by Matthew Russell Lee, Patreon Book Substack
SOUTH BRONX/Federal Court, July 3 – A proposed acquisition by BancFirst of American Bank of Oklahoma after the latter's redlining settlement, and deteriorating record since, have given risen to a challenge under the Community Reinvestment Act.
On July 3 Fair Finance Watch, reviewing Home Mortgage Disclosure Act data of both banks from 2019 to 2024, filed a CRA challenge to the merger with the Federal Reserve Board:
"American Bank of Oklahoma settled redlining charges with DOJ for its lending to 2021, while pushing to have reference to the Tulsa Race Riot removed from the complaint it settled.
But since 2021, American Bank of Oklahoma's lending has hardly gotten better, including in 2024 a year for which data has not been considered in any CRA exam. And BancFirst is scarcely better. Public evidentiary hearings are needed and hereby requested.
In 2024 American Bank of Oklahoma made 9 loans to African Americans in Oklahoma, and 225 loans to whites. For whites it made 20.45 loans for every denied, versus only 4.5 originations for even denial to whites. In 2023 American Bank of Oklahoma though still low made more loans to African Americans (15) while fewer to whites (223) then in 2024.
American Bank of Oklahoma is getting worse over time. (Back in 2019 in Oklahoma it made 14 loans to African American).
The proposed acquirer BancFirst is problematic. In Oklahoma in 2024 BancFirst made 69 loans to African Americans, and 2413 loans to whites. For whites it made 7.18 loans for every denied, versus only 2.55 originations for even denial to whites.
This application should not be approved; particularly in light of the redlining settlement public evidentiary hearings are needed
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