Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Federal banking regulators this month cracked straight straight down on MetaBank, an important prepaid credit card issuer, an action that tossed into question the pending initial general public providing of prepaid credit card system manager NetSpend Corp.

Austin, Texas-based NetSpend is planned to expense its long-planned IPO on Thursday, based on reports in the monetary cables. But its ties that are close MetaBank caused rounds of speculation about if the IPO will in truth take place. A NetSpend representative claims he can’t comment.

On Tuesday, MetaBank’s moms and dad business, Storm Lake, Iowa-based Meta Financial Group Inc., reported to your 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 controls on its company of issuing loans prior to clients’ receipt of income tax refunds, alleged anticipation that is tax-refund. Continue reading Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO