by Matthew Russell Lee, Patreon Book Substack
SOUTH BRONX / SDNY COURT, Sept 23 – The Community Reinvestment Act directs bank regulators to consider banks' records of lending in poor neighborhoods when they apply to expand with mergers or, right in the statute, branches ("deposit facilities").
But now the Federal Deposit Insurance Corporation is quietly moving to eliminate public notice of, and public comment on, banks' branch applications. While Inner City Press has Freedom of Information Act requests pending, Fair Finance Watch on August 30 commented to the FDIC, on the proposed change - and on sample current branch applications pending.
On August 21, in part to forestall the Federal Reserve using the same twisted logic of "few comments so let's eliminate public notice," Fair Finance Watch filed a branch comment with the FDIC against two branch applications by Somerset Trust Company, noting that Somerset Trust Company in Pennsylvania in 2024 made 754 mortgage loans to whites and only ONE to an African American.
Now after a short response from the bank's general counsel Christopher R. Robbins, Esq., Fair Finance Watch has added:
In Virginia in 2024, Somerset Trust Company made HDMA loans to whites - and NONE to African Americans. The same was true in 2024 in Maryland, where even the CRA PE puts SMT as "low satisfactory" in all three tests. In Virginia, Somerset Trust Company got Needs to Improve under two of the three tests, and Needs to Improve Overall. Until this is addressed, these branch application should and must be denied.
On September 23 from the FDIC, this:
Mr. Lee: I am following up on my previous email correspondence concerning your comments related to the Somerset Trust Company applications. We believe the information you have provided our office is sufficient for us to perform a thorough review and in-depth analysis of the concerns that you have raised. Therefore, the FDIC has decided to not grant your request for a hearing regarding the branch applications submitted by Somerset Trust Company, filed on August 20, 2025. Sincerely, FDIC, Acting Deputy Regional Director
See also, Inner City Press' op-ed in the American Banker here
There will be more.
This proposal to eliminate public notice and comment on branch applications must be withdrawn - or sued.
Watch this site.
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