BM Technologies, First Sound Bank in $23M deal; SEC rejects VanEck's Bitcoin ETF

TOP NEWS IN BANKING & FINANCIAL SERVICES

* Digital banking platform BM Technologies Inc. agreed to merge with Seattle-based community business bank First Sound Bank to form BMTX Bank, a fintech-based bank. Under the terms of the deal, which is expected to close in the second half of 2022, BM Technologies will pay up to $7.22 in cash for each First Sound common share, or approximately $23 million in aggregate consideration.

* The U.S. Securities and Exchange Commission rejected a proposal filed in March by Cboe BZX Exchange Inc. that would allow it to list VanEck's Bitcoin exchange-traded fund. "[T]he Commission has consistently required that the listing exchange have a comprehensive surveillance-sharing agreement with a regulated market of significant size related to bitcoin, or demonstrate that other means to prevent fraudulent and manipulative acts and practices are sufficient to justify dispensing with the requisite surveillance-sharing agreement. The listing exchange has not met that requirement here," the regulator said in its order.

➤ Combined profits at Brazil's 3 biggest listed banks grow to 17B reais in Q3

Brazil's three largest listed banks saw strong results in the third quarter, as aggregate net income surged to 17.04 billion reais, up 44.8% from 11.77 billion reais in the third quarter of the previous year.

➤ European financial services M&A activity dips in October

European M&A activity in the financial services sector edged downward in October, the first year-over-year decline since January, according to data from S&P Global Market Intelligence.

BANKING

* The board of Media, Pa.-based Wawa Employees' CU is seeking regulatory approval to merge with Chadds Ford, Pa.-based Franklin Mint FCU, according to information posted on the former's website. Terms of the transaction were not disclosed.

* University of Wisconsin CU increased its hourly foundation wage to $17 from $16, marking a 35% wage increase since 2015. The increase will directly benefit nearly 20% of the credit union's workforce, or about 160 employees.

FINANCIAL SERVICES

* The Consumer Financial Protection Bureau filed a lawsuit against FirstCash Inc. and Cash America West Inc. for allegedly violating the Military Lending Act. The regulator accused the companies of charging higher than the allowable 36% annual percentage rate on pawn loans to active-duty service members and their dependents. The CFPB is seeking an injunction, redress for affected borrowers, and a civil money penalty.

* USDC stablecoin creator Circle Internet Financial Inc. is establishing a regional headquarters in Singapore and investing in a Japanese yen stablecoin effort through the newly established Circle Ventures, Bloomberg News reported, citing an interview with CEO Jeremy Allaire.

* San Mateo, Calif.-based fintech Upstart Holdings Inc. is planning to work with banks and credit unions to offer small-dollar consumer loans at annual percentage rates below 36%, American Banker reported. The product is still in the development stage and the company is reportedly hoping to start offering it by the end of 2022.

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