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SAFE Banking Act Excluded from $1.7T Bill
The cannabis-focused legislation was not included in the latest Spending bill
Robert Baron & Anna Lad
December 30, 2022
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Banking News
Wells Fargo Wins Mortgage Case But Loses $3.7B to CFPB
Wells Fargo has seen legal action often over the last three years, and 2022 is no exception. While an Illinois federal judge ruled against including Wells Fargo in a $300M lawsuit on racial discrimination in mortgage lending, the Consumer Financial Protection Bureau (CFPB) announced it is in a $3.7B settlement with the bank.
SAFE Banking Act Excluded From Spending Bill
The cannabis-focused legislation was not included in the senate’s $1.7T spending bill. While it’s passed in the House seven times, it’s been blocked continually in the Senate. The bill would offer protection to banks and companies doing business with legal cannabis businesses.
Montana senator Steve Danes (R) said:
The failure to pass my bipartisan ‘SAFE Banking Act’ means communities in Montana and across our country will remain vulnerable to crime where legal businesses are forced to operate in all-cash.
Credit Union News
Alabama One CU Purchases Community Bank
This purchase marks the fifteenth such transaction – where a credit union buys a community bank – in the year 2022. Alabama One CU didn’t disclose how much it spent when purchasing the First Bank of Wadley. It will add $130M in assets and 5 branches to Alabama One’s $956 assets and 18 branches.
Bill Wells, CEO of Alabama One, said
It is our mission to partner with the communities we serve, and we do this by bringing more than just brick-and-mortar branches to a small town.
25th Navy Federal Toy Drive Breaks Records
Over 300 branches of the Navy Federal Credit Union participated in a Toys For Tots toy drive in December 2022. Along with donating 22,000 toys, members and their families raised $33k in donations.VP of Toys For Tots, Ted Silvester, said
Navy Federal Credit Union’s support will allow Toys for Tots to deliver hope and the magic of the holidays to children in need in communities throughout the U.S.
Financial Services & Blockchain
Disgraced FTX Execs Plead Guilty
Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pled guilty to a variety of charges this week, including wire fraud, wire fraud conspiracy, and conspiracy to commit commodities fraud. They could receive sentences between 50-110 years.
Gary Gensler, SEC chair, announced:
We further allege that Ms. Ellison and Mr. Wang played an active role in a scheme to misuse FTX customer assets to prop up Alameda and to post collateral for margin trading.
Impending Fintech Contraction in 2023
Higher interest rates are a primary cause behind more fintechs shutting their doors. Fintechs exploded during the low-interest environment of 2020 and 2021. But that all changed when the Federal Reserve hiked interest rates in 2022. TSVC General Partner Spencer Greene said:
We saw a company that raised $20 million that couldn't even get a $300,000 bridge loan because their investors told them `We are no longer investing a dime.'
