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Bank Acquisition Opens the Door for Cryptocurrency Monitoring
Chicago's Burling Bank set to be acquired by LevelField Financial
Robert Baron & Anna Lad
February 03, 2023
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Banking News
Layoffs at Flagstar After NYCB Merger
Despite promises that there would be no "notable reductions in force" after New York Community Bank (NYCB) merged with Flagstar for $2.6B, NYCB has closed nearly 70% of Flagstar home lending offices. The move comes with zero warning to the hundreds of employees let go. Thomas Cangemi, CEO of NYCB, said;
We wanted to make sure that this business is not losing any money. The goal here was not to bleed.
Bank Acquisition Opens the Door for Cryptocurrency Monitoring
When Houston-based LevelField Financial acquires Chicago-based Burling Bank, it will create the first American full-service chartered bank that allows customers to monitor cryptocurrency and traditional funds. Their focus is on making it easier for customers to manage both types of assets. CEO of LevelField Gene Grant said;
We have no interest, today or at any point in time, taking any principal positions. We are [strictly] customer facilitation.
Credit Union News
CU Celebrates Black History Month
Students, faculty, and employees of historically Black Howard University have been served for decades by the Howard University Employees Federal Credit Union (HUE FCU). In February, the CU, with $13M in assets, is implementing an email and social media campaign to educate customers about Black individuals' history and societal contributions.
CEO of HUE FCU, David Muse, said:
It's time to celebrate and recognize the legacy of our leaders who paved the way for future generations.
CUs Perform Well In Auto-Lending
The Credit Union National Association's (CUNA) first Credit Union Auto Lending Monthly Report examined the results of CU auto-lending practices. Thanks to low auto loan interest rates, credit unions' market share, new loan origination, and balances increased last year. The economics of credit unions' growth hinged on lower monthly payments and lower customer delinquency rates.
Financial Services & Blockchain
20% Layoffs at Upstart Lender
Upstart, a loan company using AI and alternative data to vet potential borrowers, has laid off 365 workers. This dismissal brings Upstart's headcount back to 1,500 employees, the same as last year. Changes were made due to falling demand for loans and doubt in the company's underwriting model.
BankProv Refuses Crypto Collateral
After losing $47.9M to charge-offs in 2022, Massachusetts-based BankProv has decided to no longer originate loans backed by cryptocurrency mining machines. This commitment comes alongside the bank's search for new leadership after former CEO Dave Mansfield vacated the position in December.
Interim co-CEO Carol Houle said:
Despite our 2022 losses, we enter 2023 well-capitalized and well-diversified. During the fourth quarter, we took decisive action to reduce our exposure to loans secured by cryptocurrency mining rigs.
