By Matthew Russell Lee, Patreon Story
BBC - Guardian UK - Honduras - ESPN
FEDERAL COURT / S Bronx, Nov 22 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators remains an open question.
On November 22 the Biden Administration decided to extend the time atop of the Fed of Jay Powell. Then this: "Statement by Governor Lael Brainard: Mr. President, I am deeply honored that you are entrusting me with this responsibility at a critical time. I am committed to putting working Americans at the center of my efforts at the Federal Reserve. This means getting inflation down." And what will Jay Powell II be?
The Biden Administration has nominated Saule Omarova to head the Office of the Comptroller of the Currency. While described as "anti big bank" - good - it remains unclear, what are her views on CRA, and how would she approach, and deny some, mergers? What did she do at Davis Polk? These are questions.
The proposed acquisition by South State of Atlantic Capital Bank in Georgia will be a litmus test. Also also Home BancShares / Centennial Bank - Happy Bancshares will be litmus tests.
On November 20 Inner City Press filed with the Federal Reserve:
"This is a request for a full copy of, and a timely first comment on, the Applications of South State Corporation to merge with Home BancShares, Inc. to merge with Happy Bancshares, Inc., and thus indirectly acquire Happy State Bank. Fair Finance Watch has been tracking Home BancShares' Centennial Bank, including but not only because it has a branch in New York.
The applicant's Centennial in 2020 in Alabama based on its disparate marketing made 46 mortgage loans to whites, with 19 denials to whites -- while making only NO loans to African Americans. This is far out of keeping with the demographics, and other lenders, in Alabama - this is outrageous. This application should be denied, and a referral made to the Justice Department, as the Fed did far too late on Cadence Bank, whose lesser disparities Inner City Press similarly raised to the Fed.
This is a pattern. Centennial Bank in 2020 in Arkansas based on its disparate marketing made 1943 mortgage loans to whites, with 282 denials to whites -- while making only 113 loans to African Americans, with 37 denials. This is out of keeping with the demographics, and other lenders, in Arkansas, in the state Home BancShares' Centennial Bank presumably performs best. South State Bank NA in 2020 in New York based on its disparate marketing made a mortgage loan to a white application, and none to African Americans.
Centenntial Bank in 2020 in Florida based on its disparate marketing made 1591 mortgage loans to whites, with 256 denials to whites -- while making only 52 loans to African Americans, with 16 denials. This is out of keeping with the demographics, and other lenders, in Florida. What could Home BancShares' Centennial be expected to do in Texas?
FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve's to rubber-stamp mergers by redliners. This has been killing the Community Reinvestment Act and we timely request public hearings. We have already submitted a FOIA request for all withheld portions of the applications / portions for which confidential treatment has been requested, and for communications. The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved.
And under Brainard? Inner City Press (and Fair Finance Watch, on the HMDA) will have more to say about this. Watch this site.
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