PPittsburgh Independent Media Center Pittsburgh-based PNC Bank, which supports

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Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now desires to purchase Riggs Bank, that will be embroiled in a cash laundering scandal involving, amongst others, Pinochet of Chile, the oil dictator of Equatorial Guinea, together with 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 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 PNC’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 Services Group to obtain the scandal-plagued Riggs nationwide 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 the workplace of this Comptroller associated with the Currency may also be needed. ICP’s commentary, filed using the FRB and OCC, consist of proof that PNC funds lenders that are payday as Check n’ Go of Washington DC, Inc. and elsewhere; ICP contrasts this with PNC’s peer SunTrust’s July 12, 2004 reaction to ICP’s comments, that SunTrust will no further investment payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”

ICP’s responses 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 responses review PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and display as an example that when you look at the Newark, NJ Metropolitan Statistical region (MSA), for old-fashioned house purchase loans, PNC Bank N.A. in 2003 denied loan requests from Latinos 4.71 times with greater regularity than applications from whites. PNC’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 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 house enhancement financing. However in the Newark MSA in 2003 because of this style 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 mainstream house purchase applications of African People in america 4.62 times more often compared to those of whites. Once again, PNC’s not enough home purchase financing to folks of color had not been made for the house enhancement financing: into the Pittsburgh MSA in 2003 with this sort of loan, PNC Bank N.A. denied the applications of Latinos 2.11 times more often 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 Americans’ applications for do it yourself loans into the Jersey City NJ and Newburg, New York MSAs in 2003. It absolutely was barely better in its home 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 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 with greater regularity 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 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 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 Us americans 2.22 times more often than whites.

ICP’s comments declare that, offered these financing disparities, about this ground alone the general public could be ill-served by enabling PNC to obtain Riggs and its own branches. And to be viewed, 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 organization will initially run all 51 Riggs branches. Long-lasting choices about historic structures like the Corcoran branch. haven’t been made, he stated.” The United states Banker newsprint of July 19, 2004, stated that “executives suggested that about 50% of Riggs’ 1,400 workers could be cut.” Staff cuts of 50% could be inconsistent with consumer service, while making a contrast that is troubling the windfall anticipated by those in charge of Riggs’ techniques. 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 an overall total of $4 million.” ICP has asking for general general general general public hearings with this ground and particularly on PNC’s financing of problematic lenders that are payday. As documented because of the Uniform Commercial Code filings ICP has submitted and obtained, PNC funds and allows as an payday loans Arkansas example: