Senator Elizabeth Warren (D-Mass.) has raised concerns regarding the Trump administration’s approval of Erebor Bank, a new financial institution backed by GOP megadonors Peter Thiel and Palmer Luckey. Both tech billionaires have established companies heavily linked to Donald Trump’s initiatives; Thiel co-founded Palantir, which has received substantial military contracts from the Trump administration, while Luckey founded Anduril, known for its multi-billion dollar military deals.
The Treasury Department’s Office of the Comptroller of the Currency recently announced that Erebor Bank, co-founded by Luckey and supported by Thiel’s venture capital, has received conditional approval for a national bank charter. However, this approval hinges on the bank securing stock in a Federal Reserve bank and obtaining deposit insurance from the Federal Deposit Insurance Corporation.
In July, the Financial Times reported that Erebor Bank aims to fill the void left by the now-defunct Silicon Valley Bank, positioning itself as a lender for riskier ventures, including cryptocurrency enterprises often turned away by traditional banks. This focus could potentially align with the Trump family’s ongoing cryptocurrency investments.
Warren criticized the bank’s approval, suggesting that it reflects an ongoing trend of wealth accumulation among Trump’s crypto-friendly allies. She stated that few individuals have benefitted from the Trump presidency as much as those in the cryptocurrency sector who have financially supported him, highlighting the apparent conflicts of interest surrounding this approval.
