 such loans to whites, and NONE to African Americans or Latinos. to Latinos. In Table 4-1, Talmer made 98 loans to whites and again NONE to African Americans or Latinos. This is outrageous.

In all MSAs, Talmer has a strangely high percentage of "withdrawn" applications, that should be inquired into in the public evidentiary hearing ICP is requesting.

Michigan Commerce Bank was hardly better, make loans essential only to whites in the Holland, Kalamazoo and even Detroit MSAs, with a strangely high percentage of "race not available" applications, that should be inquired into in the public evidentiary hearing ICP is requesting.

Neither BANK OF LAS VEGAS nor SUNRISE BANK OF ALBUQUERQUE show up in the FFIEC's HMDA database.

INDIANA COMMUNITY BANK shows up only in the Elkhart MSA, making conventional home purchase loans only to whites.

For the record, "Law360, New York (November 22, 2013, 5:19 PM ET) -- Capitol Bancorp Ltd. on Friday received a bankruptcy court's approval of its bid to sell off its remaining subsidiary banks for $4 million in cash and a $90 million equity contribution despite creditors' cries that the sale offers them almost no recovery. The bank holding company can sell the banks to Wilbur Ross-controlled Talmer Bancorp Inc. under its proposed plan of liquidation following U.S. Bankruptcy Judge Marci B. McIvor's order greenlighting the transaction. The banks include Michigan Commerce Bank, Indiana Community Bank, Bank of Las Vegas..."

This ignores the need for regulatory approval including CRA review, and the abysmal record sketched above.

On the current record, hearings should be held and the applications / notices should not be approved.

November 18, 2013

So ex-regulator Tim Geithner is cashing out to private equity firm Warburg Pincus -- which has at least a 20% stake in Sterling, the Spokane-based bank that Umpqua has applied to the Federal Reserve to acquire for $2 billion. So $400 million of that would go to Warburg Pincus. This insider deal, Inner City Press / Fair Finance Watch has commented on, including on Home Mortgage Disclosure Act disparities and prospective branch closings.

Meanwhile Michigan's Mercantile, trying to buy FirstBank, has responded to the Federal Reserve but withheld from Inner City Press three exhibits in their entirety, while telling the Fed they want to close the deal so to set up a conference call. Inner City Press contests the withholding, and any "ex parte" call, having now formally asked to be be notified of and allowed to be on any such call. Watch this site.

November 11, 2013

Two weeks after Inner City Press / Fair Finance Watch filed comments on the proposed acquisition by Mercantile or FirstBank, the Federal Reserve on November 6 asked Mercantile some questions, including about CRA and fair lending, here: http://www.innercitypress.org/frb1mercbank110613.pdf

They were given eight business days to answer (and send a copy); their shareholders meet on the proposal on December 12...

Another challenge we're watching is to to application of Midland States Bancorp of Effingham, Illinois, to acquire Heartland Bank, filed from St. Louis, Missouri....

Meanwhile be aware: in one week the comment period will close on Umpqua's application to acquire Sterling Financial Corporation...

Among proposed mergers we're looking at:

In North Carolina, NewBridge Bancorp and CapStone Bank... In Washington State, Heritage Financial Corporation and Washington Banking Company.Also in the Pacific Northwest, Bank of the Cascades outbidding Banner Bancorp to try to buy Idaho's Home Federal Bank. Up in Alaska, Northrim BanCorp announced a proposal to buy Alaska Pacific Bancshares. And Huntington Banchares' proposal to acquire Advantage Bank. The analysis: "Mergers and acquisitions were virtually nonexistent in Ohio following the recession, with only 16 bank deals from 2008-12." But now they're back - and so are we.

November 4, 2013

So Goldman Sachs' bank has been given an "Outstanding" CRA rating, trumpeted in the Wall Street Journal. GS is given CRA credit for lending to the CitiBank program. But since the bike racks are all below 60th Street in Manhattan and in gentrified or gentrifying parts of Brooklyn -- a veritable redlining map -- why does this get CRA credit? It's a scam...

October 28, 2013

So ICP / Fair Finance Watch commented to the Fed on Mercantile Bank Corporation to merge with Firstbank Corporation. Reviewing the 2012 HMDA data recently released by the FFIEC (and largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP has examined Mercantile's and its mortgage company's home purchase, refinance and home improvement lending in its Grand Rapids, Michigan headquarters MSA and finds them outrageous.

In 2012 in the Grand Rapids MSA for conventional home purchase loans, Mercantile Bank lent ONLY to whites. Its mortgage company made 42 such loans to whites, NONE to African Americans or Latinos.

In 2012 in the Grand Rapids MSA for refinance loans, Mercantile Bank lent ONLY to whites. Its mortgage company made 159 such loans to whites. It had a 100% denial rate for African American applicants.

In 2012 in the Grand Rapids MSA for home improvement loans, both Mercantile's bank and mortgage company lent only to whites.

This is outrageous.

The day after the proposed merger was announced, Michigan News reported:

"Executives of Mercantile Bank Corp. and Firstbank Corp. of Alma pronounced they have no seductiveness in relocating into Southeast Michigan after they finish a 'merger of equals' they announced Thursday, Aug. 15. 'The brief answer is no,' pronounced Firstbank Chairman Tom Sullivan, when asked if a joined bank would find acquisitions in Southeast Michigan during a discussion call. 'We have no seductiveness in relocating into Southeast Michigan,' pronounced Sullivan, who will offer as chair of a joined bank for a initial year of a merger. 'I don’t trust that in being of any seductiveness."

Really?

October 21, 2013

As JPMorgan Chase tries to buy its way out from what it did with predatory lending, it is troubling that the government would be agreeing that less than one third of what Morgan Chase pays would be for the "struggling homeowners" who got hurt: $4 billion, versus $9 billion in fines. For shame...

October 14, 2013

Of course a Consumer Financial Protection Bureau enforcement under the Home Mortgage Disclosure Act is welcome. But why is the non-bank fine so much more, per violation, than the bank?

On October 9 the CFPB announced that "Mortgage Master, a nonbank headquartered in Walpole, Mass., had significant data errors in the 21,015 mortgage loan application" -- and that "Mortgage Master will pay $425,000."

As to the bank, CFPB said "Washington Federal, a bank headquartered in Seattle, Wash., had significant errors in the 5,785 mortgage loan applications" -- and that "Washington Federal will pay $34,000 in civil penalties."

So on one-fourth of the non-bank's application, the bank Washington Federal paid a miniscule mine less than one-tenth of the non-bank's. What gives?

October 7, 2013

This week, along with the IMF pushing for faster foreclosures in Ireland, we highlight a CRA protest by another group: in California, to PacWest.

IMF in Ireland Wants Faster Repossession, Ignored Fall-Out from Austerity, Qs

By Matthew Russell Lee

UNITED NATIONS, October 4 -- The idea of a kinder and gentler International Monetary Fund under Christine Lagarde was belied again Friday with the release, first under embargo, of the IMF's staff report on Ireland. Among other recommendations, the IMF calls for faster foreclosures or repossession. From Paragraph 24:

"Strengthening Ireland’s repossession framework could further support progress in durable loan modifications... Court proceedings and enforcement of court orders can be lengthy, adding to resolution costs where a change in ownership is the only available solution, and underminingborrowers’ incentives to engage on concluding loan modifications and to adhere to the revised debt service schedule.... Based on a terms of reference agreed with EC, ECB, and IMF staff, they will also appoint an internal expert group to review the length, predictability, and cost of proceedings, including relative to peer jurisdictions, and to propose remedies by end 2013."

  So: faster evictions, reduction in borrowers' leverage. On the embargoed press conference call, on which it was not clear how questions were selected, the IMF's Ireland Mission Chief Craig Beaumont also called for faster fiscal consolidation: that is, merger. Where will it lead?

  In the IMF's biweekly media briefing on September 26, Lagarde spokesperson Gerry Rice answered a question about the depreciation of the rupee in Pakistan by saying not only is it not the IMF's fault, the IMF will solve it.

  A journalist down from the UN asked Rice about the view that the rise of "Golden Dawn" in Greece is related to austerity policies. Oh no. Of course not.

  From New York, Inner City Press has asked the IMF about Sudan (and South Sudan, and Palestine) --

On Sudan and the deadly protests there of the elimination of fuel subsidies, does the IMF have any view if the elimination was implemented too quickly? What is the status between the IMF and Khartoum, including on any debt relief?

On South Sudan, what is the status of discussions on a Rapid Credit Facility and a government program to be monitored by IMF staff?

On Palestine, what is the IMF's view of yesterday's Communique by the Ad Hoc Liaison Committee?

Watch this site.

From the LA Business Journal, CRC "has noted that regulators rate CapitalSource as 'outstanding' in those activities, but PacWest has a “low satisfactory” rating. Kevin Stein, the Reinvestment Coalition’s associate director, said his group, which includes member organizations in Los Angeles, wanted to make sure CRA activities were considered due to the size of the merger. 'It would be in the top 10 in the state,' he said. 'That’s a substantial institution. As institutions grow, we think they have an increasing obligation to serve their communities.' PacWest executives on Friday did not immediately return calls for comment."

Typical. We'll have more on this.

September 30, 2013

Investors Bancorp, trying to buy Gateway Community Financial Corporation MHC in New Jersey despite its disparate record in New York, has been asked to explain disparities. And its response to the Federal Reserve gets personal: like saying an application from "two Black / African American applicats was denied for delinquent Credit History."

Meanwhile, "The deal between the two New Jersey banks, which would see Short Hills-based Investors acquire the smaller Robbinsville-headquartered Roma in a transaction valued at roughly $452 million, had been scheduled to close Monday. But the two bank-holding companies said in a news release today the new deadline will be Nov. 30."

September 23, 2013

Striking down in DC with all the talk on house of Corker Warner is that the bill, if it moves forward, probably won't be that one. Rather the chairmen will take over, with Johnson - Crapo. A new chance to raise money. A new chance to sell input.

Also, despite claims by the Administration they are firming behind Mel Watt, few predict that will move, or even be pushed for.

September 16, 2013

Beyond Umpqua - Sterling, there's the $151 million Michigan merger proposed between Mercantile and Firstbank Corp, trying to become the "third-largest bank headquartered in Michigan." Last week a merger was proposed in Indiana, between Old National Bancorp, "the largest financial services holding company headquartered in Indiana," and Tower Financial Corporation. In North Carolina, there's the August 28 proposed merger of Hendersonville, N.C.-based 1(st) Financial Services Corp. and Mountain 1(st) Bank into First Citizens Bank. Watch this site.

September 9, 2013

Blast from the past: when Adams Bank and Trust applied to open a new branch in Nebraska, the Federal Reserve Board got "public comments received from prospective competing banks in Colby and from residents of the surrounding areas. The commenters assert that their community’s demographic and economic characteristics would not profitably support another branch and that the area’s financial services needs are adequately met by the financial institutions currently operating there." Saying "we don't want more banks" was one of the bases for the "convenience and needs" concept in US banking law... It sure looks innovative:

New York Gov. Andrew M. Cuomo announced proposed Slumlord Prevention Guidelines (SPG). The guidelines include new Community Reinvestment Act (CRA) regulations from the Department of Financial Services (DFS)and Benjamin M. Lawsky, Superintendent of Financial Services that incentivize banks -- but how, without meaningful comment periods and processing on mergers?

This NY Dep't of Financial Services, so far, is LESS open to CRA comments that its predecessor. Watch this site.

