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Avoiding Over-Regulation: American Fintech Council Warns That FDIC New Act Could Hinder Innovation

The Fintech Times

The new proposal will allegedly strengthen FDIC-insured depository institutions’ (IDI) recordkeeping for custodial deposit accounts with transactional features. “Withdraw the proposal” Sharing its concerns with the FDIC, the AFC sent a comment letter to the independent agency.

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FDIC Approves Square For Banking License

PYMNTS

The Federal Deposit Insurance Corporation ( FDIC ) gave the green light to an application from the FinTech firm Square to create a de novo industrial bank in Utah, the agency said on Wednesday (March 18). FDIC staff found that Square satisfied each of the statutory factors required for approval, subject to certain conditions.

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FDIC Looks To Modernize Bank Reporting

PYMNTS

FDIC) is considering nixing its quarterly reports of banks in an attempt to modernize the way data is handled. To do so, the FDIC is going about a new competition among 20 data and technology firms to try and find the best way to move forward, WSJ reported. Recently, the FDIC also eased up the Volcker Rule.

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FDIC hints at new bank reconcilement rules following Synapse failure

Finextra

The US Federal Deposit Insurance Corporation (FDIC) is looking at plans to protect customers from fintech failures, reports Bloomberg Law.

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FDIC Defines Bank Regs For FinTechs

PYMNTS

The Federal Deposit Insurance Corporation ( FDIC ) is setting new regulations for FinTechs and industrial banks that will enhance transparency and establish record-keeping requirements, the agency said on Tuesday (March 17). In 1982, the government passed rules making all banks eligible for deposit insurance.

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House Chairwoman Tells FDIC To Halt ILC Charters

PYMNTS

Congresswoman Maxine Waters , chairwoman of the House Committee on Financial Services, wants to stop any new Industrial Loan Company (ILC) charters until further notice, citing concerns about outdated rules. An ILC allows a firm to go around the usual banking company holding requirements, but it still guarantees deposits from the FDIC.

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SVB Collapse Puts Additional Pressure on CFOs

The Finance Weekly

These concerns grew on Sunday when New York’s Department of Financial Services closed Signature Bank, in order to “protect depositors” , and appointed the FDIC as the bank’s receiver. While it sounded like a safe investment, it appears that the bank forgot a simple rule of economics: bonds have an inverse relationship with interest rates.

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