ESG Regulations in Florida May Influence Climate First Bank's Departure

If you’re interested in learning more about our team, visit us here. If not, enjoy our write-up and we look forward to continuing to provide you with industry news every Friday.

Banking News

Climate First Bank Considers Leaving Florida

Climate First Bank, a St. Petersburg-based environmentally focused bank, is considering leaving Florida after the passage of the Stop WOKE Act, which penalizes banks that deny services to certain industries. Climate First, known for its strong ESG stance, has removed references to environmental, social, and governance (ESG) principles from its website and is exploring the possibility of relocating to another state or converting to a national charter to navigate the new legislation's requirements.

Climate First CEO Ken LaRoe said:

Crispin Odey’s Firm Under Legal Scrutiny

Morgan Stanley has cut ties with hedge fund founder Crispin Odey's investment firm amid allegations of abuse and harassment by 13 women. JPMorgan Chase is also reviewing its relationship with Odey Asset Management. The United Kingdom’s Financial Conduct Authority is investigating the hedge fund for potential nonfinancial misconduct, following a previous probe focused on corporate governance issues. Odey denies the allegations.

Credit Union News

$9M Grant to GoWest Foundation

The GoWest Foundation has been awarded a $9 million grant by the Washington Department of Commerce. The grant aims to empower credit unions in Washington State to collaborate and pilot a credit-building program, expanding access to capital for small business owners from marginalized communities. This initiative will foster cross-sector collaboration, enabling credit unions to provide loans and support throughout the state. It highlights the recognition of credit unions as trusted financial partners and aims to break down barriers to capital access.

Southwestern US Credit Union Buys Bank

In the fourth acquisition of a bank by a credit union in 2023, Western Heritage Bank will be purchased by the New Mexico-based Nusenda Credit Union. The deal is expected to close in 2024. The acquisition will provide Nusenda with six additional branches, including a presence in Texas. Concerns among trade groups have risen regarding credit unions' tax exemptions and their ability to offer higher buying prices. Independent Community Bankers of America (ICBA) has argued against CUs’ tax exemptions.

Joe Christian, CEO of Nusenda Credit Union, is enthusiastic about the acquisition, the first for the CU. He said:

Financial Services & Blockchain

Clarity Gleaned from Binance’s Court Filings

According to court filings, SEC Chair Gary Gensler offered to advise Binance in 2019 before assuming his regulatory role. The SEC recently sued Binance for failing to register as an exchange and broker-dealer, and court documents revealed the cryptocurrency firm's connections to two now-defunct banks. Additionally, Senators Elizabeth Warren and Chris Van Hollen have written a letter to the U.S. Attorney General, urging the Department of Justice to investigate Binance for potentially making false statements to Congress.

Customer Service Chatbots May Confuse Customers

The Consumer Financial Protection Bureau (CFPB) warned that poorly deployed chatbots can hinder customer interaction and impede problem resolution. The CFPB received complaints from frustrated customers who encountered difficulties reaching their financial institutions for timely and clear responses. Using chatbots as the primary customer service delivery channel, especially when they can’t meet customer needs, is ineffective. The CFPB emphasized the risks of incorrect information, failure to protect privacy, and the potential negative impact on customer confidence and trust in financial institutions.

The CFPB’s report stated: