By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN
SDNY COURT, Feb 28 – When the US bank regulators and Administration say they are taking the Community Reinvestment Act more seriously, it does not appear to be true.
Case in point: the Federal Reserve Bank of New York on February 28, on Berkshire Bank which got a rare Needs to Improve CRA rating in New York State, gave out an approval on a delegated basis. The FRBNY cannot, as a matter of law and as an entity owned by private banks, deny or even condition an approval. This is a new low.
Fair Finance Watch, with Inner City Press on the FOIA, which commented to the Fed on January 8, has immediately filed a petition for review saying it should be reviewed by each current, and all Administration-nominated Governors:
Dear Chair Powell, Secretary Misback and others in the FRS: This is a timely petition to review the decision today by the FRBNY to approve - on a delegated basis -- the Applications of TBB Investments LLC and TBB Intermediate LLC to become bank holding companies by acquiring Berkshire Bancorp, Inc and Berkshire Bank -- which got a rare Needs to Improve CRA rating in New York.
Significantly - and we think, disposively and requiring review by the full Board and each member, and the nominated members - Berkshire Bank received a “Needs to Improve” rating in the New York state assessment area during its May 7, 2019, CRA Performance Evaluation.
How could the Reserve Bank, which has no authority to deny or even condition approval on applications, deign to rubber stamp this application? This is a new low, and shows the FRS is not complying with its and the Administration's public statements about CRA and fair lending.
As we timely noted, on January 8, Fair Finance Watch has been tracking Berkshire Bank, and has found its lending patterns troubling. Berkshire Bank in 2020 in New York State based on its disparate marketing made 335 mortgage loans to whites, with only 129 denials to whites -- while making only TWO loans to African Americans, and denying three applications from African Americans. This is outrageous.
Also: "Reclusive landlord Moses Marx resigns as Berkshire chairman, see https://www.crainsnewyork.com/commercial-real-estate/reclusive-landlord-moses-marx-resigns-berkshire-chairman
FFW and Inner City Press are now even more deeply concerned about the rush by the Federal Reserve's to rubber-stamp mergers by redliners and predatory lenders. This has been killing the Community Reinvestment Act. This bogus delegated approval must be stayed and reviewed by each Governor and nominated Governor.
Very Truly Yours, Matthew Lee, Esq. Executive Director Inner City Press/Fair Finance Watch
This has also been sent to the FDIC (Frank Hughes), NYSDFS, and the bank lawyers at Stoock
It is a litmus test.
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