After CRA Protest Against Veritex-StoneCastle NYC by Fair Finance Watch, App Pulled

After CRA Protest Against Veritex-StoneCastle NYC by Fair Finance Watch, App Pulled

By Matthew Russell Lee, Patreon Maxwell’s Book
CIA Trial Book – NY Mag

SOUTH BRONX NYC, September 19 – Citing the Community Reinvestment Act, Fair Finance Watch with Inner City Press on the FOIA challenged on April 11, 2022 a request that was withdrawn in September 2022, see below.

The ARC Challenge: “Re: Comments on Veritex Community Bank’s Applications to Acquire StoneCastle Insured Sweep, LLC Dear Regional Manager Elmquist, Regional Manager Ass’t Finnegan and others at the FDIC:

This is a request for all information in the possession of the FDIC regarding, and a timely comment on, Veritex Community Bank’s applications to acquire StoneCastle Insured Sweep, LLC of NYC, which appears on the website of the FDIC under “Applications In Process Subject to CRA Report” with an initial comment period of April 22. This comment is timely. Plaintiff Veritex in 2020 Texas, based on its disparate marketing, made 312 mortgages to white people – while making only EIGHT loans to African Americans.

This is nowhere near the demographics and other lenders in Texas, especially in Veritex’s ARC rating areas – it’s outrageous.

See also, King v. Veritex Community Bank (4:21-cv-00989) in particular Exhibit A – Plaintiffs’ Allegation of Discrimination

Although it avoids serving people of color in its community for, instead, advertising campaigns and this proposed transaction describes thus: “VBTX will be able to provide brokers/dealers with a range of additional services, including the private bank.” This is precisely the kind of selective expansion, into private banking while not serving residents of color in low-income communities, that ARC was and is meant to have an impact.

FFW and Inner City Press have been deeply concerned about the FDIC’s rush to approve mergers by redliners, money launderers and predatory lenders. It killed the Community Reinvestment Act and we are calling for public hearings in a timely manner. 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 Lee, we are writing to inform you that Veritex Community Bank, Dallas, Texas, has withdrawn its application to acquire StoneCastle Insured Sweep, LLC, New York City, New York. Please note that we have escalated your concerns to the Federal Reserve Bank of Dallas, Veritex Community Bank’s lead federal regulator, who will perform any necessary follow-up.” Letter on DocumentCloud from Inner City Press here

Yes, we will follow up and file more. Look at this site.


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