Pittsburgh-based PNC Bank, which supports predatory that is high-cost loan providers, now would like to purchase Riggs Bank, which can 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) 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 National Corporation, into the Federal Reserve and OCC, predicated 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 because of the PNC Financial Services Group to obtain the Riggs National that is scandal-plagued 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 may also be needed. ICP’s commentary, filed because of the FRB and OCC, consist of proof that PNC funds lenders that are payday 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 more investment payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title lenders,”
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 determine 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 old-fashioned 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 traditional 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 using its do it yourself financing. However in the Newark MSA in 2003 because of this sort 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.
In its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the main-stream house purchase applications of African People in america 4.62 times with greater regularity compared to those of whites. Once more, PNCвЂ™s not enough house purchase financing to individuals of color had not been comprised because of its house improvement 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 into the Jersey City NJ and Newburg, 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 denied the applications of Latinos 3.28 times with greater regularity 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 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 with greater regularity than whites, and denied the applications of African People in america 3.06 times more often payday loans in Wisconsin than whites.
PNC’s other bank, PNC Bank Delaware, in 2003 into the Wilmington DE MSA for old-fashioned house purchase loans rejected 100% regarding 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 with greater regularity 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 declare that, offered these financing disparities, about this ground alone the general public could be ill-served by permitting PNC to get Riggs as well as its branches. And to be viewed, 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 for instance the Corcoran branch. haven’t been made, he stated.” The United states Banker magazine of 19, 2004, reported that “executives suggested that about 50per cent of Riggs’ 1,400 workers will be cut. july” Staff cuts of 50% could be inconsistent with customer solution, while making a unpleasant contrast to the windfall anticipated by those accountable for Riggs’ techniques. The Washington Post of August 13, 2004 reports that “”Robert L. Allbritton is slated to received $850,000. Nine other executive officers will get a complete of $4 million.” ICP has asking for general general general public hearings with this ground and specially on PNC’s money of problematic lenders that are payday. As documented by the Uniform Commercial Code filings ICP has submitted and obtained, PNC funds and allows as an example: