On
Brazil Land Grabs & CRA
Flaws, Fed Parrots TIAA,
Which Alludes To Confidential
Info
By Matthew
Russell Lee
UNITED NATIONS, June
8 – The
lack of
seriousness in
US bank
regulation,
the mechanical
repeating of
whatever a
challanged
bank says, is
exemplified by
the Federal
Reserve Board's
June 7
approval of TIAA's
application to acquire Everbank of Florida,
which Inner City Press / Fair Finance Watch on
October 29, 2016 challenged. After Inner City
Press' challenge, the Fed asked some
questions, and TIAA defended its investments
in land grabs in Brazil. On this, the Fed's
approval order repeats word for word,
apparently without inquiry, the bank's law
firm's defense. The bank wrote: "We are
grateful for this opportunity to respond to
the comment letter filed by Inner City Press /
Fair Finance Watch on 29 October 2016
regarding the application submitted by TCT
Holdings, Inc., Teachers Insurance and Annuity
Association of America (“TIAA”)... that TIAA
has engaged in improper business practices in
Brazil should be considered by the Federal
Reserve Board as a factor when considering the
managerial resources of the Applicants. The
news article cited in the Comment Letter does
not provide a complete or accurate portrayal
of how TIAA conducts business in Brazil and
other markets... TIAA is a signatory to the
U.N. Principles for Responsible Investment."
The Fed's approval order also cites these UN
"principles." On June 1, just before the
approval, TIAA's law firm David Polk wrote in:
You have asked us to supplement our responses
to certain allegations made in protests by
Inner City Press/Fair Finance Watch regarding
the lending practices of TIAA-CREF Trust
Company, FSB (“TIAA FSB”) and EverBank.
As you are aware, we have provided substantial
information in response to the allegations. We
have received the following information from
TIAA FSB: While the allegation of
discriminatory lending focuses on the St.
Louis MSA by TIAA FSB, we wish to make three
important points in response. First, the
allegation, using HMDA data for the St. Louis
MSA, focuses on a small number of loans made
in the MSA. We do not think the small
sample, when analyzed, demonstrates a pattern
or practice of discrimination. Second, TIAA,
FSB operates no brick and mortar branches in
the St. Louis MSA. Its participation in
the MSA primarily results from the use of
internet offerings as well as other
broader-based channels. To focus on the
results in the St. Louis MSA where there are
no physical locations does not fairly reflect
the nature of TIAA, FSB’s business strategy or
its overall record of non-discriminatory
lending. Third, as reflected above, the TIAA
FSB mortgage offerings are nationwide in scope
using the internet and other broad-based
distribution channels. Focusing on a
single market, regardless of its location,
does not fairly reflect or represent TIAA
FSB’s business strategy or its overall record.
On May 25, 2017, TIAA FSB received the results
from its Fair Lending Examination by the
OCC. While the results of that
examination constitute confidential
supervisory information, it would be useful
for the Federal Reserve to obtain a copy of
the results of the examination. If you
wish, TIAA FSB would be pleased to seek
approval to share the results of the
examination with you." How cozy. We'll have
more on this.
After
ICP Challenges TIAA-Everbank, Here's TIAA's
Defense to Federal Reserve of Lending
Disparities, Land G... by Matthew
Russell Lee on Scribd
***
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