Square Inc. (NYSE: SQ) announced late on Thursday that it would be withdrawing its application with the Federal Deposit Insurance Corporation (FDIC) for a banking charter. Although, the firm said that it plans to resubmit this at a later date.
This special industrial loan company (ILC) license, would allow for Square, a nontraditional financial firm, to collect government-insured deposits.
According to Square, it has been engaged in constructive dialogue with the FDIC so far and the decision to withdraw and refile was a procedural step in the review process that will allow it to amend and strengthen some areas of its FDIC insurance application.
Separately, Squares ILC charter application with the State of Utah Department of Financial Institutions remains active.
Also, the firm did not give an expected time frame for when it will be reapplying to the FDIC.
So far in 2018, Square has outperformed the broad markets, with its stock up about 85%. Over the past 52 weeks, the stock is up 170%.
Shares of Square closed Thursday at $64.15, with a consensus analyst price target of $56.97 and a 52-week trading range of $23.39 to $69.40.
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