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    Royal Bank of Canada Is Asked About Jumping The Gun by Federal Reserve After Fair Finance Watch Complaint

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    Matthew Russell Lee
    RBC - City National Gun Jumping Questioned by Fed, After FFW Raised It By Matthew R. Lee NEW YORK, July 3 -- The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch. Now Royal Bank of Canada has been asked more questions by the Federal Reserve. On June 6, FFW submitted into the record before the Fed: "RBC, City National off to friendly start ahead of $5.4B takeover Globe and Mail, May 26, 2015, quoted from below. Now the Federal Reserve has asked RBC: "A commenter alleged that in May 2015 RBC and CNB collaborated to extend credit to a customer of CNB. Please address this claim. In your response, discuss in detail in detail whether RBC exercises a controlling influence over the management or policies of CNC or CNB without prior approval of the Board. In addition, discuss whether, since entering into the proposed transaction, RBC and CNB have collaborated, or plan to collaborate, on extending credit to any other borrower, and describe the nature and circumstances of those collaborations." There are other problems, including RBC's non-compete agreement with PNC Financial Services. But this gun-jumping should be fatal to the proposed merger. FFW put this into the record before the Fed: “Royal Bank of Canada won’t complete its $5.4-billion (U.S.) purchase of Los Angeles-based City National Bank for months, but the two banks are already getting a jump on doing business together. City National chief executive officer Russell Goldsmith got a call earlier this month from a long-time customer who wanted speedy approval of a loan worth hundreds of millions of dollars to do an acquisition. “But he was familiar with RBC, knew about the merger and asked whether RBC could help get this done.”“The client knew it was an amount of money beyond what we would normally lend,” the 65-year-old Harvard-educated lawyer said in an interview. Working closely with Blair Fleming, head of RBC’s U.S. capital markets unit, the two banks signed off on the loan within 72 hours. 'It’s typical of what we do,” explained Mr. Goldsmith, whose grandfather co-founded City National in 1954 and whose father, Bram, is chairman emeritus. “We have a relationship [with the client]. …We already had the financial information. So we could do what we needed to do. On top of it, having RBC Capital Markets come into it meant we could do it with greater scale.'” FFW has told the Fed: This is entirely inappropriate and the FRB must act, publicly, before June 11. Please note that RBC's belated release of some documents it improperly sought confidential treatment for does not resolve ICP's FOIA request - we are awaiting an FRB ruling in order to, if need be, appeal. The comment period, including for the reasons set forth above, must be extended and on the current record, the application must be denied and enforcement action(s) taken. The Federal Reserve Board granted FFW an extension of the comment period on the proposed merger, through June 11, FRB letter here, due to RBC improperly withholding information which was subsequently released after a Freedom of Information Act (FOIA) request by Inner City Press. FFW comment on June 11 - but submitted to the Fed an objection dated June 6 noting the two banks admitted they are already working together on transactions, without any authorization. This all comes after the M&T - Hudson City merger stalled after similar filings by FFW, NCRC and others. On Royal Bank of Canada / City National, FFW's filing to the Federal Reserve says City National Bank is known as a bank directed at the (most) affluent. RBC is that as well: In the New York City MSA in 2013, for conventional home purchase loans, RBC made no loans to African Americans or Latinos. It made one loan to a white applicant (for $1.8 million) and six to “race not a

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    Royal Bank of Canada Is Asked About Jumping The Gun by Federal Reserve After Fair Finance Watch Complaint

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    Matthew Russell Lee
    2K views4 pages
    RBC - City National Gun Jumping Questioned by Fed, After FFW Raised It By Matthew R. Lee NEW YORK, July 3 -- The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch. Now Royal Bank of Canada has been asked more questions by the Federal Reserve. On June 6, FFW submitted into the record before the Fed: "RBC, City National off to friendly start ahead of $5.4B takeover Globe and Mail, May 26, 2015, quoted from below. Now the Federal Reserve has asked RBC: "A commenter alleged that in May 2015 RBC and CNB collaborated to extend credit to a customer of CNB. Please address this claim. In your response, discuss in detail in detail whether RBC exercises a controlling influence over the management or policies of CNC or CNB without prior approval of the Board. In addition, discuss whether, since entering into the proposed transaction, RBC and CNB have collaborated, or plan to collaborate, on extending credit to any other borrower, and describe the nature and circumstances of those collaborations." There are other problems, including RBC's non-compete agreement with PNC Financial Services. But this gun-jumping should be fatal to the proposed merger. FFW put this into the record before the Fed: “Royal Bank of Canada won’t complete its $5.4-billion (U.S.) purchase of Los Angeles-based City National Bank for months, but the two banks are already getting a jump on doing business together. City National chief executive officer Russell Goldsmith got a call earlier this month from a long-time customer who wanted speedy approval of a loan worth hundreds of millions of dollars to do an acquisition. “But he was familiar with RBC, knew about the merger and asked whether RBC could help get this done.”“The client knew it was an amount of money beyond what we would normally lend,” the 65-year-old Harvard-educated lawyer said in an interview. Working closely with Blair Fleming, head of RBC’s U.S. capital markets unit, the two banks signed off on the loan within 72 hours. 'It’s typical of what we do,” explained Mr. Goldsmith, whose grandfather co-founded City National in 1954 and whose father, Bram, is chairman emeritus. “We have a relationship [with the client]. …We already had the financial information. So we could do what we needed to do. On top of it, having RBC Capital Markets come into it meant we could do it with greater scale.'” FFW has told the Fed: This is entirely inappropriate and the FRB must act, publicly, before June 11. Please note that RBC's belated release of some documents it improperly sought confidential treatment for does not resolve ICP's FOIA request - we are awaiting an FRB ruling in order to, if need be, appeal. The comment period, including for the reasons set forth above, must be extended and on the current record, the application must be denied and enforcement action(s) taken. The Federal Reserve Board granted FFW an extension of the comment period on the proposed merger, through June 11, FRB letter here, due to RBC improperly withholding information which was subsequently released after a Freedom of Information Act (FOIA) request by Inner City Press. FFW comment on June 11 - but submitted to the Fed an objection dated June 6 noting the two banks admitted they are already working together on transactions, without any authorization. This all comes after the M&T - Hudson City merger stalled after similar filings by FFW, NCRC and others. On Royal Bank of Canada / City National, FFW's filing to the Federal Reserve says City National Bank is known as a bank directed at the (most) affluent. RBC is that as well: In the New York City MSA in 2013, for conventional home purchase loans, RBC made no loans to African Americans or Latinos. It made one loan to a white applicant (for $1.8 million) and six to “race not a

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    RBC - City National Gun Jumping Questioned by Fed, After FFW Raised It By Matthew R. Lee NEW YORK, July 3 -- The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch. Now Royal Bank of Canada has been asked more questions by the Federal Reserve. On June 6, FFW submitted into the record before the Fed: "RBC, City National off to friendly start ahead of $5.4B takeover Globe and Mail, May 26, 2015, quoted from below. Now the Federal Reserve has asked RBC: "A commenter alleged that in May 2015 RBC and CNB collaborated to extend credit to a customer of CNB. Please address this claim. In your response, discuss in detail in detail whether RBC exercises a controlling influence over the management or policies of CNC or CNB without prior approval of the Board. In addition, discuss whether, since entering into the proposed transaction, RBC and CNB have collaborated, or plan to collaborate, on extending credit to any other borrower, and describe the nature and circumstances of those collaborations." There are other problems, including RBC's non-compete agreement with PNC Financial Services. But this gun-jumping should be fatal to the proposed merger. FFW put this into the record before the Fed: “Royal Bank of Canada won’t complete its $5.4-billion (U.S.) purchase of Los Angeles-based City National Bank for months, but the two banks are already getting a jump on doing business together. City National chief executive officer Russell Goldsmith got a call earlier this month from a long-time customer who wanted speedy approval of a loan worth hundreds of millions of dollars to do an acquisition. “But he was familiar with RBC, knew about the merger and asked whether RBC could help get this done.”“The client knew it was an amount of money beyond what we would normally lend,” the 65-year-old Harvard-educated lawyer said in an interview. Working closely with Blair Fleming, head of RBC’s U.S. capital markets unit, the two banks signed off on the loan within 72 hours. 'It’s typical of what we do,” explained Mr. Goldsmith, whose grandfather co-founded City National in 1954 and whose father, Bram, is chairman emeritus. “We have a relationship [with the client]. …We already had the financial information. So we could do what we needed to do. On top of it, having RBC Capital Markets come into it meant we could do it with greater scale.'” FFW has told the Fed: This is entirely inappropriate and the FRB must act, publicly, before June 11. Please note that RBC's belated release of some documents it improperly sought confidential treatment for does not resolve ICP's FOIA request - we are awaiting an FRB ruling in order to, if need be, appeal. The comment period, including for the reasons set forth above, must be extended and on the current record, the application must be denied and enforcement action(s) taken. The Federal Reserve Board granted FFW an extension of the comment period on the proposed merger, through June 11, FRB letter here, due to RBC improperly withholding information which was subsequently released after a Freedom of Information Act (FOIA) request by Inner City Press. FFW comment on June 11 - but submitted to the Fed an objection dated June 6 noting the two banks admitted they are already working together on transactions, without any authorization. This all comes after the M&T - Hudson City merger stalled after similar filings by FFW, NCRC and others. On Royal Bank of Canada / City National, FFW's filing to the Federal Reserve says City National Bank is known as a bank directed at the (most) affluent. RBC is that as well: In the New York City MSA in 2013, for conventional home purchase loans, RBC made no loans to African Americans or Latinos. It made one loan to a white applicant (for $1.8 million) and six to “race not a

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    Royal Bank of Canada Is Asked About Jumping The Gun by Federal Reserve After Fair Finance Watch Complaint

    Uploaded by

    Matthew Russell Lee
    RBC - City National Gun Jumping Questioned by Fed, After FFW Raised It By Matthew R. Lee NEW YORK, July 3 -- The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch. Now Royal Bank of Canada has been asked more questions by the Federal Reserve. On June 6, FFW submitted into the record before the Fed: "RBC, City National off to friendly start ahead of $5.4B takeover Globe and Mail, May 26, 2015, quoted from below. Now the Federal Reserve has asked RBC: "A commenter alleged that in May 2015 RBC and CNB collaborated to extend credit to a customer of CNB. Please address this claim. In your response, discuss in detail in detail whether RBC exercises a controlling influence over the management or policies of CNC or CNB without prior approval of the Board. In addition, discuss whether, since entering into the proposed transaction, RBC and CNB have collaborated, or plan to collaborate, on extending credit to any other borrower, and describe the nature and circumstances of those collaborations." There are other problems, including RBC's non-compete agreement with PNC Financial Services. But this gun-jumping should be fatal to the proposed merger. FFW put this into the record before the Fed: “Royal Bank of Canada won’t complete its $5.4-billion (U.S.) purchase of Los Angeles-based City National Bank for months, but the two banks are already getting a jump on doing business together. City National chief executive officer Russell Goldsmith got a call earlier this month from a long-time customer who wanted speedy approval of a loan worth hundreds of millions of dollars to do an acquisition. “But he was familiar with RBC, knew about the merger and asked whether RBC could help get this done.”“The client knew it was an amount of money beyond what we would normally lend,” the 65-year-old Harvard-educated lawyer said in an interview. Working closely with Blair Fleming, head of RBC’s U.S. capital markets unit, the two banks signed off on the loan within 72 hours. 'It’s typical of what we do,” explained Mr. Goldsmith, whose grandfather co-founded City National in 1954 and whose father, Bram, is chairman emeritus. “We have a relationship [with the client]. …We already had the financial information. So we could do what we needed to do. On top of it, having RBC Capital Markets come into it meant we could do it with greater scale.'” FFW has told the Fed: This is entirely inappropriate and the FRB must act, publicly, before June 11. Please note that RBC's belated release of some documents it improperly sought confidential treatment for does not resolve ICP's FOIA request - we are awaiting an FRB ruling in order to, if need be, appeal. The comment period, including for the reasons set forth above, must be extended and on the current record, the application must be denied and enforcement action(s) taken. The Federal Reserve Board granted FFW an extension of the comment period on the proposed merger, through June 11, FRB letter here, due to RBC improperly withholding information which was subsequently released after a Freedom of Information Act (FOIA) request by Inner City Press. FFW comment on June 11 - but submitted to the Fed an objection dated June 6 noting the two banks admitted they are already working together on transactions, without any authorization. This all comes after the M&T - Hudson City merger stalled after similar filings by FFW, NCRC and others. On Royal Bank of Canada / City National, FFW's filing to the Federal Reserve says City National Bank is known as a bank directed at the (most) affluent. RBC is that as well: In the New York City MSA in 2013, for conventional home purchase loans, RBC made no loans to African Americans or Latinos. It made one loan to a white applicant (for $1.8 million) and six to “race not a

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