Welcome!

News Feed Item

Coalition of Community Groups Opposes Banc of California Acquisition of 20 Banco Popular Branches

Advocates Urge Regulator to Hold Community Meetings to Get Input

LOS ANGELES, CA--(Marketwired - July 14, 2014) - Citing concerns about potential community impacts, the California Reinvestment Coalition is urging the Office of the Comptroller of the Currency to hold public hearings and extend the comment period for Banc of California's proposed acquisition of 20 Banco Popular branches located in Southern California. The California Reinvestment Coalition (CRC) is a membership organization whose mission is to advocate for fair and equal access to banking and financial services for California's low-income communities and communities of color. CRC's members consist of over 300 organizational members working in these communities across the state of California. 

The 20 Banco Popular branches serve a largely Latino, Asian and immigrant customer base in Southern California, and advocates are concerned about the impact on these customers given Banc of California's business model focused on a more affluent and less diverse customer base. Further fueling concerns by community groups, the bank has refused to provide the public with a CRA plan, and their application to regulators lacks any details about how Banc will serve the populations served by Banco Popular. 

Paulina Gonzalez, executive director of the California Reinvestment Coalition, explains: "The Latino, Asian, and immigrant communities served by Banco Popular have been historically underserved by banks. In these communities, where trust of financial institutions is already low, a public CRA plan can provide the foundation for the building of trust, partnerships, and ultimately a successful business model. To that end, we've asked Banc of California to release a community reinvestment plan and engage in a meaningful public review process. So far the bank has refused."

Community leaders in Los Angeles are concerned about the differences in the two bank's record of investment in communities.

Maria Cabildo, president of the East LA Community Corporation explains: "While Banco Popular has a strong track record of community development lending in neighborhoods of color, these are not communities that Banc of California has traditionally prioritized. Given these dynamics, we're worried about what could happen if the OCC approves the acquisition, especially since the bank won't provide a public community reinvestment plan."

Hyepin Im, president and CEO of Korean Churches for Community Development comments: "The leadership at Banc of California has been very public about their ambitions to grow in California. We are urging the OCC to make sure that if the bank does grow, it also engages meaningfully with the communities it will be serving. In nine zip codes where Banco Popular branches are located, anywhere from 10-55% of the population is Asian. We urge the OCC to ensure that the financial services needs of these communities are met in an affordable, equitable, and sustainable manner."

Additional Context

The coalition's letter to the OCC outlining its concerns can be viewed here: http://bit.ly/CRClettertoOCC

The Banc of California Acquisition application can be downloaded here: http://bit.ly/bancofcaapplication

Background on Community Reinvestment Plans: CRA plans are detailed documents that banks can use to articulate their commitment to communities through small business lending and technical assistance, philanthropic commitments, investments in affordable housing via tax credits and loans, community development, supplier diversity programs and more. 

Example of a Community Reinvestment Plan: Union Bank has a public reinvestment plan that details meaningful commitments to lend, invest, and provide financial services to low income communities. Union's current plan expires next year, and the bank is working with CRC and other community groups to renew its commitments. In addition, Union, like many other banks, meets regularly with independent organizations to monitor and adjust its efforts as needed. Click here to view Union Bank plan. 

                                                                            
----------------------------------------------------------------------------
                                            Banco Popular Banc of California
----------------------------------------------------------------------------
  Percent of branches located in majority                                   
             minority zip codes                  85%              25%       
----------------------------------------------------------------------------
 Percent of deposits from branches located                                  
         in low income census tracts              7%              0%        
----------------------------------------------------------------------------
                                                                            

Note:Latinos represent 37% of Banco Popular's deposits in the 20 branches that Banc of CA seeks to acquire. 

The California Reinvestment Coalition advocates for the right of low-income communities and communities of color to have fair and equal access to banking and other financial services. CRC has a membership of over 300 nonprofit organizations and public agencies across the State.

The following files are available for download:

Sean Coffey
415-864-3980
email: [email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.