March 18, 2020 / 9:03 PM / 14 days ago

U.S. bank regulator approves banking charters for Square Inc and Nelnet Inc

WASHINGTON, March 18 (Reuters) - The U.S. Federal Deposit Insurance Corporation on Wednesday approved separate applications by payment company Square Inc and student loan servicer Nelnet Inc to become banks under a special charter, the first time the agency has granted such licenses in over a decade.

The companies were granted "Industrial Loan Company" charters which allow non-banks to originate loans and collect insured deposits.

The decision is likely to attract major criticism from consumer advocates, banks and Democratic lawmakers, who say the special license is a loophole which poses risks to the banking system and consumers.

Reporting by Michelle Price Editing by Chris Reese

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below