FDIC alleges Cross River engaged in unsafe lending practices
The Federal Deposit Insurance Corporation (FDIC) has requested Cross River Bank – known for its services to fintech and crypto firms like Visa and Coinbase – to “self-correct” and “appropriately address” weaknesses in its lending activities. On April 28, the FDIC made public a consent order executed with Cross River Bank on March 8, alleging that the bank engaged in “unsafe” or “unsound” banking practices related to its compliance with applicable fair lending laws and regulations in 2021. Despite accepting the consent order, Cross River has yet to admit nor deny the violations discovered in the 2021 report of examination. It was noted: “The FDIC considered the matter and determined, and the Bank neither admits or denies, that it engaged in the unsafe or unsound banking practices related to its compliance with applicable fair lending laws and regulations”. The order states that the bank must immediately take action to “increase” its focus on its “system of internal controls, information systems, credit underwriting practises, and internal audit systems related to the consumer protection laws and regulations.” Furthermore, the bank is required to monitor its compliance with fair lending laws and promptly “self-correct” any violations. Cross River was ordered to “appropriately address” the deficiencies and weaknesses identified in