September 2, 2013

After Inner City Press / Fair Finance Watch and other NCRC members filed challenges with the FDIC to the application of Renasant Bank to buy F&M Bank in Mississippi, the FDIC has issued a rare "condition approval," in cluding that

"1. The Bank will execute its plan to conduct an assessment of the small business and residential real estate credit needs of the post-merger assessment areas;

2. Based on the Bank's assessment of small business and residential credit needs, the Bank will continue to conduct focused advertising to solicit qualified small business and residential real estate applicants. The Bank will budget marketing funds to specify the types of advertisements to be utilized and the expected audience based on the demographics for the area of circulation;

3. The Bank will establish annual outreach goals to elevate awareness of the Bank's mortgage and small business products in each market or assessment area through the community based organizations it supports and other means deemed appropriate;

4. The Bank will monitor its level of home mortgage lending by market or assessment area taking into account borrower race, ethnicity, income and geographic location, with a goal of its levels being similar to peer lending or the demographic characteristics of each area within three years. The Bank will determine the peer group based upon factors such as market share, asset size, number and location of branches in the market, and volume of lending. The peer group must be approved by the Corporation;

5. The Bank will continue its efforts to expand its team of mortgage originators to solicit increased levels of qualified residential real estate borrowers consistent with its annual goals; and

6. The Bank will develop an Action Plan ("Plan") that addresses the aforementioned provisions, and upon Board approval of such Plan, the Bank will provide a copy to the Corporation, and will also provide quarterly updates detailing its progress in meeting the goals listed in the Plan.”

August 26, 2013

As Bank of America moves to close some drive-thru tellers, the OCC tells the public they can comment -- but only on the CRA exam. Per the Observer, Bill Grassano, spokesman for the Office of the Comptroller of the Currency, said the public can file comments with the regulator to explain how they are being hurt by changes a bank is making. Those comments go into a bank’s CRA record and are considered as part of a bank’s CRA examination, he said. Bank of America would not have to notify the OCC of the drive-up teller lane closures as long as the branches they are connected to remain open, Grassano said.

What a drive-thru loophole...

August 19, 2013

Amid Bank Mergers & High-Cost Consumer Loans, Subprime Summers for Fed?

By Matthew R. Lee

NEW YORK -- Despite being bailed out by the public and some now waning populist rhetoric from Washington, the continuing bank merger proposals show no concern for the public or for job loss.

  Why should they, when President Obama considers Larry Summer, on the Board of Directors of the no-doc (and thus subprime) Lending Club, to head the Federal Reserve?

  The biggest proposed bank merger in the US in the past month is the $2.3 billion agreement between Pacific Western Bank and CapitalSource Bank, to have a "national commercial lending arm."

  The comment? No "benefits for current clients of either bank. This is typical of this sort of deal. Management and Wall Street think it's just dandy. Meanwhile, employees lose their jobs and customers see more fees."

  But the investment bankers, of course, get paid.

  Then in Arkansas there's Liberty BancShares and Home BancShares, proposing to form a $7 billion bank with 92 branches in Arkansas (#2 in that state, to Arvest) and 59 outside the state. Governor Mike Beebe appeared at the press conference in support of the merger, which would lead to job loss. That's politics.

  In the Carolinas, there's Forest Commercial Bank into Carolina Alliance Bank in upstate South Carolina and western North Carolina, branches in Spartanburg, SC, Asheville, NC, and Hendersonville, NC, a loan production office in Charlotte and a proposed branch office to be located in Seneca, SC. But who would benefit?

  Inner City Press / Fair Finance Watch while considering those three has now commented to the Office of the Comptroller of the Currency against Republic Bank's proposal to buy H&R Block Bank. As stated, both institutions have a history of high cost lending to consumers, through tax refund anticipation loans and otherwise. See, "Steve Trager: Pending H&R Block bank deal could return Republic Bank to being mega tax refund provider," Insider Louisville, July 11, 2013

  Even if Republic denies that headline from its headquarters city, public hearings should be held on what Republic would do with H&R Block's "Emerald Card" program, particularly given its subsidiaries and their plans: Republic Prepaid Systems, "an issuing bank to offer general purpose reloadable prepaid debit, payroll, gift and incentive cards through third party program managers" and Republic Credit Solutions, "preparing to pilot short-term consumer credit products through multiple channels.”

  Reviewing 2011 HMDA data, the most recent data available (and largely unaddressed in existing Community Reinvestment Act performance evaluations and fair lending exams), ICP has examined Republic Bank & Trust Co's refinance and home improvement lending in the Louisville, Kentucky and Cincinnati MSAs.

  In the Louisville MSA in 2011 for refinance loans, Republic 40.4% of applications from African Americans, versus on 20% of applications from whites. Its denial rate for Latinos was even higher: 45.5%

  For home improvement loans, Republic denied 50% of application from African Americans versus 24.8% of applications from whites. Its denial rate for Latinos was 100%.

In the Cincinnati MSA in 2011, Republic made 27 refinance loans to whites and NONE to African Americans, nor Latinos. It made seven home improvement loans to whites, none to African Americans (denial rate 100%) nor Latinos.

  Inner City Press / Fair Finance Watch also commented to the Federal Reserve on the application by Chile's Banco De Credito E Inversiones to buy City National Bank of Florida. The current parent Bankia is surrounded by controversy and litigation, including involving the Spanish central bank with the Managing Director of the IMF Christine Lagarde mentioned as a witness, in connection with its bailout that is related to this proposed sale.

  Reviewing 2011 HMDA data, ICP has examined City National Bank of Florida's home purchase and refinance lending in the Fort Lauderdale, Miami and Orlando MSAs.

  In the Fort Lauderdale MSA in 2011 for refinance loans, City National Bank of Florida made 15 such loans to whites, and NONE to African Americans or Latinos. It denied all three of the applications it received from Latinos.

  In the Orlanda MSA in 2011 for conventional home purchase loans -- the only kind of home purchase loans City National Bank of Florida makes or reports -- it made 53 such loans to whites, only eight to Latinos and only TWO such loans to African Americans.

  In the Miami MSA in 2011 for refinance loans, City National Bank of Florida made 54 such loans to whites, only 16 to Latinos and only ONE such loan to an African American applicant.

  Analysis now proceeds on other proposed acquisitions. Watch this site.

August 12, 2013

While less than responsive to CRA comments, last week "New York's top financial regulator ordered 35 online payday lenders to stop offering loans there that violate state laws capping annual interest rates at 16 percent. The state also sent letters to 117 banks, asking them to help 'cut off' payday lenders from the global network used by banks to send money and collect payments." Could that be used on other industries?

