Davis Polk partner and Financial Institutions practice head Margaret Tahyar was quoted in Banking Dive discussing the FDIC’s consent order issued to Thread Bank, which specifically calls out its banking-as-a-service (BaaS) business.

Margaret noted that the order “is much broader than BaaS,” requiring updates to the bank’s strategic plan, enterprise risk management and BSA/AML.

“The regulators draft a broad order like this one when they want to send a stern message, typically of a lack of confidence in the board and management,” she said. “Feels like they want a total change in the business model.”

“FDIC orders Thread Bank to step up BaaS oversight,” Banking Dive (July 1, 2024)

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