Pittsburgh Independent Media Center Pittsburgh-based PNC Bank, which supports
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Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now really wants to purchase Riggs Bank, which will be embroiled in a cash laundering scandal involving, and others, 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) into 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 PNC’s Funding of Predatory Payday Lenders
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/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications because of 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 an application for regulatory is pending during the Federal Reserve Board, the approval regarding the workplace regarding the Comptroller regarding the Currency is likewise needed. ICP’s feedback, filed aided by the FRB and OCC, consist of proof that PNC funds payday lenders such as Check n’ Go of Washington DC, Inc. and elsewhere; ICP contrasts this with PNC’s peer SunTrust’s July 12, 2004 a reaction to ICP’s comments, that SunTrust will no more investment payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICP’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 responses review PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and display as an example that when you look at the Newark, NJ Metropolitan Statistical region (MSA), for mainstream house purchase loans, PNC Bank N.A. in 2003 denied applications from Latinos 4.71 times more often than applications from whites. PNC’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 for the 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 with greater regularity than whites, and rejected African People in the us 2.84 times with greater regularity than whites.
In its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the traditional house purchase applications of African Us americans 4.62 times with greater regularity compared to those of whites. Once again, PNC’s not enough house purchase financing to individuals of color had not been comprised for the house improvement financing: within the Pittsburgh MSA in 2003 because of this style of loan, PNC Bank N.A. denied the applications of Latinos 2.11 times more often 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 Americans’ applications for do it yourself loans within 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 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 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 more often 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 within the Wilmington DE MSA for old-fashioned 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 more often than whites, and denied the applications of African Us americans 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 People in america 2.22 times more often than whites.
ICP’s comments declare that, provided these financing disparities, about this ground alone the general public could be ill-served by permitting PNC to obtain Riggs and its particular branches. And also 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 for instance the Corcoran branch. haven’t been made, he stated.” The United states Banker magazine of 19, 2004, stated that “executives suggested that about 50per cent of Riggs’ 1,400 workers will be cut. july” Staff cuts of 50% will be inconsistent with customer solution, and work out a contrast that is troubling the windfall expected by those in charge of 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 a complete of $4 million.” ICP has asking for general general general general general general general public hearings with this ground and particularly on PNC’s financing of problematic payday lenders. As documented by the Uniform Commercial Code filings ICP has acquired and submitted, PNC funds and allows as an example: