NEW YORK CITY, March 2 – The US Treasury Department is the next stage of a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency or Ryan Zinke at Interior, is the Office of the Comptroller of the Currency's (OCC's) Joseph Otting. He has gone beyond overall attempts to underling the CRA to refusing public commenton the type of business combination applications on which comment has in the past been accepted and considered. Photo here. His OCC in a February 26, 2019 letter to Inner City Press / Fair Finance Watch concerning its timely comment opposing the application to the OCC by Long Island-based Hanover Community Bank to acquire Chinatown Federal Savings Bank, stated that "the business combination application filed with the OCC in connection with Hanover's acquisition, referenced above, is not subject to public comment." Photo of letter here. This is a direct attack on the CRA and on public participation more generally. Here's from the Fair Finance Watch comment Otting is refusing to consider: "February 18, 2019 Via e-mail
Office of the Comptroller of the Currency Northeastern District Office Acting Director for District Licensing, Marva V. Cummings 340 Madison Avenue, Fifth Floor New York, NY 10173-0002
Re: Timely First Comment on OCC 2019-NE-Combination-307316, re Applications by Hanover to acquire Chinatown FSB
Dear Ms. Cummings and others in the OCC: This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Hanover to acquire Chinatown FSB. The applicant Hanover in the New York City MSA in 2017 made 269 home purchase loans to Asians -- and NONE to African Americans. Note that Hanover's CRA assessment area includes The Bronx, and Brooklyn. Note that when Hanover opened a deposit taking branch in NYC, in Forest Hills, its press release said nothing about a focus on Chinese Americans or Asians or any limitations or restrictions on lending, here. Hanover does not even appear to offer any FHA, FSA/RHS, and VA home-purchase loans. This is not acceptable.... The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved." Then Otting says, we don't care, we won't listen. Otting, in order to hinder Press coverage of how many banks he meets with by changing the OCC's long standing FOIA fee waiver policy, is saying he will make it harder to get CRA information too. This is the "new" OCC - see its letter on new policies, below. Under Otting, who is throwing up roadblocks to the release of his calendar under the Freedom of Information Act (see below), "the OCC is instructing examiners to investigate some of the claims separately, rather than addressing them within the merger-approval process. “We require a certain level of detail and specificity in comments,” Comptroller of the Currency Joseph Otting said in a written statement. 'The changes ensure that concerns are validated by exam staff who are best positioned to review [their] merits.'"
Office of the Comptroller of the Currency Northeastern District Office Acting Director for District Licensing, Marva V. Cummings 340 Madison Avenue, Fifth Floor New York, NY 10173-0002
Re: Timely First Comment on OCC 2019-NE-Combination-307316, re Applications by Hanover to acquire Chinatown FSB
Dear Ms. Cummings and others in the OCC: This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by Hanover to acquire Chinatown FSB. The applicant Hanover in the New York City MSA in 2017 made 269 home purchase loans to Asians -- and NONE to African Americans. Note that Hanover's CRA assessment area includes The Bronx, and Brooklyn. Note that when Hanover opened a deposit taking branch in NYC, in Forest Hills, its press release said nothing about a focus on Chinese Americans or Asians or any limitations or restrictions on lending, here. Hanover does not even appear to offer any FHA, FSA/RHS, and VA home-purchase loans. This is not acceptable.... The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved." Then Otting says, we don't care, we won't listen. Otting, in order to hinder Press coverage of how many banks he meets with by changing the OCC's long standing FOIA fee waiver policy, is saying he will make it harder to get CRA information too. This is the "new" OCC - see its letter on new policies, below. Under Otting, who is throwing up roadblocks to the release of his calendar under the Freedom of Information Act (see below), "the OCC is instructing examiners to investigate some of the claims separately, rather than addressing them within the merger-approval process. “We require a certain level of detail and specificity in comments,” Comptroller of the Currency Joseph Otting said in a written statement. 'The changes ensure that concerns are validated by exam staff who are best positioned to review [their] merits.'"
This is a backdoor safe harbor. Since 98% of banks are rated Satisfactory or Outstanding (including those which later are found guilty of discrimination and redlining), to discount comments that are not "validated" by these bogus and inflated rating is regulatory malpractice. Perhaps this is why Otting is hiding his calendar; perhaps the WSJ's Lalita Clozel will dig further. As to the Federal Reserve, Inner City Press has been informed of a memo by a major law firm which has hired and used former Fed Legal Division staff bragging about the fast Fed approvals it is receiving. We'll have more on this - including on BB&T / Suntrust, see here.
On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. On January 16 Inner City Press asked the OCC on the expedited basis for records to disclose Otting's meetings with the banking industry and others. But in a letter dated January 31, the OCC for the first time in years denied Inner City Press' fee waiver request on this one request, despite the request using the same language as requests the OCC has granted for Inner City Press repeatedly. The only difference is the subject of the FOIA request: Otting. This is an abuse of power. Inner City Press has appealed: "Inner City Press is appealing Mr Frank Vance's letter dated January 31, 2019 which denies, for the first time in years, Inner City Press' request for a fee waiver - because the request concerns Comtroller Otting and his schedule. Inner City Press is a media that covers the OCC... it seeks this information to educate the public about the operations of the OCC. The language of the fee waiver request was the same as the OCC has requested granted - now suddenly a new standard is applied, due to the subject matter of the request. This is unacceptable. The denial letter doesn't even inform of the right to appeal, and the request number is not listed in our account - thereby blocking submission of the appeal. We are submitting under the number of another of our 2019 requests on which fee waiver WAS granted, on the same language. We ask for expedited ruling on this appeal, and an explanation." The OCC has turned aroundto say it will now deny FOIA fee waiver requests for banks' merger applications and CRA plans: "Good afternoon Mr. Lee. I am writing to you regarding your correspondence of February 11, 2019, as it relates to your January 17, 2019 FOIA request number 2019-00104. Although you request a fee waiver in connection with your FOIA request, you do not provide a sufficient justification for the granting of the waiver in either your January 17 or your February 11 correspondence. I understand that in the past, the OCC has granted you fee waivers based on the same or similar language used in your most recent request, and that you may not have received an adequate explanation as to why your recent request was not being handled in a similar manner as past requests. Please be aware that going forward, with respect to your case number 2019-00104 and all other requests made by any requester for any information, the OCC will only grant fee waivers on a case-by case basis when a requester has affirmatively demonstrated entitlement to a fee waiver in accordance with the requirements of the FOIA at 5 U.S.C. 552(a)(4)(A)(iii). This approach is in accordance with the FOIA statute and DOJ guidance. In applicable guidance, DOJ has stated: “The Department of Justice stands committed to encouraging agencies to waive fees under the FOIA whenever the statutory fee waiver standard is met. By the same token, of course, agencies also are expected to respect the balance drawn in the statute, safeguarding federal funds by granting waivers or reductions only where it is determined that the statutory standard is satisfied.” see FOIA Update, Vol. VIII, No. 1 (“OIP Guidance: New Fee Waiver Policy Guidance”) (emphasis added). Moreover, the OCC’s approach is consistent with case law, which provides that each fee waiver request is considered on a case-by-case basis because each request involves varied information. See Media Access Project v. FCC, 883 F.2d 1063 (D.C. Cir 1989). Additionally, the OCC is not bound to grant a fee waiver to a requester in a particular case just because it has granted the requester waivers in the past. See e.g., Judicial Watch Inc., v. DOJ, No. 99-2315, 2000 WL 33724693 at *5 (D.D.C. Aug. 17, 2000); Judicial Watch, Inc., v. DOJ, No. 97-2089, Slip op. at 14 (D.D.C. July 14, 1998). The burden for establishing that a fee waiver is justified is on the requester. See Friends of the Coast Fork v. U.S. Dep’t of the Interior, 110 F.3d 53, 55 (9th Cir. 1997). Thus, in order for the OCC to determine whether your request meets the requirements for a fee waiver, you must demonstrate that the OCC’s disclosure in response to your request meets the standard set forth in Section 552(a)(4)(A)(iii). You may wish to consult DOJ’s guidance at https://www.justice.gov/oip/blog/foia-update-new-fee-waiver-policy-guidance in formulating your justification. Until these issues are resolved with respect to your fee waiver, the clock is stopped on your FOIA request. Best Regards, Kristin Merritt Kristin Merritt Special Counsel Administrative & Internal Law Office of the Comptroller of the Currency 400 7th St., S.W. Washington, D.C. 20219." We'll have more on this. And here's the request the OCC is delaying on: "Dear OCC FOIA Officer: Inner City Press / Fair Finance Watch (ICP) makes this request for records pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, and OCC regulations. ICP requests copies of records sufficient to show all of Comptroller Otting's scheduled meetings, appointments, and scheduled events from the date he became Comptroller to the date of your response including but not limited to Outlook calendar entries and daily briefing books for Comptroller Otting on those dates... ICP requests that you expedite the processing of this request. There is media interest and there exist possible questions concerning the OCC's integrity, which affect public confidence. See e.g. this article and the CRA ANPR since." We'll have more on this. Otting's OneWest colleague and now boss, US Treasury Department Steve Mnuchin on December 22 from Cabo called six big US banks: "Brian Moynihan, Bank of America; Michael Corbat, Citi; David Solomon, Goldman Sachs; Jamie Dimon, JP Morgan Chase, James Gorman, Morgan Stanley; Tim Sloan, Wells Fargo. The CEOs confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations. He also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly.
Tomorrow, the Secretary will convene a call with the President’s Working Group on financial markets, which he chairs. This includes the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Commodities Futures Trading Commission. He has also invited the office of the Comptroller of the Currency." That's Joseph Otting, with whom Mnuchin worked at and on selling OneWest Bank to CIT Group, complete with falsified pro-merger comments Inner City Press reported on. Otting's OCC is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. At the November 19 deadline, not (yet) posted was Inner City Press' November 17 fourth comment, just as Otting's OCC absurdly waited 13 days to try to rule it does not have to consider Fair Finance Watch's comments on WSFS Bank. But Inner City Press has timely protested WSFS to the Federal Reserve - and has now found out that WSFS is even trying to withhold its CRA information from the public, photo here. So Inner City Press has submitted this Freedom of Information Act request: " This is a FOIA request for the all withheld portions of the applications by WSFS to acquire Beneficial, including but not limited to presumptively mis-labeled “Confidential” exhibits about WSFS's CRA program (“Confidential” Exhibit 9), (Beneficial's subsidiaries (“Confidential” Exhibit 3), Board of Directors resolutions, due diligence (“Confidential” Exhibit 10), operating economy / cost savings (there are branch closings projected), names of prospective managers (ages, requested on application, apparently not provided), and for all records reflecting FRS communications with WSFS or Beneficial or their affiliates for the past twelve (12) months." A fifth comment submitted including that "the OCC is already undermining CRA. Our comments to the OCC on WSFS - Beneficial have yet to be acted on. That comment was submitted on November 6. Now on November 19, two weeks later, the OCC has tellingly said it will not consider it - despite a Federal Reserve Board comment period on the same transaction remaining open until at least November 27. The OCC's attempt to ignore substantive criticism of some banks' performance, while Comptroller Otting previously solicited false comments support his OneWest Bank, are a symbol all what is wrong with this process, and today's OCC.
Tomorrow, the Secretary will convene a call with the President’s Working Group on financial markets, which he chairs. This includes the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, and the Commodities Futures Trading Commission. He has also invited the office of the Comptroller of the Currency." That's Joseph Otting, with whom Mnuchin worked at and on selling OneWest Bank to CIT Group, complete with falsified pro-merger comments Inner City Press reported on. Otting's OCC is in a process to try to weaken and take the community out of the 1977 Community Reinvestment Act. Docket file here. The protagonist, akin to Scott Pruitt when he was at the US Environmental Protection Agency, is Comptroller of the Current Joseph Otting. On September 12 Fair Finance Watch (and on FOIA, Inner City Press) commented to the OCC, here. At the November 19 deadline, not (yet) posted was Inner City Press' November 17 fourth comment, just as Otting's OCC absurdly waited 13 days to try to rule it does not have to consider Fair Finance Watch's comments on WSFS Bank. But Inner City Press has timely protested WSFS to the Federal Reserve - and has now found out that WSFS is even trying to withhold its CRA information from the public, photo here. So Inner City Press has submitted this Freedom of Information Act request: " This is a FOIA request for the all withheld portions of the applications by WSFS to acquire Beneficial, including but not limited to presumptively mis-labeled “Confidential” exhibits about WSFS's CRA program (“Confidential” Exhibit 9), (Beneficial's subsidiaries (“Confidential” Exhibit 3), Board of Directors resolutions, due diligence (“Confidential” Exhibit 10), operating economy / cost savings (there are branch closings projected), names of prospective managers (ages, requested on application, apparently not provided), and for all records reflecting FRS communications with WSFS or Beneficial or their affiliates for the past twelve (12) months." A fifth comment submitted including that "the OCC is already undermining CRA. Our comments to the OCC on WSFS - Beneficial have yet to be acted on. That comment was submitted on November 6. Now on November 19, two weeks later, the OCC has tellingly said it will not consider it - despite a Federal Reserve Board comment period on the same transaction remaining open until at least November 27. The OCC's attempt to ignore substantive criticism of some banks' performance, while Comptroller Otting previously solicited false comments support his OneWest Bank, are a symbol all what is wrong with this process, and today's OCC.
