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Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now would like to purchase Riggs Bank, that will be embroiled in a cash laundering scandal involving, amongst others, Pinochet of Chile, the oil dictator of Equatorial Guinea, in addition to Saudi Arabian embassy. Inner City Press / Fair Finance Watch has filed opposition to PNC’s application for regulatory approval, covered (begrudgingly) within the Pittsburgh Post-Gazette plus in greater depth 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, to your Federal Reserve and OCC, predicated on Unresolved Riggs Issues, PNC’s Lending Disparities and PNC’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 because of the PNC Financial Services Group to get the Riggs National that is scandal-plagued Corporation. The acquisition that is proposed 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 associated with the workplace associated with Comptroller regarding the Currency may also be needed. ICP’s feedback, filed because of the FRB and OCC, include proof that PNC funds payday lenders such as Check n’ Go of Washington DC, Inc. and elsewhere; ICP contrasts this with PNC’s peer SunTrust’s July 12, 2004 a reaction to ICP’s comments, that SunTrust will no further investment payday lenders. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICP’s responses use recently-released 2003 home loan financing data to show that PNC disproportionately excludes African American and Latino candidates from the financing. ICP’s remarks review 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 old-fashioned house purchase loans, PNC Bank N.A. in 2003 denied applications from Latinos 4.71 approved cash times with greater regularity than applications from whites. PNC’s disparity for African Us citizens had been incalculable in 2003: PNC made no home that is conventional loans to African Us citizens in 2003 into the MSA of Newark, NJ.
PNC claims to help make up for the not enough house purchase financing to individuals of color featuring its house enhancement financing. however in the Newark MSA in 2003 with this kind 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.
With its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the mainstream house purchase applications of African Us americans 4.62 times with greater regularity compared to those of whites. Once again, PNC’s not enough house purchase financing to folks of color had not been made for the house enhancement financing: into the Pittsburgh MSA in 2003 because of this types 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 Americans’ applications for do it yourself loans when you look at the Jersey City NJ and Newburg, brand brand New York MSAs in 2003. It absolutely was hardly better in its house state of Pennsylvania. Within the state money, the Harrisburg MSA, PNC Bank N.A. for home enhancement loans rejected the applications of Latinos 3.28 times with greater regularity than whites, and denied the applications of African People in america 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 with greater regularity 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 more often 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 within the Wilmington DE MSA for old-fashioned 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 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 with greater regularity than whites.
ICP’s comments declare that, provided these financing disparities, with this ground alone the general public could be ill-served by permitting PNC to obtain 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 could be cut.” Staff cuts of 50% will be inconsistent with customer solution, and also make a unpleasant contrast to the windfall anticipated by those in charge of Riggs’ techniques. The Washington Post of 13, 2004 reports that “”Robert L. Allbritton is slated to received $850,000 august. Nine other officers that are executive receive an overall total of $4 million.” ICP has asking for general general general public hearings about this ground and particularly on PNC’s capital of problematic payday lenders. As documented because of the Uniform Commercial Code filings ICP has acquired and submitted, PNC funds and allows for instance: