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Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now really wants 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, therefore 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, to your Federal Reserve and OCC, predicated on Unresolved Riggs Issues, PNC’s Lending Disparities and PNCв??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 direct lenders for bad credit loans in Arizona Services Group to get the Riggs National that is scandal-plagued Corporation. The acquisition that is proposed for $779 million, had been established on July 16; now a credit card applicatoin for regulatory is pending in the Federal Reserve Board, the approval for the workplace of this Comptroller associated with Currency can also be needed. ICP’s reviews, filed utilizing the FRB and OCC, consist of proof that PNC funds payday lenders such as Check nв?? Go of Washington DC, Inc. and elsewhere; ICP contrasts this with PNCв??s peer SunTrustв??s July 12, 2004 reaction to ICPв??s comments, that SunTrust will no more investment payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”
ICPв??s remarks use recently-released 2003 home loan financing data to show that PNC disproportionately excludes African American and Latino candidates from the financing. ICP’s reviews assess PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and prove as an example that when you look at 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 more often than applications from whites. PNCв??s disparity for African Us citizens had been incalculable in 2003: PNC made no mainstream house purchase 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 folks of color having its home enhancement financing. However in the Newark MSA in 2003 with this types of loan, PNC Bank N.A. denied the applications of Latinos 3.16 times with greater regularity than whites, and 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 People in america 4.62 times more often compared to those of whites. Once again, PNCв??s not enough house purchase financing to individuals of color had not been comprised because of its house enhancement financing: into 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 america 2.43 times with greater regularity than whites.
PNC Bank N.A. has 100% denial prices for African Americansв?? applications for home improvement loans when you look at the Jersey City NJ and Newburg, brand brand New York MSAs in 2003. It absolutely was hardly better in its house state of Pennsylvania. Within 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. When you look at 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 Us americans 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 more often than whites.
PNC’s other bank, PNC Bank Delaware, in 2003 within the Wilmington DE MSA for traditional house purchase loans rejected 100% regarding the 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 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 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 is ill-served by permitting PNC to get Riggs and its own branches. And also to be looked at, including during the requested hearing, is issue of reductions in solution, which happened, including via branch closings, after PNC – United. The Washington Post of July 26, 2004, reported: “Brian Goerke, a spokesman for PNC, stated the organization will initially run all 51 Riggs branches. Long-lasting decisions about historic structures for instance the Corcoran branch. haven’t been made, he stated.” The United states Banker newsprint of 19, 2004, stated that “executives suggested that about 50per cent of Riggs’ 1,400 workers will be cut. july” Staff cuts of 50% is 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 13, 2004 reports that “”Robert L. Allbritton is slated to received $850,000 august. Nine other executive officers will get a complete of $4 million.” ICP has asking for general public hearings about this ground and particularly on PNC’s financing of problematic payday lenders. As documented because of the Uniform Commercial Code filings ICP has submitted and obtained, PNC funds and allows for instance: