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- Women-Led Fintech Fund Raises $78M
Women-Led Fintech Fund Raises $78M
Vesey Ventures plans to give portfolio companies an advantage by offering them access to a diverse network early on.
Anna Lad & Robert Baron
April 28, 2023
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Banking News
Epstein Contagion Extends to Citi Banker
Citi's North American private capital head, Paul Barrett, departed from the bank after it was revealed he had scheduled at least five meetings with Jeffrey Epstein from 2014 to 2017 while he worked for JPMorgan Chase. Barrett's departure followed an internal investigation by Citi. The bank had been unaware of Barrett's association with Epstein before the inquiry.
JPMorgan faces lawsuits from the US Virgin Islands and an alleged victim of a sex-trafficking operation linked to Epstein. JPMorgan's asset & wealth management CEO Mary Erdoes said:
JP Morgan was aware by 2006 that Epstein was accused of paying cash to have underage girls and young women brought to his home.
SVB Executive Payment Fallout
A bill introduced by Senators Elizabeth Warren (D-MA) and Josh Hawley (R-MO) seeks to give the FDIC the ability to "claw back pay from executives of failed banks." While legislation has a slim chance of being passed, existing authorities such as the SEC and the FDIC have the power to pursue executive pay.
While the FDIC can recoup compensation from failed bank executives, it can only do so if investigations find misconduct. The FDIC is investigating the collapse of Silicon Valley Bank and Signature Bank, but it is unclear if it will find wrongdoing.
Credit Union News
CUNA Supports Digital Asset Regulation
The Credit Union National Association (CUNA) voiced its support for appropriate oversight and regulation of the digital assets marketplace. It noted the need for a comprehensive regulatory framework to govern the digital assets system. The organization highlighted concerns around the potential for digital assets to facilitate criminal activity.
In a letter to the US House of Representatives, the organization stated that nonbank fintechs should be brought under the purview of regulatory bodies to combat financial crime and protect consumers.
CUNA President Jim Nussle said:
Credit unions are concerned that digital assets expand some providers' ability to offer products and services outside the scope of regulations, and the ease at which they can be used to facilitate criminal activity… Consumers receive less protection when bank-like services… are obtained outside of the regulated banking system.
CARD Act Poses Headache For CUs
The Credit Union National Association (CUNA) has asked the Consumer Financial Protection Bureau (CFPB) to be careful not to impose excessive or restrictive regulations when considering the Credit Card Accountability Responsibility and Disclosure Act (CARD Act).
CUNA's request came in a letter in response to the CFPB's request for information on the consumer credit card market. The letter argued that while credit unions support the CARD Act's aims, the act's compliance shouldn't make regulatory compliance more difficult for CUs.
Financial Services & Blockchain
Women-Led Fintech Fund Raises $78M
Fintech fund Vesey Ventures has closed its debut fund at $78m. The fund, founded by former Amex Ventures managing directors Dana Eli-Lorch, Lindsay Fitzgerald, and Julia Huang, has invested in startups Equi, Cyrus, and Grain.
Vesey Ventures plans to give portfolio companies an advantage by offering them access to a diverse network early on. The firm is the only US fintech fund with an office in Tel Aviv and has two Israeli-based portfolio companies.
We only invest in startups that we believe we can meaningfully support through our experience and our network, both of which are financial services-centric.
CFPB Monitors AI Tool Use
The Consumer Financial Protection Bureau (CFPB) is scrutinizing the use of generative artificial intelligence (AI) by banks and financial institutions. The watchdog looked at how generative AI and chatbot technologies might undermine or create risks in customer care. Biases and wrong information may introduce risks.
The CFPB is preparing for the negative impact of generative AI on trust, adding that "unchecked AI" posed threats to people's civil rights.
Market Movements (4.24 - 4.28)
