Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now would like to purchase Riggs Bank, which will be embroiled in a cash laundering scandal involving, amongst 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) when you look at 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, predicated on Unresolved Riggs Issues, PNC’s Lending Disparities and PNCвЂ™s Funding of Predatory Payday Lenders
The customers’ and community organization Inner City Press
/ 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 of this workplace of this Comptroller regarding the Currency may also be needed. ICP’s responses, 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 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,”
ICPвЂ™s remarks 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 remarks review PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and prove as an example that within the Newark, NJ Metropolitan Statistical region (MSA), for old-fashioned home purchase loans, PNC Bank N.A. in 2003 denied loan requests 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 when you look at the MSA of Newark, NJ.
PNC claims to help make up because of its not enough house purchase financing to individuals of color along with its house enhancement financing. However in the Newark MSA in 2003 because of this variety of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times with greater regularity than whites, and denied African People in america 2.84 times more often than whites.
With its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the home that is conventional applications of African Us americans 4.62 times with greater regularity compared to those of whites. Once more, PNCвЂ™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 sort 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 AmericansвЂ™ applications for do it yourself loans when you look at the Jersey City NJ and Newburg, 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 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 with greater regularity 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 when you look at the Wilmington DE MSA for old-fashioned home 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 more often than whites.
ICP’s comments suggest that, offered these financing disparities, with this ground alone the general public will be ill-served by enabling PNC to obtain Riggs as well as its branches. And to be viewed, including in the requested hearing, is issue of reductions in solution payday loans Massachusetts, 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% will be inconsistent with consumer solution, and work out a unpleasant contrast to 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 officers that are executive get an overall total of $4 million.” ICP has asking for general general general public hearings about this ground and particularly on PNC’s money of problematic lenders that are payday. As documented by the Uniform Commercial Code filings ICP has submitted and obtained, PNC funds and allows as an example: