March 28, 2023

Volume XIII, Number 87


March 27, 2023

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How Not To Get Your Start In Banking

The California Department of Financial Protection & Innovation recently issued a warning about "individual or individuals on YouTube claiming that individuals can form their own “private banks” and become “individual bankers” to obtain various benefits including asset protection by obtaining a registration number from the DFPI".   The obvious hitch in this scheme is that the DFPI does not issue registration numbers to individuals to form their own private bank.   In fact, it has been over a century since California has allowed individuals to organize their own private banks.

This does not mean that "private banking" does not exist.  Some commercial banks do offer "private banking" services.  These services involve personalized attention and services not offered to hoi polloi.  To merit these services, a customer usually must have a very high net worth.  These do not involve individual registrations as a private bank.

© 2010-2023 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XIII, Number 34

About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...