Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Crackdown on MetaBank Casts a Shadow on NetSpend’s IPO

Federal banking regulators this thirty days cracked straight straight straight down on MetaBank, a significant prepaid card issuer, an action that threw into concern the pending initial general public providing of prepaid credit card system manager NetSpend Corp.

Austin, Texas-based NetSpend is planned to cost its long-planned IPO on Thursday, based on reports from the economic cables. But its close ties to MetaBank caused rounds of conjecture about perhaps the IPO will in truth take place. A NetSpend representative states he can’t comment.

On Tuesday, MetaBank’s moms and dad business, Storm Lake, Iowa-based Meta Financial Group Inc., reported into the Securities and Exchange Commission that any office of Thrift Supervision had taken enforcement actions against MetaBank. The OTS banned MetaBank from issuing any brand brand brand new loans under its iAdvance item at the time of Wednesday, and in addition it put settings on its company of issuing loans prior to clients’ receipt of income tax refunds, alleged tax-refund expectation loans.