Uncle Sean's Update - 11/26/21

Happy Friday!!!
 
Due to the Thanksgiving Holiday (hope everyone had a great one), we are producing a fairly abbreviated update this week.  Don’t forget to sign up here to have the Uncle Sean Update sent direct to your inbox each week!  Here is the Uncle Sean Update for 11/26/21:
 

• Jerome Powell gets the “nomination nod” to lead the Federal Reserve as Chairman for a second term; and Lael Brainard to serve as vice-chair.

 

• FinWise Bancorp announced the pricing of their IPO late last week at $10.50 (Nasdaq: FINW) raising $36.8M.  FinWise Bank (FDIC #35323; total assets $330M) is a lending / asset side sponsor bank to several fintech firms (source: FedFis FinTech Analytics©).

 

• The OCC, the Federal Reserve, and the FDIC published a joint final rule to establish “computer-security incident notification” requirements.  Basically requires FI’s to notify their designated regulator within 36 hours of a defined “notification incident.”

 

• Also released this week was the Joint Statement on Crypto-Asset Policy Sprint Initiative and Next Steps by the OCC, Federal Reserve, and FDIC.  I’m certainly not alone in thinking there was going to be significantly more substance after several months of work than a 2 page document that basically states they will create “greater clarity” on crypto assets throughout 2022….   Wow…  While regulatory clarity is certainly welcome, we need it sooner rather than later.  In addition to evaluating bank regulatory capital (recall the Basel recommendation of 1250% risk weighting) and liquidity standards for crypto assets, the agencies are specifically looking at:
  • Crypto-asset safekeeping and traditional custody services
  • Ancillary custody services
  • Facilitation of customer purchases and sales of crypto-assets
  • Loans collateralized by crypto-assets
  • Issuance and distribution of stablecoins
  • Activities involving the holding of crypto-assets on balance sheet

 

• Meanwhile, the OCC released their own interpretive letter clarifying (1) Authority of a Bank to Engage in Certain Cryptocurrency Activities and (2) Authority of the OCC to Charter a National Trust Bank.  Essentially confirming that national banks and federal savings associations can engage in certain cryptocurrency, distributed ledger and stablecoin activities, so long as they demonstrate that they have adequate controls in place.  Further stating that banks must work with their regulator and obtain written approval (i.e. “non-objection”) before engaging in crypto related activities.

 

• The ICBA announced the launch of BankTech Ventures Investment Fund to accelerate tech opportunities and adoption at community banks.

 

• Klarna looks to expand in the US with the Pay Now option and Klarna Card.  The Klarna card allows consumers to split a purchase at any merchant into four installments without a merchant integration to Klarna.  You can use the card to also “Pay Now” and not just for BNPL installments.  Yes, Uncle Sean is rolling his eyes as “paying now” isn’t really a novel fintech feature concept, but it makes for good marketing I guess – LOL!!!

 

• Consumer finance tech company CURO (NYSE: CURO) announced an agreement to acquire Heights Finance for $360M.

 

• Notable FinTech funding for the week:
  • Digital Currency Group (crypto conglomerate and owner of Genesis, CoinDesk, and more) is back in the funding markets again with a new $600M Credit Facility.  This comes just few weeks after their $700M secondary equity transaction that valued the company at $10B.
  • MoonPay (crypto payments infrastructure) raised a huge $555M in Series A funding at a valuation of $3.4B!  The company is profitable and intends to use the funding to accelerate its global footprint.  “The company’s fiat-to-crypto on-ramp powers more than 250 wallets, websites and applications in more than 160 countries and has processed more than $2 billion in transactions to date.”  WOW – not too bad for a two year old company with their first round!!!
  • EarlyBird (investment app for families) raised $4M in Seed funding to continue to build out their “community-first approach to childhood investing” and create “an onramp to modern wealth creation for the next generation.”
  • Resilience (cyber insurance and security) raised $80M in Series C to support middle market expansion and international growth promoting their integrated model of cybersecurity solutions with insurance protections
  • Column Tax (mobile income tax software) raised $5.1M Seed Round and announced the launch of their first product “Tax Refund Unlock” with partnerships from Klover and Atomic

 
 
Random Uncle Sean Stuff:

• 29 days until Christmas Day!!!!!!!!
• Did you ever notice that when you put the words "The" and "IRS" together it spells "Theirs"…..  Mmhmmm….
• And for the final November Recipe Sharing (in case you are already sick of turkey), here is Uncle Sean’s Mexican Street Corn and I’ve never met anyone that didn’t like it:
  • 6 ears of corn shucked
  • ½ cup Mexican Crema
  • ½ cup grated Asadero cheese (save for last)
  • ½ cup chopped cilantro
  • 2 to 3 peppers finely chopped out of a small can (3.7 oz) of Chipotle peppers in Adobo sauce – just depends on how spicy you like it (I like to use 2 or more because of that smokey and tangy flavor) 
  • Juice of 1 lime (save for last)
  • 1 TBL chili lime seasoning
  • 1 tsp garlic salt
  • 1 tsp butter
  • Roast / blacken the ears of corn on an uncovered grill until it starts to char a little (doesn’t take long so watch it close while turning often).  Finish off the corn in the oven for about 10-15 minutes at 350 degrees.  Cut the corn off the cob.  In a large skillet, melt the butter and add the corn and all ingredients except for the lime juice and grated Asadero Cheese.  Simmer for just a few minutes to get everything melted together and mixed well.  Remove from heat and add lime juice, then top with the grated Asadero Cheese and serve!  

 
 
Have a GREAT weekend and please stay safe!!!
 
Uncle Sean
 
 
Sometimes known as Sean Mayo – contact me directly for scope and pricing of custom reports / analysis projects at smayo@fedfis.com | 214-604-6961 – or you can contact FedFis Sales Team at 512-960-0911 | info@fedfis.com #FedFisHasTheData FedFis
 
FedFis, LLC disclaimer – The views and opinions of Uncle Sean are of his own and may not necessarily represent the views, endorsements, and/or opinions of FedFis, LLC – we all know he’s a little bit different; but that’s why we love him.
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