Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now would like to purchase Riggs Bank, that is embroiled in a cash laundering scandal involving, and others, Pinochet of Chile, the oil dictator of Equatorial Guinea, together with 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 as well as 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
/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications by the PNC Financial Services Group to obtain 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 during the Federal Reserve Board, the approval associated with the workplace for the Comptroller regarding the Currency will additionally be required. ICP’s feedback, filed aided by 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 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 American that is african and candidates from the financing. ICP’s reviews review PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and prove payday loans in Tennessee 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 Us citizens had been incalculable in 2003: PNC made no home that is conventional loans to African Us citizens in 2003 when you look at the MSA of Newark, NJ.
PNC claims to help make up for the not enough house purchase financing to individuals of color using its do it yourself financing. However in the Newark MSA in 2003 with this types of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times more often than whites, and rejected African People in the us 2.84 times more often 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 more often compared to those of whites. Once again, PNCвЂ™s not enough house purchase financing to individuals of color had not been composed because of its house enhancement financing: in the Pittsburgh MSA in 2003 with this style of loan, PNC Bank N.A. denied the applications of Latinos 2.11 times more often than whites, and denied 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 brand New York MSAs in 2003. It absolutely was barely 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. Within 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 with greater regularity than whites, and denied the applications of African Us americans 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 mainstream house purchase loans rejected 100% associated with the loan requests it received from Latinos. For refinance loans in this MSA, PNC Bank Delaware denied the applications of Latinos 2.93 times with greater regularity 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 more often than whites, and denied the applications of African People in america 2.22 times with greater regularity than whites.
ICP’s comments suggest that, offered these financing disparities, about this ground alone the general public could be ill-served by enabling PNC to get Riggs and its own branches. And to be looked at, including in 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 business will initially run all 51 Riggs branches. Long-lasting choices about historic structures for instance 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, while making a unpleasant contrast to the windfall anticipated by those accountable for Riggs’ techniques. The Washington Post of 13, 2004 reports that “”Robert L. Allbritton is slated to received $850,000 august. Nine other executive officers will get an overall total of $4 million.” ICP has asking for general general general public hearings with this ground and particularly on PNC’s capital 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: