Investors seem to be betting that a long-rumored sale of the Dallas company is on hold now that it has named a new CEO, but analysts say it remains an attractive takeover target for a larger regional bank.
The Dallas company finally made the move that had long been expected: Curtis Farmer succeeds Ralph Babb as chief executive. However, Farmer will still report to Babb, who stays on as executive chairman.
The senator wants Treasury to enhance fraud protection in the Direct Express prepaid program — now a partnership with Comerica Bank — when its contract is rebid in 2020.
In hundreds of cases, the prepaid card program run by the bank allegedly sent users’ funds to fraudsters who had stolen their data. The security lapse has now caught the attention of the Democratic senator.
The Texas bank, which partners with the U.S. Treasury to dispense federal benefits via prepaid cards, is alleged to have dropped the ball as hundreds of cardholders say their money was forwarded to fraudsters posing as them.
