Happy Friday and Happy Independence Day next week!!! 🎆🧨🎇
Goodbye to the first half of 2023 – Here is the Uncle Sean Update for 6/30/23:
Couple of quick Fed updates this week:The Fed Reserve published the results of their annual bank stress test with the punchline that “all 23 banks tested remained above their minimum capital requirements.”Generally, this clears the way for dividends and share buy backs for the nation’s largest publicly traded banks, but I have been reading that some analysts are thinking banks may pare back in anticipation of heightened regulatory capital requirements on the horizon – I guess we’ll know more pretty soon as ex-dividend date announcements start coming out.The Fed Reserve also announced a list of 57 early adopter organizations that have “completed formal testing and certification on the FedNow Service in advance of its launch in late July.”At the 2023 ECB forum this week, Fed Reserve Chairman Jerome Powell reiterated his “higher for longer” interest rate stance stating that inflation is unlikely to hit the Fed’s 2% target until 2025; and that two more rate hikes are very likely this year.2025??? Holy Cow!!! 😲
👀 Worth paying attention to from a credit quality standpoint… In a 6-3 decision, the Supreme Court struck down the President’s $400B student debt forgiveness plan citing the Administration did not have the authority to do so (would need Congress approval).Hoping this does not result in additional personal loan delinquencies / consumer based asset quality concerns as student loan payments are set to restart in October. 😬
👀 Also a timely delivery related to credit / asset quality as we watch CRE exposures with a careful eye… The FDIC, Federal Reserve, OCC, and NCUA issued an Interagency Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts.
PacWest (Nasdaq: PACW; Bank subsidiary is Pacific Western Bank), consistent with their previously announced strategy to focus on relationship-based community banking, announced the sale of a $3.54B portfolio of Lender Finance Loans to Ares Management Corp.
Texas Capital Bank (Nasdaq: TCBI) has partnered with Extend in order to offer virtual card issuance and spend management platform for business customers.
Coastal Community Bank (BaaS Sponsor Bank; Nasdaq: CCB) announced they have launched ZEscrow powered by ZSuite Tech with the goal of leveraging ZSuite’s digital escrow sub-ledgering solution to enhance the bank’s commercial deposit growth. Those folks over at ZSuite Tech have been on a roll – nice work!!! 😊
Hate to see this, but… Following up on last week’s Cease and Desist order, Nevada’s Financial Institution Division has placed Prime Trust into receivership.
The CFPB hits ACI Worldwide with a $25 million civil money penalty as a result of a 2021 botched electronic payments test that effected nearly 500,000 accounts by initiating $2.3B in unauthorized mortgage debit withdrawals.
Sendwave (international money transfer) announced the launch of Sendwave Pay for U.S. customers including a mobile app and Visa Debit card.
Another week, another fraud naughty list consortium – which is a good thing as we move more and more into real-time / instant transfers (Tanner Mayo has been saying it for about 4 years now, “real-time money movement equals real-time fraud”). Sardine announced the launch of SardineX, a 314b real-time fraud data consortium consisting of banks, card networks, payment processors, fintechs, and decentralized finance platforms, via an API-enabled risk analysis and transaction feedback platform. For more info – check out the SardineX data consortium blog.
Socure (in the red-hot digital identity verification space) has acquired Berbix for approximately $70M in cash and stock; and announced the launch of their Predictive Document Verification (DocV) 3.0 solution.
Ramp (corporate card and finance automation) has acquired Cohere.io, an AI powered customer support tool.
Kind of “news / not news” since this was originally announced last Nov, but hey – they are in beta now… The Square Credit Card (running on the AMEX network) features a credit limit “determined by the sales a seller processes through Square.” Square is also expanding on Square Loans to include a monthly installment payment option as opposed to just daily repayments on sales settlements.
Notable FinTech funding for the week:Unit21 (risk and compliance platform for FI’s, fintechs, neobanks, etc.) raised $45M in Series C funding round. Check out this blog highlighting their Fintech Fraud DAO consortium that now “covers more than 10% of adult consumer transactions in the U.S.”JustPaid (AI powered finance company) raised $3.5M Seed round.Cart.com (end-to-end e-commerce platform) raised $60M in Series C round at a $1.2B valuation.Maza (neo immigrant bank utilizing ITIN as identity check) raised $8M Seed Round.
Random Uncle Sean stuff:
Ah, the 4th of July was always (and still is) one of Uncle Sean’s favorite holidays!!!! So I’m cutting this short so I can fire up the grill, ice down the beverages, and blow some stuff up for the next four days – WOOHOO!!!!! 🤠Okay – some real quick Dad Jokes:If a pig lost his voice, is he now “disgruntled…???”What’s a lawyer’s favorite drink? Subpoena colada….Yep – here it is so you can have it in your head all day – Escape (the pina colada song) – LOL!!!!I have a joke about trickle down economics, but 99% of people won’t get it… I laughed a little too hard at that one!!! 😆🤣And lastly for my Accounting and Payroll folks out there…. It’s called gross pay because it’s disgusting to see what you could’ve made… 🙄
Have a GREAT Independence Day holiday weekend and please stay safe!!!
