Fidelity to Launch new Direct Bank

Rob Foregger is now Chairman and CEO of Fidelity Investment’s new internet bank. Reporting initially to Sanjiv Mirchandani under Steve Akin’s personal investment group Rob will be building on the cash management platform. Ned and Abigail are keeping the lid on this one.

Fidelity’s plan is to create a Direct Bank based upon an investment led model… Similar to e*Trade and their stock plan services. Abigail is leading the corporate side plan services… and is looking for something new to sell. In addition to 401k, stock plan services, … why not offer banking?

Note that Rob’s background is in mortgage. The lending side is quite attractive for Fidelity… it obviously needs to get the liabilities side of the balance sheet going before jumping in with the asset products. It looks like the bank is FDS National out of Mason Ohio.

Order No.: 2000-27

Date: March 10,2000

FDS National Bank, Mason, Ohio (the Bank), has applied to the Office of Thrift

Supervision (the OTS), pursuant to 12 U.S.C. $ 1464 and 12 C.F.R. 0 552.2-6 for permission to convert from a national bank to a federal stock savings bank, FDS Bank (the New FSB). Federated Department Stores, Inc., New York, New York (the Acquirer) and FDS Thrift HoldingCompany, Inc., Cincinnati, Ohio (collectively, the Applicants) seek approval under 12 U.S.C. !j1467a(e) and 12 C.F.R. $ 574.3 to acquire the New FSB. In addition, FMR Corp. and Fidelity Management & Research Company, Boston, Massachusetts, and Abigail P. Johnson and Edward C. Johnson, III, have filed, pursuant to 12 C.F.R. 5 574.4(e), a rebuttal of control submission that includes a rebuttal of control agreement for approval to acquire up to 25% of the stock of the Acquirer.

 

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