ICBA: Ford ILC application shows need to close loophole

The Ford Motor Co. plan to apply for an industrial loan company charter shows why the ILC loophole should be closed, ICBA’s Chris Cole told American Banker.

Big Tech Focus: In the article (subscription required), ICBA’s executive vice president and senior regulatory counsel said policymakers should close the loophole to ensure commercial firms don’t exploit it—including big tech firms such as Amazon and Google.

Background: The ILC loophole allows commercial and fintech companies to own or acquire ILCs chartered in a handful of states without being subject to federal consolidated supervision.

Congressional Action: The House Financial Services Committee in June advanced ICBA-advocated legislation to close the loophole. ICBA continues working to advance the bill through Congress.