On Fifth Third Bid for Comerica CRA Protested; Fed Sends to DC but All Questions Confidential
InnerCityPress.com is currently reporting on the SDNY and other courts, continuing investigative journalism focused on the United Nations, the World Bank, the IMF, the UN Development Program, and affairs across five continents.
Regulatory Changes and Bank Expansion
By Matthew Russell Lee, Patreon Book Substack
SDNY/South Bronx, Nov 6 – As U.S. bank regulators ease restrictions, including the FDIC's move to remove public comments on branch expansion applications, major banks are seeking to grow further. On October 6, Fifth Third announced plans to acquire the troubled Comerica Bank amidst pending PNC - FirstBank and Pinnacle - Synovus proposals.
Opposition and Confidential Review
- On October 8-9, the acquisition was opposed by parties to the Federal Reserve and OCC.
- On November 6, the Federal Reserve notified Fifth Third’s longtime outside counsel:
"The application has been referred to the Board. Please provide written responses to the questions included in the Confidential Annex, within eight business days from the date of this letter."
All related questions remain sealed and confidential.
Lack of Public Notice and Advocacy
As of 1 PM on November 6, the Fed had not posted notice of the application on its website. InnerCityPress raised this issue directly with Governor Michelle Bowman at the Federal Reserve Bank of Kansas City’s hearing on EGRPRA on October 30.
"Dear FRB Chair Powell, Comptroller Gould: Fair Finance Watch has long been concerned about Fifth Third. Fair Finance Watch has reviewed the just-released 2024 Home Mortgage Disclosure Act data of Fifth Third, not reviewed in any Community Reinvestment Act performance evaluation."
This highlights ongoing concerns about transparency and community impact in bank expansions under current regulatory practices.
Author's summary: The confidential handling of Fifth Third’s application to buy Comerica amid regulatory relaxation raises concerns about transparency and community impact in banking consolidations.