Enova Scraps Grasshopper Bank Acquisition After Pressure From State AGs
What's happening
Enova has withdrawn its bank regulatory applications to acquire Grasshopper Bancorp, saying the approval process is "susceptible to political pressure and outside advocacy." The company pulled applications with the Office of the Comptroller of the Currency and the Federal Reserve, and Enova's CEO criticized the lack of "clear standards" for bank licensing. The decision ends the planned acquisition of digital business bank Grasshopper.
Why it's trending
The move follows growing political and state attorney general pressure on the deal, which Enova says made the regulatory path untenable.
SignalNewly emerging, confirmed across 1 independent source type.
Story volume
Stories per dayAngles you could write
If toothless licensing standards and political theater can derail a fintech-bank deal, maybe the market should stop relying on regulators to decide who can compete in banking.
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Original sources4
- Enova scraps proposed Grasshopper Bank acquisitionFinTech FuturesSep 16
- Citing political pressure, Enova pulls Grasshopper deal
American online lending company Enova has pulled the plug on its application to acquire digital business bank Grasshopper, claiming the process is "susceptible to political pressure and outside advocacy".
FinextraSep 15 - Enova Scraps Grasshopper Bank Acquisition After Pressure From State AGs
Online financial services company Enova has withdrawn its bank regulatory applications related to the proposed acquisition of Grasshopper Bancorp, saying in a Monday (Sept. 14) press release that the process is “susceptible to political pressure and outside advocacy.” Enova withdrew its applications with the Office of the Comptroller of the Currency (OCC) and the Federal […] The post Enova S
PYMNTSSep 15 - Enova scraps Grasshopper deal
The Chicago-based fintech withdrew its applications from the OCC and Fed, and its CEO decried the absence of “clear standards” for bank licensing, in addition to “political pressure.”
Banking DiveSep 15
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