ICBA opposes Rakuten ILC resubmission

ICBA said the FDIC should deny Japanese e-commerce conglomerate Rakuten's application for federal deposit insurance at its Rakuten Bank America industrial loan company.

In a comment letter to the agency, ICBA said the application would allow the "Amazon of Japan's" subsidiary to skirt Bank Holding Company Act oversight and violate the separation of banking and commerce. ICBA last year expressed opposition to Rakuten's previous application, which it withdrew and resubmitted this year.

ICBA also said Congress should permanently close the ILC loophole. ICBA will continue to lead the opposition to mixing banking and commerce, as detailed in a white paper issued last year.