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By Matthew Russell Lee, Patreon Story Order
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FEDERAL COURT / S Bronx, Dec 5 – Whether or not the U.S. Community Reinvestment Act will be again enforced until the new Administration and its regulators is an open question. And not only the proposed acquisition of Investors Bank by Citizens Bank NA but also Amalgamated - Amalgamated will be litmus tests.

On December 4, after filing with the FDIC, Inner City Press filed with the Federal Reserve: 

"Dear Chair Powell, Secretary Misback and others in the FRS:  This is a timely first comment opposing and requesting an extension of the FRBs's public comment period on the Applications by Amalgamated Financial Corp., New York, New York; to merge with Amalgamated Investments Company, and thereby indirectly acquire Amalgamated Bank of Chicago, both of Chicago, Illinois    

As the FRBNY should know, Amalgamated Bank New York outrageously closed branches including at 94 Burnside Avenue in the South Bronx when its customers needed it most.    This caused Fair Finance Watch to look more closely. And Amalgamated is not what it pretends to be. In 2020 in New York Amalgamated made only 41 home loans to African Americans, while denying more (67) - compared to its 962 loans to whites, with FEWER denials to whites (577).     That the Burnside Avenue closing has a negative impact is recognized even by state regulators:

"October 7, 2020 (TR-CRB) AMALGAMATED BANK 275 Seventh Avenue (Fourteenth Floor, New York, NY 10001  In accordance with Section 28-c of the Banking Law, the Superintendent of Financial Services has found that the closing of branch office at 94 East Burnside Avenue, Borough of Bronx, City of New York 10453, will result in a significant reduction of financial services in the community affected."

The comment period should be extended; evidentiary hearings should be held; and on the current record, the application should not be approved. 

  It is also unclear to ICP why this application, by a New York institution to buy one in Chicago, is listed in the Federal Register to the FRB of Philadelphia:

 "A. Federal Reserve Bank of Philadelphia (William Spaniel, Senior Vice President) 100 North 6th Street, Philadelphia, Pennsylvania 19105-1521. Comments can also be sent electronically to Comments.applications [at] phil.frb.org : 1. Amalgamated Financial Corp., New York, New York; to merge with Amalgamated Investments Company, and thereby indirectly acquire Amalgamated Bank of Chicago, both of Chicago, Illinois. " 

It is imperative that a review of South Bronx branch closure(s) by the local FR Bank, and not a random one in another district."

Meanwhile, Investors Bank is one of the most disparate banks in New York State, where in 2020 it made only three mortgage loans to African Americans, while denying fully seven applications from African Americans. By contrast, it made 164 loans to whites while denying only 76 applications from whites.

  Inner City Press raised the 2019 disparities to the FDIC - and on July 30 was contacted by the FDIC that it imposed rare conditions on Investors. Letter here. This has been raised on Citizens' application, while Investors blithely asks for rubber stamp of a new branch, not in the communities it has redlined, but at 111 Broadway. And the NYSDFS? And the Administration and Chair Powell? Where's the beef?

Watch this site.

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