Kucinich Urges Hearing on Bank Merger

[Flabbergasted]

Rep. Dennis Kucinich wants the Federal Reserve to hold a public hearing on Huntington Bancshares' $3.3 billion purchase of Sky Financial Group Inc., saying the deal would result in fewer bank locations in his Cleveland-area district.

The Ohio Democrat said in a Thursday letter to Sandra Pianalto, president of the Federal Reserve Bank of Cleveland, that he is "not convinced" the deal "will best serve the convenience and needs of the communities in my district or throughout the affected region."

Banks in his district, Kucinich wrote, are being replaced by payday lenders and check-cashing outlets "with usurious interest rates and fees."

Kucinich, who chairs the Domestic Policy Subcommittee, predicted that the merger of Columbus, Ohio-based Huntington with Bowling Green, Ohio-based Sky Financial would lead to fewer bank branches. Such a reduction in bank branches in Kucinich's district "has ushered in a crisis of foreclosures, predatory mortgage and payday lending," Kucinich wrote.

His subcommittee has oversight duties of federal bank regulators, and earlier this week Kucinich held a hearing on subprime lenders' woes.

http://www.forbes.com/feeds/ap/2007/03/23/ap3546571.html

[AnOhioan]

1. Keeping it kicked