FOR IMMEDIATE RELEASE
ICBA Applauds Introduction of Gillmor-Frank Legislation for Comprehensive ILC Reform
Washington, D.C. (July 10, 2006)—Camden R. Fine, president and CEO of the Independent Community Bankers of America (ICBA), issued the following statement upon the introduction of a bill to reform Industrial Loan Corporations (ILCs):
“ICBA applauds Rep. Paul Gillmor (R-Ohio) and Rep. Barney Frank (D-Mass.) for introducing much needed legislation that will stem exploitation of the ILC loophole by commercial companies. In recent months, the FDIC has received a flood of new applications for deposit insurance from commercial enterprises seeking to own ILCs. ICBA has long held that the exemption of ILC owners from rules that apply to other companies that own banks poses a threat to our nation's financial stability and the long-standing policy separating banking and commerce. The Gillmor-Frank proposal would prohibit commercial enterprises from forming or acquiring ILCs - restoring the wall separating banking and commerce. We whole-heartedly support this measure and look forward to working with Reps. Gillmor and Frank to move it forward.”
ICBA Chairman Terry J. Jorde, president and CEO of CountryBank USA, Cando, N.D., is scheduled to testify on Wednesday, July 12 at the House Financial Services Subcommittee on Financial Institutions and Consumer Credit hearing on ILCs.
For more information on ICBA, visit www.icba.org.