Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now would like to purchase Riggs Bank, that will be embroiled in a cash laundering scandal involving, and others, Pinochet of Chile, the oil dictator of Equatorial Guinea, while 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 nationwide 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 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 for the workplace regarding the Comptroller for the Currency may also be needed. ICP’s remarks, filed aided by 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 reviews evaluate PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and prove as an example that into 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 more often than applications from whites. PNCвЂ™s disparity for African Us citizens had been incalculable in 2003: PNC Idaho payday loans laws made no home that is conventional loans to African Us citizens in 2003 when you look at the MSA of Newark, NJ.
PNC claims to help make up because of its not enough house purchase financing to individuals of color along with its do it yourself financing. However in the Newark MSA in 2003 with this kind 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 more often 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 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 home enhancement financing: into the Pittsburgh MSA in 2003 because of this form 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 with greater regularity than whites.
PNC Bank N.A. has 100% denial prices for African AmericansвЂ™ applications for do it yourself loans within the Jersey City NJ and Newburg, brand New York MSAs in 2003. It absolutely was barely better in its house state of Pennsylvania. The Harrisburg MSA, PNC Bank N.A. for home improvement loans denied the applications of Latinos 3.28 times more frequently than whites, and denied the applications of African Americans 2.93 times more frequently than whites in the state capital. 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 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 with greater regularity than whites.
PNC’s other bank, PNC Bank Delaware, in 2003 within 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 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 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, provided these financing disparities, with this ground alone the general public will be ill-served by permitting PNC to obtain Riggs as well as its branches. And to be looked at, including in the requested hearing, is issue of reductions in solution, which took place, including via branch closings, after PNC – United. The Washington Post of July 26, 2004, reported: “Brian Goerke, a spokesman for PNC, stated the business will initially run all 51 Riggs branches. Long-term choices about historic structures like the Corcoran branch. haven’t been made, he stated.” The United states Banker newsprint of 19, 2004, reported that “executives suggested that about 50per cent of Riggs’ 1,400 employees will be cut. july” Staff cuts of 50% will be inconsistent with customer solution, and also make a unpleasant contrast to 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 officers that are executive get an overall total of $4 million.” ICP has asking for general general public hearings about this ground and particularly on PNC’s financing of problematic lenders that are payday. As documented by the Uniform Commercial Code filings ICP has submitted and obtained, PNC funds and enables as an example: