| After CRA Protest
of Veritex-StoneCastle NYC By
Fair Finance Watch Application
Withdrawn
By Matthew
Russell Lee, Patreon Maxwell
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SOUTH BRONX NYC,
Sept 19 – Citing the Community
Reinvestment Act, Fair Finance
Watch with Inner City Press on
the FOIA filed a challenge on
April 11, 2022, to an
application which was
withdrawn in September 2022,
see below.
The CRA
challenge: "Re: Comment on
Applications by Veritex
Community Bank to acquire
StoneCastle Insured Sweep,
LLC Dear Regional
Director Elmquist, Ass't
Regional Director Finnegan and
others at the FDIC:
This is a
request for all information in
the possession of the FDIC
about, and a timely comment
on, the Applications of
Veritex Community Bank to
acquire StoneCastle Insured
Sweep, LLC of NYC, which
appears on the FDIC website
under "Applications In Process
Subject to the CRA Report"
with an initial comment period
running through April 22. This
comment is
timely.
The applicant Veritex in 2020
in Texas based on its
disparate marketing made 312
mortgage loans to whites --
while making only EIGHT loans
to African Americans.
This is far out
of keeping with the
demographics, and others
lenders, in Texas, in
particularly Veritex' CRA
assessment areas - this is
outrageous.
See
also, King v. Veritex
Community Bank
(4:21-cv-00989) esp
Exhibit A - Plaintiffs Charge
of Discrimination
Despite
eschewing serving people of
color in its community for,
instead, ad campaigns and this
proposed transaction describes
thusly: "VBTX will be able to
provide broker/dealers with a
range of added services,
including private
banking."
This is precisely the type of
selective expansion, into
private banking while
underserving lower income
community residents of color,
that the CRA was and is meant
to impact.
FFW and
Inner City Press have been
deeply concerned about the
rush by the FDIC's to
rubber-stamp mergers by
redliners, money launderers
and predatory lenders. This
has been killing the Community
Reinvestment Act and we timely
request public hearings.
The comment period should be
extended; evidentiary hearings
should be held; and on the
current record, the
application should not be
approved."
And, on September
19, this: "Dear Mr. Lee:
We are writing to inform you
that Veritex Community Bank,
Dallas, Texas, withdrew its
application to acquire
StoneCastle Insured Sweep,
LLC, New York City, New York.
Please note we have shared
your concerns with the
Federal Reserve Bank of
Dallas, Veritex Community
Bank’s primary federal
regulator, who will
perform any necessary
follow-up." Letter on Inner
City Press' DocumentCloud here
Yes, we will
follow up and file more. Watch
this site.
***
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