What America Needs At This Particular Moment Is Definitely A New Bank From Jack Dorsey - Dealbreaker

There aren’t enough dollars to go around these days for people at ATMs, investors dumping foreign currencies or money-market funds, the Fed’s best efforts notwithstanding. Companies are hoarding what cash they have. Jamie Dimon is closing a fifth of his branches. Bank stocks are in the toilet. But there is good news:

The bank, Square Financial Services, Inc., is expected to launch in 2021 and will be supervised by the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions, the company said on Wednesday.

That’s just what Paul Singer undoubtedly wants. And he’s not the only one taking issue with the profitability of Jack Dorsey endeavors.

FDIC board member Martin Gruenberg voted against Square’s application, arguing that Square had not been profitable historically and couldn’t serve as a source of financial strength to its bank.

“Square has yet to demonstrate its viability during a downturn in the economic cycle. In fact, it has failed to demonstrate its viability during the upside of an economic cycle,” Mr. Gruenberg said in a statement.

Square Gets Green Light to Open a Bank [WSJ]
Some Bank Branches Run Low on Cash as Customers Make Big Withdrawals [WSJ]
The World’s Desperate for Dollars [WSJ]
Federal Reserve to shore up prime money market funds amid Wall Street rout [CNBC]
Fed Aims to Keep Dollars Flowing Globally in Nine New Agreements [NYT]
Ford Nixes Dividend, Suspends Guidance [WSJ]
Chase to temporarily close 1,000 branches over coronavirus concerns [N.Y. Post]
Banks Have Nowhere to Hide in the Coronavirus Crisis [WSJ]

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