Semafor did an outstanding report on fintech company IntraFi.
"How one company made bank off the regional banking crisis"It raised a number of questions regarding IntraFi's private equity underwriter (PEU) ownership. The story mentioned three founders. All three served in the Clinton administration in various financial roles. They joined together to start Promontory Financial Group and Promontory Interfinancial Network.
PEUReport noted in 2009 former SEC Chair's advisory role with Promontory Financial Group. Levitt still shows an association with "Promontory" on his X page along with a smattering of crypto/fintech firms.
The three founders signed a Promontory Interfinancial Network financial audit submitted to the SEC in 2005. Promontory contacted the SEC again regarding proposed changes to money market regulations after the 2008 financial crisis.
The persons below played major roles under President Bill Clinton's White House.
A 2014 slide presentation detailed Promontory's service offering.
Through the magic of Promontory Interfinancial Network the $250,000 maximum per account is transformed to $50 million. Former FDIC Chair Sheila Bair called Promontory's business model "gaming FDIC rules" in 2019.
That same year Blackstone bought the company. It changed the name to IntraFi in 2020, In 2021 Blackstone saddled IntraFi with $540 million in new debt for a sponsor dividend.
Blackstone sold part of IntraFi to Warburg Pincus in November 2021 and just months ago the pair loaded IntraFi will another $500 million in debt for yet another sponsor dividend.
The Semafor backstory reveals the transformation of the Blue political team toward greed and leverage. It's instructive given politicians Red and Blue love PEU and increasingly. more are one.
Update 4-12-24: The American Prospect reported:
Lobbying reports released last week show $100,000 in expenses going in the first quarter of the year to The Duberstein Group, a well-connected lobbying firm that IntraFi has worked with in the past, in the Promontory years. The firm was founded by Ken Duberstein, a former White House chief of staff under Ronald Reagan who died last year.The 2014 slide deck showed on Slide 19 that Ken Duberstein served as a Board member of Promontory Interfinancial Network. Red Team Ken Duberstein did his part to advance PEU love after his public service.
