Lending Discrimination Kills Mergers as BancorpSouth Withdraws, ICP Proceeds on People's United
By Matthew R. Lee
NEW YORK, October 22 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - down to People's United Bank now trying to buy Suffolk County National Bank while barely lending to people of color in New York. Inner City Press / Fair Finance Watch on August 13 challenged this application and People's United, as it did BancorpSouth in 2014, which led to redlining charges by the Department of Justice and Consumer Financial Protection Bureau.
After BancorpSouth settled the redlining charges, Inner City Press / Fair Finance Watch immediately wrote to the Federal Reserve urging that its pending merger applications be denied or withdrawn. Now the latter has happened. The Fed has informed Inner City Press of the formal withdrawal of BancorpSouth's application; we've published the letter here, and will stay on this, to December 2017, as long as it takes.
As to People's United, using the just-released 2015 Home Mortgage Disclosure Act data. Inner City Press has now commented to the Federal Reserve:
"in 2015 in the New York City MSA, People's United made 110 home purchase loans to whites and only ONE to an African American and only four to Latinos... In 2015, for refinance loans in the New York City MSA, People's United made 103 loans to whites, only five to African Americans and only two to Hispanics.
People's United record is scarcely better on Long Island, where it snapped up Bank of Smithtown and Citizen's Bank as it now proposes to do to Suffolk County National Bank. In 2015 for home purchase loans on Long Island People's United made 49 home purchase loans to whites, only four to African Americans and only four to Latinos. For refinance loans it mad 70 loans to whties, only one to an African American and only four to Latinos. Again, this is systematic redlining; this proposed acquisition could not legitimately be approved and People's United should be referred for prosecution for redlining by the Department of Justice and CFPB."
Responding to ICP and NCRC, People's claims that acquiring another suburban bank would improve this disparate record in New York City. How?
On September 7, the General Counsel of People's United Robert E. Trautmann filed a response, which as to the analysis of New York City redlining submitted by Inner City Press / Fair Finance Watch argues that the disparities are OK because People's supposedly only recently entered the market.
But it entered in 2010. How long can it call this recent? And why should it be permitted to build itself up on Long Island while this redlining of New York City's lower income communities of color persists?
Tellingly, People's United Bank's purported response to Inner City Press' redlining analysis calls New York Times the “Lower Hudson Valley region.”
Inner City Press / Fair Finance Watch filed with the US Office of the Comptroller of the Currency:
"a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by People's United to buy The Suffolk County National Bank of Riverhead, NY. The newspaper notice says the comment period runs at least through August 16; this comment is timely.
People's United proposes to buy Suffolk County National Bank and its 27 branches in New York. But in the the New York City MSA in 2014, the most recent year for which Home Mortgage Disclosure Act data is publicly available, People's United made 82 home purchase loans to whites and NONE to African Americans or Latinos. This is redlining; this proposed acquisition could not legitimately be approved and People's United should be referred for prosecution for redlining by the Department of Justice and CFPB.
For refinance loans in the New York City MSA in 2013, People's United made 24 loans to whites, 1 to an African American and four to Hispanics. Fo
Original Title
Lending Discrimination Kills Mergers as BancorpSouth Withdraws, Fed Letter Here, ICP Proceeds on People's United
Lending Discrimination Kills Mergers as BancorpSouth Withdraws, ICP Proceeds on People's United
By Matthew R. Lee
NEW YORK, October 22 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - down to People's United Bank now trying to buy Suffolk County National Bank while barely lending to people of color in New York. Inner City Press / Fair Finance Watch on August 13 challenged this application and People's United, as it did BancorpSouth in 2014, which led to redlining charges by the Department of Justice and Consumer Financial Protection Bureau.
After BancorpSouth settled the redlining charges, Inner City Press / Fair Finance Watch immediately wrote to the Federal Reserve urging that its pending merger applications be denied or withdrawn. Now the latter has happened. The Fed has informed Inner City Press of the formal withdrawal of BancorpSouth's application; we've published the letter here, and will stay on this, to December 2017, as long as it takes.
