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- Lax Monitoring Costs Coinbase $100M
Lax Monitoring Costs Coinbase $100M
A backlog in Coinbase’s transaction monitoring system was flagged for neglecting proper due diligence
Robert Baron & Anna Lad
January 06, 2023
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Banking News
Regulatory Hiccups Cancel $23M Bank Merger
A $23M merger between Seattle-based First Sound Bank and the BaaS provider BM Technologies has been canceled. Executives reconsidered the merger as a result of regulatory inquest and the increased interest rates of late 2022. BM Technologies’ CEO Luvleen Sidhu said:
In this environment, we believe BMTX is better situated as a FinTech with a sponsor bank without the capital needs and credit risk that an on-balance sheet strategy would entail. We believe this is in the best long-term interest of our shareholders.
Washington Federal CEO Injured in Plane Crash
Washington Federal CEO Brent Beardall and Washington Fed's Utah commercial division manager, Dane Margetts, were injured in a deadly Provo plane crash that killed their pilot. Both are recovering. During his leave of absence, VP Cathy Cooper is filling in for Beardall.
Credit Union News
2022 Matches 2021 for 16 Acquisitions
We reached 16 acquisitions of banks, by credit unions, in 2022, thanks to a last-minute deal by Land of Lincoln Credit Union, which plans to purchase Colchester State Bank. The all-cash deal will augment Land of Lincoln’s $375M in assets with a new branch and $82M more in assets.
SAFE CU Members Receive Over $2M in Dividends
In its 26th year of the SAFE Member Giveback Program, the federal credit union distributed $2.16M to its members. Higher account usage led to higher payments, as did use of debit cards, deposits, and loans.
SAFE CEO Michael Baker said:
2022 was a record year for SAFE in many ways. We are delighted to share a portion of SAFE’s net earnings directly with the amazing members who made it possible.
Financial Services & Blockchain
Lax Monitoring Costs Coinbase $100M
A backlog in Coinbase’s transaction monitoring system was flagged by New York’s Department of Financial Services (NYDFS) as neglecting due diligence after a dramatic increase in transactions from 2020 to 2021. Going forward, Coinbase will work with a NYDFS-chosen monitor until at least 2024. Adrienne Harris, Superintendent of NYDFS, said:
Coinbase failed to build and maintain a functional compliance program that could keep pace with its growth.
40% Staff Cuts at Silvergate Capital
CEO Alan Lane authorized a 40% cut in Silvergate’s staff, a dramatic shift from the hiring boom of early 2022. When FTX collapsed, Silvergate customers withdrew over $8B in assets. The bank is now selling assets to cover withdrawals.
Upcoming Events
January 18th (11:00am PST) | WebinarAccessing $1.2B in Loan GuaranteesYou are invited to attend a webinar to learn how you can join over 120 financial institutions and lenders who are currently leveraging loan guarantees to reduce their credit risk to business customers. Joining us will be Sanford Livingston, CEO of Northern California Financial Development Corporation (Nor-Cal FDC), and Teveia Barnes of StandardC, past Commissioner, California Department of Financial Institutions and Director, California IBank.
