H&R Block Bank Beckons

September 06, 2005, 1:00 a.m. EDT 1 Min Read

KANSAS CITY - (09/06/05) -- Tax preparers H&R Block, whichhas evolved into a diversified financial services provider, saidlast week it expects to win a bank charter under Utah's IndustrialLoan Company regulations later this year. The company, which runs alarge mortgage banking and financial consulting operation, is thelatest, along with Wal-Mart, Sallie Mae, and other non-traditionalfinancial service providers, to seek a bank charter under Utah'slaws. Separately, Block reported a loss of $28.3 million, or 9cents a share, for its first quarter, compared with a loss of $36.7million, or 11 cents a share, a year earlier. The company usuallyhas a down season in its first quarter, which comes after taxseason. Revenue for the first quarter rose 26% to $615 million,lifted by strong sales in the company's Option One mortgagedivision, where loan volume surged 60% to an all-time high of $10.9billion.

For reprint and licensing requests for this article, click here.

MORE FROM AMERICAN BANKER

Monetary policy

Better-than-expected jobs report backs Fed's rate stance

The Bureau of Labor Statistics issued its unemployment report for June, showing that the economy added 147,000 jobs. The report supports the Federal Reserve's patience to cut interest rates.

By Colin McNamara

27m ago
Politics

Exclusive: Warren presses Fed on stress capital buffer

A Federal Reserve proposal to calculate stress capital buffers would mean that the banking system could be less likely to withstand an economic shock, the Democratic senator said.

By Claire Williams

1h ago
Monetary policy

The Fed can ignore Trump — but markets are listening

The president and his allies have stepped up their verbal attacks on the Federal Reserve and its chairman in recent weeks, and while the tough talk has not changed policy, it has sent a clear message to the financial sector.

By Kyle Campbell

3h ago
Cryptocurrency

Erebor's charter bid rides wave of fintech-friendly policy

Backed by tech billionaires, the crypto-focused digital startup bank's timely application reflects the current administration's openness to new tech-driven banking models — and raises concerns about regulatory impartiality, considering its backers' political ties.

By Ebrima Santos Sanneh

July 2
Regulating Crypto

Ripple joins other crypto firms seeking trust bank charters

The application follows on the heels of Circle and Wise, as crypto and payment companies seek crypto custody approval and direct access to the Federal Reserve payment system.

By Penny Crosman

July 2
Regulation and compliance

NCUA sets high bar for criminal referrals after Trump order

The credit union regulator, responding to a recent executive order, has established strict new standards for prosecuting financial crimes. Regulators are now supposed to make criminal referrals only in cases where putative defendants appear to have known they were breaking the law.

By Nathan Place

July 2