Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now really wants to purchase Riggs Bank, that is embroiled in a cash laundering scandal involving, and others, Pinochet of Chile, the oil dictator of Equatorial Guinea, while 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 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 consumers’ and community company Inner City Press
/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications by the PNC Financial Services Group to get 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 in the Federal Reserve Board, the approval associated with the workplace associated with the Comptroller associated with Currency is likewise needed. ICP’s responses, filed because of 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 a reaction to ICPвЂ™s comments, that SunTrust will no more investment payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICPвЂ™s responses 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 remarks evaluate PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) data, and prove as an example that within the Newark, NJ Metropolitan Statistical region (MSA), for main-stream house purchase loans, PNC Bank N.A. in 2003 denied applications from Latinos 4.71 times more often than applications from whites. PNCвЂ™s disparity for African Us citizens was 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 for the not enough house purchase financing to folks of color using its do it yourself financing. However in the Newark MSA in 2003 because of this style of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times with greater regularity 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 traditional house purchase applications of African People in america 4.62 times more frequently compared to those of whites. Once again, PNCвЂ™s not enough house purchase financing to folks of color had not been made because of its house enhancement financing: within 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 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 New York MSAs in 2003. It absolutely 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 more often than whites, and denied the applications of African People in america 2.93 times with greater regularity than whites. 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 cash central the applications of African People in america 3.06 times with greater regularity 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 applications 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 more often 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 more often than whites.
ICP’s comments declare that, provided these financing disparities, with this ground alone the general public could be ill-served by enabling PNC to obtain Riggs and its own branches. And to be viewed, 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 newsprint of 19, 2004, reported that “executives suggested that about 50per cent of Riggs’ 1,400 workers could be cut. july” Staff cuts of 50% will be inconsistent with customer solution, and work out a contrast that is troubling the windfall anticipated by those accountable for 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 public hearings about this ground and specially on PNC’s financing 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: