FDIC Gets Redacted Application by Multi Bank So Inner City Press FOIA Like Lame Duck OCC

By Matthew Russell Lee, Patreon

BBC - Guardian UK - Honduras - The Source

SOUTH BRONX, Nov 29 – In the midst of the Coronavirus pandemic and the election, with a fintech and crypto-currency proponent installed as Acting Comptroller, SoFi and its controller SoftBank sought to get and got a U.S. bank charter.

 Now to the the FDIC, "Multi-Bank" has applied for a non-community bank charter, while redacted / blacking out much of its application. Inner City Press / Fair Finance Watch has submitted a FOIA request to the FDIC: "This is a FOIA request for (all of) the overly redacted "public" application of Multi-Bank Application For DeNovo State Bank in Florida. Inner City Press has seen the redacted version, which withholdings from the public and press information about those involved and their plans. The entire application should be provide, along with all of the FDIC's communications with these applicants for the past year (including for preparation of public comment - it should be expedited and provided on a rolling basis)."

The context, as the FDIC has been told: the FDIC, Fed and Florida OFR should review the SEC’s Investment Adviser Public Disclosure page here to see there are 332 individuals listed for this firm, many with “Disclosures.” The web site states that these Disclosures “can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings they were part of.” Many, perhaps most, of these disclosures may be irrelevant and many of the listed employees may no longer be working at MBS. However, since such Disclosures may include “civil or criminal proceedings” and this firm will be the primary asset of the proposed Multi-Bank, the FDIC, Fed, and Florida OFR should examine each Disclosure in the same way it examines the background of planned directors and employees of a proposed Bank.

The FDIC, Fed, and Florida OFR should also review FINRA’s “BrokerCheck” page here for the firm in addition to that for its employees. That page shows that the firm had four (4) “Disclosure Events” defined as “certain criminal matters, regulatory actions, civil judicial proceedings and financial matters in which the firm or one of its control affiliates has been involved.” Again, these disclosure events may be irrelevant and outdated, but the FDIC, Fed, and Florida OFR should review these and similar items as part of their due diligence process. 

 The FINRA site notes the following four disclosure events for the firm, and these are reproduced in their entirety at the end of this comment: 1. FINRA action initiated on 4/10/2017 and resolved with a censure and fine. 2. FINRA action initiated on 2/5/2015 and resolved with a censure and fine. 3. Vermont Securities Division action initiated on 6/12/1997 and resolved with consent order and payment of administrative costs. 4. State of Alabama action initiated on 6/16/1994 and resolved with consent order and payment of administrative costs. Even though these four reported disclosure events go back many years to 1994 and some of them may be relatively minor administrative issues, the fact is that banking is the most heavily regulated industry in the nation, and a bank must be held to a much higher regulatory standard than a broker-dealer. For that reason, the FDIC, Fed, and Florida OFR must review all such published and unpublished regulatory actions involving this firm and its employees as a condition of approval for the bank and BHC."

 Meanwhile Inner City Press' requests under the Freedom of Information Act into Acting OCC Comproller Brian P. Brooks' conflicts of interest in the fintech and crypto-currency world have yet to be fully answered.  

  Now, with Brooks cynically nominated to be confirmed (to test out how fast he could be fired under Section 2 of the National Bank Act), Brooks has gone whole hog, inviting any and all crypto firms into the national bank world through the trust bank loophole, without regard to CRA or anything else. There is Anchorage, represented by Dana Syracuse through the revolving door from the NYS Department of Financial Services; there is Figure. All this must be opposed - and will be.

   And so now on November 9, Fair Finance Watch and Inner City Press have begun a call to block Brooks from handing out any more national bank charters between now at January 10 - such charters would be illegitimate, gifts by a lame duck. We'll have more on this.

On July 13 Fair Finance Watch filed with the OCC, including this: "July 13, 2020
 Office of the Comptroller of the Currency  DC Comptroller Brooks and Mr. Lybarger, Deputy Comptroller for Licensing  & Northeastern District Office 
 Re: Timely First Comment on SoFi's reported application to the OCC to get into banking 

Dear Mr. Lybarger, Ms. Cummings and others in the OCC:  This is a timely first comment opposing and requesting an extension of the required OCC's public comment period on reported proposal by SoFi to get a national bank charter.  

    This is a major proposal, by a fintech in which SoftBank has a large stake. Yet, it is not yet on the OCC's website, where as of July 13 the most recent Weekly Bulletin cuts on on July 4. The only charter application listed as open for comment is Monzo Bank; the New Bank application link does not work. So, any comment period will have be be extended. This is a request for the complete application, all portions that the OCC after review does not find withholdable under FOIA. 

     Inner City Press / Fair Finance Watch opposed SoFi's previous, suspended attempt to get into banking. Since then the questions have only grown.  

    For now, we note that Inner City Press asked the OCC's FOIA unit for a copy of Comptroller Brooks' conflict of interest list with fintechs but has yet to receive it. Pending receipt, we ask that Acting Comptroller Brooks be recused from this application and that you confirm this in writing.

     They have yet to do so. Lame duck.  Rush job, rubber stamp. Watch this site. 

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UN Peace Through Music Pleads For Funds As Bans Press Which Reported on UNFPA Waste

By Matthew Russell Lee, Patreon

BBC - Guardian UK - Honduras - ESPN

UN GATE, Dec 1 –   The UN bragged about a December 1 concert called "Peace Through Music" - but on November 30 banned the Press from asking questions about it, see below.

   A full day later, still with no response or explanation by UNFPA, the pre-recorded "concert" was played on Facebook, with repeated requests for money via Facebook Pay. What, for another $200,000 cocktail party by Natalia Kanem? Today's UN is unaccountable.

The concert is sponsored by UNFPA, whose Media Specialist Eddie Wright wrote, "For journalists not accredited to the UN press corps, please let me know if you would like to attend and I will send you the login details to the press conference."  

Inner City Press, which covers the UN (and UNFPA, including exclusively reporting how its director Natalia Kanem spent $200,000 in public funds on a garish cocktail party, here), wrote to Mr. Wright. Twice. It also tweeted at UNFPA's Dr. Nigina Muntean of the Office of the Executive Director, who follows Inner City Press on Twitter. Nothing.  

And so, outright censorship, of the type practices for 881 days by UN Spokespeople Stephane Dujarric and Melissa Fleming.

While ultimately attributable to UNSG Antonio Guterres, who had Inner City Press roughed up and banned for asking about his failure to disclose his links to UN briber CEFC China Energy, whose Patrick Ho was convicted in the SDNY Federal court Inner City Press now covers daily, UNFPA is complicit.  

So too now are those listed below - note that even at SDNY, Inner City Press covers music, for example here and here. (The New Yorker, "The Controversial Use of Rap Lyrics as Evidence," by Briana Younger, "The independent journalist Matthew Russell Lee reported on Twitter"). Here are those involved and complicit:

Aloe Blacc, Angélique Kidjo, Becky G, Brandi Carlile, Mike McCready of Pearl Jam, Carlos Santana, Gabi Melim, Gary Clark Jr., Jack Johnson, Mavis Staples, Peter Gabriel, Rhiannon Giddens, Ringo Starr, Robbie Robertson, Josh Homme, Sheila E., Skip and Cedella Marley, The War and Treaty, Yo-Yo Ma, Billie Eilish, Killer Mike, Megan Rapinoe and Sue Bird, Norman Lear and Sara Bareilles. 

Inner City Press, which was banned from the UN without any due process or appeal, must be allowed back in to such briefings, to ask questions.

We'll have more on this.

