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, and 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 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 UT installment loans, According to Unresolved Riggs Issues, PNC’s Lending Disparities and PNCвЂ™s Funding of Predatory Payday Lenders
/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications because of the PNC Financial Services Group to obtain 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 during the Federal Reserve Board, the approval associated with the workplace of this Comptroller associated with the Currency may also be 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 reaction to ICPвЂ™s comments, that SunTrust will no further investment payday loan providers. See, e.g., «SunTrust pledges to drop ties to payday & title loan providers,» http://www.investors.com/breakingnews.asp?journalid=22274151&brk=1
ICPвЂ™s reviews 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 reviews determine PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and show as an example that within 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 Us citizens had been incalculable in 2003: PNC made no main-stream house purchase 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 having its house enhancement financing. However in the Newark MSA in 2003 with 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 more often than whites.
With its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the traditional 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 house purchase financing to individuals of color wasn’t made for the house enhancement financing: into the Pittsburgh MSA in 2003 with this form 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 more often than whites.
PNC Bank N.A. has 100% denial prices for African AmericansвЂ™ applications for do it yourself loans into the Jersey City NJ and Newburg, brand brand brand brand brand brand New York MSAs in 2003. It absolutely was hardly better in its house state of Pennsylvania. The Harrisburg MSA, PNC Bank N.A. for home improvement loans denied the applications of Latinos 3.28 times more frequently than whites, and denied the applications of African Americans 2.93 times more frequently than whites in the state capital. When you look at 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 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 into the Wilmington DE MSA for traditional house purchase loans rejected 100% of this 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 People in america 2.22 times more often than whites.
ICP’s comments declare that, offered these financing disparities, about 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 during the requested hearing, is issue of reductions in solution, which happened, including via branch closings, after PNC – United. The Washington Post of July 26, 2004, reported: «Brian Goerke, a spokesman for PNC, stated the organization will initially run all 51 Riggs branches. Long-lasting choices about historic structures like the Corcoran branch. haven’t been made, he stated.» The United states Banker magazine of 19, 2004, reported that «executives suggested that about 50per cent of Riggs’ 1,400 workers could be cut. july» Staff cuts of 50% could be inconsistent with customer solution, and also make a contrast that is troubling the windfall anticipated by those in charge of Riggs’ techniques. 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 with this ground and particularly on PNC’s money of problematic payday lenders. As documented because of the Uniform Commercial Code filings ICP has acquired and submitted, PNC funds and allows as an example: