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Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now would like to purchase Riggs Bank, which will be embroiled in a cash laundering scandal involving, amongst others, Pinochet of Chile, the oil dictator of Equatorial Guinea, together with 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 nationwide Corporation, to your Federal Reserve and OCC, According to 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 by the PNC Financial Services Group to get the Riggs National that is scandal-plagued Corporation. The proposed acquisition, for $779 million, had been announced on July 16; now a credit card applicatoin for regulatory is pending during the Federal Reserve Board, the approval associated with workplace regarding the Comptroller associated with the Currency can also be needed. ICP’s reviews, filed using the FRB and OCC, consist of proof that PNC funds lenders that are payday 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 further investment payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICP’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 reviews determine PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and indicate as an example that into the Newark, NJ Metropolitan Statistical region (MSA), for main-stream house purchase loans, PNC Bank N.A. in 2003 denied loan requests 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 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 having its do it yourself financing. But in the Newark MSA in 2003 with this style 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 mainstream house purchase applications of African People in america 4.62 times more often compared to those of whites. Once more, PNC’s not enough house purchase financing to folks of color wasn’t constructed because of its house enhancement financing: within 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 Americans’ applications for do it yourself loans into 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. 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 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 with greater regularity than whites, and denied the applications of African Us americans 2.64 times with greater regularity 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 into the Wilmington DE MSA for main-stream house purchase loans rejected 100% of this 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 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 with greater regularity than whites.
ICP’s comments suggest that, offered these financing disparities, with this ground alone the general public could be ill-served by permitting PNC to get Riggs as well as its branches online payday loans North Dakota. And to be looked at, including during the requested hearing, is issue of reductions in solution, 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-lasting choices about historic structures like 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 could be cut. july” Staff cuts of 50% could be inconsistent with customer solution, and work out 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 an overall total of $4 million.” ICP has asking for general general public hearings with this ground and particularly on PNC’s money of problematic lenders that are payday. As documented by the Uniform Commercial Code filings ICP has acquired and submitted, PNC funds and allows for instance: