The FDIC issued a consent order to Cross River Bank regarding "unsafe or unsound banking practices."

ChainCatcher News, the Federal Deposit Insurance Corporation (FDIC) has issued a consent order to the crypto-friendly Cross River Bank for "unsafe or unsound banking practices." Cross River Bank is a venture capital-backed bank in New Jersey that has business dealings with major crypto companies like Coinbase and Circle.

The 34-page consent order states: "The FDIC has considered this matter and determined that the bank engaged in unsafe or unsound banking practices due to its failure to establish and maintain internal controls, information systems, and prudent credit underwriting practices, related to compliance with applicable fair lending laws and regulations. The bank neither admits nor denies."

A spokesperson for Cross River Bank stated that the order is the result of a "standard review of all aspects of the bank's lending processes" conducted two years ago. "We had already identified areas for improvement prior to the examination, and the examination identified additional areas. Since then, we have actively made significant improvements to fair lending and other initiatives, including investments in technology and personnel. Many improvements are either completed or will be completed in the coming months," the spokesperson said in a statement to The Block. The bank is "committed to working with the fintech community" and describes itself as a "transparent, compliant, fair, and responsible lending model." (source link)