| Fraudster
Sterling Bancorp Bid To Sell Bank with
Weak CRA to Everbank Questioned on NY
by
Matthew R. Lee,
Patreon Substack
FEDERAL
COURT, Dec 20
–
Sterling Bancorp, which
settled with DOJ on securities
fraud, it trying to sell its
Sterling Bank & Trust
including in New York, where
it has a need to improve CRA
Investment Test rating to
Everbank. Fair Finance Watch
with Inner City Press on the
FOIA has filed a timely first
comment on, the Applications
This
is a request for a full copy
of, and a timely first comment
on, the Applications of
EverBank to acquire Sterling
Bank & Trust (with a rare
Needs to Improve CRA rating on
Investment Test in New York),
and not scandal plagued
Sterling
Bancorp.
Sterling Bancorp was recently
prosecuted by DOJ; EverBank
purports that by buying the
bank portion it is not touched
by the scandal. But what is
the showing that the criminal
conduct at the Bancorp was
entirely insulated from the
bank and those who work there,
and its
practices?
As a CRA matter, militating
for a hearing, Sterling Bank
has a rare Needs to Improve
rating on the investment test
in NY.
On December 4
Everbank's outside counsel
wrote in that FFW "selectively
criticizes a single component
of Sterling Bank’s most recent
CRA performance evaluation
from states in which Sterling
Bank either no longer
operates, will no longer
operate upon completion of the
Proposed Transaction, or
maintains only a de minimis
banking presence" -- that
would be New York, no
commitment to improve on the
Needs to Improve. As to
Michigan the outside counsel
says, or brags, "EverBank
intends to close Sterling
Bank’s only Michigan branch
following completion of the
Proposed Transaction."
On December 19,
the Federal Reserve asked
Everbank questions including
"Explain whether EverBank’s
office in New York is a
“branch” within the meaning of
12 U.S.C. 1841(o)(3) and
indicate whether loan proceeds
are disbursed at that New York
office.
3. The FR Y-3
notes: “following the Proposed
Transaction, the combined
organization intends to
leverage the CRA and consumer
protection compliance
strengths of both banks to
create a strong and
comprehensive combined
compliance program.” The FR
Y-3 subsequently states that
“EverBank does not anticipate
any structural changes to its
CRA program, CRA leadership,
organizational structure, or
oversight as a result of the
Proposed Transaction.” Clarify
whether the combined
organization intends to
continue to utilize EverBank’s
existing CRA and consumer
compliance programs following
consummation. If the combined
organization intends to
incorporate specific aspects
of Sterling Bank’s CRA and
consumer those programs the
combined organization intends
to leverage from Sterling
Bank’s existing operations.
4. The FR Y-3
notes that Sterling Bank would
use commercially reasonable
efforts to close its
Southfield, Michigan branch...
Indicate whether a branch
closure notice has been
submitted under section 42 of
the FDI Act."
The proposal
should be denied.
***
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