Meanwhile in the UK, according to the FT, "Gareth Thomas, chair of the Co-op party, said that 'an urgent expansion of credit unions to offer low-cost financial services is overdue to help those whose budgets are stretched and for whom a payday lender can mean a fast ticket to increasing debts.' Likewise the Co-op is looking to the US Community Reinvestment Act for inspiration, which requires banks to work with community lenders in areas where they have only a limited presence." Well, that's ONE part of what the CRA is about...

August 5, 2013

Opposition to the Corker - Warner proposal continues to grow: it would eliminate the Affordable Housing Goals and replace them with... nothing.

July 29, 2013

So Larry Summers has been "speaking at internal meetings at Citi beginning in 2012, Mr. Summers attended small gatherings of clients 'where he provides insight on a broad range of topics, including the domestic and global economy,' a Citigroup spokesman said. The bank wouldn't say how much it is paying him," per Damian Paletta. Next!

It's worth noting, as Inner City Press / Fair Finance Watch did, that Fed Governor Jerome Powell, denier of FOIA appeals, was previously with Deutsche Bank and the Carlyle Group...

July 22, 2013

Through the revolving door from the CFPB: "Raj Date helped write new rules for U.S. mortgage underwriting as deputy director of the Consumer Financial Protection Board. Now he’s building a company that will offer loans to borrowers blocked by the agency’s standards. Date left the CFPB in January to found Washington-based Fenway Summer LLC."

And TO the CFPB, from Capital One: "Sartaj Alag will serve as Chief Operating Officer. Prior to taking on this role, Mr. Alag had established the Bureau's Office of Consumer Response and had worked in the private sector both as President of a Capital One subsidiary and as a management consultant at McKinsey & Company."

Reforms needed.

July 15, 2013

The Corker - Warner bill, getting a lot of play for being bipartisan, would hurt homeownership and low income housing -- what would happen to the affordable housing goals? This will be a focus going forward.

July 8, 2013

Deutsche Bank, which got involved as a direct subprime lender and as a trustee, has been accused by the City of Los Angeles of facilitating illegal evictions. Its attempts to get the case dismissed were rejected in April by the court.

And so now a settlement for a mere $10 million, of which Deutsche Bank brags it is not paying anything, that would be the services and the securitization trusts. When does immunity become impunity?


Just filed: a timely first comment on the applications by Investors Bancorp, MHC and Investors Bancorp (collectively, “Investors Bancorp”) to acquire Gateway Community Financial Corporation, its MHC and GCF Bank.

Reviewing 2011 HMDA data, the most recent data available (and still largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP has now examined GCF Bank's home purchase, refinance and home improvement lending in the Camden MSA. It is disparate, and Investors' record give no assurance it would improve.

In the Camden MSA in 2011 for conventional home purchase loans, GCF Bank made 30 such loans to whites, and NONE to African Americans or Latinos. The only applications it received from an African American and Asian applicant, it denied. (There was no Table 4-1.)

For refinance loans in the Camden MSA in 2011, GCF Bank made 111 such loans to whites, only one to an African American and none to Latinos. Its denial rate for African Americans was 6.9 times higher than for whites.

In the Camden MSA in 2011 for home improvement loans, GCF Bank made 32 such loans to whites, and NONE to African Americans or Latinos.

Would Investors improve this? No. ICP has reviewed Investors Bank's home purchase and refinance lending in the New York City MSA and finds it outrageous.

For the record on this application: In the NYC MSA in 2011 for conventional home purchase loans, Investors Bank made 220 such loans to whites, and only TWO such loans to African Americans. Its denial rate for Hispanics was FIVE TIMES higher than for whites. (There was no Table 4-1.)

For refinance loans in the NYC MSA in 2011, Investors Bank made 183 such loans to whites, only three to African Americans and only four to Hispanics. Its denial rate for Hispanics was 3.59 times higher than for whites.

In the Long Island MSA in 2011, Investors Bank made 33 home purchase loans to white - and none to African Americans. It made 31 refinance loans to whites and none to either African Americans or Hispanics.

On the current record, Investors Bancorp's applications should not be approved.

In the still proposed Roma transaction, at least 57 would be laid off. How many might be laid off here? Investors' management is not transparent, as simply one example on the questions raised about the Roma proposal. And now this one. Its CEO has been quoted, “We just had a pretty good exam with the Federal Reserve at the holding company. They had one or two comments on enhancing the dividend policy.” It is in that context that we are requesting all communications between the Federal Reserve System and Investors for the past year....

July 1, 2013

Bottom feeders: First Cash Financial Services has acquired 19 “large-format” U.S. pawn stores in the Houston, Dallas and Fort Worth markets, operating primarily under the Valu + Pawn brand. First Cash CEO Rick Wessel said in a June 25 press release release that the deal gives the company a new presence in the Houston market and expands its existing store base in the Dallas and Fort Worth area. The price for the all-cash asset purchase transaction was about $70 million, funded mainly with the company's revolving credit facility. The operations and earnings of the Valu + Pawn stores have been consolidated into First Cash, effective with the closing of the transaction June 25. Watch out...

June 24, 2013

M&T's (cheap) anti money laundering deal with the Fed will probably move the deal along faster -- but the deal makes it pretty clear that the money laundering loophole is in Wilmington Trust, which the Fed let M&T buy in 2011.

So what does it say about the Fed's merger reviews? The Fed should come up with a plan to improve itself, in 60 days (and approve no merger during that time.) Compare the Fed not even fining M&T, while state regulators last week fined even an accounting firm which helped a bank (Standard Chartered) conceal money laundering...

June 17, 2013

In Virginia, where's the public benefit? Union First Market Bankshares CEO G. William Beale says he would close at least 10 branches if allowed to acquire Charlottesville, Va.-based StellarOne Corporation. So why should he be allowed?

June 10, 2013

Hedge funds that profited on the way down from the collapses, for example Paulson & Company, the Carlyle Group's Claren Road Asset Management and Perry Capital, are now buying up the preferred shares of Fannie Mae with a eye to taking it private.

  They are buying in the markets, with little disclosure or oversight, and lobbying in DC. Also in the mix is James Millstein, "fixer" of AIG, now ready to cash in through, what else, Milstein & Company.

  On the other side, Fannie Mae has become a grab-bag, with fees imposed on mortgages for entirely unrelated government goals. Who wouldn't want such a pinata?

Renasant Bank has tried to rebut criticism to the FDIC of racial disparities in its lending patterns by saying the following: "Many barriers are psychological in nature." But can you blame the victim for this:

Reviewing 2011 HMDA data, in the Memphis MSA in 2011 for conventional home purchase loans, Renasant made 60 such loans to whites, and only TWO such loans to African Americans, and only ONE to a Hispanic.

For Table 4-1, Renasant made 46 such loans to whites, and only FOUR such loans to African Americans, and only THREE to Hispanics.

Cumulated home purchase lending in this MSA: Renasant made 104 home purchase loans to whites, and only SIX such loans to African Americans, and only FOUR to Hispanics. This is inconsistent with other lenders' demographics of lending in this MSA.

For refinance loans in the Memphis MSA in 2011, Renasant made 112 such loans to whites, and only SIX such loans to African Americans, and only ONE to a Hispanic. This is inconsistent with other lenders' demographics of lending in this MSA.

In the Atlanta MSA in 2011 for conventional home purchase loans, Renasant made 27 such loans to whites, and NONE to African Americans or Hispanic.

For Table 4-1, Renasant made 16 such loans to whites, and only ONE such loans to an African American, and only ONE to a Hispanic.

Cumulated home purchase lending in this MSA: Renasant made 43 such loans to whites, and only ONE such loans to an African American, and only ONE to a Hispanic. This is inconsistent with other lenders' demographics of lending in this MSA.

For refinance loans in the Atlanta MSA in 2011, Renasant made 204 such loans to whites, and only TWELVES such loans to African Americans, and NONE to Hispanics. This is inconsistent with other lenders' demographics of lending in this MSA.

Psychological?

June 3, 2013

How can Goldman Sachs purport to report on its Business Standards Impact, for 27 pages, and not even MENTION its subprime servicer Litton, and its recent shorting on compensation for victims?

May 27, 2013

So Spain's Bankia SA is proposing to sell its City National Bank of Florida and its 26 branches to Chilean bank Banco de Credito e Inversiones SA for $882.8 million. That's the proposal...

May 20, 2013

Inner City Press / Fair Finance Watch submitted timely comments on May 17, beginning:

Re: Proposed Changes to Interagency Q&A, and general comment about the need for more rigorous and transparent enforcement of CRA on merger and expansion applications

OCC: Docket ID OCC-2013-0003

Federal Reserve: Docket No. OP-1456

FDIC: Attention: Comments on CRA Interagency Q&A

To Whom It May Concern:

On behalf of Inner City Press / Fair Finance Watch ("ICP"), this is a timely comment on the proposed changes to the Inter-agency CRA Q&A (the "Q&A"). As you will hear from other members of the National Community Reinvestment Coalition (NCRC), the Q&A should have gone much further, and fall far short of the comprehensive revisions to the CRA regulation needed to keep pace with the changes in the banking industry.

Beyond the comments below, ICP would like to emphasize to the agencies that since CRA is only enforced on applications to merge or expand, it is essentialy that the agencies' processing of such applications, particularly when CRA comments are filed, must become more rigorous and more transparent. Recently ICP's experience is of information being withheld, insufficient questions being asked, and many of the answers also withheld. This undermines CRA.

See this week's Federal Reserve Report for more.

May 13, 2013

Oops! Rust Consulting short-changed those already ripped off on servicing by Goldman Sachs and Morgan Stanley. Hear the Fed scramble: http://www.federalreserve.gov/newsevents/press/bcreg/20130508a.htm

May 6, 2013

Funny how banks are. There's a CRA protest to Investors' Bank's application to buy Roma in New Jersey, and Investors Bank had to disclosed it last week on a conference called. But they wouldn't say much about it. So a reporter from the Newark Star-Ledger called Inner City Press / Fair Finance Watch, and we sent him a copy. He wrote a story, here; http://www.nj.com/business/index.ssf/2013/04/investors_roma_bank_merger_sti.html the bank apparently wouldn't give him their response.

Here's their record:

Reviewing 2011 HMDA data, the most recent data available (and largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP has examined Investors Bank's home purchase and refinance lending in the New York City MSA and finds it outrageous.

In the NYC MSA in 2011 for conventional home purchase loans, Investors Bank made 220 such loans to whites, and only TWO such loans to African Americans. Its denial rate for Hispanics was FIVE TIMES higher than for whites. (There was no Table 4-1.)

For refinance loans in the NYC MSA in 2011, Investors Bank made 183 such loans to whites, only three to African Americans and only four to Hispanics. Its denial rate for Hispanics was 3.59 times higher than for whites.

In the Long Island MSA in 2011, Investors Bank made 33 home purchase loans to white - and none to African Americans. It made 31 refinance loans to whites and none to either African Americans or Hispanics.
 
  Watch this site.

April 29, 2013

Talk about absurd: the FDIC writes:

Your Freedom of Information Act/Privacy Act request dated April 22, 2013 for the entire application of Renasant Bank, Tupelo, MS was received by the FDIC’s FOIA/Privacy Act Group and assigned a Log Number. Please be advised that the FOIA allows 20 business days from date of receipt to process your request.”

Which puts it AFTER the slated May 2 expiration of the comment period...

Takes one to know one: John Kanas of BankUnited claims “regulators should have applauded Chairman and CEO Robert Wilmers and M&T Bank for taking over a 'weakened' institution like Hudson City Bancorp Inc. and 'approved on the spot.' But the delayed deal approval until M&T strengthens its Bank Secrecy Act compliance programs 'poured cold water on [it] and put it off for God knows how long.'” That's per SNL Financial.

We on the other hand would say, why let a bank lax on money laundering take over a very disparate bank?

April 22, 2013

The (laundered) buck doesn't stop here, apparently: when M&T held its conference call on April 15, after having to admit regulatory problems will delay its challenged merger proposal with Hudson City Savings Bank, CEO Robert Wilmers wasn't on it.

He left CFO René Jones to take questions about his failure. Not a good sign.

Revolving door: OCC Chief Counsel Amy Friend is recusing herself for a year from discussions on the Dodd-Frank Act's Volcker rule in order for her to avoid conflicts of interest, according to SNL Financial. The conflict of interest stems from Friend's previous stint with consulting agency Promontory Financial Group LLC before she joined the OCC in February. While she worked with Promontory as a managing director, she advised a number of large institutions that are now being overseen by the OCC on matters related to the Volcker rule.

Friend handled former clients such as Citigroup Inc., Wells Fargo & Co., Morgan Stanley, American Express Co., Bank of New York Mellon Corp., Grosvenor Capital Management LP, LPL Financial Holdings Inc., MidCountry Financial Corp., National Australia Bank Ltd., Mitsubishi UFJ Financial Group Inc., and Fidelity Investments, a group of companies headed by FMR LLC, while she was in Promontory Financial. According to an OCC memorandum, Friend will recuse herself for a year from OCC business that involves her former employer as well as Morgan Stanley or five other former clients. She will not be recusing herself from OCC matters that involve former clients that she has not worked with for 12 months prior to her departure from Promontory.

Revolving door...

April 15, 2013

M&T has been challenged under CRA since the fall - and now may be delayed even longer:

M&T has learned that the Federal Reserve has identified certain regulatory concerns with M&T's procedures, systems and processes relating to M&T's Bank Secrecy Act and anti-money-laundering compliance program... M&T and Hudson City believe that the timeframe for closing the transaction will be extended substantially beyond the date previously expected. M&T and Hudson City intend to extend the date after which either party may elect to terminate the merger agreement if the merger has not yet been completed from August 27, 2013 to January 31, 2014.”

So in The Bronx in 2012, Citigroup denied the mortgage applications of African American 2.4 times more frequently then whites. In Manhattan, Citi's disparity at 2.63. And to the two groups, Citigroup made TEN TIMES as many loans in Manhattan as in The Bronx...

April 8, 2013

In 2012 Subprime Disparities at Key, US Bank & SunTrust as Fed Lax

By Matthew R. Lee

SOUTH BRONX NY, April 7, 2013 -- In its second study of the just-released 2012 mortgage lending data, Inner City Press and Bronx-based Fair Finance Watch have found that a range of regional banks including KeyCorp, US Bank NA and SunTrust Mortgage continued with high cost loans and disparities by race and ethnicity in denials and higher-cost lending.

  2012 is the ninth year in which the data distinguishes which loans are higher cost, over a federally-defined rate spread of 1.5 percent over Treasury bill yields.

The just released data show that KeyCorp confined African Americans to higher-cost loans above this rate spread 2.51 times more frequently than whites in 2012, Fair Finance Watch has found.

  KeyCorp denied the applications of African Americans 1.76 times more frequently than those of whites.

  KeyCorp confined Latinos to higher-cost loans above the rate spread 1.53 times more frequently than whites in 2012, the data show. It denied the applications of Latinos 1.44 times more frequently than those of whites.

  SunTrust Mortgage confined African Americans to higher-cost loans above this rate spread 2.50 times more frequently than whites in 2012; for Latinos its disparity was 1.50.

  US Bank NA confined African Americans to higher-cost loans above this rate spread 1.74 times more frequently than whites in 2012; for Latinos its disparity was 1.97. There are some irregularities in US Bank NA's data that Inner City Press will be further raising.

“Even after the bailouts, lending disparities grew worse and not better," said Fair Finance Watch. "Regulatory laxity, at least on fair lending, has continued despite the financial meltdown caused by predatory lending."

  In 2012, Toronto Dominion or TD Bank denied the applications of African Americans 1.75 times more frequently than those of whites. For both PNC and Regions the disparity for African Americans was 1.57.

  "The Federal Reserve is becoming more and more bank-friendly, including with recent Freedom of Information Act appeal denials by Governor Jay Power, formerly a hedge funder and Deutsche Bank official Jay Powell. It remains unclear if the Consumer Financial Protection Bureau will get to this problem," Fair Finance Watch continued. "The disparities in the 2012 mortgage data of these banks further militate for aggressively watchdogging and breaking up these banks."

Instead, the Fed allowed the creation of a fifth mega-bank in Capital One when it acquired ING DIRECT and the subprime assets of HSBC. In 2012, Fair Finance Watch has found, HSBC denied the applications of African Americans 1.34 times more frequently than those of whites.

Also in 2012, fully 9.93 percent of Capital One's morgage loans to African American were higher cost loans, versus 7.61 percent of Capital One's loans to whites. To Latinos, the percentage was even higher: 10.31 percent.

And so Fair Finance Watch and Inner City Press have re-doubled watchdogging. Last week it studied the 2012 lending of the “Big Four” -- Citigroup, JPMorgan Chase, Bank of America and Wells Fargo.

The data show that Citigroup confined African Americans to higher-cost loans above this rate spread 2.09 times more frequently than whites in 2012, Fair Finance Watch found.

Citigroup confined Latinos to higher-cost loans above the rate spread 1.83 times more frequently than whites in 2012, the data show.

For JPMorgan Chase, the disparity for African Americans in 2012 was 1.7; for Bank of America it was 1.61; for the largest of Wells Fargo's many HMDA data reporters, the disparity for African Americans in 2011 was up to 2.32.

Challenged by the groups in 2012 and still pending are applications by Customers Bancorp and by M&T, to acquire Hudson City Savings Bank.

Regulators had allowed Hudson City in 2011, for conventional home purchase loans in the New York City Metropolitan Statistical Area, to make 765 such loans to whites and only FIVE to African Americans (and only 44 to Latinos). Meanwhile, Hudson City denied the applications of African Americans 3.21 times more frequently then those of whites.

In March 2013 Inner City Press and Fair Finance Watch began a challenge to Investors Bancorp's application to acquire Roma. In the NYC MSA in 2011 for conventional home purchase loans, Investors Bank made 220 such loans to whites, and only TWO such loans to African Americans. Its denial rate for Latinos was FIVE TIMES higher than for whites.

 On April 5, Investors Bancorp announced it will try to also acquire $300 million Gateway Community Financial Corp - this also will be opposed, on the current record.

The Home Mortgage Disclosure Act required that the 2012 data be provided by March 31, following March 1 joint requests by Fair Finance Watch and Inner City Press. Several banks still did not provide their data by the deadline, despite confirming receipt of the request. Further studies will follow: watch this site.

April 1, 2013

In 2012 Disparities Continued at Citi, Chase, BofA & Wells as Fed Lax, ICP Studies & Challenges

SOUTH BRONX NY, March 30, 2013 -- In the first study of the just-released 2012 mortgage lending data, Inner City Press and Bronx-based Fair Finance Watch have found that the Big Four banking behemoths Citigroup, JPMorgan Chase, Bank of America and Wells Fargo continued with high cost loans and disparities by race and ethnicity in denials and higher-cost lending.

  2012 is the ninth year in which the data distinguishes which loans are higher cost, over a federally-defined rate spread of 1.5 percent over Treasury bill yields.

  The just released data show that Citigroup confined African Americans to higher-cost loans above this rate spread 2.09 times more frequently than whites in 2012, Fair Finance Watch has found.

  Citigroup confined Latinos to higher-cost loans above the rate spread 1.83 times more frequently than whites in 2012, the data show.

 “Even after the bailouts, lending disparities grew worse and not better," said Fair Finance Watch. "Regulatory laxity, at least on fair lending, has continued despite the financial meltdown caused by predatory lending."

  For JPMorgan Chase, the disparity for African Americans in 2012 was 1.7; for Bank of America it was 1.61; for the largest of Wells Fargo's many HMDA data reporters, the disparity for African Americans in 2011 was a whopping 2.32.

  "The Federal Reserve is becoming more and more bank-friendly, including with recent Freedom of Information Act appeal denials by Governor Jay Powell, formerly a hedge funder and Deutsche Bank official Jay Powell. It remains unclear if the Consumer Financial Protection Bureau will get to this problem," Fair Finance Watch continued. "The disparities in the 2012 mortgage data of these banks further militate for aggressively watchdogging and breaking up these banks."

  Instead, the Fed allowed the creation of a fifth mega-bank in Capital One when it acquired ING DIRECT and the subprime assets of HSBC.

  In 2012, Fair Finance Watch has found, fully 9.93 percent of Capital One's mortgage loans to African American were higher cost loans, versus 7.61 percent of Capital One's loans to whites. To Latinos, the percentage was even higher: 10.31 percent.

  And so Fair Finance Watch and Inner City Press have re-doubled watchdogging. Challenged by the groups in 2012 and still pending, with FOIA issues, are applications by Customers Bancorp and by M&T, to acquire Hudson City Savings Bank.

  Regulators had allowed Hudson City in 2011, for conventional home purchase loans in the New York City Metropolitan Statistical Area, to make 765 such loans to whites and only FIVE to African Americans (and only 44 to Latinos). Meanwhile, Hudson City denied the applications of African Americans 3.21 times more frequently then those of whites.

  In March 2013 Inner City Press and Fair Finance Watch began a challenge to Investors Bancorp's application to acquire Roma. In the NYC MSA in 2011 for conventional home purchase loans, Investors Bank made 220 such loans to whites, and only TWO such loans to African Americans. Its denial rate for Latinos was FIVE TIMES higher than for whites.

  The Home Mortgage Disclosure Act required that the 2012 data be provided by March 31, following March 1 joint requests by Fair Finance Watch and Inner City Press. Several banks did not provide their data by the deadline, despite confirming receipt of the request. Further studies will follow: watch this site.


March 25, 2013

On March 22 an NCRC discussion ranged from the Federal Reserve withholding too much information under the Freedom of Information Act to allowing former Legal Division staffers to re-appear advocating before the people they used to work with, or under.

While we've always liked her, the case in point was Patricia Robinson, formerly of Fed legal, now representing banks on mergers. Is it appropriate? How to know, given the redactions? We will continue on this.

March 18, 2013

Why not Mel? Mel Watt, that is, to replace DeMarco as FHFA director...

So the Securities & Exchange Commission has allowed Citigroup, JPMorgan Chase and Bank of America to block shareholders' proposals that directors explore the break-up of these banks. Strange, after the financial meltdown and bailouts...

March 11, 2013

It's been a while but a showdown may be brewing, with Warren Traiger, now with BuckleySandler, previously defending GreenPoint which is now Capital One. Game on!

March 4, 2013

Inner City Press / Fair Finance Watch has filed a timely to the applications by Investors Bancorp, MHC and Investors Bancorp (collectively, “Investors Bancorp”) to acquire Roma Financial Corporation MHC, Roma Financial Corporation, Roma Bank and RomAsia Bank (collectively, “Roma”).

Reviewing 2011 HMDA data, the most recent data available (and largely unaddressed in existing CRA performance evaluations and fair lending exams), ICP has examined Investors Bank's home purchase and refinance lending in the New York City MSA and finds it outrageous.

In the NYC MSA in 2011 for conventional home purchase loans, Investors Bank made 220 such loans to whites, and only TWO such loans to African Americans. Its denial rate for Hispanics was FIVE TIMES higher than for whites. (There was no Table 4-1.)

For refinance loans in the NYC MSA in 2011, Investors Bank made 183 such loans to whites, only three to African Americans and only four to Hispanics. Its denial rate for Hispanics was 3.59 times higher than for whites.

In the Long Island MSA in 2011, Investors Bank made 33 home purchase loans to white - and none to African Americans. It made 31 refinance loans to whites and none to either African Americans or Hispanics.

