by Matthew Russell Lee, Patreon Book Substack
FEDERAL COURTHOUSE, Oct 7 – As PNC Bank has grown it has become more disparate in its lending. After its CEO Bill Demchak announced a $4.1 billion proposal to buy FirstBank and bragged, "We just effectively bought Colorado," Fair Finance Watch prepared an early filing to the regulators demanding scrutiny and hearings.
This takes place as the regulators, led by the FDIC, are seeking to eliminate public notice and limit public comment. See, e.g., American Banker, Sept 10, 2025, "The FDIC is taking the 'community' out of CRA enforcement," by Matthew R. Lee, here
On September 13 Fair Finance Watch filed challenges with the Federal Reserve and OCC, and Inner City Press filed Freedom of Information Act requests, see below.
On September 17 the Federal Reserve posted notice that PNC had applied. On September 18 the FRB of Cleveland provided some of the application - but all material litigation against PNC withheld. Inner City Press immediately challenged it under FOIA.
The OCC has not provided notice - but did stop Inner City Press' FOIA request seeking to limit the request to communications with PNC's counsel. Inner City Press immediately responded that the request is not so limited.
On September 30, after the FRB granted expedited processing under FOIA, the OCC denied an identical request for expedited processing, trying to ensure no records during the public comment period.
Compare OCC denial of expedited processing here to FRB grant of identical request here
Inner City Press has appealed.
New issues have arisen that FFW will raise in its second comment.
On October 7 the Fed sent Inner City Press copies of five letters on the application - all in support, all dated October 1, essentially identical. One wonders who's behind them. We'll have more on this.
From the filings:
Fair Finance Watch has long been concerned about PNC. Fair Finance Watch has reviewed the just-released 2024 Home Mortgage Disclosure Act data of PNC, not reviewed in any Community Reinvestment Act performance evaluation.
In state after state, PNC for African Americans has (many) more denials than originations, while the opposite is true for white borrows. The pattern is striking:
In New York, where PNC recently and unceremoniously closed a deposit facility, PNC in 2024 denied 52 applications from African Americans while making fewer, only 28 loans - while it made fully 289 loans to whites and denied only 252 applications. This follows the same PNC pattern and is disparate.
In Colorado, which PNC CEO's says the bank has now "effectively bought," PNC in 2024 denied 12 applications from African Americans while making only 17 loans - while it made fully 422 loans to whites and denied only 244 applications. This is disparate.
In Arizona, where PNC lists 60 branches and now proposes to further expand, PNC in 2024 denied 15 applications from African Americans while making only 22 loans - while it made fully 796 loans to whites and denied only 466 applications. This is disparate. There are more states.
There are many more - including regarding the debanking the OCC said will now be considered in connection with merger and other applications - to be addressed at the requested hearings.
Watch this site.
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