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Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now would like to purchase Riggs Bank, which can be embroiled in a cash laundering scandal involving, amongst others, Pinochet of Chile, the oil dictator of Equatorial Guinea, plus 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 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, to your Federal Reserve and OCC, predicated on Unresolved Riggs Issues, PNC’s Lending Disparities and PNC’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 scandal-plagued Riggs nationwide Corporation. The acquisition that is proposed for $779 million, ended up being 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 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 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 lenders, »
ICP’s reviews 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 responses 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 mainstream house purchase loans, PNC Bank N.A. in 2003 denied loan requests from Latinos 4.71 times with greater regularity than applications from whites. PNC’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 for the not enough house purchase financing to individuals of color using its house enhancement 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 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 home that is conventional applications of African People in america 4.62 times with greater regularity compared to those of whites. Once more, PNC’s not enough house purchase financing to individuals of color had not been constructed because of its house enhancement lending: into the Pittsburgh MSA in 2003 with this style 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 Americans’ applications for do it yourself loans within the Jersey City NJ and Newburg, 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 with greater regularity than whites, and denied the applications of African People in america 2.93 times with greater regularity 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 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 into the Wilmington DE MSA for mainstream house purchase loans rejected 100% associated with 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 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 Us americans 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 also to be viewed, including during the requested hearing, is issue of reductions in service, which took place, 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-term 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 50% payday loans Arkansas of Riggs’ 1,400 workers could be cut. july » Staff cuts of 50% could be inconsistent with customer solution, and also make a contrast that is troubling the windfall anticipated by those in charge of Riggs’ methods. The Washington Post of 13, 2004 reports that « »Robert L. Allbritton is slated to received $850,000 august. 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 specially on PNC’s financing of problematic payday lenders. As documented because of the Uniform Commercial Code filings ICP has acquired and submitted, PNC funds and allows for instance:
