WASHINGTON - (08/16/05) -- The Securities and ExchangeCommission filed suit against five Wall Street speculators whoallegedly bought into the first tier of last year's initial publicoffering of a hot mutual savings bank conversion, earning them aquick $2 million profit. The SEC charged the five illegallyestablished first tier status in last year's IPO of New HavenSavings Bank, which allowed them first crack at a maximum amount ofshares, by paying off nominees who were already depositors in themutual thrift, and thus qualified for the first tier. Immediatelyafter receiving the newly issued stock, valued at $4.9 million, thenominees transferred the stock to the group, the SEC claims. Thegroup then sold the stock for a quick 20% after-tax profit, almost$2 million. The SEC charges come as two Texas credit union giants,Community CU and OmniAmerican CU, are asking a federal courtWednesday to free them to convert to mutual savings banks, then toissue stock through IPOs. In most IPOs of mutual savings banks, thebank sets a date of a year, or sometimes two years, before the IPOin which someone may deposit funds in order to qualify in the firsttier.
-
As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
July 4 -
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
July 3 -
A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
July 3 -
Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
July 3 -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
July 3