Fed Qs over protested Webster merger as sterling national bank sues SDNY for China Wires
SOUTH BRONX / SDNY, November 5 – The proposed merger of Webster Financial Corp. and Sterling Bancorp has been challenged, over disparate lending and regulatory breakouts, first at the Federal Reserve and OCC.
On June 25, the Fed asked the banks a series of questions, below and a full letter on Patreon here
Now, Inner City Press can report that on November 5, a copy of the Federal Reserve’s supplemental letter was sent to Webster and his (ex-Fed) outside lawyer: “November 5, 2021 Dear Ms. Patricia A. Robinson, This letter refers to the application filed by Webster Financial Corporation, Waterbury, Connecticut (“Webster”), for the prior approval of the Board of Governors of the Federal Reserve System (the “Board”), to acquire Sterling Bancorp (” Sterling ”), and thereby indirectly acquire Sterling National Bank. Based on the staff review of the current file, the following additional information is requested. Please provide your responses to the items listed below. Supporting documents must be provided where applicable.
1. You have indicated that Sterling Bank and Webster Bank currently have no plans to consolidate, relocate or close any branches prior to or unrelated to the proposed transaction. Confirm if this is still the case and confirm that any planned branch closures, consolidations or relocations that may arise as a result of the merger will be carried out in a manner consistent with Webster Bank’s branch closure policies and procedures and the branch closure requirements contained in Section 42 of the Federal Deposit Insurance Act (12 USC § 1831r-1). If not, discuss why not. Your response should include a copy of all applicable policies and procedures, as long as they are not already provided.
2. Provide an updated version of confidential exhibit C of the “Balance sheets, income statements, regulatory capital and asset quality” application. Statements and information provided must be as of September 30, 2021. Please provide your written response and supporting documentation via E-Apps to Michael Sumrell of the Federal Reserve Bank of Boston. Additionally, in accordance with Federal Reserve ex parte procedures, provide a copy of the public portion of your response (with all attachments) directly to the commentator.
cc: Inner City Press / Fair Finance Watch “
Also in U.S. District Court for the Southern District of New York on July 12, it emerged that Sterling had been prosecuted for authorizing the unauthorized wiring to China and Singapore of $ 12 million in funds from the US-based contractor. New Jersey, Niram. This is an unfavorable managerial resource factor that the Federal Reserve must address, including under the new antitrust executive order. Look at this site.
There are also at least two lawsuits that have been filed against the ill-conceived merger plan. Will the banks fix these problems while doubling down on their contempt for the Community Reinvestment Act? The prosecutions:
Elaine Wang sued Sterling and its directors, including Fernando Ferrer, for violating the Security Exchange Act of 1934. In a short time, Alex Ciccotelli also sued them, as well as Webster. Inner City Press is following the case.
Fair Finance Watch found that in 2019 in its home state of Connecticut, Webster National Bank granted 3,147 mortgages to whites, with 1,364 denials to whites – while granting only 71 loans to African Americans with 99 refusal to African Americans. It is significantly worse than other state banks; the merger must be refused.
FOIA’s comments and request (to the Fed) have been taken into account. But still no formal response to Webster’s accusations. Maybe to play with the system, they sent it in the mail? Look at this site.
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