| SoFi Bank Bid To Buy Golden
Pacific Protested By Fair Finance Watch As
Regulatory Evasion
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- The
Source
SOUTH BRONX,
April 3 – In the midst of the
Coronavirus pandemic, and with
a fintech and crypto-currency
proponent then installed as
Acting Comptroller, SoFi and
its controller SoftBank sought
to get a U.S. bank charter.
On March 9,
2021 SoFi said it wants to buy
Golden Pacific Bank, to "speed
up" its charter and taking of
insured deposits.
On April 3, Inner City Press
filed this: "Dear Acting Comptroller, Mr.
Lybarger, and others in the OCC: This is
a timely first comment opposing and requesting
an extension of the required OCC's public
comment period on the application by SoFi
Interim Bank to acquire Golden
Pacific.
This is a major proposal, by a fintech in
which SoftBank has a large
stake.
Inner City Press / Fair Finance
Watch opposed SoFi's previous, suspended
attempt to get into banking. Since then the
questions have only grown.
As to SoftBank, the dispute regarding
another of its holdings, WeWork, portends the
type of problems that regulators like the OCC
are directed to keep out of, not invite into,
the banking system. See also, for now, this
This stealth proposal - it appears that Golden
Pacific does not even report HMDA data - is a
cynical attempt to game the regulatory system.
See, e.g., "SoFi (NYSE:IPOE) is becoming a
bank with its $22.3 million acquisition of
Golden Pacific Bancorp (OTCPK:GPBI). Golden
Pacific is a California-based community bank
regulated by the Office of the Comptroller of
the Currency and with $150 million in assets.
The acquisition which will be paid for in cash
builds on SoFi's current application to obtain
a national bank charter with the OCC. On
closing of the acquisition, the fintech
company will switch its current bank
application to a change of control
application. This should accelerate the
timeline for SoFi's attainment of a national
bank charter." Inner City
Press opposes that CIBC application as well -
but this application clearly should not be
approved. Public hearings are needed, and
requested.
For the above reasons, including
the ongoing COVID-19 pandemic lockdowns and
restrictions, the comment period should not
yet start or should extended, until in person
public hearings can be held." Watch this site.
***
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