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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 money laundering scandal involving, amongst others, Pinochet of Chile, the oil dictator of Equatorial Guinea, approved cash additionally the 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 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, to your Federal Reserve and OCC, considering 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 obtain the scandal-plagued Riggs nationwide Corporation. The proposed acquisition, for $779 million, ended up being established on July 16; now an application for regulatory is pending during the Federal Reserve Board, the approval associated with the workplace associated with the Comptroller associated with Currency may also be needed. ICP’s responses, filed because of the FRB and OCC, consist of 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 fund payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICP’s remarks use recently-released 2003 mortgage financing data to show that PNC disproportionately excludes African United states and Latino candidates from the financing. ICP’s remarks assess PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and display as an example that within the Newark, NJ Metropolitan Statistical region (MSA), for old-fashioned house purchase loans, PNC Bank N.A. in 2003 denied loan requests from Latinos 4.71 times more often 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 folks of color along with its do it yourself financing. However in the Newark MSA in 2003 because of 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 the us 2.84 times with greater regularity than whites.
In its home MSA of Pittsburgh, PNC Bank NA in 2003 denied the home that is conventional applications of African People in america 4.62 times with greater regularity compared to those of whites. Once more, PNC’s not enough house purchase financing to folks of color wasn’t made because of its house enhancement financing: within the Pittsburgh MSA in 2003 with this variety 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 within the Jersey City NJ and Newburg, brand 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. When you look at 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 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 within the Wilmington DE MSA for main-stream 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 Us americans 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 will be ill-served by permitting PNC to get Riggs and its particular branches. And 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 for instance the Corcoran branch. haven’t been made, he said.” The United states Banker magazine of July 19, 2004, stated that “executives suggested that about 50per cent of Riggs’ 1,400 workers could be cut.” Staff cuts of 50% could be inconsistent with customer solution, and then make a unpleasant contrast to the windfall anticipated by those accountable for Riggs’ methods. The Washington Post of 13, 2004 reports that “”Robert L. Allbritton is slated to received $850,000 august. Nine other officers that are executive get a complete of $4 million.” ICP has requesting general general general public hearings with this ground and specially on PNC’s financing of problematic payday lenders. As documented because of the Uniform Commercial Code filings ICP has submitted and obtained, PNC funds and allows as an example: