by Matthew Russell Lee, Patreon Book Substack
SDNY/SOUTH BRONX, Dec 8 – As US bank regulators loosen rules - including the FDIC moving to eliminate public comment altogether on branch expansion applications - now more big banks are moving to get bigger.
And one is moving without even applying to the Federal Reserve Board.
On October 27, Huntington announced it would apply to buy Cadence Bank.
But as of December 7, it has yet to apply to the Federal Reserve. Instead, since Cadence cynically dissolved its holding company after its lending discrimination settlement, it has applied only to the Office of the Comptroller of the Currency. The OCC, unlike much smaller crypto applications, has not put Huntington's application on the OCC website.
On December 8, "'There'll be more layoffs,' CEO Stephen Steinour [said] in an interview. "We want to be transparent. So right away we communicate, there are going to be impacts'... The Cadence purchase will create a bank with assets of $276 billion, pushing Huntington into a regulatory classification known as Category 3 that imposes more stringent rules, including for capital and liquidity." But no Fed consideration of entering Category 3?
Fair Finance Watch has been concerned about both banks. For now, consider Cadence in 2024:
In Mississippi in 2024 Cadence made 2447 mortgage loans to whites and only 556 denials to whites. To African Americans, Cadence made only 558 loans while denying fully 355 applications. Thus, for white Cadence made 4.40 loans to whites for every denial, while for African Americans only 1.57 loans for every denial. This is disparate.
In Alabama in 2024 Cadence made 1122 mortgage loans to whites and only 262 denials to whites. To African Americans, Cadence made only 187 loans while denying fully 100 applications. Thus, for white Cadence made 4.29 loans to whites for every denial, while for African Americans only 1.97 loans for every denial. This is disparate.
There is more, including as to Huntington. But the Fed will not be listening, nor apparently some say, the bank. Watch this site.
Inner City Press, which has opposed the FDIC's moves to close itself to public scrutiny - American Banker op-ed here - will be submitting FOIA requests on all this. The FDIC said it will eliminate public notices because it does not receive enough public comments. That is now changing. Watch this site.
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