Feb 19, 2020 - Economy & Business

LendingClub to buy Radius Bank in $185 million deal

Photo: Don Emmert/AFP via Getty Images

LendingClub, an online personal lender, has agreed to buy U.S. digital lender Radius Bank in a cash-and-stock deal valued at $185 million. The deal is expected to close in 12 to 15 months pending regulatory review.

Why it matters: It’s the first time a U.S. fintech company has bought a regulated bank, though a number have attempted to obtain charters. It'll allow the company "to offer new products to its clients, diversify its earnings and reduce or eliminate the use of institutional funding sources," writes CNBC.

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Morgan Stanley to buy E*Trade in a $13 billion deal

Photo: Rafael Henrique/SOPA Images/LightRocket via Getty Images

Morgan Stanley is buying E*Trade Financial, the company known for helping everyday Americans manage their money, in a $13 billion all-stock deal, the investment bank said Thursday.

Why it matters: The deal signals Morgan Stanley's desire to bulk up in wealth management, a strong profit arm of its business model. As the WSJ notes, Wall Street banks have been looking for steadier sources of revenue, now that "postcrisis regulations and a long period of eerie calm in the markets" have taken a toll on profits.

Go deeperArrowUpdated Feb 20, 2020 - Economy & Business

SoftBank to cut its stake to get T-Mobile's Sprint deal done

Illustration: Rebecca Zisser/Axios

T-Mobile and Sprint announced a revised merger agreement that will see SoftBank getting a smaller share of the combined company, while most shareholders will receive the previously agreed upon exchange rate. The companies said they hope to get the deal as early as April 1.

Why it matters: The amended deal reflects the decline in Sprint's business, while leaving most shareholders' stake intact and removing another hurdle to the deal's closure.

Fintech investors avoided early-stage companies in 2019

Reproduced from CB Insights; Chart: Axios Visuals

Fintech investment fell in 2019, as the number of deals and the total amount of money invested both declined significantly from 2018's record pace.

The big picture: The biggest decline was in early-stage investing, which saw the lowest number of deals in five years, according to data from CB Insights. Later stage series B+ companies, on the other hand, saw funding rise to five-year highs.