RESTON, Va. - (11/07/05) -- Student loan giant Sallie Mae, whichhas been expanding its business outside of its core educationalfinancing, announced Friday it has been approved by the FDIC tooperate a Utah-chartered Industrial Bank. Utah's industrial banks,so-called back-door banks, have allowed many non-financialcompanies, including the auto manufacturers and several largeretailers, to collect insured deposits and provide financialservices beyond their core businesses. The student lender,chartered by the federal government in 1972 to facilitate asecondary market for guaranteed student loans originated by creditunions and banks, plans to capitalize Sallie Mae Bank with $100million and grow it by through brokered deposits, escrow accountsand retail services, to as much as $1.2 billion by the end of thefirst three years. The operations will be conducted through asingle branch in Salt Lake City but will be conducted nationwide bytelephone, mail and the Internet. Meantime, credit unions' ownUtah-chartered credit card bank is still pending.
-
The Wyoming-based digital asset bank filed paperwork to challenge last month's district court ruling, which affirmed the Federal Reserve's view about its discretion over master account applications.
33m ago -
The former head of the Consumer Financial Protection Bureau resigned Friday after the troubled rollout of the Free Application for Federal Student Aid led some House Republicans to call for his resignation.
58m ago -
The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
1h ago -
Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
1h ago -
The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
4h ago -
In the inaugural iteration of American Banker's news quiz, test your knowledge on top articles covering the legal battles of the Consumer Financial Protection Bureau, new technology testing at JPMorgan Chase, earnings season and more.
4h ago