Uncle Sean
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
Goodbye to the first half of 2023 – Here is the Uncle Sean Update for 6/30/23:
Couple of quick Fed updates this week:The Fed Reserve published the results of their annual bank stress test with the punchline that “all 23 banks tested remained above their minimum capital requirements.”Generally, this clears the way for dividends and share buy backs for the nation’s largest publicly traded banks, but I have been reading that some analysts are thinking banks may pare back in anticipation of heightened regulatory capital requirements on the horizon – I guess we’ll know more pretty soon as ex-dividend date announcements start coming out.The Fed Reserve also announced a list of 57 early adopter organizations that have “completed formal testing and certification on the FedNow Service in advance of its launch in late July.”At the 2023 ECB forum this week, Fed Reserve Chairman Jerome Powell reiterated his “higher for longer” interest rate stance stating that inflation is unlikely to hit the Fed’s 2% target until 2025; and that two more rate hikes are very likely this year.2025??? Holy Cow!!! 😲
👀 Worth paying attention to from a credit quality standpoint… In a 6-3 decision, the Supreme Court struck down the President’s $400B student debt forgiveness plan citing the Administration did not have the authority to do so (would need Congress approval).Hoping this does not result in additional personal loan delinquencies / consumer based asset quality concerns as student loan payments are set to restart in October. 😬
👀 Also a timely delivery related to credit / asset quality as we watch CRE exposures with a careful eye… The FDIC, Federal Reserve, OCC, and NCUA issued an Interagency Policy Statement on Prudent Commercial Real Estate Loan Accommodations and Workouts.
PacWest (Nasdaq: PACW; Bank subsidiary is Pacific Western Bank), consistent with their previously announced strategy to focus on relationship-based community banking, announced the sale of a $3.54B portfolio of Lender Finance Loans to Ares Management Corp.
Texas Capital Bank (Nasdaq: TCBI) has partnered with Extend in order to offer virtual card issuance and spend management platform for business customers.
Coastal Community Bank (BaaS Sponsor Bank; Nasdaq: CCB) announced they have launched ZEscrow powered by ZSuite Tech with the goal of leveraging ZSuite’s digital escrow sub-ledgering solution to enhance the bank’s commercial deposit growth. Those folks over at ZSuite Tech have been on a roll – nice work!!! 😊
Hate to see this, but… Following up on last week’s Cease and Desist order, Nevada’s Financial Institution Division has placed Prime Trust into receivership.
The CFPB hits ACI Worldwide with a $25 million civil money penalty as a result of a 2021 botched electronic payments test that effected nearly 500,000 accounts by initiating $2.3B in unauthorized mortgage debit withdrawals.
Sendwave (international money transfer) announced the launch of Sendwave Pay for U.S. customers including a mobile app and Visa Debit card.
Another week, another fraud naughty list consortium – which is a good thing as we move more and more into real-time / instant transfers (Tanner Mayo has been saying it for about 4 years now, “real-time money movement equals real-time fraud”). Sardine announced the launch of SardineX, a 314b real-time fraud data consortium consisting of banks, card networks, payment processors, fintechs, and decentralized finance platforms, via an API-enabled risk analysis and transaction feedback platform. For more info – check out the SardineX data consortium blog.
Socure (in the red-hot digital identity verification space) has acquired Berbix for approximately $70M in cash and stock; and announced the launch of their Predictive Document Verification (DocV) 3.0 solution.
Ramp (corporate card and finance automation) has acquired Cohere.io, an AI powered customer support tool.
Kind of “news / not news” since this was originally announced last Nov, but hey – they are in beta now… The Square Credit Card (running on the AMEX network) features a credit limit “determined by the sales a seller processes through Square.” Square is also expanding on Square Loans to include a monthly installment payment option as opposed to just daily repayments on sales settlements.
Notable FinTech funding for the week:Unit21 (risk and compliance platform for FI’s, fintechs, neobanks, etc.) raised $45M in Series C funding round. Check out this blog highlighting their Fintech Fraud DAO consortium that now “covers more than 10% of adult consumer transactions in the U.S.”JustPaid (AI powered finance company) raised $3.5M Seed round.Cart.com (end-to-end e-commerce platform) raised $60M in Series C round at a $1.2B valuation.Maza (neo immigrant bank utilizing ITIN as identity check) raised $8M Seed Round.
Random Uncle Sean stuff:
Ah, the 4th of July was always (and still is) one of Uncle Sean’s favorite holidays!!!! So I’m cutting this short so I can fire up the grill, ice down the beverages, and blow some stuff up for the next four days – WOOHOO!!!!! 🤠Okay – some real quick Dad Jokes:If a pig lost his voice, is he now “disgruntled…???”What’s a lawyer’s favorite drink? Subpoena colada….Yep – here it is so you can have it in your head all day – Escape (the pina colada song) – LOL!!!!I have a joke about trickle down economics, but 99% of people won’t get it… I laughed a little too hard at that one!!! 😆🤣And lastly for my Accounting and Payroll folks out there…. It’s called gross pay because it’s disgusting to see what you could’ve made… 🙄
Have a GREAT Independence Day holiday weekend and please stay safe!!!
Uncle Sean
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
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