Crypto-friendly Cross River Bank faces FDIC scrutiny over 'unsafe' practices
The Federal Deposit Insurance Corporation issued a consent order to crypto-friendly Cross River Bank regarding “unsafe or unsound banking practices.” The FDIC supplies insurance for depositors in American commercial banks and savings banks. A spokesperson did not comment but directed The Block to the consent order which was issued on March 8 and made public Friday. A Cross River Bank spokesperson said the order is "the result of a standard review" pertaining to aspects of the bank's lending processes two years ago.
“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 by failing to establish and maintain internal controls, information systems, and prudent credit underwriting practices,” the 34-page consent order said. Since that time, we proactively made significant enhancements to our fair lending and other programs including investing in technology and personnel. At this time many of the enhancements have been completed or will be completed in the coming months," the spokesperson said in a statement to The Block.
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