Citing political pressure, Enova pulls Grasshopper deal
American online lending company Enova has pulled the plug on its application to acquire digital business bank Grasshopper, claiming the process is "susceptible to political pressure and outside advocacy".
Enova, an American online lending company, has withdrawn its applications to acquire digital business bank Grasshopper. The company cited the susceptibility of the process to political pressure and outside advocacy.
Enova's CEO, Steve Cunningham, stated that regulators lack clear standards for nonbanks seeking to become banks, particularly those serving customers whose credit needs are currently met outside of the traditional banking system.
The withdrawal of the applications comes after a letter from 20 state and district attorneys general, who expressed concerns that the deal would allow Enova to avoid state usury laws, according to Banking Dive.
Brief written by urgent.news from Finextra, Banking Dive — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
