Banking news roundup

This week in banking news: First Republic's $30 billion rescue fails to calm investors; Pima Federal Credit Union in Arizona adds new members; Visa and Mastercard successfully navigate a challenge to an antitrust settlement; and more.

First Republic's $30 billion rescue fails to soothe investor fear

First Republic Bank
A First Republic Bank branch in Los Angeles on March 10.
Eric Thayer/Photographer: Eric Thayer/Bloomb
First Republic Bank staved off a potential collapse after a group of bigger financial firms agreed to park a combined $30 billion in deposits with the lender. But the cash injection is only a short-term solution, and investors are unsatisfied. The San Francisco-based company will still need to move quickly to find a way to remain independent or strike a deal for a takeover. The deal with the 11 lenders including Bank of America, JPMorgan Chase, Citigroup and Wells Fargo includes deposits with an initial term of 120 days. —Max Reyes, Austin Weinstein and Allyson Versprille, Bloomberg News

Republic Bank closes purchase of CBank

Welcome to Kentucky road sign for stock art.
Adobe Stock
Republic Bancorp, the parent company of Republic Bank & Trust, closed its merger with CBank and CBank's wholly owned subsidiary, Commercial Industrial Finance for approximately $51 million in cash. "We are excited about our further expansion into the Cincinnati area and the long-term value the CBank merger presents to our shareholders. Combining CBank's strength in commercial lending and private banking with Republic's capital and resources is a gain for the combined organization's clients and associates," said Logan Pichel, president and CEO of Louisville, Kentucky-based Republic. "In addition, the acquisition of CIF greatly expands our existing equipment financing and leasing operations and provides a national footprint for these services." The combined bank would have had $6.1 billion in assets at the end of 2022, as well as branches in Kentucky, Ohio, Indiana, Florida and Tennessee. —Chana R. Schoenberger

VCs ask Trudeau for lifeline to replace SVB credit in Canada

Canadian money
Brent Lewin/Bloomberg
A group representing Canada's venture capital sector is asking Prime Minister Justin Trudeau's government to provide emergency financing to help startups affected by the collapse of Silicon Valley Bank.  The Canadian Venture Capital and Private Equity Association is lobbying Trudeau to dust off an emergency program used in the Covid-19 pandemic, in which smaller companies that need cash could issue convertible debt to a government agency known as BDC, according to a letter seen by Bloomberg. The venture capital group is also asking the government to relax the terms of a separate public-private financing partnership, in a way that accelerates the flow of venture capital to companies. —Esteban Duarte, with assistance from Brian Platt, Bloomberg News

Pima Federal Credit Union in Arizona expands membership

p19d5r635m1md119msn6kjrejme6.jpg
Pima Federal Credit Union in Tucson, Arizona, has expanded its membership eligibility to include Navajo County after receiving the go ahead from the National Credit Union Administration. The $1 billion-asset institution enlisted the help of Dollar Associates, a full-service credit union consulting firm based in Birmingham, Alabama, to navigate the process. "Pima Federal is here for our members, and we thrive by delivering on our value promise of smart, simple [and] personal. … We look forward to extending this promise of service to new members in the community," Eric Renaud, president and chief executive of Pima Federal, said in a press release Thursday. —Frank Gargano

Visa, Mastercard prevail in $5.6 billion antitrust settlement challenge

Visa and Mastercard
Daniel Acker/Bloomberg
A $5.6 billion settlement Visa and Mastercard previously reached with 12 million retailers in a class action over fixing of credit and debit card interchange fees withstood an appeals-court challenge, Reuters reports. The 2nd U.S. Circuit Court of Appeals in Manhattan on March 15, 2013 rejected a bid to undo the settlement by gas stations that were involved in separate disputes with oil companies Chevron and Shell. Circuit Judge Dennis Jacobs saw no reason for the gas stations' issues to delay payouts to other class members. Visa and Mastercard initially agreed to settle the case in 2012. —Kate Fitzgerald

Mastercard adds cross-border partners

Mastercard with thumb
Adobe Stock
Mastercard has signed an agreement with transaction processing firm PXP Financial and payment technology company Payall to support cross-border payments. PXP's technology and other products will be available over Mastercard's network, including payouts to banked and unbanked consumers. Payall and PXP will collaborate on identifying new markets and channels, such as new mobile wallets and physical locations that can accommodate cross-border payments. Payall specializes in compliance, risk management, and user experience, while PXP operates as a merchant acquirer. The partnership is part of a strategy at Mastercard to collaborate with other payment companies and fintechs to enhance the services the card network offers beyond cards. —John Adams

Discover’s breaks ground in Ohio on its fifth call center

Discover
Adobe Stock
Discover Financial Services on March 14 broke ground on a 103,000-square-foot, $16 million customer care center in Whitehall, Ohio to be completed next year, according to a press release. Discover's fifth call center will expand the company's presence in Ohio, where it already operates a data center. Discover's 100% U.S.-based customer service corps currently operates from call centers in Arizona, Delaware, Illinois and Utah. The newest facility will feature a community center available for public use. Last year, Discover opened a call center designed to house 1,000 workers on Chicago's South Side in a historically disadvantaged area. —Kate Fitzgerald
MORE FROM AMERICAN BANKER