Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Federal banking regulators this thirty days cracked straight down on MetaBank, a significant card that is prepaid, an action that tossed into concern the pending initial general public providing of prepaid credit card system manager NetSpend Corp.

Austin, Texas-based NetSpend is planned to amount its long-planned IPO on Thursday, relating to reports in the economic cables. But its ties that are close MetaBank caused rounds of conjecture about if the IPO will in truth take place. A NetSpend spokesperson states he can’t comment.

On Tuesday, MetaBank’s parent business, Storm Lake, Iowa-based Meta Financial Group Inc., reported to the phone number for carolinapaydayloans.org Securities and Exchange Commission that work of Thrift Supervision had taken enforcement actions against MetaBank. The OTS banned MetaBank from issuing any brand new loans under its iAdvance item at the time of Wednesday, and in addition it put settings on its business of issuing loans in advance of customers’ receipt of income income tax refunds, alleged anticipation that is tax-refund. Continue reading “Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO”