| As Huntington Rushes to Buy
Cadence Without Any Fed Reserve
Oversight Brags of Layoffs
by
Matthew Russell Lee, Patreon Book
Substack
SDNY/SOUTH
BRONX, Dec 8 – As US
bank regulators loosen rules -
including the FDIC moving to
eliminate public comment
altogether on branch expansion
applications - now more big
banks are moving to get
bigger.
And one is
moving without even applying
to the Federal Reserve Board.
On
October 27, Huntington
announced it would apply to
buy Cadence Bank.
But as of
December 7, it has yet to
apply to the Federal Reserve.
Instead, since Cadence
cynically dissolved its
holding company after its
lending discrimination
settlement, it has applied
only to the Office of the
Comptroller of the Currency.
The OCC, unlike much smaller
crypto applications, has not
put Huntington's application
on the OCC website.
On December
8, "'There'll be more
layoffs,' CEO Stephen Steinour
[said] in an interview. "We
want to be transparent. So
right away we communicate,
there are going to be
impacts'... The Cadence
purchase will create a bank
with assets of $276 billion,
pushing Huntington into a
regulatory classification
known as Category 3 that
imposes more stringent rules,
including for capital and
liquidity." But no Fed
consideration of entering
Category 3?
Fair
Finance Watch has been
concerned about both banks.
For now, consider Cadence in
2024:
In Mississippi in
2024 Cadence made 2447
mortgage loans to whites and
only 556 denials to whites. To
African Americans, Cadence
made only 558 loans while
denying fully 355
applications. Thus, for white
Cadence made 4.40 loans to
whites for every denial, while
for African Americans only
1.57 loans for every denial.
This is disparate.
In
Alabama in
2024 Cadence
made 1122
mortgage loans
to whites and
only 262
denials to
whites. To
African
Americans,
Cadence made
only 187 loans
while denying
fully 100
applications.
Thus, for
white Cadence
made 4.29
loans to
whites for
every denial,
while for
African
Americans only
1.97 loans for
every denial.
This is
disparate.
There is more,
including as
to Huntington.
But the Fed
will not be
listening, nor apparently
some say, the
bank. Watch
this site.
Inner City
Press, which has opposed the
FDIC's moves to close itself
to public scrutiny - American
Banker op-ed here
- will be submitting FOIA
requests on all this. The FDIC
said it will eliminate public
notices because it does not
receive enough public
comments. That is now
changing. Watch this site.
***
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