From Business Insider, December 18:
- Erebor Bank, founded by Palmer Luckey with funds from Joe Lonsdale and Peter Thiel, just got a key approval.
- The FDIC approved the bank's application, with certain conditions.
- The bank plans to serve crypto, tech, and defense clients.
Erebor Bank, Palmer Luckey's finance startup backed by some of the biggest names in tech, got one step closer to launching after it cleared another key federal hurdle this week.
The Federal Deposit Insurance Corp. approved Erebor on December 16 with conditions: The bank is subject to a strict capitalization requirement and must have investors ready to provide more funding if called upon.
The bank still requires final approval from the Office of the Comptroller of the Currency. It received preliminary approval from the OCC in October.
Todd Baker, a senior fellow at Columbia University and a consultant to fintech companies who isn't involved with Erebor, said in an email that he would expect Erebor to get approval to open in early 2026.
Baker said in an email that one of the FDIC's requirements — that the bank invoke a capital-call agreement that would require unnamed parties to chip in more cash if certain triggers occur — is "highly unusual" but "entirely appropriate given the expectation that the bank will be taking on significant risks associated with its tech and crypto-focused business plan."....
....MUCH MORE
Silicon Valley Bank v2.0 with a pinch of Silvergate Bank and a soupçon of Signature Bank.
