Bulletin 3265 - September 18, 2026

Bulletin 3265 - September 18, 2026

The Department of Banking News Bulletin

Bulletin # 3265 - Week Ending September 18, 2026

This Bulletin constitutes the only official notification you will receive from this office concerning any of the following applications. Any observations you may have are solicited. Any comments should be directed to Jorge L. Perez, Banking Commissioner. Written comments will be considered only if they are received within ten business days from the date of this bulletin.

REGULATORY GUIDANCE

Governance of Artificial Intelligence Systems

The Commissioner intends to issue Regulatory Guidance regarding Governance of Artificial Intelligence Systems to communicate the Department of Banking's expectations regarding governance of AI Systems used by Connecticut-chartered financial institutions and other entities licensed or regulated by the Department. The guidance will apply to AI Systems used in both consumer-facing and internal functions, including without limitation, compliance, risk management, underwriting, pricing, fraud prevention, marketing, and customer service. To manage the risks involved with use of AI Systems, the Department will expect each regulated entity to develop and implement an effective artificial intelligence governance framework consistent with the guidance.

BANK ACTIVITY

Merger

On September 15, 2026, the Commissioner approved an application from Ion Bank, a Connecticut chartered stock savings bank and wholly owned subsidiary of Ion Financial, MHC, Inc., a Maryland chartered mutual bank holding company, pursuant to Sections 36a-412(b) and 36a-125 of the Connecticut General Statutes for the merger of The Cooperative Bank, a Massachusetts chartered mutual co-operative bank, with and into Ion Bank. The proposed target date for the merger is October 2026.

Innovation Bank

On September 18, 2026, under the authority granted under Section 36a-70(i) of the General Statutes of Connecticut, the Commissioner after a hearing and having found cause approved a request for an extension of the period for which the Temporary Certificate of Authority for Fnality Bank US for an additional eighteen (18) months until April 2, 2028.

CONSUMER CREDIT ACTIVITY

Debt Resolution Services, LLC

On September 9, 2026, the Commissioner issued a Temporary Order to Cease and Desist, Order to Make Restitution, Notice of Intent to Issue Order to Cease and Desist, Notice of Intent to Impose Civil Penalty and Notice of Right to Hearing (collectively, "Order and Notice"), in the matter of Debt Resolution Services, LLC ("Respondent"), Clyde, Texas. The Order and Notice was the result of an investigation by the Consumer Credit Division which stemmed from an examination of a licensee. The Commissioner alleges in the Order and Notice that, since at least June 2018, Respondent acted as a consumer collection agency in this state without a consumer collection agency license, in violation of Section 36a 801(a) of the Connecticut General Statutes, in effect at such time. The Commissioner found that the public welfare required immediate action to issue a Temporary Order to Cease and Desist against Respondent. Respondent was afforded an opportunity to request a hearing with regard to the allegation set forth in the Order and Notice.

SECURITIES AND BUSINESS INVESTMENTS DIVISION ACTIVITY

BlueStream Ultra Income Fund, LP

On September 11, 2026, the Banking Commissioner entered into a Stipulation and Agreement (No. ST 26 202613-S) with BlueStream Ultra Income Fund, LP ("BlueStream"), a Delaware limited partnership formed on January 23, 2024, with its principal place of business at 8 Genesee Lane, Madison, Connecticut.

The Stipulation and Agreement alleged that, although BlueStream filed a Form D with the Securities and Exchange Commission pursuant to Rule 506(b) of Regulation D in connection with its securities offering, it failed to make the required Rule 506 notice filing with the Commissioner, in violation of Sections 36b-16 and 36b-21(e) of the Connecticut Uniform Securities Act ("the Act").

In resolution of the matter, BlueStream agreed to refrain from conduct that violates the Act and to pay an administrative fine of $500.00 to the Department of Banking.

Dated: Tuesday, September 22, 2026

Jorge L. Perez
Banking Commissioner