Pittsburgh-based PNC Bank, which supports high-cost predatory payday creditors, now would like to purchase Riggs Bank, this is certainly embroiled in a money laundering scandal involving, yet others, Pinochet of Chile, the oil dictator of Equatorial Guinea, as the Saudi Arabian embassy. Inner City Press / Fair Finance Watch has filed opposition to PNC’s application for regulatory approval, covered (begrudgingly) in to the Pittsburgh Post-Gazette along with greater degree on Inner City Press / Fair Finance Watch Files Challenges to PNC’s Applications to Acquire Scandal-Plagued Riggs Corporation that is nationwide the Federal Reserve and OCC, dedicated to Unresolved Riggs Issues, PNC’s Lending Disparities and PNCs Funding of Predatory Payday Lenders
The shoppers’ and community business Inner City Press
/ Fair Finance Watch (ICP) has filed two 21-page challenges to applications by the PNC Financial Services Group getting the Riggs that is scandal-plagued nationwide. The proposed acquisition, for $779 million, wound up being established on July 16; now a charge card applicatoin for regulatory is pending during the Federal Reserve Board, the approval of the workplace related to Comptroller about the Currency can also be required. ICP’s remarks, filed utilizing the FRB and OCC, contain proof that PNC funds loan providers which are payday as Check n Go of Washington DC, Inc. and elsewhere; ICP contrasts this with PNCs peer SunTrusts July 12, 2004 a reaction to ICPs comments, that SunTrust will no more investment payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICPs remarks utilize recently-released 2003 mortgage loan funding data to disproportionately show that PNC excludes African usa and Latino prospects through the funding. ICP’s responses assess PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and show being an instance that inside the Newark, NJ Metropolitan Statistical area (MSA), for traditional home purchase loans, PNC Bank N.A. in 2003 denied loan demands from Latinos 4.71 times with greater regularity than applications from whites. PNCs disparity for African people in america had been incalculable in 2003: PNC made no antique house purchase loans to African us residents in 2003 inside the MSA of Newark, NJ.
PNC claims to make up due to its maybe maybe not sufficient home purchase funding to individuals of color along having its get it done your self funding. In the Newark MSA in 2003 using this type 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 usa 2.84 times with greater regularity than whites. Having its household MSA of Pittsburgh, PNC Bank NA in 2003 denied the true house that is traditional applications of African us citizens 4.62 times more frequently when compared with those of whites. Once again, PNCs maybe not house that is enough financing to people of color was not composed for the home enhancement funding: in to the Pittsburgh MSA in 2003 as a result of this design of loan, PNC Bank N.A. denied the applications of Latinos 2.11 times more regularly than whites cash advance Ohio state, and rejected African People in america 2.43 times with greater regularity than whites.
PNC Bank N.A. has 100% denial costs for African People in the us applications for take action your self loans in to the Jersey City NJ and Newburg, brand name name} name name|brand name} groundbreaking York MSAs in 2003. It was hardly better with its household state of Pennsylvania. The Harrisburg MSA, PNC Bank N.A. for house enhancement loans rejected the applications of Latinos 3.28 times more often than whites, and denied the applications of African People in america 2.93 times with greater regularity than whites within the state money. Once you glance at the Philadelphia MSA, for refinance loans, PNC Bank N.A. denied the applications of Latinos 2.45 times more frequently than whites, and denied the applications of African Us americans 2.64 times more regularly than whites. In this Philadelphia MSA for take action your self loans, PNC Bank N.A. denied the applications of Latinos 2.72 times more frequently than whites, and denied the applications of African Us americans 3.06 times more regularly than whites.
PNC’s other bank, PNC Bank Delaware, in 2003 in to the Wilmington DE MSA for main-stream home purchase loans rejected 100% connected with applications it received from Latinos. For refinance loans in this MSA, PNC Bank Delaware denied the applications of Latinos 2.93 times more frequently than whites, and denied the applications of African Us americans 2.02 times with greater regularity than whites. For take action your self 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 Us americans 2.22 times with greater regularity than whites.
ICP’s remarks declare that, provided these financing disparities, with this specific ground alone the public that is general be ill-served by allowing PNC getting Riggs as well as branches. And to be regarded, including during the requested hearing, is problem 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, reported the business will initially run all 51 Riggs branches. Lasting alternatives about historic structures such as the Corcoran branch. haven’t been made, he stated.” The usa Banker newsprint of 19, 2004, stated that “executives recommended that about 50per cent of Riggs’ 1,400 employees would be cut. july” Staff cuts of 50% is likely to be inconsistent with customer solution, and workout a comparison that is troubling the windfall expected by those in charge of Riggs’ practices. 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 a whole of $4 million.” ICP has seeking general average man or woman hearings with this particular ground and specially on PNC’s funding of problematic payday lenders. As documented due to the Uniform Commercial Code filings ICP has obtained and submitted, PNC funds and permits for example: