Daily News: February 4, 2015

Opposition to CIT, OneWest Bank Merger Growing

According to a California Reinvestment Coalition news release, state community advocates, along with the Daily Kos, delivered over 15,000 petitions to the Federal Reserve, setting a new record for the number of individuals opposing a bank merger. The petition signers are urging the Fed to not approve of a proposed merger of CIT Group and OneWest Bank, which would create the newest Too Big To Fail bank.

Advocates also gave the Federal Reserve a letter signed by 51 national and state organizations, urging the Fed to hold public hearings on the proposed merger, citing concerns about regulatory capture, unpaid bank bailouts, the FDIC paying OneWest for foreclosure costs, and systemic risks created by the merger.

“Over 15,000 Americans who signed the Daily Kos petition are angry that banks like CIT Group received billions while ordinary Americans lost their homes. We’re calling on the Federal Reserve to not approve of this merger, to not repeat the same mistakes again, and to not create another Too Big To Fail bank,” commented Paul Hogarth, campaign director at Daily Kos.

“During the past two years, CIT Group spent over $6,000 a day lobbying for less regulation. The irony of a bank that needed a $2.3 billion loan from taxpayers, but then couldn’t pay back that loan, and who is now spending millions lobbying for less regulation, is not lost on our communities. How can the Fed ignore over 15,000 people opposing this merger? No more regulatory capture. No more rubber-stamped mergers. And no more communities and taxpayers picking up the tab for bank misbehavior!” added Paulina Gonzalez, executive director at CRC.

To read the entire news release, click here.