Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now really wants to purchase Riggs Bank, which can be embroiled in a cash laundering scandal involving, amongst others, Pinochet of Chile, the oil dictator of Equatorial Guinea, plus the Saudi Arabian embassy. Inner City Press / Fair Finance Watch has filed opposition to PNC’s application for regulatory approval, covered (begrudgingly) when you look at the Pittsburgh Post-Gazette plus in greater level on www.innercitypress.org/finwatch.html
Inner City Press / Fair Finance Watch Files Challenges to PNC’s Applications to Acquire Scandal-Plagued Riggs nationwide Corporation, towards the Federal Reserve and OCC, centered on Unresolved Riggs Issues, PNC’s Lending Disparities and PNCвЂ™s Funding of Predatory Payday Lenders
The customers’ and community company Inner City Press
/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications by the PNC Financial Services Group to get the Riggs National that is scandal-plagued Corporation. The proposed acquisition, for $779 million, had been established on July 16; now a credit card applicatoin for regulatory is pending in the Federal Reserve Board, the approval for the workplace regarding the Comptroller regarding the Currency is likewise needed. ICP’s commentary, filed aided by the FRB and OCC, consist of proof that PNC funds payday lenders such as Check nвЂ™ Go of Washington DC, Inc. and elsewhere; ICP contrasts this with PNCвЂ™s peer SunTrustвЂ™s July 12, 2004 a reaction to ICPвЂ™s comments, that SunTrust will no more fund payday lenders. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICPвЂ™s responses use recently-released 2003 home loan financing data to show that PNC disproportionately excludes African United states and Latino candidates from the financing. ICP’s remarks evaluate PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and prove as an example that within the Newark, NJ Metropolitan Statistical region (MSA), for main-stream house purchase loans, PNC Bank N.A. in 2003 denied applications from Latinos 4.71 times more often than applications from whites. PNCвЂ™s disparity for African Us citizens had been incalculable in 2003: PNC made no old-fashioned house purchase loans to African Us citizens in 2003 into the MSA of Newark, NJ.
PNC claims to help make up because of its not enough house purchase financing to folks of color along with its house enhancement financing. However in the Newark MSA in 2003 with this style of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times more often than whites, and denied African People in the us 2.84 times with greater regularity than whites.
With its home MSA of Pittsburgh, PNC Bank NA in 2003 denied the mainstream house purchase applications of African People in america 4.62 times with greater regularity compared to those of whites. Once again, PNCвЂ™s not enough home purchase financing to individuals of color wasn’t comprised for the house enhancement financing: when you look at the Pittsburgh MSA in 2003 with this form of loan, PNC Bank N.A. denied the applications of Latinos 2.11 times more often than whites, and rejected African People in america 2.43 times more often than whites.
PNC Bank N.A. has 100% denial prices for African AmericansвЂ™ applications for do it yourself loans within the Jersey City NJ and Newburg, brand New York MSAs in 2003. It absolutely was hardly better in its house state of Pennsylvania. When you look at the state money, the car title loans Harrisburg MSA, PNC Bank N.A. for house enhancement loans rejected the applications of Latinos 3.28 times with greater regularity than whites, and denied the applications of African Us americans 2.93 times more often than whites. Within the Philadelphia MSA, for refinance loans, PNC Bank N.A. denied the applications of Latinos 2.45 times more often than whites, and denied the applications of African Us americans 2.64 times with greater regularity than whites. In this Philadelphia MSA for do it yourself loans, PNC Bank N.A. denied the applications of Latinos 2.72 times with greater regularity than whites, and denied the applications of African People in america 3.06 times more often than whites.
PNC’s other bank, PNC Bank Delaware, in 2003 when you look at the Wilmington DE MSA for mainstream house purchase loans rejected 100% regarding the loan requests it received from Latinos. For refinance loans in this MSA, PNC Bank Delaware denied the applications of Latinos 2.93 times more often than whites, and denied the applications of African Us americans 2.02 times more often than whites. For do it yourself loans in this MSA, PNC Bank Delaware denied the applications of Latinos 2.73 times with greater regularity than whites, and denied the applications of African Us americans 2.22 times more often than whites.
ICP’s comments declare that, offered these financing disparities, with this ground alone the public will be ill-served by permitting PNC to get Riggs and its particular branches. And also to be viewed, including during the requested hearing, is issue of reductions in solution, which took place, including via branch closings, after PNC – United. The Washington Post of 26, 2004, reported: “Brian Goerke, a spokesman for PNC, said the company will initially operate all 51 Riggs branches july. Long-lasting choices about historic structures like the Corcoran branch. haven’t been made, he stated.” The United states Banker newsprint of July 19, 2004, stated that “executives suggested that about 50per cent of Riggs’ 1,400 workers will be cut.” Staff cuts of 50% could be inconsistent with customer solution, making a troubling contrast to the windfall anticipated by those accountable for Riggs’ methods. The Washington Post of August 13, 2004 reports that “”Robert L. Allbritton is slated to received $850,000. Nine other officers that are executive get an overall total of $4 million.” ICP has asking for general general general public hearings with this ground and particularly on PNC’s money of problematic lenders that are payday. As documented by the Uniform Commercial Code filings ICP has acquired and submitted, PNC funds and allows as an example: