In response to the news that Figure Bank has abandoned its quest for a federal banking charter, National Community Reinvestment Coalition (NCRC) President and CEO Jesse Van Tol released the following statement:
“This is good news for anyone who thinks we should have a stable, safe and appropriately supervised financial system. Bank charters are not just any old business license. They are a privilege that comes with serious obligations to serve the public interest — something Figure twice indicated it had no desire to do, first when it asked for a charter without deposit insurance and then again when its amended application barely pretended to address banks’ obligations under the Community Reinvestment Act. Had Figure not withdrawn its application, both law and common sense would have dictated that regulators reject it. Now, they have one less distraction from their vital work across the country.”
NCRC led several other community-based organizations in vigorously opposing Figure’s charter application, writing in a comment letter that the proposal was “silent about…core issues of honesty, transparency and sustainability.” For more information, see here and here.