The problem that is possible NetSpend is the fact that it really is so closely connected with MetaBank. NetSpend manages 2 million active prepaid cards, and MetaBank problems 71 of those, relating up to a filing the business made to your SEC week that is last advance regarding the IPO. NetSpend holds 4.9 of Meta FinancialвЂ™s equity, an action this system manager took вЂњin purchase to help expand align our interests that are strategic MetaBank,вЂќ NetSpendвЂ™s filing states.
Prepaid card researcher Tim Sloane of Mercator Advisory Group Inc. states he doubts iAdvance alone had been a product section of MetaвЂ™s company, but he notes that just Meta plus the OTS have actually the details that are full. вЂњIt may be the OTS is wrestling with how exactly to manage prepaid in sponsoring banks, plus in figuring that away, theyвЂ™ve put these limitations set up,вЂќ he claims.
Investment bank Morgan Stanley issued a written report Wednesday saying MetaвЂ™s woes add up to an recommendation of this strategy of NetSpend competing Green Dot Corp., that will be within the processing of shopping for a bank. (more…)