Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now would like to purchase Riggs Bank, that will be embroiled in a cash laundering scandal involving, amongst others, Pinochet of http://installmentcashloans.net/payday-loans-vt Chile, the oil dictator of Equatorial Guinea, as well as 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 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 National Corporation, towards the Federal Reserve and OCC, According to Unresolved Riggs Issues, PNC’s Lending Disparities and PNCвЂ™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 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 associated with Comptroller regarding the Currency is likewise needed. ICP’s feedback, filed using 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 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 remarks 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 assess PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and indicate as an example that when you look at the Newark, NJ Metropolitan Statistical region (MSA), for traditional house 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 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 using its house enhancement 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 with greater regularity than whites, and rejected African People in america 2.84 times with greater regularity than whites.
In its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the old-fashioned house purchase applications of African People in america 4.62 times more often compared to those of whites. Once more, PNCвЂ™s not enough house purchase financing to folks of color wasn’t made for the house enhancement financing: when you look at the Pittsburgh MSA in 2003 with this variety of loan, PNC Bank N.A. denied the applications of Latinos 2.11 times more often than whites, and rejected African People in the us 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 within the Jersey City NJ and Newburg, brand brand brand brand brand New York MSAs in 2003. It absolutely was barely better in its house state of Pennsylvania. Within the state money, the Harrisburg MSA, PNC Bank N.A. for house enhancement loans rejected the applications of Latinos 3.28 times with greater regularity than whites, and denied the applications of African People in america 2.93 times more often than whites. Within 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 more often than whites, and denied the applications of African People in america 3.06 times more often than whites.
PNC’s other bank, PNC Bank Delaware, in 2003 within the Wilmington DE MSA for old-fashioned 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 more often 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 permitting PNC to obtain Riggs as well as its 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 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% will be inconsistent with customer solution, and also make 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 general general general public hearings with this ground and particularly on PNC’s capital 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: