TLDR; $MCB is opening 800+ Bank Accounts per day via a program manager with marketing materials “FDIC Insured, No Social Security Required, Send Money to Columbia in Minutes!, Illegal? #Selfie” and found an unmet, underbanked need.
BAAS is a Reg Arb gamble. Banks didn’t want to keep up with KYC/AML compliance costs boosted earnings outsourcing to unregulated (Defi) fintechs neobanks. Now 23.5% of the $MCB deposit base.
Voyager brought $MCB payments business into the FTX/SBF/Alameda DOJ investigation. Alameda was Voyager's #1 lending partner and used its offer for Voyager as a ruse to get to their deposit base at $MCB to boost liquidity
OMG. INBD. $MCB is not liable... MyBambu is liable right?
'BAAS offerings.. ongoing investigations by federal and state... concerning prepaid debit card products.. We provide OVERSIGHT.. MUST MEET ALL INTERNAL and REGULATORY REQUIREMENTS'
and its ~23.5% of our deposits $MCB
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Banks were suspected of holding many frozen foreign, real estate, railroad, and investment loans and acted as if this were the case in their search for safety and liquidity in the short-term market, even though long-term yields were 3 to 4 times higher. $XLF