Numisma Bank, co-founded by former Federal Reserve Vice Chair Randy Quarles and a relative of Senator Elizabeth Warren, is set to receive a rare master account approval from the Federal Reserve. This decision has raised eyebrows within the financial community, particularly given the involvement of Quarles and Warren's relative. Critics argue that the Federal Reserve's decision appears inconsistent, as similar applications from other banks, such as Custodia Bank, have been blocked. David Zaring noted that the optics of this approval are 'pretty uncomfortable for the Fed,' highlighting concerns about potential favoritism and the market value of former Fed officials. Additionally, Numisma is statutorily entitled to a master account, according to Alt.
“‘This is a bad look for the Fed…The market value of Fed former governors has gone way up as a result of all this,’ Alt said.” Again, how were things the Fed deemed blockers for @custodiabank not blockers for Numisma??? I’m happy for Numisma—this is about the Fed, not Numisma. https://t.co/6AQyq0ZKII
CONGRATS to Numisma Bank, which is statutorily entitled to a master account & I’m happy for them. Per @ZaringDavid tho: “I’d say the optics here are pretty uncomfortable for the Fed.” Um, yeah💯 How were things the Fed deemed blockers for @custodiabank not blockers for Numisma?🤔 https://t.co/adx6bAYhXm
🚨NEW from me: Former Fed official’s bank set to receive rare master account approval, raising eyebrows https://t.co/N1JdWcdZ5X
This is odd at least, but potentially juicy. Did the Fed approve a special Master Account for a bank co-founded by a former Fed official and Liz Warren relative? If not, crazy coincidence. https://t.co/vMg9KFWAKX https://t.co/UgRWFDiAmR
Interesting turn in master account news. I guess this means there is still some hope for non-federally regulated banks with non-standard business plans. But it is sure to raise eyebrows that former Fed Vice Chair Randy Quarles is one of Numisma’s organizers. https://t.co/04wW1WQF7o