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Banning Press UNSC Prez South Africa Praised Guterres For Helping Paul Biya in Cameroon

By Matthew Russell Lee, Patreon Periscope

BBC - Guardian UK - Honduras - CJR - PFT

UN GATE, Dec 2  – In the United Nations from which SG Antonio Guterres has banned Inner City Press 883 days for asking about his complicity in the killing of civilians in Cameroon, poisoning them in Haiti with cholera and COVID in South Sudan, and their mass imprisonment by China in Xinjiang, on November 30 Inner City Press wrote to the Mission of South Africa, as incoming UN Security Council president, with questions including about Western Sahara, Haiti, Yemen and Cameroon.

 Inner City Press specifically asked to be provided the WebEx codes to be able to ask its questions. No answer.

 But when South Africa's self-described bureaucrat Jerry Matjila took questions, his spokesman took them in groups of three -- without protest from the increasingly pathetic UNCA UN press corpse -- allowing Matjila to evade even the questions that were asked.

No one allowed in asked about Cameroon, just the way Guterres wants it.

   And on December 2 to a group of insider NGOs Matjila, low-talking, on Cameroon praised the failed work of Antonio Guterres, claimed that ECOWAS or ECCAS is keeping an "eagle eye" on Cameroon and that the UN Security Council is acting appropriately on it. Video here, including the lines "the Secretary General in his wisdom is taking the responsibility to help [inaudible] Paul Biya." He also claimed there are agreements on language and region(s).

 No one called him on it. UN world, in the era of Guterres, is more and more decrepit.

 Would South Africa's former Ambassador Kumalo, no bureaucrat at all, have colluded in this Secretary General's censorship of Press? The answer is clearly no. This is shameful.

  This too: during Matjila's "press" conference, the Program of Work was not even on the website of the UNSC. Still Inner City Press, which will report all month about the UNSC with or seemingly without any Matjila or South African bureaucracy access, notes for example "Central Africa" - that would / should be Cameroon - on December 9, DRC on Dec 7, Yemen on Dec 14, South Sudan Dec 15, Afghanistan Dec 17, and Syria Dec 21.

 On Western Sahara, Matjila cravenly praised Guterres' supposed effort on naming a UN envoy, on which Guterres has failed for more than a year. This President is a letdown on Western Sahara.

   Inner City Press live tweeted the Press-less presser, here, and streamed some, here.

When Guterres' spokes- / hatchetman Stephane Dujarric holds his noon briefings this month while refusing all questions from Inner City Press despite an on camera promise. And South Africa and "bureaucrat" Matjila? We'll report.

Watch this site.

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Ari Teman Said His Lawyer Spied For SDNY As Is Married To Prosecutor Now Transcript

By Matthew Russell Lee, Patreon

BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Dec 4 – Ari Teman, raising prosecutorial misconduct up to the day of his scheduled sentencing on December 1, learned on that day that his defense lawyer is married to a prosecutor.   

 U.S. District Court for the Southern District of New York Judge Paul A. Engelmayer held the proceeding. Inner City Press covered and tweeted it.

   From the first moment, Judge Engelmayer said he would not be imposing sentence in the proceeding. He expressed amazement that the conflict wasn't disclosed to him, particularly by the prosecutors usually so fast to request so-calls Curcio hearings. He discovered it as he prepared remarks about having known the lawyer.

  But a simple Internet search finds that defense lawyer Noam Korati Biale of Sher Tremonte LLP is married to Margaret Graham, who appears working an SDNY prosecutor in press releases.   

  Teman added that Biale and Sher Tremonte were specifically retained to work on Brady disclosure issues, citing US v. Nejad, US v. Ahuja and other cases covered by Inner City Press.

He also noted that since people are working at home, it is more possible for spouses to overhear each other's work.

So sentencing was adjourned, as were the Bank of America issues Inner City Press covered earlier in the day, here.

Now on December 4, on a delay and seemingly with redactions, the transcript went into the docket, at least on the Press Room terminal. From it:

MR. BIALE: Perhaps what makes sense is for -- I think where your Honor is headed, that we should break and have a discussion with Mr. Teman about this.

THE COURT: Well, we're going to do a little more than that.... I have seen, in fact, at least one instance in which a defendant, following careful Curcio proceedings, resulting in the questioning under oath of the defendant by the Court, knowingly waived the conflict presented by one of his lawyers being married to an AUSA in the office that is prosecuting him.

  Which case was that? In any event, it didn't happen here - Teman fired Biale (though as of December 4 at 9 pm Biale is still listed in the docket). We'll have more on this.

The case is US v. Teman, 19-cr-696 (Engelmayer)

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Fair Finance Watch Protests Hanover Bank Bid On Savoy Bank As Bronx and Brooklyn Harmed

By Matthew Russell Lee, Patreon

BBC - Guardian UK - Honduras - ESPN

SOUTH BRONX, NY, Dec 5 – Even amid the Coronavirus pandemic, U.S. banks keeps seeking to merge and expand, with less and less oversight.   Fair Finance Watch, with Inner City Press on the FOIA, has filed a Community Reinvestment Act protest:

Federal Deposit Insurance Corporation Attn: Frank Hughes, Regional Director and Robert P. Cordeiro, Scott D. Strockoz 350 Fifth Avenue, Suite 1200 New York, NY 10118-0110   Re: Timely First Comment on Applications by Hanover to acquire Savoy Bank.  Dear Regional Director Vogel and others at the FDIC: 

 This is a timely first comment opposing and requesting an extension of the FDIC's public comment period on the Applications by Hanover to acquire Savoy Bank.   

   The applicant Hanover in the New York in 2019 made 67 home loans to whites and only THREE to African Americans. Note that Hanover's CRA assessment area includes The Bronx, and Brooklyn. 

  Hearings are requested on that; they may also touch on the financing of the proposed deal: "“We are pleased to announce the successful completion of our subordinated debt offering,” said Michael Puorro, Hanover’s Chairman and CEO. “This offering is directly aligned with Hanover’s strategic plan of high growth and high profitability, which continues to create significant shareholder value. The proceeds from this transaction provide us with the necessary capital to finance our recently announced partnership with Savoy Bank, as well as the ability to continue to compete in an exciting marketplace and to execute upon our longer-term strategic goals.”  Stephens Inc. acted as lead placement agent for the offering, with PNC Financial Services Group, Inc. acting as co-placement agent. Windels Marx served as legal counsel to Hanover and Covington & Burling LLP served as legal counsel for the placement agents." 

The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved  From the FDIC: Matthew R. Lee, Esq. Fair Finance Watch P.O. Box 20047 New York, New York 10017 Dear Mr. Lee:  We received your e-mail dated November 28, 2020, concerning Hanover Community Bank’s applications to acquire Savoy Bank. We reviewed your correspondence in accordance with the guidelines of 12 C.F.R. Section 303.2(c) and 303.2(l), and consider it a protest for the purpose of the applications. We forwarded your comments to the applicant

That is,

 Michael P. Puorro Chairman and Chief Executive Officer Hanover Community Bank 2131 Jericho Turnpike Garden City Park, New York 11040 Subject: Community Reinvestment Act Protest and the Removal of Application from Expedited Processing for Interagency Bank Merger Act Applications to acquire/merge with Savoy Bank, New York, New York Applications Tracking No. 20201214 and 20201215 Dear Mr. Puorro:  We are writing in reference to the enclosed e-mail correspondence that we received from Matthew R. Lee of Inner City Press/Fair Finance Watch, concerning your institution’s applications to acquire Savoy Bank. We reviewed the e-mail correspondence in accordance with the guidelines of 12 C.F.R. Section 303, and deemed it a Community Reinvestment Act (CRA) protest for the purpose of the applications. The subject e-mail raises issues regarding the bank’s record of lending to African American persons. The anticipated time and research required to investigate these issues has necessitated the removal of your applications from expedited processing.  You may provide a written response on the protest to me within ten business days after the date of this letter, in accordance with 12 C.F.R. Section 303

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