As to People's United, using the just-released 2015 Home Mortgage Disclosure Act data. Inner City Press has now commented to the Federal Reserve:
"in 2015 in the New York City MSA, People's United made 110 home purchase loans to whites and only ONE to an African American and only four to Latinos... In 2015, for refinance loans in the New York City MSA, People's United made 103 loans to whites, only five to African Americans and only two to Hispanics.
People's United record is scarcely better on Long Island, where it snapped up Bank of Smithtown and Citizen's Bank as it now proposes to do to Suffolk County National Bank. In 2015 for home purchase loans on Long Island People's United made 49 home purchase loans to whites, only four to African Americans and only four to Latinos. For refinance loans it mad 70 loans to whties, only one to an African American and only four to Latinos. Again, this is systematic redlining; this proposed acquisition could not legitimately be approved and People's United should be referred for prosecution for redlining by the Department of Justice and CFPB."
Responding to ICP and NCRC, People's claims that acquiring another suburban bank would improve this disparate record in New York City. How?
On September 7, the General Counsel of People's United Robert E. Trautmann filed a response, which as to the analysis of New York City redlining submitted by Inner City Press / Fair Finance Watch argues that the disparities are OK because People's supposedly only recently entered the market.
But it entered in 2010. How long can it call this recent? And why should it be permitted to build itself up on Long Island while this redlining of New York City's lower income communities of color persists?
Tellingly, People's United Bank's purported response to Inner City Press' redlining analysis calls New York Times the “Lower Hudson Valley region.”
Inner City Press / Fair Finance Watch filed with the US Office of the Comptroller of the Currency:
"a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by People's United to buy The Suffolk County National Bank of Riverhead, NY. The newspaper notice says the comment period runs at least through August 16; this comment is timely.
People's United proposes to buy Suffolk County National Bank and its 27 branches in New York. But in the the New York City MSA in 2014, the most recent year for which Home Mortgage Disclosure Act data is publicly available, People's United made 82 home purchase loans to whites and NONE to African Americans or Latinos. This is redlining; this proposed acquisition could not legitimately be approved and People's United should be referred for prosecution for redlining by the Department of Justice and CFPB.
For refinance loans in the New York City MSA in 2013, People's United made 24 loans to whites, 1 to an African American and four to Hispanics. Fo
Lending Discrimination Kills Mergers as BancorpSouth Withdraws, ICP Proceeds on People's United
By Matthew R. Lee
NEW YORK, October 22 -- The lack of seriousness in US bank regulation grows from the relatively smaller to the largest banks like Goldman Sachs - down to People's United Bank now trying to buy Suffolk County National Bank while barely lending to people of color in New York. Inner City Press / Fair Finance Watch on August 13 challenged this application and People's United, as it did BancorpSouth in 2014, which led to redlining charges by the Department of Justice and Consumer Financial Protection Bureau.
After BancorpSouth settled the redlining charges, Inner City Press / Fair Finance Watch immediately wrote to the Federal Reserve urging that its pending merger applications be denied or withdrawn. Now the latter has happened. The Fed has informed Inner City Press of the formal withdrawal of BancorpSouth's application; we've published the letter here, and will stay on this, to December 2017, as long as it takes.
As to People's United, using the just-released 2015 Home Mortgage Disclosure Act data. Inner City Press has now commented to the Federal Reserve:
"in 2015 in the New York City MSA, People's United made 110 home purchase loans to whites and only ONE to an African American and only four to Latinos... In 2015, for refinance loans in the New York City MSA, People's United made 103 loans to whites, only five to African Americans and only two to Hispanics.
