Magazine article American Banker

Activists Seek to Halt N.Y. Deal, Citing Buyer's Record on Loans to Poor

Magazine article American Banker

Activists Seek to Halt N.Y. Deal, Citing Buyer's Record on Loans to Poor

Article excerpt

A New York community group is trying to block the acquisition of New York Bancorp, alleging that the proposed buyer, North Fork Bancorp., has an "abysmal" record of lending in low-income urban communities.

Inner City Press/Community on the Move has urged state and federal banking regulators not to allow the planned $823 million purchase.

It calls North Fork's lending practices in certain New York City neighborhoods "a slightly more complex form of redlining."

Matthew Lee, an attorney and the executive director of Inner City Press, called its attack on North Fork "a full frontal assault."

Daniel Healy, chief financial officer at Melville, L.I.-based North Fork, said it would not comment publicly on the matter. North Fork's formal written response to regulators is expected to be filed by the end of January.

Regulators are expected to make a decision on the deal in the next 60 days.

According to Mr. Lee, North Fork's aggressive pattern of acquisitions over the last few years has not been matched by its marketing of credit products in poor and minority city neighborhoods.

Mr. Lee said the bank does substantial business in one- to four-family mortgages in its home base in Suffolk County. In 1996, for example, North Fork originated 566 such mortgages in Suffolk, 208 of those in areas considered low- to moderate-income.

"We find it offensive that they can buy thrifts in the city and then refuse to offer one- to four-family mortgage products there," Mr. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.