Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now really wants to purchase Riggs Bank, that will be embroiled in a cash laundering scandal involving, and others payday loans Tennessee, Pinochet of Chile, the oil dictator of Equatorial Guinea, 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, towards the 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 company Inner City Press
/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications by the PNC Financial Services Group to obtain the scandal-plagued Riggs nationwide 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 workplace associated with the Comptroller associated with the Currency is likewise needed. ICP’s reviews, filed utilizing 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 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 reviews 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 evaluate PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and prove as an example that into the Newark, NJ Metropolitan Statistical Area (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. PNCвЂ™s disparity for African Us citizens had been incalculable in 2003: PNC made no main-stream house purchase loans to African Us citizens in 2003 into the MSA of Newark, NJ.
PNC claims to help make up because of its not enough house purchase financing to folks of color along with its house enhancement financing. However in the Newark MSA in 2003 with this variety 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 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 had not been composed because of its house enhancement financing: into the Pittsburgh MSA in 2003 because of 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 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 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 with greater regularity than whites, and denied the applications of African Us americans 2.93 times more often than whites. Into 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 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 more often 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% for 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 own branches. And to be viewed, 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 like 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 will be cut.” Staff cuts of 50% will be inconsistent with customer solution, and then make a troubling contrast to the windfall anticipated by those in charge of Riggs’ techniques. 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 a complete of $4 million.” ICP has asking for general public hearings with this ground and specially 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: