Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now would like to purchase Riggs Bank, which will be embroiled in a cash laundering scandal involving, and others, Pinochet of Chile, the oil dictator of Equatorial Guinea, and also the Saudi Arabian embassy. Inner City Press / Fair Finance Watch has filed opposition to PNC’s application for regulatory approval, covered (begrudgingly) into 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, predicated on Unresolved Riggs Issues, PNC’s Lending Disparities and PNCвЂ™s Funding of Predatory Payday Lenders
The customers’ and cashland loans online community company Inner City Press
/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications by the PNC Financial Services Group to obtain the scandal-plagued Riggs nationwide Corporation. The acquisition that is proposed for $779 million, ended up being established on July 16; now a credit card applicatoin for regulatory is pending in the Federal Reserve Board, the approval of this workplace for the Comptroller associated with Currency can also be needed. ICP’s reviews, filed using the FRB and OCC, consist of proof that PNC funds lenders that are payday 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 further fund payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICPвЂ™s remarks use recently-released 2003 home loan financing data to demonstrate that PNC disproportionately excludes American that is african and candidates from the financing. ICP’s responses assess PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and prove as an example that into the Newark, NJ Metropolitan Statistical region (MSA), for mainstream house purchase loans, PNC Bank N.A. in 2003 denied loan requests from Latinos 4.71 times with greater regularity than applications from whites. PNCвЂ™s disparity for African Americans had been incalculable in 2003: PNC made no home that is conventional loans to African Us citizens in 2003 within the MSA of Newark, NJ.
PNC claims to help make up because of its not enough home purchase financing to folks of color having its do it yourself financing. But in the Newark MSA in 2003 because of this variety of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times more often than whites, and rejected African People in america 2.84 times with greater regularity than whites.
In its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the home that is conventional applications of African People in america 4.62 times more often compared to those of whites. Once more, PNCвЂ™s not enough house purchase financing to folks of color had not been composed for the house enhancement financing: when you look at the Pittsburgh MSA in 2003 because of this kind of loan, PNC Bank N.A. denied the applications of Latinos 2.11 times with greater regularity than whites, and rejected African People in america 2.43 times with greater regularity 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 was barely better in its house state of Pennsylvania. Into the state money, the 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 with greater regularity than whites. Into 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 People in america 2.64 times more often than whites. In this Philadelphia MSA for do it yourself loans, PNC Bank N.A. denied the applications of Latinos 2.72 times more often than whites, and denied the applications of African People in america 3.06 times with greater regularity than whites.
PNC’s other bank, PNC Bank Delaware, in 2003 when you look at the Wilmington DE MSA for main-stream house purchase loans rejected 100% for 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 People in america 2.02 times with greater regularity 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, provided these financing disparities, with this ground alone the general public will be ill-served by permitting PNC to get Riggs as well as its branches. And also to be looked at, including in 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, and then make a contrast that is troubling the windfall anticipated by those in charge of Riggs’ methods. The Washington Post of August 13, 2004 reports that “”Robert L. Allbritton is slated to received $850,000. Nine other executive officers will get a complete of $4 million.” ICP has asking for general general general general public hearings about this ground and particularly on PNC’s capital of problematic lenders that are payday. As documented by the Uniform Commercial Code filings ICP has obtained and submitted, PNC funds and enables as an example: