Community groups challenge PNC-Riggs merger

[seemslikeadream]

Community groups challenge PNC-Riggs merger

By David Weidner
Last Updated: 8/16/2004 2:53:00 PM

........

The protest, made in filings to the Federal Reserve and the Office of the Comptroller of the Currency, asks that regulators block the proposed $779 million acquisition of Riggs (RIGS) announced in mid-July.


ICP also submitted lending data for PNC in key markets. The bank, according to the 21-page filing, denied the mortgage applications of black borrowers four times more often than those of whites in its home base of Pittsburgh.

The group also said the Riggs sale may "undermine the ongoing credible investigation that the administration has promised." Riggs was fined $25 million earlier this year and ordered to revise its internal controls after officials uncovered a money-laundering scheme for foreign diplomats.

"Riggs is essentially a crime scene," said Matthew Lee, ICP's general counsel, in a statement. "It shouldn't be sold so quickly, least of all to an unqualified bank like PNC, which we have now proved funds high-cost payday lenders."

http://www.investors.com/breakingnews.asp?journalid=22686499&brk=1

[Snazzy]

1. ICP's letter

:hi:

Office of the Comptroller of the Currency

Attn: Comptroller John D. Hawke, Jr., et al.

250 E Street, SW, Washington, DC 20219

Re: Timely Comment in Opposition to, and Requesting an Evidentiary Hearing on, the Applications of PNC Financial Services Group, Inc. & PNC Bancorp, Inc., to acquire Riggs National Corporation & Riggs Bank NA National Association

Dear Mr. Chairman, Governors, Secretary Johnson, OCC, FRB:

On behalf of Inner City Press/Community on the Move and its members and affiliates, and the Fair Finance Watch (collectively, "ICP"), this is a timely comment opposing, and requesting an extension of the comment period and an evidentiary hearing on, the Applications of PNC Financial Services Group, Inc., PNC Bancorp, Inc. and their affiliates (on- and off-balance sheet, collectively "PNC") to acquire Riggs National Corporation, Riggs Bank National Association and their various on- and offshore affiliates (collectively, "Riggs").

In this application, a bank that is essentially an international crime scene is proposed to be acquired by a regional bank with little to no international banking experience, with serious recent managerial problems, with worsening lending disparities and which, ICP emphasizes for purpose of its hearing request, funds and enables major nationwide payday lenders such as Check n’ Go a/k/a CNG Financial Corporation, including Check n’ Go of Washington D.C., Inc. (see annexed UCC filing from the District of Columbia Department of Finance and Revenue).

Beyond PNC’s direct support for predatory lending, ICP has reviewed PNC's lending record based on just-released 2003 data and below sets forth troubling disparities therein. However, it should first be emphasized how inappropriate a buyer for troubled Riggs PNC is, as a bank holding company that so recently engaged in accounting fraud, and been subject to a deferred prosecution agreement with the U.S. Department of Justice. The Associated Press on July 17, 2004, "Riggs, a troubled bank for diplomats, sold," by Marcy Gordon, reported that PNC "has also had regulatory problems of its own. In June 2003, a PNC subsidiary agreed to pay $90 million in restitution and $25 million in fines to settle allegations of securities violations. The subsidiary was accused of conspiracy to violate federal securities laws by transferring $762 million in troubled loans and investments to off-balance-sheet entities."

The Financial Times of July 17, 2004, reported that "the investigations are far from over. A grand jury is looking into the bank's dealings with Equatorial Guinea, which could lead to criminal charges, and the Senate committee on governmental affairs is conducting a separate investigation into more than 150 accounts associated with Saudi Arabia. Even that may not be the end of it. According to Senate investigators, some 85 per cent of Riggs' 15,000 embassy and international private banking accounts - the core of its overseas business - had significant problems with documentation."

ICP’s recent research finds for example that Riggs served -- or serves -- as correspondent for, among others, Bank of Sierra Leone, Sierra Leone Commercial Bank Ltd, Energobank of Bishkek, Kyrgyzstan, Banco de Cabo Verde, Banco Internacional SA, and others. See attached, which includes a listing of account numbers.

....

http://www.innercitypress.org/finwatch.html

(lots more there--must read for anybody following the new BCCI)


And yes, interesting that they turned down a better offer to keep it in the crime family (Tres. Sec. Snow's connections especially).

[seemslikeadream]

2. CRIME SCENE

That sounds nice!


I don't know if this is anything but......

Tullow Oil Plc Acquires Working Interest in Gryphon Marin Permit, Gabon

LONDON--(BUSINESS WIRE)--Aug. 16, 2004--Tullow Oil Plc ("Tullow"), the independent oil and gas exploration, development and production company, is pleased to announce that its wholly owned subsidiary, Energy Africa Gabon SA (EAGSA) has entered into a participation agreement with Forest Oil Gryphon Marin B.V. ("Forest") whereby EAGSA will earn a 15% working interest in the Gryphon Marin permit in the southern Gabon offshore. This working interest is additional to EAGSA's existing option on a 10% participation in the event of a commercial development. Partners in the licence are Forest (40%, Operator), PetroSA (25%) and Paladin (20%).

In Africa, Tullow has production in Gabon, Cote d'Ivoire, Congo (Brazzaville) and Equatorial Guinea. Tullow also has exploration programmes in Morocco, Mauritania, Senegal, Cameroon, Uganda and Egypt. Tullow has interests in 15 licences in Gabon. Net production attributable to the Group's Gabon interests currently averages over 16,000 bopd.

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040816005450&newsLang=en

Highest bidder lost out in Riggs deal?

Riggs National Corp., the troubled Washington banking company that reportedly attracted interest from M&T Bank and a handful of other prospective buyers, apparently did not sell to the highest bidder.

An industry newspaper, American Banker, cited Securities and Exchange Commission documents that said Riggs in July selected Pittsburgh-based PNC Financial Services Group as the winner, even though another bid was higher.


The newspaper said analysts speculated that Buffalo-based M&T was among the finalists. One analyst named Sovereign Bancorp of Philadelphia as the probable unsuccessful-though-highest bidder

more
http://buffalo.bizjournals.com/buffalo/stories/2004/08/16/daily10.html
:hi:

[seemslikeadream]

3. how would selling off this crime scene to PNC............

Question: how would selling off this crime scene to PNC, a bank already recently charged with accounting fraud and mis-reporting, help get to the bottom of the troubling issues raised? It wouldn’t help. But see, "Bush Promises Full Inquiry Into Bank Ties To Dictator," N.Y. Times, July 20, 2004, Pg. C9, quoting: ''It's important for the facts to be en la mesa, as we say -- on the table -- and so that we know what course of action may or may not be needed... The Riggs Bank is being fully investigated, and they'll be investigated in a very open way.''

ICP notes that on August 11, 2004, it submitted a request, including under the Freedom of Information Act ("FOIA"), to the FRB for all records reflecting "communications between personnel and representatives of the above-named companies or their affiliates since January 1, 2004, including on the lack of anti-money laundering controls and other managerial issues at Riggs - and at PNC."

The American Banker newspaper of July 19, 2004, ran this quote: "'This is a clear strategic win for us,’ said James E. Rohr, PNC's chairman and chief executive officer. ‘We've had conversations with the regulators. They were very pleased with the announcement, and that's probably an understatement.’" ICP’s FOIA requests must be responded to, forthwith, and the comment period should be extended, and hearings held -- including on PNC’s funding of predatory payday lenders (see infra), and on PNC’s worsening lending disparities.

Here are additional convenience and needs, CRA, fair lending and other grounds: based on PNC's lending record, including as reflected by 2003 Home Mortgage Disclosure Act ("HMDA") data only recently released and analyzed below, ICP opposes, and requests a hearing on, PNC's application.
more
http://www.innercitypress.org/finwatch.html