Category: Finance

Three U.S. senators are pressing crypto-heavy Silvergate Bank about its knowledge of crypto exchange FTX’s alleged misuse of customer funds. Sens. Elizabeth Warren, D-MA, Roger Marshall, R-KS, and John Kennedy, R-LA, penned a letter Monday to Alan Lane, CEO of parent company Silvergate Capital Corp., saying they were “disappointed by [his] evasive and incomplete response” to […]

New York Community Bank is closing 69% of Flagstar’s retail home-lending offices and shifting to a branch-only model for that sector, the bank said Tuesday in a fourth-quarter earnings report. The move lends credence to reports by HousingWire and the Detroit Free Press that hundreds of Flagstar’s mortgage employees were laid off with “no warning” […]

Dive Brief: The Consumer Financial Protection Bureau said in a web post Wednesday that it has proposed an amendment to the Credit Card Accountability Responsibility and Disclosure Act (Card Act) of 2009 that would effectively cap credit card late fees at $8 per payment, and ban those fees from being over 25% of the minimum […]

Buy now, pay later provider Zip is avoiding acquisitions as it narrows its focus on certain geographies and customers to boost profitability, said CEO Larry Diamond.  Australia-based Zip had planned to purchase BNPL rival Sezzle last year, but the deal was scrapped in July. Over the past year, Zip has sharpened its focus on core markets […]

Dive Brief: Banking-as-a-service provider BM Technologies is cutting 25% of its workforce, part of an effort to lower expenses by $15 million in 2023, the company announced Monday. The fintech’s new “profit enhancement plan” also includes lowering costs associated with third-party service providers, the company said. BM Technologies’ effort to reduce expenses follows the dissolution […]

Dive Brief: Digital payments juggernaut PayPal told employees that it’s cutting 2,000 workers, or about 7% of the company’s employees, in the next few weeks. The San Jose, California-based company said that the reduction in force was necessary to adapt to changes it faces with respect to customers, competitors and the world.  “Addressing these changes […]

Citizens Bank is continuing its cutback in auto lending, CEO Bruce Van Saun told Reuters on Monday. The Providence, Rhode Island-based lender aims to scale its portfolio in that segment back to between $5 billion and $6 billion by 2024, the wire service reported. That’s down from a December 2021 high of $14.5 billion and […]

Varo Bank, the first neobank to be granted a national bank charter by the Office of the Comptroller of the Currency, has slowed its burn rate following several cost cuts it implemented over the past year, according to the bank’s latest call report. The bank reported a net loss of $84 million for 2022’s first […]

Roughly $5.4 billion in COVID-19 relief money may have been given to people with questionable Social Security numbers, the Pandemic Response Accountability Committee said Monday. The panel identified 69,323 questionable SSNs used to obtain the funds from the Small Business Administration’s Economic Injury Disaster Loan program and Paycheck Protection Program between April 2020 and October […]

Crypto bank Anchorage Digital announced eight executive moves Tuesday designed to boost the company’s compliance. The bank hired Mark duBose to serve as its chief compliance and risk officer. He previously filled similar roles at Circle and Centre, and spent two years as Santander’s Boston-based chief operational risk officer. He also worked for four years […]