Online lender Enova International Inc. canceled its proposed acquisition of Grasshopper Bancorp Inc., citing “political pressure” and a lack of clear standards from federal banking regulators.
Chicago-based Enova withdrew its pending applications at the Federal Reserve and the Office of the Comptroller of the Currency to take over Grasshopper and its insured depository subsidiary Grasshopper Bank N.A.
Pushback from Democratic lawmakers and consumer advocates played a role in the company’s decision, as did a “lack of clear standards for nonbanks that want to become banks,” Enova CEO Steve Cunningham said.
The deal was valued at approximately $369 million. Twenty state attorneys general had urged regulators to reject the transaction, arguing it could help Enova circumvent state usury limits on high-cost lending.