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

Participate

Pittsburgh-based PNC Bank, which supports high-cost predatory payday loan providers, now would like to purchase Riggs Bank, which will be embroiled in a cash laundering scandal involving, and 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) into 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, centered 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 in the Federal Reserve Board, the approval associated with the workplace of this Comptroller regarding the Currency can also be needed. ICP’s responses, filed using the FRB and OCC, consist of proof that PNC funds payday lenders such as Check n’ Go of Washington DC, Inc. and elsewhere; ICP contrasts this with PNC’s peer SunTrust’s July 12, 2004 a reaction to ICP’s comments, that SunTrust will no more investment payday loan providers. See, e.g., “SunTrust pledges to drop ties to payday & title loan providers,”

ICP’s opinions use recently-released 2003 home loan financing data to show that PNC disproportionately excludes African United states and Latino candidates from the financing. ICP’s responses evaluate PNC’s recently-released 2003 Residence Mortgage Disclosure Act (HMDA) information, and prove as an example that within the Newark, NJ Metropolitan Statistical region (MSA), for main-stream house purchase loans, PNC Bank N.A. in 2003 denied loan requests from Latinos 4.71 times more often 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 within the MSA of Newark, NJ.

PNC claims to help make up because of its not enough house purchase financing to individuals of color using 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 more often than whites, and rejected African People in the us 2.84 times with greater regularity than whites.

With its house MSA of Pittsburgh, PNC Bank NA in 2003 denied the home that is conventional applications of African Us americans 4.62 times with greater regularity compared to those of whites. Once again, PNC’s not enough house purchase financing to individuals of color had not been constructed for the house enhancement financing: when you look at the Pittsburgh MSA in 2003 because of 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 Americans’ applications for do it yourself loans into the Jersey City NJ and Newburg, brand 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 with greater regularity than whites. In this Philadelphia MSA for home improvement 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 more often than whites.

PNC’s other bank, PNC Bank Delaware, in 2003 into the payday loans in Montana Wilmington DE MSA for mainstream house purchase loans rejected 100% associated with applications 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 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, about this ground alone the general public could 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 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 for instance the Corcoran branch. haven’t been made, he stated.” The United states Banker newsprint of July 19, 2004, stated that “executives suggested that about 50per cent of Riggs’ 1,400 workers could be cut.” Staff cuts of 50% could 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 executive officers will get a complete of $4 million.” ICP has asking for general general general general public hearings with this ground and specially on PNC’s capital of problematic payday lenders. As documented by the Uniform Commercial Code filings ICP has submitted and obtained, PNC funds and allows as an example: