FDIC, Regulation and Utah - Community Banking Brief

FDIC Approves Square For Banking License

PYMNTS

MARCH 19, 2020

The Federal Deposit Insurance Corporation ( FDIC ) gave the green light to an application from the FinTech firm Square to create a de novo industrial bank in Utah, the agency said on Wednesday (March 18). The headquarters will be in Salt Lake City, Utah.

FDIC

FDIC Utah San Francisco Capital

FDIC's unusual order against tiny Utah bank: Sell yourself or liquidate

American Banker

JANUARY 4, 2024

The FDIC's public rebuke against it indicates a last-ditch effort to figure out a less messy solution than receivership. One of the smallest banks in the country hasn't consistently made a profit since 2007 and has been the subject of enforcement actions.

FDIC

FDIC Utah Community Bank Community

A Utah bank is gone after 16 years of losses. Why did it survive so long?

American Banker

APRIL 25, 2024

Liberty Bank in Salt Lake City had been "structurally unprofitable" since 2008, according to its regulators. Experts criticized the FDIC for allowing the bank's demise to play out in slow motion.

Utah

Utah FDIC Regulation Community Bank

Webinars

Back to Basics with Reconciliations

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California Dept. of Business Oversight launches “true lender” investigation of auto title lender’s partnership with Utah bank

CFPB Monitor

SEPTEMBER 10, 2020

Thereafter, “using its existing lending operations and personnel, LoanMart commenced ‘marketing’ and ‘servicing’ auto title loans purportedly made by CCBank, a small Utah-chartered bank operating out of Provo, Utah.” Thus, both the OCC and FDIC have adopted regulations rejecting the Second Circuit’s Madden decision.

Utah

Utah California FDIC West Virginia

California DFPI announces consent order with auto title loan servicer that was subject of “true Lender” investigation

CFPB Monitor

DECEMBER 21, 2021

LoanMart was the subject of an investigation launched in September 2020 in which the DFPI (then still named the Department of Business Oversight) was investigating whether LoanMart, through its partnership with a Utah bank, was evading the interest rate cap in the Fair Access to Credit Act (FACA).

California

California Utah FDIC Regulation

OCC approves national bank charter applications of fintech company

CFPB Monitor

JANUARY 24, 2022

as a full service national bank headquartered in Cottonwood Heights, Utah. In its press release announcing the withdrawal, the OCC stated that Figure Technologies had amended its charter application for Figure Bank, National Association, to offer FDIC-insured deposit accounts.

National

National Fintech Company FDIC

Varo Is First FinTech to Receive Full-Service Charter from the OCC

CFPB Monitor

AUGUST 7, 2020

s application to the FDIC for deposit insurance was approved in February of 2020 subject to conditions that included OCC charter approval, and approval from the Board of Governors of the Federal Reserve System (the “Federal Reserve”) permitting Varo Money, Inc. team — the first consumer fintech to receive a national bank charter.

Fintech

Fintech FDIC Utah National

Banks Fighting SoFi’s Banking Charter

PYMNTS

JUNE 20, 2017

The action comes a week after the FDIC announced that digital lender SoFi had applied to the state of Utah for a special banking charter known as an ILC. Ten years ago Walmart to launch in Utah, where many ILCs are based, and was shut down.

Utah

Utah Indiana America Community

OppFi files complaint to block “true lender” challenge by California Department of Financial Protection and Innovation

CFPB Monitor

MARCH 15, 2022

The OCC’s attempt to provide a clear bright line test for determining when a bank is the “true lender” in a bank-model program through a regulation was overturned by Congress under the Congressional Review Act.) In addition to “true lender” threats, non-bank participants in bank-model programs will continue to face state licensing threats.

California

California Innovation Utah West Virginia

SoFi’s Bank Charter Has Almost No Chance, Former SEC Chairman Says

Bank Innovation

SEPTEMBER 18, 2017

The charter, submitted to the State of Utah last June, would give the online lender the ability to collect deposits insured by the […].

Utah

Utah Online Security FDIC

Fed proposal to revise control rules would not create alternative to OCC fintech charter

CFPB Monitor

MAY 16, 2019

Under current regulations, private equity firms are ineligible to register as bank holding companies because they are control companies that are engaged in impermissible activities. Risks inherent in these partnerships could (and should) be mitigated by careful structuring and, potentially, OCC and/or FDIC rulemaking.

Utah

Utah Fintech New York National

gpi Makes SWIFT Cross-Border Gains

PYMNTS

DECEMBER 20, 2018

19) announcement, the company said the application is with the Federal Deposit Insurance Corporation (FDIC). Reuters reported that the license allows non-traditional finance firms to collect government loans, and that the bank would be chartered in Utah. Regulators had said a refiling would be permitted. In its Wednesday (Dec.

Utah

Utah FDIC System Retail

Why The ICBA Is Fighting Industrial Loan Charters For FinTechs

PYMNTS

OCTOBER 17, 2017

An industrial bank is an FDIC-insured depository institution that is generally subject to the same banking laws and regulations as any other bank charter type, with the important exception of the Bank Holding Act of 1956. ILCs are used to form industrial loan companies, better known as industrial banks.

Industry

Industry Fintech FDIC Community Bank

California court rejects OppFi’s attempt to block DFPI’s “true lender” challenge to loans made through bank partnership

CFPB Monitor

OCTOBER 6, 2022

As alleged the Commissioner is not attempting to regulate the transfer of loans in the secondary market. It would be helpful if the FDIC were to submit an amicus brief supporting OppFi’s position regarding federal preemption of California usury law under Section 27(a) of the FDI Act.

California

California FDIC Analysis Utah

After win, consumer advocates target another Utah bank over expensive loans

American Banker

MARCH 16, 2023

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Utah

Utah FDIC Compliance Regulation

Bankers Tell Me Their Top Industry Game Changers

Jeff For Banks

APRIL 19, 2015

I teach Bank Profitability for the Washington, Utah, and Montana Bankers'' Associations EDP programs. Utah has many Industrial Loan Companies (ILC''s), which are FDIC supervised financial institutions that can be owned by commercial firms not regulated by a federal banking agency, like a utility company.

Industry

Industry Montana Utah Washington

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

CFPB Monitor

OCTOBER 10, 2019

According to the complaint , Kabbage entered into the scheme with Celtic Bank, a foreign state-chartered bank in Utah, which has no maximum rate limit for commercial loans. Celtic could not make and keep the loans on its balance sheet because they would create an unacceptable risk under FDIC regulations.

Massachusetts

Massachusetts California New York Utah

NY federal district court deals blow to OCC fintech charter

CFPB Monitor

MAY 6, 2019

The OCC also argued that the NYDFS’s claims were untimely because it can no longer challenge the OCC’s long-standing regulation (12 C.F.R. According to the OCC, the regulation represents a reasonable interpretation of ambiguous language in the NBA. e)(1)) interpreting the term “business of banking” in the NBA.

Fintech

Fintech New York National Regulation

Square’s ILC bid may open floodgates for fintechs

Payments Source

SEPTEMBER 11, 2017

Square became the third fintech firm in recent months to seek out a bank charter. Others are likely to follow.

Fintech

Fintech Utah FDIC Regulation

California lawmakers urge FDIC to rein in bank partnerships

CFPB Monitor

JUNE 15, 2022

Four Democratic members of the California state legislature recently sent a letter to the Federal Deposit Insurance Corporation (FDIC) urging the agency to take action against FDIC-supervised banks that partner with non-bank lenders to originate high-cost installment loans.

FDIC

FDIC California West Virginia North Carolina

Community Banking Brief

FDIC Approves Square For Banking License

FDIC's unusual order against tiny Utah bank: Sell yourself or liquidate

Webinars

Trending Sources

A Utah bank is gone after 16 years of losses. Why did it survive so long?

Webinars

California Dept. of Business Oversight launches “true lender” investigation of auto title lender’s partnership with Utah bank

California DFPI announces consent order with auto title loan servicer that was subject of “true Lender” investigation

OCC approves national bank charter applications of fintech company

Varo Is First FinTech to Receive Full-Service Charter from the OCC

Banks Fighting SoFi’s Banking Charter

OppFi files complaint to block “true lender” challenge by California Department of Financial Protection and Innovation

SoFi’s Bank Charter Has Almost No Chance, Former SEC Chairman Says

Fed proposal to revise control rules would not create alternative to OCC fintech charter

gpi Makes SWIFT Cross-Border Gains

Why The ICBA Is Fighting Industrial Loan Charters For FinTechs

California court rejects OppFi’s attempt to block DFPI’s “true lender” challenge to loans made through bank partnership

After win, consumer advocates target another Utah bank over expensive loans

Bankers Tell Me Their Top Industry Game Changers

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

NY federal district court deals blow to OCC fintech charter

Square’s ILC bid may open floodgates for fintechs

California lawmakers urge FDIC to rein in bank partnerships

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