On the current record, Investors Bancorp's applications should not be approved.

February 25, 2013

In American Samoa, Bank of Hawaii plans on March 15 to close its branches, which hold over 50% of the territory's deposits. There has not been enough public outreach; we also note that Bank of Hawaii is run by former FDIC official Donna Tanoue. For shame....

February 18, 2013

Hitting a new low, Customers Bancorp on its application to the Federal Reserve to acquire Acacia Federal Savings Bank has tried to withhold from Inner City Press the entirety of its response to Fed questions. We will be pursuing - the documents, and Customers Bancorp. Watch this site.

February 11, 2013

And now we know: while the Federal Reserve told community groups that the comment period on Live Oak – Government Loan Solutions, published in the Federal Register, had been in error, internally the lawyer for Live Oak asked the Fed on December 21, “Are we close on the Live Oak notice? I know the comment period has not closed quite yet, but I will be out of the office most of next week, so I thought I would check in this morning.”

The comment period still open, but the Fed “close” to deciding and approving anyway. This is shameful. An appeal is being filed with the withheld information, presumably even more shameful.

February 4, 2013

Talk about grading of the curve: last Fall Inner City Press / Fair Finance Watch began challenging Customers Bancorp, then on its proposal to buy Acacia. Now, Customers tells the Federal Reserve that "Fair Lending training is required annually of all employees with customer contact. It is administered via an online, self-paced course through the Edcomm Learning Management System. The employee is required to demonstrate adequate mastery of the course materials by completing a test at the conclusion of the course and obtaining a passing grade (minimum 80% correct).

80% is good enough for fair lending?

January 28, 2013

And now it can be told, or published:

a second timely comment on the applications by Guido Hinojoso to acquire control of Anchor Commercial Bank. On October 21, 2012, Inner City Press / Fair Finance Watch requested that the FRS immediately send by email all portions of the applications / notices for which Guido Hinojosa and his outside counsel have improperly requested confidential treatment.

Some of these arrived some eleven weeks later, but with redactions to basic managerial information such as the answer to "have you ever been dismissed from past employment" including in the banking field. Biographical, 2b. Similarly, the FRB has redacted all answers about past bank merger applications, if they were denied (Biographical 5) including a paragraph answer about Change in Control (5b) and lawsuits (5e). Such information must be released; ICP has filed a timely FOIA appeal and the comment period must be extended in light of these improper withholdings.

Even in what is released, there are reasons to schedule the hearing ICP timely requested. Guido Hinojosa is a shareholder in a bank, Sunrise, subject to a Prompt Corrective Action Directive.

In "Confidential" Exhibit 1D, the Fed still redacts with whom Fortaleza partnered. That must be released.

Still partially redacted Exhibit 1G lists $500,000 purchase of shares in Sunrise Bank in 2011, and $5,500,000 for Anchor Commercial Bank in 2012. But it is now 2013. Was the gun jumped? Has this plan changed? The rest of the page is blacked out and must be released, and the comment period extended.

The "relationship to Notificant" column for both Patricio Hinojosa Jimenez and Jorge Hinojosa Jimenez is redacted - why? A member of CBIFSA's board of directors is redacted in full -- why? These must be released.

The Recitals, Definitions and much of "Subscription" of the Subscription Agreement are redacted - why? This must be released.

In "Turnaround," the "Summary of the Bank's Condition" is redacted - this must be released.

The "Commitments" (Confidential Exhibit 3) are withheld - but must be released. ICP has appealed this and all other redactions and withholdings.

Again, Hinojosa's role in Banco La Paz must be inquired into and considered in this proceeding, under the CIBC Act.

For now, Anchor Commercial Bank in 2011 for conventional home purchase loans in the West Palm Beach MSA made only three loans, all to whites.

On the current record, the applications / notices should not be approved.

January 21, 2013

Responding to a Freedom of Information Act request from Inner City Press, the Federal Reserve has released some of its questions to M&T -- but not the answers. The Fed asked "Discuss what measures M&T will take to prepare for a wind down of the Transaction Account Guarantee Program" and "page 9 of Confidential Exhibit Q indicate that M&T plans to sell Hudson City’s investment portfolio and unwind Hudson City’s wholesale funding."

The answer are entirely withheld - we will be appealing. Watch this site.

January 14, 2013

On January 10, President Barack Obama nominated for the post of Treasury Secretaryformer Citigroup-er Jack Lew.

Given Citigroup's role in predatory lending and the global financial meltdown, some are asking how could a senior Citigroup official during the critical time from 2006 through 2008 be Treasury Secretary?

Others counter-argue that Lew worked for Tip O'Neill, the Speaker of the House from Massachusetts, albeit in 1979.

And when Obama made the announcement, he mentioned O'Neill and Bill Clinton, then said Lew had been with "one of our largest investment firms." Say it - Citigroup! Lew didn't mention it either. But we will. Watch this site.

January 7, 2013

The total lack of accountability of the Federal Reserve Board and of those it purports to regulate, for example Capital One which was fined $150 million in July 2012 for predatory practices, is on display in a Freedom of Information Act appeal denial issued on January 2 by Governor Jerome Powell, to Inner City Press.

Upholding in full the withholding of over 2000 pages of records related to Capital One's compliance or non-compliance with commitments it made during its NCRC protested purchases of ING DIRECT and HSBC's subprime credit card operations, Powell ruled that not one page, or even a portion of a page, would be released.

This is at odds, for example, with FOIA appeal responses obtained this year by Inner City Press from other Federal agencies. In other FOIA news, Inner City Press is a media amicus in this just filed brief in McBurney v. Young, No. 12-17 of the US Supreme Court.

But the Federal Reserve, along with Capital One, will have to be addressed in 2013. Watch this site.

ICP has published a book about the CRA-relevant topic of predatory lending - click here for sample chapters, a map, and ordering informationCBS MarketWatch of April 23, 2004, says the the novel has "some very funny moments," and that the non-fiction mixes "global statistics and first-person accounts."  The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters."  See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," by Matt Pacenza, City Limits, Oct. 2004.  The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site

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