Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now really wants 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, therefore 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, to your Federal Reserve and OCC, centered 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 get the scandal-plagued Riggs nationwide Corporation. The proposed acquisition, 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 associated with workplace associated with Comptroller associated with the Currency can also be needed. ICP’s reviews, filed using 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 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 responses determine PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and display as an example that within the Newark, NJ Metropolitan Statistical region (MSA), for main-stream house purchase loans, PNC Bank N.A. in 2003 denied applications 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 old-fashioned 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 individuals of color using its do it yourself financing. But in the Newark MSA in 2003 because of this variety of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times with greater regularity than whites, and https://quickinstallmentloans.com/payday-loans-de/ rejected African People in america 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 folks of color had not been 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 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 when you look at the Jersey City NJ and Newburg, 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 improvement 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 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 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 with greater regularity than whites.
PNC’s other bank, PNC Bank Delaware, in 2003 within 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 more often 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 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 enabling PNC to obtain Riggs and its particular branches. 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 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, and work out a contrast that is troubling the windfall anticipated 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 executive officers will get an overall total of $4 million.” ICP has asking for general general general public hearings with this ground and particularly on PNC’s money of problematic lenders that are payday. As documented because of the Uniform Commercial Code filings ICP has submitted and obtained, PNC funds and allows as an example: