Citi first Wall Street bank to commission a racial audit

[butters]

https://thehill.com/changing-americ...iti-is-first-wall-street-bank-to-commission-a

Citigroup Inc. will audit how its business impacts non-white communities.
Attorneys at Covington & Burling LLP will audit Citigroup.
The law firm will determine whether the bank has caused, reinforced, or perpetuated discrimination, according to Bloomberg.

BlackRock Inc. is preparing for its racial audit in 2022 after a shareholder request.

whereas Trustmark National Bank has settled to pay $5 million in fines to federal regulators after it was accused of actively avoided offering and marketing home loans to Black and Hispanic customers.

The Justice Department, Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) announced a joint consent order with Trustmark, accusing the bank of a pattern of “redlining” in the Memphis, Tenn., region.

Redlining covers a broad range of techniques used by banks and lenders to avoid offering mortgage loans to non-white customers. While redlining historically involved explicit bans on loan offers to customers from majority Black or Hispanic neighborhoods, it can also include a failure to broadly market mortgage loans or make them easily available in those areas.

While 50 percent of census tracts in the Memphis area are majority-Black and Hispanic, only four of Trustmark’s 25 branches were located in majority-Black and Hispanic communities, the complaint alleged. Trustmark also allegedly did not assign any mortgage loan officers to its four branches in majority-Black and Hispanic communities, ensure broad access to home loans in those areas, nor advertise mortgages in those areas.

https://thehill.com/policy/finance/578088-trustmark-bank-to-pay-5-million-redlining-fine

i'm glad they were brought to answer for these policies, but $5m is chicken feed imo.

 

[ll74]

Their findings will be interesting.

 

[colddiesel]

https://, but $5m is chicken feed i...ugh deliberate) breaches of UK corporate law.

 

[butters]

It does seem modest when you consider that Facebook this week were fined $70.5 million by the Brits for technical, (though deliberate) breaches of UK corporate law.

perhaps the exposure of their name and actions is deemed a potential financial loss to be taken into account in future dealings... but this IS Tennessee, so....

i guess it might depend on if there were other stipulations in the settlement, like redressing those issues it was charged with.

 

[CornusKousa]

Banks didn't want to loan to poor people who can't afford loans.

Why is that a problem??