Home > Banking Information & Regulation > Public Meeting Transcripts > PMT - Agendas June 25-26, 1998
Public Meeting Transcripts
Public Meeting Regarding Citicorp and Travelers Group
Friday, June 26, 1998
Transcript of Panel Twenty-One
509 20 MR. LONEY: Any other questions? If 21 not, I thank you, our panel, very much. 22 We are going to combine Panel 23 Twenty-one and Twenty-two. Could I ask Edward 24 Sheeran, Vicki Hurewitz, April Tyler, Greg Todd 25 and Florence Rice to come up, please. . 510 1 2 Mr. Sheeran, will you begin for us, 3 please. 4 MR. SHEERAN: Thank you. Good 5 morning. I am Edward Sheeran. I am special 6 assistant to the Mayor of the City of Yonkers, 7 Westchester County. I am also the executive 8 director of the Yonkers Industrial Development 9 Agency. 10 The City of Yonkers is the largest 11 city in Westchester County and the fourth 12 largest in the State of New York with 13 approximately 190,000 residents. Yonkers has 14 the largest number of high poverty level census 15 tracts in the County of Westchester. For over 16 a decade the New York State Financial Control 17 Board has been overseeing the city's financial 18 activities. 19 Citibank, one of the nation's largest 20 banking institutions, serves the residents of 21 the County of Westchester with 18 full service 22 branch banking facilities. The areas Citibank 23 has elected to service within Westchester 24 County are affluent upscale areas. These areas 25 are as follows: . 511 1 2 Armonk, Bedford, Bronxville, 3 Chappaqua, Eastchester, Harrison, Hastings, 4 Larchmont, Mamaroneck, Mount Kisco, New 5 Rochelle, Ossining, Pelham Manor, Rye, 6 Scarsdale, Somers and two branches in White 7 Plains. 8 Last year Citibank opted to close its 9 only manned branch in the City of Yonkers. 10 Accordingly, Citibank has no manned facilities 11 to provide day-to-day banking services to the 12 190,000 residents of the largest city in the 13 County of Westchester. 14 Recently I spoke with Citibank's 15 Westchester County senior management regarding 16 Citibank's redlining of the City of Yonkers. I 17 was advised that it was Citibank's strategy to 18 provide banking services to its customers 19 through technology rather than bricks and 20 mortar and that Citibank would not be adding 21 additional branch facilities to its network. 22 This statement was contradicted 23 following a Craines June 15, 1998 publication 24 when it reported that Citibank had branches 25 under construction in the State of New Jersey . 512 1 2 and, in particular, in Fort Lee and Englewood. 3 Clearly, Citibank's strategy is to 4 provide day-to-day personal banking services to 5 affluent upscale communities and to ignore the 6 day-to-day banking needs of the less affluent 7 communities. We believe its Westchester 8 network of branches is an orchestrated example 9 of this and proves that the 190,000 residents 10 of the City of Yonkers are not being given the 11 same banking convenience that are provided by 12 Citibank to towns, villages, and hamlets within 13 the County of Westchester. 14 We, in the City of Yonkers believe in 15 addition to providing day-to-day banking 16 services, large financial institutions such as 17 Travelers Group and Citicorp should be obliged 18 as good citizens to participate in the economic 19 revitalization of cities, such as the City of 20 Yonkers. We believe they should utilize their 21 vast resources, both financial and otherwise, 22 to promote, encourage and finance economic 23 development. By doing this, they will be 24 contributing to the creation of jobs and 25 increasing the quality of life for all our . 513 1 2 citizens. 3 Citibank's activities to date have 4 been to the contrary. The future must be based 5 on past performance. Frankly, we are not 6 satisfied with the manner in which our city has 7 been ignored and our citizens treated by the 8 powerful Citibank. 9 Should the acquisition be approved, 10 Citibank will be the largest and most powerful 11 institution in the country. This may be very 12 good for the affluent upscale areas, but if 13 Citibank's past is any indication of the 14 future, then our 190,000 residents in the 15 largest city of Westchester County can expect 16 more of the same from the nation's most 17 powerful financial institution. 18 I am here today on behalf of the 19 citizens of Yonkers to request that the 20 approval of the acquisition of Citicorp by 21 Travelers Group be denied until such time as 22 Citibank institutes and delivers programs that 23 provide services to the citizens of the City of 24 Yonkers equal to the services they provide to 25 the citizens of the 18 affluent upscale . 514 1 2 communities in the County of Westchester. 3 Thank you. 4 MR. LONEY: Thank you, Mr. Sheeran. 5 Ms. Hurewitz. 6 MS. HUREWITZ: Good morning 7 distinguished members of the Federal Reserve 8 Board. Thank you for giving me this 9 opportunity to express my opinion about the 10 Citicorp/Travelers merger. My name is Vicki 11 Hurewitz, and I am here representing the 12 organization SENSES, which stands for the 13 Statewide Emergency Network for Social and 14 Economic Security. 15 We work on a variety of public policy 16 issues which affect low-income people here in 17 New York State. SENSES is a member of the 18 National Community Reinvestment Coalition. 19 As I thought and read about the 20 Citicorp/Travelers merger and HR10, the 21 financial modernization bill that would allow 22 the merger if passed, I decided there were 23 three questions I wanted to address in my 24 testimony. 25 First, if this were a standard . 515 1 2 mega-merger like so many we have seen lately, 3 how are these two institutions doing in terms 4 of their fair lending and community 5 reinvestment obligations under current law? A 6 merger can be denied if either party has not 7 met these obligations. 8 Second, I am puzzled as to how this 9 merger can occur since HR10, the financial 10 modernization bill, is still making its way 11 through Congress. 12 Third, what are the most important 13 issues around HR10 that should be addressed 14 before the law passes? 15 How are the institutions doing under 16 the mortgage law? The Home Mortgage Disclosure 17 Act requires Citicorp and all its lending 18 subsidiaries and affiliates to report out 19 detailed information on every home purchase, 20 home improvement, and refinance application 21 taken. 22 Using 1996 HMDA data, I performed a 23 limited analysis on Citibank's lending in all 24 the metropolitan areas of New York State. I 25 only examined those markets where an individual . 516 1 2 institution took more than 30 applications, 3 statisticians considering this an ample sample 4 size. 5 I compared the market penetration of 6 Citicorp entities among black borrowers to all 7 categories of borrowers. I also compared the 8 bank's loan denial rate to black versus white 9 applicants to the same rate for all lenders in 10 the individual markets. The reason I only 11 looked at these particular indicators is that I 12 am still in the process of database 13 development. In the future I will able to look 14 at many more indicators of bank lending 15 performance around the state. 16 Three Citibank entities, Citibank New 17 York State, Citibank Mortgage and Citibank NA 18 accepted applications for home purchase loans 19 in 1996. Citibank NA is minimally active in 20 two markets upstate, Buffalo and Rochester. 21 The other two lenders are primarily downstate 22 in the New York City and Long Island areas. 23 With the exception of Citibank New 24 York State in the two upstate markets, all the 25 Citibank entities had a lower market share of . 517 1 2 black applications than of all applications. 3 In all areas for all the Citibank entities, the 4 loan denial rates to black versus white 5 borrowers were higher than the rates for all 6 lenders in the markets. In Rochester, for 7 example, blacks were denied at over nine times 8 the rate of whites compared to 1.8 times as 9 often for the aggregate lenders. 10 These same patterns occurred in 11 Citibank's Home Improvement and Refinance 12 applications. Again, with home improvement 13 applications Citibank New York State was active 14 upstate and Citibank NA downstate. And in all 15 cases market penetration was lower than among 16 black borrowers than white. With the exception 17 of Citibank NA in the Long Island area, loans 18 were denied to blacks at slightly higher rates 19 than to whites, although the differences are 20 not as marked as they were with home purchase 21 loans. The same thing was true with the 22 refinance application. 23 Travelers Insurance Company unlike 24 Citibank is not required to report under HMDA 25 nor is it covered by the Community Reinvestment . 518 1 2 Act. It is, however, covered by the Fair 3 Housing Act of 1968. 4 Currently HUD is investigating a Fair 5 Housing complaint brought by the Fair Housing 6 Council of Washington D.C. The complaint 7 alleges that the company's policies have a 8 discriminatory impact on African-American and 9 Latino policy seekers and neighborhoods. In 10 the D.C. area, Travelers has a policy whereby 11 the minimum house value that it will insure is 12 $250,000. This automatically excludes from 13 coverage 90 percent of homes in 14 African-American and Latino neighborhoods. 15 Travelers also -- is my time up? 16 Travelers also has a policy of 17 limiting coverage to homes which are less than 18 45 years old. This has the impact of excluding 19 almost twice as many homes in minority 20 neighborhoods as in white neighborhoods. 21 Interestingly, Washington D.C. is one 22 of the four cities that has been in Travelers 23 Urban Availability of Insurance program, a 24 program which was founded 1994 to improve the 25 availability of insurance in urban areas. I . 519 1 2 wonder what the company's policy would be in 3 Washington D.C. without this program. 4 Given that Travelers has this suit 5 pending against it and given my HMDA findings 6 on Citibank, I am convinced that even if this 7 were a standard mega-merger, it should not be 8 allowed until these fair lending issues are 9 addressed. 10 Regarding Citibank, I am well aware 11 that the Community Reinvestment Act is mostly 12 about making credit available in low- and 13 moderate-income areas. However, it is stated 14 in the legislation that "in arriving at an 15 institution's (CRA) rating, the agencies 16 consider whether there is evidence of 17 discrimination in violation of the Fair Housing 18 Act or the Equal Credit Opportunity Act or 19 evidence of other illegal credit activities." 20 I am also aware that HMDA has never 21 been used to prove discrimination; however, as 22 my analysis shows, the data can point to 23 patterns that need further investigation. 24 Before going on with this merger, I 25 request that HUD investigate Travelers' . 520 1 2 underwriting criteria in other urban areas 3 where it writes policies to determine if there 4 are possible hidden discriminatory patterns 5 that prevent protected classes from getting 6 property insurance. I also request that the 7 Federal Reserve look at Citicorp entities 8 underwriting criteria for the three HMDA 9 reportable loan types to see what is 10 responsible for the bank's poor showing among 11 black borrowers across New York State. 12 How could this merger occur -- time 13 is up. 14 MR. LONEY: If you want to wrap up. 15 MS. HUREWITZ: I will continue. 16 I just want to say, I am opposed to 17 the merger for three reasons: The fair lending 18 records of the two applicants, the illegality 19 of the merger, and the potential power of HR10 20 to destabilize the American economy. 21 Thank you very much. 22 MR. LONEY: Thank you. 23 If you want to put your full 24 statement in, it will get into the record if 25 you will leave a copy with the registration . 521 1 2 desk up front. 3 MS. HUREWITZ: Thank you. 4 MR. LONEY: Ms. Tyler. 5 MS. TYLER: Good morning. My name is 6 April Tyler and I am a democratic leader in the 7 West Harlem community. On behalf of myself, my 8 coleader Joseph Aplin and the residents of 9 Harlem's 70th Assembly District, I thank you 10 for the opportunity to testify and present 11 information on Citibank's record in the Harlem 12 community and to register my objection to this 13 proposed merger. 14 I will focus on the core lending 15 record in Harlem, but I'd like to reiterate a 16 few points that have been covered in prior 17 testimony by many of my colleagues and many of 18 Citicorp Travelers Watch. 19 This transaction is illegal, as the 20 prior testifier just stated. The public's 21 privacy rights may be trampled on. Both 22 institutions have not been forthcoming with 23 information that's been requested numerous 24 times, and we feel the danger of creating such 25 a large international financial entity, a . 522 1 2 portion of which is protected by U.S. 3 taxpayers' dollars, may be deemed too big to 4 fail. 5 The companies' individual records 6 with regard to inner city neighborhoods leaves 7 much to be desired. Travelers has virtually no 8 brokers in low- and moderate-income 9 neighborhoods, and Citicorp has few branches 10 and does almost no lending. This hardly bodes 11 well to a more promising future with the 12 proposed new entity. 13 On the prior panel, one of the 14 panelists stated that we must look to the 15 future, but we must also not ignore the 16 history. So let's take a look at Citibank's 17 history in the Harlem community and other 18 communities of color. 19 The loan rejection rates are more 20 than doubled that of whites given comparable 21 circumstances. In the Harlem community, which 22 is Community Boards 9 and 10, which are bounded 23 by 110th Street, 155th Street from Riverside 24 Drive to Fifth Avenue, there are only two 25 branches. One branch is on 111th Street and . 523 1 2 Broadway and another branch is on 152nd Street 3 and Amsterdam Avenue. No branches are north of 4 125th Street where the majority of the 5 African-American and Latino population lives. 6 One might think that this area was 7 excluded from Citibank's service area, but it 8 is not. In the two branches, that are 9 inconveniently placed for the majority of the 10 populations in these two community boards, 11 there are $233 million on deposit; there is no 12 direct lending for multifamily housing at all 13 by Citibank; and, as we all know, the majority 14 of New York City's housing stock is that type. 15 But what lending do they do? One- to 16 four-family mortgages, co-op and condo loans. 17 In Community Board 9, which is Central Harlem, 18 there were only three loans originated in 1996. 19 Community Board 9 did a little better: 27 20 loans were originated. That sounds really 21 good, but the majority of those loans were 22 originated in the area south of 125th Street, 23 right around Columbia University where the 24 majority of the population is white. Only six 25 loans of the 27 were to African-Americans or . 524 1 2 Latinos; one was to a Latino. So so much for 3 the prior panelist's statement about empowering 4 Latinos. 5 The banks that exist have high-fee 6 structures for banking services. The brochures 7 say that you can experience less expensive and 8 more convenient banking. Not so if you live in 9 the Harlem community. Given this record, it is 10 amazing that Citibank has received an 11 outstanding CRA rating. 12 The proposed new entity made a 13 commitment of $115 billion, but not to improve 14 in the areas stated above. There is no 15 guarantee that any of the money will be 16 targeted and invested in New York City or in 17 low-income neighborhoods. 18 More than half of that $115 billion 19 commitment is for consumer loans, student 20 loans, credit cards and such. The portion for 21 small business lending isn't targeted to 22 low-income areas. 23 We urge you to reject this 24 application and demand immediate improvement in 25 their performance right now, not some nebulous . 525 1 2 promise for the future. 3 Thank you. 4 MR. LONEY: Thank you, Ms. Tyler. 5 Mr. Todd. 6 MR. TODD: Good morning. My name is 7 Greg Todd. I am the marketing director with 8 BEC New Communities. I would like to thank the 9 Federal Reserve Bank of New York for sponsoring 10 this hearing today. I very much appreciate the 11 opportunity to speak on behalf of BEC New 12 Communities. 13 BEC is a 14-year-old community-based 14 nonprofit housing group. To date we have 15 developed about 900 units of housing from 16 city-owned properties. In so doing, we have 17 invested almost $100 million in the communities 18 of Bedford Stuyvesant, Crown Heights and Sunset 19 Park. In addition, we have sold over 200 units 20 of ownership housing, including both 21 condominiums and two- and three-family homes. 22 BEC also sponsors a community-based credit 23 union with over 2,000 members and $2.2 million 24 in assets. 25 Our organization grew out of an . 526 1 2 interdenominational organizing effort. BEC 3 stands for "Brooklyn Ecumenical Cooperatives." 4 I personally came to Brooklyn about 5 20 years ago from Michigan. Before coming 6 here, I completed a masters in business 7 administration degree and worked briefly in a 8 bank. I had heard much of Citibank. I knew it 9 to be a leader in the area of consumer banking, 10 having been one of the first banks in the 11 nation to issue credit cards and one of the 12 first to make extensive use of automatic teller 13 machines. 14 I, in fact, had such faith in 15 Citibank that it is where I opened my checking 16 and savings account and where I currently have 17 a home mortgage. 18 Unfortunately, in recent years I feel 19 Citibank's vision has become less focused on 20 its home here in New York and more directed to 21 a national and international audience. For 22 example, the branch I used to keep my accounts 23 at on 13th Street and Fifth Avenue near Sunset 24 Park was sold to Home Savings Bank -- now a 25 part of Greenpoint Bank -- about 15 years ago. . 527 1 2 Shortly thereafter, Citibank expanded 3 the number of ATMs at its branch in Park Slope, 4 a more affluent area. This pattern appears 5 typical of what it is doing throughout the City 6 of New York. 7 Citibank maintained in 1996 20 8 branches in Brooklyn. That number, 9 incidentally, is now down to 15, of which only 10 12 are full service. The total amount of 11 deposits on these branches in 1996 was $2.1 12 billion. 13 According to the Home Mortgage 14 Disclosure Act provided by the RTK Foundation, 15 during 1996 Citibank received 1,228 16 applications from Brooklyn residents. Of 17 these, they actually approved 547 or about 44.5 18 percent of the applications taken. By 19 comparison, in 1996 among banks in Brooklyn 20 that took in at least ten applications, the 21 overall approval rate was 52 percent, 7.5 22 percentage points above Citibank's approval 23 rate. 24 Assuming an average loan amount of 25 $150,000, Citibank returned to its communities . 528 1 2 in Brooklyn about $82 million in mortgages in 3 1996. This amounts to about 3.9 cents in 4 lending for each dollar deposited by Brooklyn 5 residents. 6 I must add that of the over 200 7 mortgages or about $12 million in home mortgage 8 lending given to purchasers of BEC developed 9 homes none were granted by Citibank. 10 Similarly, of the $100 million in 11 construction lending used by BEC for 12 residential development in Brooklyn, none was 13 from Citibank. 14 As a leading community group in 15 Brooklyn, BEC feels that Citibank needs to do 16 better. Rather than reaching out to lend in 17 the developing countries around the globe, why 18 not lend in the developing neighborhoods in 19 Brooklyn, for many residents are immigrants who 20 left just those developing countries that 21 Citibank appears so eager to lend to. 22 We feel it is time that Citibank 23 returned to its role as an innovative leader 24 right here in New York. If Citibank wants to 25 take deposits of Brooklyn residents, we feel it . 529 1 2 should be willing to give back its fair share 3 in loans to the Brooklyn community. 4 Thank you for your consideration. 5 MR. LONEY: Thank you, Mr. Todd. 6 Ms. Rice. 7 MS. RICE: Yes. Good morning, and I 8 am glad to be here, and thank you for giving me 9 this opportunity. 10 I am Florence M. Rice, president of 11 the Harlem Consumer Education Council. I must 12 say I oppose -- I am opposed to the merger of 13 Citicorp Group and the Travelers Insurance 14 because of their practice of racism through 15 redlining and refusal to loan to 16 African-Americans. 17 I am very concerned with Citigroup 18 and the Citicorp and Travelers merger. I want 19 to see a better world, but we can't see a 20 better world with racism running rampant like 21 it still does. 22 Living in New York State all my life, 23 and at my age of 79, I understand very well 24 institutional and economic racism, as I have 25 experienced it in this country all my life, . 530 1 2 along with my brothers and sisters. 3 As slaves, African-Americans were 4 forced to build the wealth of this country for 5 the benefit of white Americans. Today I'm 6 going to speak to you about the three robbers 7 of African-Americans, and I think I would like 8 to say the speakers of City Watch are the ones 9 that has said many of the things that I have 10 said, so there is no sense in repeating it. 11 What I wanted to do, I wanted to do 12 something different. I call it the three 13 robbers of African-Americans; they are racism, 14 power and control. 15 The belief is that race is the 16 primary determiner of human traits and capacity 17 and that racial difference produced an inherent 18 superiority of a particular race. Many white 19 people practice racism in the corporate 20 world -- antagonism toward African-Americans, 21 especially as a result of the racist belief, a 22 belief in the superiority of the white race, 23 prejudice based on this, and the theory, 24 ability, to determine by these races in our 25 society. . 531 1 2 Race riot is caused by racial 3 dissension and hatred -- which is many times 4 perpetrated by the corporate world -- power, 5 and the ability to produce a result, possession 6 to control authority and influence others, 7 having such power of controlling groups, that's 8 what happens in today's world. 9 I would like to speak third on 10 control, the power of direct command under the 11 corporate CEOs and the board of directors, 12 because that is where much of this racism stems 13 from, the power of restraining, the power or 14 authority to manage the regulation of economic 15 activity, especially by the corporate world 16 direct, one that controls a means of 17 determining the policy of a business. 18 The records of Citicorp and certainly 19 Travelers speak for themselves. I'm deeply 20 concerned. Like someone here said, if we're 21 talking these large companies, I'm concerned it 22 carries this race, economic racism, and this 23 racism within their companies travelling the 24 world. 25 I'm looking to make this a better . 532 1 2 world. I am not looking to make it the kind of 3 world that I have grown up in and that I know 4 of. So, therefore, I would say I have spoken 5 quite differently, but I am speaking this way 6 because many of my colleagues here have really 7 expressed my feeling. 8 I just want to thank you that I could 9 be here. I will put this -- I can send it in. 10 Again, I will say I am very glad to be here. I 11 am 79. I haven't changed my opinion on the 12 banks and the redlining and Travelers, which 13 never dealt with our black community. So I 14 again am supporting some of the other speakers 15 that this merger -- because mergers don't help 16 community people, poor people, because they are 17 always looking to make the executives and make 18 themselves a trillion dollar bankroll, that 19 they can go off and live better than anyone 20 else. 21 Thank you, and I am a little angry. 22 MR. LONEY: Thank you, Ms. Rice. You 23 don't look angry. 24 I have a couple of questions. 25 Mr. Sheeran, could you describe for . 533 1 2 me -- and you probably did and I may have just 3 didn't quite understand it -- the demographics 4 of Yonkers. I am not familiar with Yonkers. 5 Is it a low-income community largely? 6 MR. SHEERAN: We have, the southwest 7 part of Yonkers is the low income. There are, 8 I think, six census tracts that are poverty 9 level. The city of is made up of about 40 10 percent African-Americans, 45 percent white, 11 and the rest others. 12 MR. LONEY: Are there any middle, 13 upper-income neighborhoods? 14 MR. SHEERAN: Yes, there are. In the 15 northeast part of Yonkers, yes. 16 MR. LONEY: Did I understand you to 17 say there are no Citicorp branches. 18 MR. SHEERAN: No Citicorp branches. 19 The only manned branch that they had they 20 closed last year and there is an automatic 21 teller machine in its place. We don't regard 22 that as a facility that they can transact their 23 business. 24 MR. ALVAREZ: You mentioned that when 25 City closed the branch in Yonkers it said it . 534 1 2 would replace it with technology; is that the 3 ATM? 4 MR. SHEERAN: That is correct. 5 MR. ALVAREZ: It is a single ATM, no 6 other ATMs in Yonkers? 7 MR. SHEERAN: They have no other ATMs 8 in the community, right. As I pointed out, all 9 the areas in Westchester County are all upscale 10 areas, Bronxville, Rye, all upscale areas. 11 MR. LONEY: Apparently in Yonkers 12 there are some upscale areas as well. 13 MR. SHEERAN: Yes, but they are not 14 as upscale as the Bronxvilles of the world. 15 MR. ALVAREZ: When City proposed to 16 close the branch, did you talk with them about 17 why they were closing? 18 MR. SHEERAN: I was not in this 19 position at that time, so I am not quite sure. 20 MR. LONEY: So upscale is in the eye 21 of the beholder. 22 MR. SHEERAN: Maybe. 23 MR. LONEY: That is interesting. 24 Ms. Hurewitz, I know you wanted to 25 talk about your views on the illegality of this . 535 1 2 merger. Do you want to expound on that? 3 MS. HUREWITZ: I'm concerned because 4 currently there is a bill going through 5 Congress, as we all know, the HR10, the 6 financial modernization bill, which would allow 7 this merger. Under the current law, my 8 understanding is that if Travelers and Citicorp 9 were to merge, one of the other would have 10 to -- Travelers would have to divest itself of 11 its nonbanking activities within two to five 12 years, or Citicorp would have to give up its 13 banking charter and become part of Travelers 14 Savings & Loan. 15 My concern is that if the merger goes 16 through that the waiver will be given, the 17 five-year waiver will be given, and in the 18 interim Citicorp and Travelers will continue to 19 lobby Congress to pass HR10, because it is not 20 quite clear whether the bill will go through 21 now. There is a lot of controversy about it. 22 So currently these two entities as 23 they sit are not legally allowed to merge as 24 they both are. One or both of them have to 25 make changes. That is my concern. . 536 1 2 MR. LONEY: Thank you. 3 Ms. Tyler, I am sorry, I am not that 4 good with the geography here. You explained 5 that there were, I think the implication of 6 what you said was there were two branches, was 7 that in Harlem, on the edge of Harlem? I 8 wasn't quite clear on that. 9 MS. TYLER: Depending on who you 10 speak with, the boundaries of Harlem are 11 different. Some people would say that it 12 starts at 110th Street, and if you look at 13 documents from way past, it did. Currently, 14 it's always been considered historically the 15 African-American community in the north of 16 Manhattan. The majority of the 17 African-Americans, and at this point 18 increasingly the Latino population, are north 19 of 125th Street. South of 125th Street you 20 have to include Columbia University, where even 21 though it is in the -- a community district 22 which includes Harlem, it is higher income and 23 the population is white, primarily. North of 24 125th Street, the majority of the population is 25 African-American and Latino. . 537 1 2 MR. LONEY: And the branches are? 3 MS. TYLER: The branches are all 4 south of 115th Street. If you travel further 5 north, you will find another branch at, I 6 think, 169th Street, right by Columbia 7 Presbyterian Hospital. So the population, the 8 Latino and African-American population has been 9 skipped over in both instances. 10 MR. LONEY: So the 169th Street, is 11 that still Harlem? 12 MS. TYLER: No. That is considered 13 Washington Heights. 14 MR. ALVAREZ: Ms. Tyler, you 15 mentioned that there were, I think you said 16 $233 million worth of deposits. 17 MS. TYLER: Right. 18 MR. ALVAREZ: I didn't quite catch, 19 are those -- who are those deposits from; where 20 are those deposits? 21 MS. TYLER: We don't have access to 22 the zip code information, so we can't tell 23 where the deposits originate from. In those 24 two branches, the Data Book, which is published 25 by the Federal Deposit Insurance Corporation, . 538 1 2 gives you the figures branch by branch of the 3 deposits. But we all know that when people 4 don't have the convenience of a branch in their 5 neighborhood, they usually bank where they 6 work. 7 Even though these are inconvenient 8 branches, there are $233 million in deposits. 9 A portion of that, we suspect, is from 10 residents of the Harlem community. And if you 11 look at the branches in midtown Manhattan or 12 downtown, I would be willing to bet if we got a 13 zip-coded analysis that a portion, maybe a 14 large portion, would be from the 25, 27, 35, 39 15 zip codes that comprise Harlem. 16 MR. LONEY: Do we have any other 17 questions of the panel? If not, I will thank 18 you very much for coming in and talking to us.
Last update: December 3, 2010