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Green Dot’s Application to Acquire Bonneville Bancorp Approved by Federal Reserve Board (GDOT)

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Shares of Green Dot Corporation (NYSE: GDOT), a prepaid financial services company offering money management solutions to a range of U.S. consumers, rose sharply on Wednesday after the company announced that Federal Reserve Board approved its application to acquire Bonneville Bancorp.

Green Dot said that with the approval of its application to acquire Bonneville Bancorp, it has now become a bank holding company under the Bank Holding Company Act of 1956. The acquisition has also been approved by the Utah Department of Financial Institutions. The company expects to close the transaction soon after the expiration of the statutory 15-day waiting period following the Federal Reserve Board’s approval.


Steve Streit, CEO of Green Dot, said that the company is very appreciative of the regulators for the time they spent reviewing the application and understanding the company’s purpose in acquiring Bonneville Bank. Streit said that the company is also grateful for the guidance and advice it often relied upon from its attorneys and advisors, including Promontory McDonough PC.

Streit believes that the acquisition will give Green Dot the flexibility to better control its own destiny as it will allow the company to create products that best suit the needs of its current and future customers. The acquisition also enables the company to become a bank truly dedicated to serving the needs of the large and growing population of consumers who are looking for a better way to bank, Streit added.

Green Dot shares rose to an intra-day high of $30.10 on Wednesday before finishing the day 7.67% higher at $29.62 on above average volume of 540,105. Green Dot shares are down more than 47% this year. This compares with a decline of 7.62% for the S&P 500 this year.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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