Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now desires to purchase Riggs Bank, that is embroiled in a cash laundering scandal involving, amongst others, Pinochet of Chile, the oil dictator of Equatorial Guinea, and also the Saudi Arabian embassy. Inner City Press / Fair Finance Watch has filed opposition to PNC’s application for regulatory approval, covered (begrudgingly) into 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, According to Unresolved Riggs payday loans MO 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 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 associated with the workplace regarding the Comptroller associated with Currency may also be needed. ICP’s feedback, 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 opinions 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 assess PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and display as an example that into 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 with greater regularity 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 within 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 do it yourself financing. However in the Newark MSA in 2003 because of this form of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times more often than whites, and denied African People in the us 2.84 times more often than whites.
In its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the home that is conventional applications of African Us americans 4.62 times more often compared to those of whites. Once more, PNCвЂ™s not enough house purchase financing to individuals of color wasn’t made for the house enhancement financing: into the Pittsburgh MSA in 2003 with 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 the us 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 brand brand New York MSAs in 2003. It absolutely was hardly better in its house state of Pennsylvania. When you look at 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 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 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 with greater regularity than whites, and denied the applications of African Us americans 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 get Riggs and its particular 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 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 like 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% could be inconsistent with customer solution, making 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 officers that are executive get an overall total of $4 million.” ICP has asking for 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 for instance: