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The Government Accountability Office (GAO) reported this week that no financial institution has been punished by federal regulators for serving cannabis-related businesses, and found no indication of civil or criminal penalties. Based on interviews with 74 financial institutions and 51 cannabis businesses, the GAO found that perceived regulatory uncertainty, operational costs, and compliance burdens still lead most banks to avoid the sector. About 1,000 banks and credit unions filed cannabis-related suspicious activity reports in 2024, roughly 11% of insured depository institutions, but not all serve cannabis companies as ongoing customers. Cannabis businesses face account closures, high fees—some paying upward of $100,000 annually—and lending challenges. The report follows requests from Sens. Warnock, Warren, Smith, and Fetterman. Options to increase banking access include descheduling, rescheduling to Schedule III, or safe harbor protections, but no single solution exists.
Navy Federal Credit Union's VP of fraud and physical security, Carrie Foran Sepulveda, discusses the shift from fraud to scams, where criminals trick customers into moving money. Fraud attempts fell about 25% from 2024 to 2025, but scams are rising. Navy Federal uses an AI-based platform from Cube AI that deploys bots to converse with scammers and identify scam accounts, enabling the credit union to warn members. The $204 billion-asset credit union has prevented about $125 million in wire scam losses over the past 19 months. It has also stopped facilitating transfers when red flags are present, discontinuing a prior affidavit practice after a lawsuit. Foran Sepulveda calls for clearer rules on holding funds in suspected scam cases.
HSBC announced that CFO Pam Kaur will step down next year before the bank's annual general meeting and will not seek re-election to the board. After leaving the CFO role, Kaur will advise CEO Georges Elhedery on ongoing strategic projects through the end of 2028. Kaur, the first woman to serve as finance chief for the $3.4 trillion-asset bank, said 2027 feels like the right time to pursue new leadership opportunities. Analyst Edward Firth of Keefe, Bruyette & Woods called her pending exit 'a bit of a surprise' but praised her support of Elhedery's restructuring, noting HSBC's stock has risen 125% since she became CFO at the start of 2025. HSBC has begun an internal and external search for her successor. Kaur will continue to receive her salary, cash allowance in lieu of pension, and benefits through Sept. 9, 2027, and will be eligible for annual incentive awards for 2026 and 2027.
Chime CEO Chris Britt said Wednesday that becoming a bank will enhance customer trust and allow faster product innovation. The San Francisco-based fintech announced Tuesday it seeks to acquire one of its bank partners, Stride Bank, for $590 million in cash. Britt, speaking at a Goldman Sachs investor conference, called the move 'an inevitability' to achieve leadership in banking and cited the current regulatory climate and the need for full control over product delivery in the age of AI. He noted that working with bank partners involved redundant steps and friction points that slowed launches. Acquiring $5.4 billion-asset Stride will let Chime hold consumer deposits and fund loans directly, removing a step from the process. Britt also said the charter will foster trust with customers wary of banking through a fintech and open geographic expansion for lending products. The deal comes as regulators show openness to fintech bank acquisitions and charter applications.
Mercury received conditional approval for deposit insurance from the Federal Deposit Insurance Corp. on Tuesday, more than 260 days after submitting its application. Mercury Bank N.A., based in Salt Lake City, must provide $300 million in initial paid-in capital and submit background information for proposed senior executive officers, among other conditions. Founder Immad Akhund said the vision is to become a tech company with an actual bank. Mercury Bank is projected to open next year, pending Federal Reserve approval of its bank holding company application. The Office of the Comptroller of the Currency gave conditional charter approval in April. Mercury appointed Jon Auxier as CEO of the proposed bank. The FDIC also recently approved VALT Bank. OCC Comptroller Jonathan Gould and FDIC Chair Travis Hill have expressed support for de novo bank formation.
Circle Internet Group has agreed to acquire Singapore-based cross-border payments infrastructure firm Tazapay for $400 million in stock, according to a regulatory filing. The deal brings over $25 billion in annualized payment volume, more than 60 banking and fintech partners, and payment rails covering over 100 markets—roughly 60% of which already include stablecoins—to the USDC issuer. Circle CEO Jeremy Allaire said the combination will accelerate worldwide USDC adoption. The companies first partnered last year, and Circle led Tazapay's Series B funding. The transaction is expected to close in 2027, subject to regulatory approvals including from the Monetary Authority of Singapore. TD Cowen analysts noted limited integration risk given Tazapay's role as a Circle Payments Network design partner.
Reston, Virginia-based John Marshall Bancorp has agreed to acquire in-state lender Eagle Financial Services for $253 million in stock. The deal, expected to close in Q1 2027, will create a $4.4 billion-asset company with 23 locations, propelling John Marshall into Virginia's top 10 banks by assets. The combined entity will operate under two brands: Bank of Clarke will serve the Shenandoah Valley, while John Marshall Bank will serve the Washington, D.C. metro market. The acquisition nearly triples John Marshall's branch footprint and almost doubles its assets. Leadership will include Chris Bergstrom as executive chairman and Brandon Lorey as CEO. The deal represents an 11.5% premium to Eagle Financial's closing price and marks John Marshall's first acquisition in its 20-year history.
Block, the parent company of Cash App and Square, has applied to the Office of the Comptroller of the Currency to establish Builders Bank & Trust, a national trust bank that would provide custody and related fiduciary services, including for bitcoin and stablecoins. The bank would be uninsured and would not take deposits or make loans. Lee Woolley, Block's digital asset strategy lead and former CEO of Treasury Department Federal Credit Union, would serve as president and CEO. The charter would give Block a federal supervisory framework for certain custody activities. Block's Square business previously obtained an industrial loan company charter from Utah in 2020 and established Square Financial Services in 2021. The move follows other fintechs seeking bank charters, including Revolut's recent conditional OCC approval, and comes after President Trump's executive order to streamline charter applications.
Georgia Skyline Bank, a proposed de novo that received conditional deposit insurance approval in December, has recapitalized $189 million-asset Highlands Community Bank in Covington, Virginia, with a $15 million capital infusion that closed Sept. 1. According to co-founder and President Ryan Floyd, the deal offers shareholders a better opportunity than continued fundraising and provides a Day One balance sheet near $200 million, avoiding the 18-24 months it would have taken to build a de novo to that size. The combined institution will operate the two brands separately, with Georgia Skyline opening a loan production office and full-service branch in Roswell, Georgia, by early October, and Georgia Skyline's board fully integrating into Highlands' by Sept. 15.
Huntington has elevated Brant Standridge to president of both the holding company and the bank subsidiary, effective immediately. The appointment follows an extensive succession planning process. Standridge, previously president of consumer and regional banking, will now oversee all revenue-generating businesses and report to CEO Steve Steinour, retaining his current duties. He joined Huntington in 2022 after roles at Truist and BB&T. CEO Steinour plans to remain chairman and CEO for several more years.