People's United record is scarcely better on Long Island, where it snapped up Bank of Smithtown and Citizen's Bank as it now proposes to do to Suffolk County National Bank. In 2015 for home purchase loans on Long Island People's United made 49 home purchase loans to whites, only four to African Americans and only four to Latinos. For refinance loans it mad 70 loans to whties, only one to an African American and only four to Latinos. Again, this is systematic redlining; this proposed acquisition could not legitimately be approved and People's United should be referred for prosecution for redlining by the Department of Justice and CFPB."
Responding to ICP and NCRC, People's claims that acquiring another suburban bank would improve this disparate record in New York City. How?
On September 7, the General Counsel of People's United Robert E. Trautmann filed a response, which as to the analysis of New York City redlining submitted by Inner City Press / Fair Finance Watch argues that the disparities are OK because People's supposedly only recently entered the market.
But it entered in 2010. How long can it call this recent? And why should it be permitted to build itself up on Long Island while this redlining of New York City's lower income communities of color persists?
Tellingly, People's United Bank's purported response to Inner City Press' redlining analysis calls New York Times the “Lower Hudson Valley region.”
Inner City Press / Fair Finance Watch filed with the US Office of the Comptroller of the Currency:
"a timely first comment opposing and requesting an extension of the OCC's public comment period on the Application by People's United to buy The Suffolk County National Bank of Riverhead, NY. The newspaper notice says the comment period runs at least through August 16; this comment is timely.
People's United proposes to buy Suffolk County National Bank and its 27 branches in New York. But in the the New York City MSA in 2014, the most recent year for which Home Mortgage Disclosure Act data is publicly available, People's United made 82 home purchase loans to whites and NONE to African Americans or Latinos. This is redlining; this proposed acquisition could not legitimately be approved and People's United should be referred for prosecution for redlining by the Department of Justice and CFPB.
For refinance loans in the New York City MSA in 2013, People's United made 24 loans to whites, 1 to an African American and four to Hispanics. Fo
P.O. Box 442 St. Louis, MO 63166-0442 wwwstlouisfed.org
October 17, 2016
Certified Mail Return Receipt Requested Ms. Lindsay J. Smith Vice President BancorpSouth, Inc. P.O. Box 789 Tupelo, Mississippi 38802-0789 Dear Ms. Smith: We acknowledge receipt of your letter dated October 14, 2016, requesting the withdrawal of the applications by BancorpSouth, Inc., Tupelo, Mississippi, pursuant to Section 3 of the Bank Holding Company Act of 1956, as amended. to acquire, through merger, 100 percent of the outstanding voting shares of Ouachita Bancshares Corporation, Monroe, Louisiana, and thereby indirectly acquire Ouachita Independent Bank, Monroe, Louisiana, and to acquire, through merger, 1 UO percent ofthe outstanding voting shares of Central Community Corporation, Temple, Texas, and thereby indirectly acquire First State Bank Central Texas, Austin, Texas. In conjunction with this correspondence, we are returning all available copies of the applications to you. Please be advised that we must retain the copy you submitted as the Official Record Copy of each application. The Federal Reserve System is required to retain the Official Record Copy for a minimum period of time under applicable document retention requirements. During this retention period, the Official Record Copy may become the subject of a request under the Freedom of Information Act. The Board's procedures for addressing such requests are set forth in the "Rules Regarding Availability ofInformation," 12 CFR Part 261. Any questions concerning this matter should be directed to Paul Lippold (800-333-0810, extension '444'8643; paul.f.lippold@stls.frb.orgj br Greg Wynd (extension 4444632; gregj.wynd@stls.frb.org). Sincerely,
James W.Fuchs Assistant Vice President
Lindsay Smith October 17, 2016 Page 2
Copy to:
James D. Rollins, III
Chairman and CEO BancorpSouth, Inc. . P.O. Box 789 Tupelo, Mississippi 38802.
Recorded Case No. 49-mc-2016 Declaration Re Lancaster County Court Case No. 08-CI-13373 Re Praecipe To Add Defendants Taproom Marriott, November 23, 2016