- Bank has until May 7 to submit a “work on mistakes” report
- This is the largest counterparty in the U.S. financial field that has willingly partnered with fintech firms
The Federal Deposit Insurance Corporation (FDIC) issued a “consent order” last week. It said Cross River Bank used “unreliable or insecure” practices to comply with fair lending laws.
The financial counterparty signed the agreement back on March 8.. But the bank neither admitted nor denied these accusations..
The order also says the company must “immediately” address internal control and audit lapses.
Cross River Bank has until May 7 to submit an evaluation report and plans for its loan products, their profitability and risks. It should also list applications accepted by third parties for loan requests.
FDIC did not specify which precedents prompted the review. The agreement only states that they occurred in 2021.
The day before the document was published, CRB CEO Gilles Gadet said that regulatory attention to cryptocurrency-friendly banks has increased.
That said, Cross River remains perhaps the largest counterparty in the U.S. financial field to agree to work with fintech firms.
Interestingly, the bank signed the consent act on March 8. And five days later, he entered into an agreement with Circle, the issuer of the USDC.
This move could be both a routine check on the background of the collapse of major banks the month before last, and evidence of the federal government’s campaign against the cryptocurrency segment. We mentioned something like this in this article.