Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now desires to purchase Riggs Bank, that is embroiled in a cash laundering scandal involving, amongst others, Pinochet of Chile, the oil dictator of Equatorial Guinea, as well as the Saudi Arabian embassy. Inner City Press / Fair Finance Watch has filed opposition to PNC’s application https://cashlandloans.net/payday-loans-ne/ for regulatory approval, covered (begrudgingly) when you look at 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, towards 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 acquisition that is proposed for $779 million, ended up being established on July 16; now a credit card applicatoin for regulatory is pending in the Federal Reserve Board, the approval for the workplace associated with the Comptroller for the Currency may 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 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 loan providers,”
ICPвЂ™s reviews use recently-released 2003 home loan financing data to show that PNC disproportionately excludes African United states and Latino applicants from the financing. ICP’s reviews evaluate PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and indicate as an example that into the Newark, NJ Metropolitan Statistical region (MSA), for traditional house purchase loans, PNC Bank N.A. in 2003 denied applications from Latinos 4.71 times more often than applications from whites. PNCвЂ™s disparity for African Us citizens had been incalculable in 2003: PNC made no home that is conventional loans to African Us citizens in 2003 within the MSA of Newark, NJ.
PNC claims to help make up for the not enough house purchase financing to individuals of color having its do it yourself financing. However in the Newark MSA in 2003 because of this form 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.
With its home MSA of Pittsburgh, PNC Bank NA in 2003 denied the old-fashioned house purchase 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 individuals of color wasn’t comprised because of its house enhancement financing: within the Pittsburgh MSA in 2003 with this form 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 with greater regularity 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 hardly 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 rejected 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. When you look at the Philadelphia MSA, for refinance loans, PNC Bank N.A. denied the applications of Latinos 2.45 times with greater regularity 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 with greater regularity 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 into the Wilmington DE MSA for main-stream house purchase loans rejected 100% for 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 with greater regularity 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 Us americans 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 get Riggs and its particular branches. And to be viewed, including during the requested hearing, is issue of reductions in solution, which happened, 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 newsprint of 19, 2004, reported that “executives suggested that about 50per cent of Riggs’ 1,400 workers could be cut. july” Staff cuts of 50% is inconsistent with customer solution, and also make a unpleasant contrast to the windfall anticipated by those accountable for 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 an overall total of $4 million.” ICP has asking for general general public hearings with this ground and particularly on PNC’s capital of problematic lenders that are payday. As documented by the Uniform Commercial Code filings ICP has acquired and submitted, PNC funds and allows for instance: