| After UMB
Bank Application Buy Heartland
Challenged Their Proxy
Discloses Risks
by
Matthew R. Lee,
Patreon Substack
SOUTH
BRONX / SDNY, July 8
–
When First Republic Bank
failed / was given to JP
Morgan Chase, a small list of
other regional banks came into
focus as in danger. Among them
was UMB - a bank whose lending
Inner City Press and Fair
Finance Watch had been
scrutinizing, and now
challenge.
UMB is
asking its regulators to allow
it to expand, buying
Denver-based Heartland. The
application, Fair Finance
Watch on June 21 formally told
the Fed, should not be
approved. In 2022,
the most recent year for which
Federal data is available, UMB
Bank, N.A. made over 2000
mortgage loans to whites, and
only 117 loans to African
Americans.
For every
denial to an African American,
it made only 2.02 loans. But
for whites, for every denial
it made 3.45 loans. It should
be referred to
DOJ.
There is
litigation, there is also
this, reported at the time of
Silicon Valley Bank's failure:
"UMB Bank, a regional bank
headquartered in Kansas City,
Missouri, and with branches
across the Midwest, Southwest,
and Western United States, has
total assets of $38 billion
and deposits totaling $32
billion, according to the
FDIC. However, only 16% of
deposits fall under the
$250,000 FDIC insurance
threshold, leaving 74.11%
(equivalent to $28.36 billion)
vulnerable to potential
losses."
Why would
regulators even consider
approving its expansion? On
June 21, Fair Finance Watch
filed a formal Community
Reinvestment Act challenge to
UMB's application to the
Federal Reserve, adding state
by state data, here
Then merger proxy
disclosed "approvals could be
delayed or not obtained at
all, including due to any or
all of the following: an
adverse development in any
party’s regulatory standing or
any other factors considered
by regulators in granting such
approvals, governmental,
political or community group
inquiries, investigations or
opposition; changes in
legislation or the political
environment, including as a
result of changes of the U.S.
executive administration, or
Congressional leadership and
regulatory agency leadership."
Ya don't say...
Watch this site.
***
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