UNITED STATES NEWS

DOJ says First National Bank discriminated against Black, Latino borrowers in North Carolina

Feb 5, 2024, 10:28 AM

NEW YORK (AP) — First National Bank of Pennsylvania discriminated against Black and Latino homebuyers in North Carolina for a period of at least four years, the Justice Department said Monday, the latest in a long list of banks who have been caught redlining.

The Justice Department said FNB will pay $13.5 million to settle the redlining charges, of which the bulk will go into a fund to help subsidize loans for Black and Latino borrowers in Charlotte and Winston-Salem, two housing markets where the DOJ found discrimination.

In its complaint, the DOJ alleges that First National closed branches in majority-minority neighborhoods, failed to provide mortgage services to Black and Latino potential borrowers, and ignored entire neighborhoods for potential lending. The DOJ found that lenders of similar size and scope to First National did two to four times as much lending to minority borrowers between 2017 and 2021 as First National.

The case comes from when FNB bought Yadkin Bank, a regional bank in the Carolinas, in 2017. While FNB says the bad behavior happened at Yadkin before the acquisition, the DOJ said that any bank that buys another bank should be held accountable for the acquired bank’s actions.

“The playing field isn’t level, and that is not what we want for the people of North Carolina,” said Josh Stein, North Carolina’s Attorney General.

This is the 13th redlining settlement that the Biden Administration has brought against banks since 2021. Under Attorney General Merrick Garland, the Justice Department has created a Redlining Taskforce to focus on racial discrimination in financial services in a way that few administrations have done so in the past.

The DOJ brought the largest redlining lawsuit in history in 2023 against Los Angeles-based City National Bank, which was also found to have discriminated against Black and Latino communities over a similar time period, from 2017 to 2020.

The Taskforce has brought in $122 million in redlining settlements since it was created, the DOJ said.

“Modern-day redlining is a stain on our economy and underscores the need to keep pushing for equal economic opportunity and racial justice in our country,” said Assistant Attorney General Kristen Clarke, in the DOJ’s Civil Rights Division.

In a statement, FNB spokesperson Jennifer Reel said the company disagreed with the DOJ’s findings, saying it believed it was fully compliant with federal and state lending laws. However, it settled the case in order to put the matter behind them.

“We cooperated fully to reach an agreement in this inherited matter as a good faith effort to avoid prolonged litigation,” Reel said.

United States News

Associated Press

2 people were taken to a hospital after lightning struck a tree near a PGA Tour event in Connecticut

CROMWELL, Conn. (AP) — Two people were taken to the hospital Saturday after lightning struck a tree near a home along a golf course that is hosting the PGA Tour’s Travelers Championship. The home is just north of the fifth green at TPC River Highlands, which is hosting the tournament one week after the U.S. […]

1 hour ago

Associated Press

Jury awards more than $13 million to ultramarathon athlete injured in fall on a Seattle sidewalk

SEATTLE (AP) — A jury awarded $13.1 million to an ultramarathon athlete who was severely injured when she fell on a Seattle sidewalk in 2021. The award by a King County jury found that the city of Seattle and the owners of an apartment building are responsible for the amount, the Seattle Times reported. Lesley […]

2 hours ago

Associated Press

Rains, cooler weather help firefighters gain ground on large wildfires in southern New Mexico

RUIDOSO, N.M. (AP) — Recent rains and cooler weather are helping more than 1,000 firefighters gain ground on two wildfires in southern New Mexico on Saturday that have killed two people, destroyed hundreds of homes and forced thousands to flee. Fire crews took advantage of temperatures in the 70s, scattered showers and light winds to […]

7 hours ago

Associated Press

One dead, seven injured after shooting at Kentucky nightclub

LOUISVILLE, Ky. (AP) — One person is dead and seven others were injured after a shooting at a Kentucky nightclub early Saturday morning, authorities say. Louisville Metro Police Department officials said they responded to a call of several people shot at the H20 nightclub in Louisville just before 1 a.m. One man, 40-year-old Joseph D. […]

7 hours ago

Associated Press

Man trying to drown 2 children on Connecticut beach is stopped by officers, police say

WEST HAVEN, Conn. (AP) — A man trying to drown two small children at a Connecticut beach early Saturday morning was thwarted by police officers, according to authorities. An officer spotted an SUV parked on a beach in West Haven at about 2:30 a.m. and heard “significant screaming” from the water as he approached. As […]

8 hours ago

Associated Press

Senate in Massachusetts passes bill curtailing use of plastics including bags, straws

BOSTON (AP) — The state Senate in Massachusetts has passed a wide-ranging bill curtailing the use of plastics, including barring the purchase of single-use plastic bottles by state agencies. The bill, approved Thursday, also bans carry-out plastic bags at retailers statewide and require stores to charge 10 cents for recycled paper bags. It also requires […]

9 hours ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinic visits boost student training & community health

Going to a Midwestern University Clinic can help make you feel good in more ways than one.

...

COLLINS COMFORT MASTERS

Here are 5 things Arizona residents need to know about their HVAC system

It's warming back up in the Valley, which means it's time to think about your air conditioning system's preparedness for summer.

...

DISC Desert Institute for Spine Care

Sciatica pain is treatable but surgery may be required

Sciatica pain is one of the most common ailments a person can face, and if not taken seriously, it could become one of the most harmful.

DOJ says First National Bank discriminated against Black, Latino borrowers in North Carolina