By Matthew R. Lee, Video, 7/31 story
SOUTH BRONX, December 28 – Cadence Bancorporation which has a disparate lending record while apply to buy State Bank in Georgia and urging faster regulatory approvals, seemingly jumped the gun before having the required Federal Reserve Board approval. Now a new low: a letter that Cadence and its outside counsel, former Federal Reserve lawyer Patricia Robinson, were required to provide a copy to Inner City Press / Fair Finance Watch they on purpose only sent by mail (rather than e-mail), then delayed weeks in resending. Photo here. When it arrived, as intended after the Fed's rubber stamp approva, the letter was more than 80% redacted, arguing for a fast approval. This is a new low, and something we will be confronting and combating in 2019. We have begun with this new FOIA request: "This is a FOIA request for the all withheld and redacted portions of the submissions by Cadence to the FRS to acquire State Bank, including but not limited to the outrageously 80% redacted Nov 1, 2018 letter which Cadence' counsel, rather than emailing to us, sent by mail, one and then twice, the second on Dec 14 AFTER the Fed approved the merger. In this connection we are also request any and all FRB records concerning this and all other Cadence submissions in the last year, and any records reflecting regulatory disciplining by the Fed of banks or BHCs for withholding information in bad faith, for the past three years. Each portions of this request can be considered separately so as to ensure receipt as fast as possible of the unredacted, wrongfully delayed Nov 1, 2018 letter." The Fed in a December 7 order shrugged it off in a footnote (22), "The commenter’s allegation that the parties are operating as a single entity prior to theBoard’s approval of the proposal related to an investor conference call during which the Chief Executive Officer of Cadence stated that he intended to refer a Cadence customer to a division of State Bank. The Board does not generally view a customer referral,
without more, as constituting prior control of an entity." Fair Finance Watch is the commenter: On October 18, Fair Finance Watch submitted a timely comment to the Federal Reserve Board in Washington, below - and got back a copy of a letter from the Federal Reserve Bank of Dallas forwarding its comment to Cadence's outside counsel at Wachtell Lipton -- Patricia Robinson, who used to be with the Fed's Legal Division. Inner City Press will have more on that. Now on November 20 the Fed has extended its time to respond to Inner City Press' FOIA request, the day after Cadence commented to Joseph Otting's OCC's Advance Notice of Proposed Rulemaking urging his OCC to "make the application process for expansionary actions less contentious." How about not making frivolous requests to have regulators withhold information until they hope the "expansionary action" is consummated? Here's from FFW's comment: "This is a request for a full copy of, and a timely first comment on, the Applications of Cadence Bancorporation, Houston, Texas; to acquire State Bank Financial Corporation, Atlanta, Georgia, and thereby indirectly acquire State Bank and Trust Company, Macon, Georgia
As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.
Fair Finance Watch has been tracking Cadence Bank: In 2017 in the Dallas, Texas MSA for convention home purchase loans, Cadence made 99 such loans to whites - and NONE, not a single origination, to African Americans.
In 2017 in the Houston Texas MSA for convention home purchase loans, Cadence made 236 such loans to whites - and only 15 to African Americans, and only 23 to Latinos. This is not in keeping with the aggregate, which made 37,128 such loans to whites, 3151 to African Americans and 8215 to Latinos.
In 2017 in the Birmingham, Alabama MSA for convention home purchase loans, Cadence made 66 such loans to whites - and only ONE to African Americans. Even combining in Table 4-1, it was 79 home purchase loans to whites and only THREE to African Americans.
This should also be address in this proceeding, including at the requested evidentiary hearing:
“Cadence Bank - Racist manager
2800 Post Oak Blvd Suite 101, Houston, TX 77056, USA
I had my 2 business accounts at the Williams tower location, I tried talking to the manager about small business loans she always avoided me looking at me kind of weird whenever I done withdrawals she always asked me why I'm taking money out after 3 months she sent me a Leter saying she's going to be closing my account because I take money out ones a week for payroll and she didn't like that.”
Inner City Press is also concerned about this statement imply gun-jumping, in the investors' call announcing the proposal, here.
Paul Murphy: “Oh boy, you’re right. It’s not in the model. It’s significant. I mean, there is just a lot of overlap. I’ve got a prospect for AloStar. I’m going to see them this afternoon. We can start it on a great potential new piece of business for them today. And there will be more and more of that.”
ICP is requesting evidentiary hearings and that this proposed acquisition, on the current record, not be approved. There is no public benefit." Here's how the Fed boiled it down, with FOIA issues outstanding: "One commenter objected to the proposal on the basis of alleged disparities
in the number of home mortgage loans made by Cadence Bank to African Americans in
the Dallas-Plano-Irving, Texas Metropolitan Division (“Dallas MD”) and the
Birmingham-Hoover, Alabama Metropolitan Statistical Area (“Birmingham MSA”), and
to African Americans and Latinos in the Houston-The Woodlands-Sugar Land, Texas
Metropolitan Statistical Area (“Houston MSA”), in each case as compared to whites inthe relevant areas, based on data reported under the Home Mortgage Disclosure Act of 1975 (“HMDA”). The commenter also cited a customer complaint alleging racist
management practices at Cadence Bank." And?
without more, as constituting prior control of an entity." Fair Finance Watch is the commenter: On October 18, Fair Finance Watch submitted a timely comment to the Federal Reserve Board in Washington, below - and got back a copy of a letter from the Federal Reserve Bank of Dallas forwarding its comment to Cadence's outside counsel at Wachtell Lipton -- Patricia Robinson, who used to be with the Fed's Legal Division. Inner City Press will have more on that. Now on November 20 the Fed has extended its time to respond to Inner City Press' FOIA request, the day after Cadence commented to Joseph Otting's OCC's Advance Notice of Proposed Rulemaking urging his OCC to "make the application process for expansionary actions less contentious." How about not making frivolous requests to have regulators withhold information until they hope the "expansionary action" is consummated? Here's from FFW's comment: "This is a request for a full copy of, and a timely first comment on, the Applications of Cadence Bancorporation, Houston, Texas; to acquire State Bank Financial Corporation, Atlanta, Georgia, and thereby indirectly acquire State Bank and Trust Company, Macon, Georgia
As an initial matter, this is a request that the FRS immediately send by email to Inner City Press all non-exempt portions of the applications / notices for which the Applicants have requested confidential treatment.
Fair Finance Watch has been tracking Cadence Bank: In 2017 in the Dallas, Texas MSA for convention home purchase loans, Cadence made 99 such loans to whites - and NONE, not a single origination, to African Americans.
In 2017 in the Houston Texas MSA for convention home purchase loans, Cadence made 236 such loans to whites - and only 15 to African Americans, and only 23 to Latinos. This is not in keeping with the aggregate, which made 37,128 such loans to whites, 3151 to African Americans and 8215 to Latinos.
In 2017 in the Birmingham, Alabama MSA for convention home purchase loans, Cadence made 66 such loans to whites - and only ONE to African Americans. Even combining in Table 4-1, it was 79 home purchase loans to whites and only THREE to African Americans.
This should also be address in this proceeding, including at the requested evidentiary hearing:
“Cadence Bank - Racist manager
2800 Post Oak Blvd Suite 101, Houston, TX 77056, USA
I had my 2 business accounts at the Williams tower location, I tried talking to the manager about small business loans she always avoided me looking at me kind of weird whenever I done withdrawals she always asked me why I'm taking money out after 3 months she sent me a Leter saying she's going to be closing my account because I take money out ones a week for payroll and she didn't like that.”
Inner City Press is also concerned about this statement imply gun-jumping, in the investors' call announcing the proposal, here.
Paul Murphy: “Oh boy, you’re right. It’s not in the model. It’s significant. I mean, there is just a lot of overlap. I’ve got a prospect for AloStar. I’m going to see them this afternoon. We can start it on a great potential new piece of business for them today. And there will be more and more of that.”
ICP is requesting evidentiary hearings and that this proposed acquisition, on the current record, not be approved. There is no public benefit." Here's how the Fed boiled it down, with FOIA issues outstanding: "One commenter objected to the proposal on the basis of alleged disparities
in the number of home mortgage loans made by Cadence Bank to African Americans in
the Dallas-Plano-Irving, Texas Metropolitan Division (“Dallas MD”) and the
Birmingham-Hoover, Alabama Metropolitan Statistical Area (“Birmingham MSA”), and
to African Americans and Latinos in the Houston-The Woodlands-Sugar Land, Texas
Metropolitan Statistical Area (“Houston MSA”), in each case as compared to whites inthe relevant areas, based on data reported under the Home Mortgage Disclosure Act of 1975 (“HMDA”). The commenter also cited a customer complaint alleging racist
management practices at Cadence Bank." And?
