Retail & Commercial

WASHINGTON — Fifth Third Bank must pay a total of more than $21 million to settle separate claims by the federal government that the bank's indirect auto-loan business discriminated against African-Americans and that the bank deceptively signed up customers for a credit card add-on product.

It's hard to decide which is more surprising: that the largest U.S. bank has almost abandoned the business of making home loans insured by the Federal Housing Administration, that lots of big banks could be right behind it, or that the FHA might not even need to care.

Fifth Third's mortgage division has launched the Community Reinvestment Mortgage Special, a program designed to cover closing costs for mortgage customers buying or refinancing homes in low-income areas.

Citigroup has agreed to issue private-label credit cards for Wawa, a Mid-Atlantic convenience store chain.

The $4.8 billion-asset HomeStreet said in a press release Monday that it will pay $49.8 million in stock, or $11.70 a share, and $5.5 million in cash for the $200 million-asset Orange County Business Bank.

The $417 million-asset company appointed John Kaufman, 33, as CFO on Friday, according to a news release. Kaufman was also named CFO of MSB's Millington Savings Bank.

Debt-buying giant Encore Capital Group officials announced Monday that the company is acquiring a controlling stake in Baycorp, one of Australia's largest debt resolution companies. Terms of the deal were not disclosed.

Officials with the Ohio attorney general’s collection-enforcement division report that approximately $34 billion in government debt owed by corporations and consumers is being pursued by 70 outside law firms and third-party agencies.

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including how postal banking could help low-income people in the U.S. and the continuing debate over interchange fees.

IMGCAP(1)]