by Matthew Russell Lee, Patreon Book Substack
SOUTH BRONX / SDNY, March 6– With no public comment period, New York Community Bank was handed the 40 branches of Signature Bank, to re-open them as braches of Flagstar, which NYCB bought in a proceeding delayed by fair lending problems.
Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed.
So, a fair lending rogue benefited from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors.Jump cut to early February 2024 and NYCB's stock price fell by 60%, Valley National down too.
On February 29, NYCB's long time CEO Thomas Cangemi was out and NYCB said it had "identified material weaknesses." Why didn't the regulators identify them, as Fair Finance Watch protested Flagstar, and on Signature?
Now the kicker: Steve Mnuchin invests, and taps as CEO of NYCB Joseph Otting, who led attacks on the Community Reinvestment Act, and scammed the CRA comment process when last he headed a bank. We'll have more on this.
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