DAVID BOWIE’S ONLINE BANK
UNDER FED SCRUTINY
USABancShares, which runs Bowiebanc.com, has agreed to take steps "to eliminate or correct all violations of laws and regulations" found by the Fed during an inspection in September, according to Reuters. The agreement was dated March 2, the same day the Philadelphia-based company announced that its founder and CEO Kenneth Tepper was resigning "in order to pursue other opportunities."
Under the agreement, USABancShares may not pay dividends or incur any new debt without the Fed's prior approval. The company must also come up with a plan to service its current debt and to raise and maintain sufficient capital.
While known as one of the pioneers in wireless online banking, USABancShares' highest profile venture is the first private-label Internet bank, Bowiebanc.com. The site offers loans, savings accounts, bank cards and checks with the singer's image—all with a "complete look/feel experience designed around David Bowie's music, art and lifestyle." If that description is supposed to represent a comforting banking experience, then we're just a little bit worried.
"The board of directors and management are committed to working with the Federal Reserve to address all the issues in the written agreement," USABancShares President Craig Scher told Reuters, declining further comment.
