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Comment by kchoudhu | Hacker News Reader

Regarding (0): could I ask how your acquaintance ended up obtaining the regional bank's charter?

Finding them, contacting them, money, paperwork, lawyers and stickytoitiveness. In the end it saved like a few pct over just paying taxes, but this curly haired Cornell grad doesn't like paying The Man if at all possible. In the end it was a hassle but having something badass seemed worth it to them.

This person also has/had a privacy-oriented domain registrar, so no stranger to putting in the work.

This is fascinating. I hate to ask, but nothing ventured, nothing gained: is there anyway you'd be willing to talk about this more offline? My email address is on my profile.

Assuming kchoudhu is somewhat familiar with the banking space in the US, I think his question is - on what grounds was this individual able to get FDIC/OCC/FRB approval?

Is it that difficult for individuals to get approval? There are tons of small 1-3 branch banks in the US owned by individuals. I would expect it's on par with getting a liquor license or similar, background check and assets check.

Years ago I worked for a bank that was > 75 years old and had recently been bought by a guy who had immigrated to go to college and then in the next 20+ years done very well in construction. As far as I know there was more uproar over him changing the name of the bank than actually buying it.

It is and it isn't - as was stated elsewhere, for example if starting a new bank, regulators will require (and enforce) specific business plans, will limit dividend payments, will limit growth, etc. - there will be a lot of scrutiny on the (proposed) management team and you would find it hard-pressed to be able to get away without having someone with previous bank executive experience. Would imagine for a failed bank there would be similar questions on what is changing with the bank model (which may be as simple as operating with a higher level of equity to support the bank's risk profile).

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