On Fifth Third Bid for Comerica CRA Protested; Fed Sends to DC But All Questions Confidential
InnerCityPress.com is currently reporting on the Southern District of New York (SDNY) courts and continuing investigative journalism involving the United Nations, including the World Bank, IMF, UN Development Program, and activities across five continents.
Banking Regulatory Changes and Expansion Moves
By Matthew Russell Lee, Patreon Book Substack
SDNY/South Bronx, November 6 – As US bank regulators relax rules—such as the FDIC moving to remove public comments on branch expansion applications—larger banks are accelerating their growth.
On October 6, amid pending merger proposals involving PNC - FirstBank and Pinnacle - Synovus, Fifth Third announced plans to purchase the troubled Comerica Bank. Opposition to this bid was submitted to the Federal Reserve (Fed) and the Office of the Comptroller of the Currency (OCC) on October 8-9.
Confidential Review Process by the Fed
On November 6, the Fed wrote to Fifth Third’s long-time outside counsel stating:
"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 questions remain sealed and confidential. As of 1 p.m. on November 6, no notice of the application appeared on the Fed’s website.
Public Inquiry and Concerns Raised
On October 30, InnerCityPress questioned Governor Michelle Bowman at the Federal Reserve Bank of Kansas City (FRBKC) hearing on EGRPRA about the lack of public notification.
Fair Finance Watch expressed long-standing concerns about Fifth Third, having reviewed the newly released 2024 Home Mortgage Disclosure Act data for Fifth Third, which was not considered in any Community Reinvestment Act (CRA) performance evaluations.
"Dear FRB Chair Powell, Comptroller Gould: Fair Finance Watch has long been concerned about Fifth Third."
Author’s Summary
This report highlights growing bank consolidations amid deregulation, with key concerns about transparency and overlooked community impact in Fifth Third’s acquisition bid for Comerica.