Citigroup's Subprime Settlement on the Cheap A New Predatory Stage, Redlining Like Valley National Bank's Allowed

By Matthew R. Lee

NEW YORK, July 14 -- As Citigroup settles charges for its subprime lending for $7 billion dollars, the amount and the how the settlement is divided is but a new predatory stage.

  Less than 40% of the settlement even arguably goes to consumers who were wronged. The US government itself takes more than half of the money, an even higher percentage than in JPMorgan Chase's $13 billion settlement (in which the $4 million for consumer relief was double the $2 billion the Justice Department took).

  As Inner City Press and Fair Finance Watch repeatedly showed, including to the Federal Reserve, the moment Citicorp and Travelers merged, Citi became a predator. CitiFinancial based compensation on how badly consumers could be gouged, including selling credit insurance of no possible value to the purchaser.

  The Federal Reserve, based on this, imposed a $75 million fine which did nothing to stop Citi's behavior. After the meltdown and bailout, now this is a scam settlement meant to give the impression of a government crack-down. It is not.

   Even while the mega-banks take a pause from acquisitions, needed watchdog work continues on mid-sized banks like Valley National, whose attempt to buy into affluent Florida markets through 1st United Bank is subject to a Community Reinvestment Act challenge and pending Freedom of Information Act appeal by Inner City Press.

  Why were and are communities of color susceptible to predatory lending? Because they are redlined by FDIC-insured banks like Valley National Bank. 

  In the New York City Metropolitan Statistical Area in 2012, the most recent year for which Home Mortgage Disclosure Act data is publicly available, for refinance loans, Valley National made 2152 such loans to whites and only 38 to African Americans -- entirely of keeping with the demographics and demographics of home ownership in the New York City MSA. Valley National denied 67% of such applications from African Americans, versus only 34.5% of such application from white.

   Valley National Bank's branch pattern in New York City is indicative of redlining: in Manhattan, nothing 88th Street, no branches in Harlem, Washington Heights or The Bronx, predominantly African American and Latinos, low and moderate income areas. In Queens, it's Middle Village and Kew Gardens. In Brooklyn, Valley National's branches are along Ocean Parkway and in Bay Ridge. What about East New York, Brownsville, Bushwick and Bedford Stuyvesant?

  Along with groups in NCRC, Fair Finance Watch has shown a similar pattern in New Jersey, where in the Newark MSA for refinance loans in 2012, Valley National Bank made 2338 such loans to whites and only 44 to African Americans.

  But these patterns are not acted on -- rather, longstanding predatory lending like Citigroup's is laundered into a smoke and mirror settlement that is, in context, impunity. Watch this site.

   

As Norway on Syria Defends UN, Might Gentrify in Brooklyn, Haiti on Agenda?

By Matthew Russell Lee

UNITED NATIONS, September 12 -- Twelve days before the UN's annual General Debate kicks off, Norway invited the press to schmooze high above Second Avenue amid talk of Syria and chemical weapons and, strangely, a Norwegian sponsored artists studio in Brooklyn. Inner City Press tweeted photo here.

  The hostess, Consul General Elin Bergithe Rognlie, is new to New York having come in from Kenya. But Norway's Ambassador Geir O. Pedersen, also present, has also work for the UN. 

  Even so, tellingly, he acknowledge he needs to learn more about how the UN responded to legal claim for bringing cholera to Haiti.

  How can the UN's forthcoming report on chemical weapons in Syria be taken at face value, when the UN was willing to dissemble about its responsibility in Haiti, and not even apologize?

  It was said, repeatedly on Thursday, that the head of the UN team, the Swedish Ake Sellstrom, is a credible scientist. But if his report is misused, as it seems French foreign minister Laurent Fabius tried on Thursday, will Sellstrom speak up?

  Still, hearteningly, one left the Norway soire with this message, and not only the reference to uber Norwegians Jan Egeland and Robert Mood: the country believes force can only be used for self-defense, or with the Security Council.

  On a much smaller or more local level, Norway has through an artist and a curator to Brooklyn, to Bushwick to be exact. Inner City Press asked - isn't this gentrification? This gave raise in some to laughter, in others to self-reflection.

  The context is a change of government, in which the "Progressives" (described as right wingers) have won seats. Most of the Norwegian diplomats said there had been no change yet, but journalists, more independent, tell a different story.

  How will Norway's new leaders view taxpayers' money spent gentrifying another country, the People's Republic of Brooklyn?

  Similarly, when the paper of record the New York Times interviewed Swedish Deputy Secretary General Jan Eliasson about the General Assembly, the talk over sweatbreads was mostly parking (as well as Syria), with the ostensibly NY-based Times not even ASKING Eliasson about the UN's shameful Haiti dodge. This is big media, cut off from its roots.

  In the midst of the reception, Inner City Press used a side room with the consent of Consul Rognlie to appear on the yes, progressive, radio show Make it Plain on SiriusXM Satellite Radio with Ron Daniels filling in for Mark Thompson. The talk was anti-war, but not pro Obama. Progressive means different things in different countries.

  At the General Debate in twelve days, Norway's old / outgoing ministers will be here. Their mandate ends in October; they might stay on as caretakers but only that. A somewhat similar change has taken place in Australian, which hold the Security Council presidency this month. This is the UN. Watch this site.