| As Truist
Buys Fintech With No CRA Review FDIC
Lackadaisical on Merger Review
By Matthew
Russell Lee, Patreon Maxwell
Book
BBC-Guardian
UK - Honduras
- ESPN
NY
Mag
SOUTH BRONX /
SDNY, May 3 – Amid talk
about renewed serious in
Washington about merger review
including under the Community
Reinvestment Act, there are
questions.
Today's question
is why banks' acquisitions of
fintech are not subject to
CRA, or apparently to any
pre-consummation review at
all. Witness: "Truist
acquired Long Game, a fintech
startup that has raised
millions in venture capital,
executives have told
TechCrunch exclusively."
So such an
acquistion can take place with
no public notice, just an
"exclusive" to a trade
publication? "
Neither company
disclosed what Truist paid for
Long Game, or the company’s
revenues, saying only it was
'growing year over year'
Led by co-founder and CEO
Lindsay Holden, Long Game has
raised funding from investors
such as Vestigo Ventures,
Franklin Templeton, Thrive
Capital, and Collaborative
Fund." Congress
should close this loophole.
Because
when there is review, there
can be impact. Fair Finance
Watch with Inner City Press on
the FOIA challenge First
Internet Bank's application to
buy First Century. Their
records were so bad it was delayed,
and now the deal is dead,
Inner City Press story here.
(Industry press turns it into
a story of slow regulators,
rather than as it was, bad CRA
record).
Also on mergers,
the FDIC's Request for
Information, on which Fair
Finance Watch commented
weeks ago, is still on the
FDIC's website with no updates
- or uploads of comments
submitted - since April 13. So
it is impossible to know what
the industry is saying. We'll
have more on this.
***
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