When autocomplete results are available use up and down arrows to review and enter to select.
ICBA expressed strong support for the introduction of Senate legislation to close the industrial loan company loophole.
Background: The ILC loophole allows large technology companies like Japanese e-commerce firm Rakuten and other commercial firms to own and operate FDIC-insured banks while skirting federal regulations that apply to other banks.
New Legislation: Introduced by Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and Sen. John Kennedy (R-La.) — and co-sponsored by Sens. Mike Braun (R-Ind.), Bob Casey (D-Pa.), Chris Van Hollen (D-Md.), and Roger Wicker (R-Miss.) — the Close the Shadow Banking Loophole Act would require companies that acquire an ILC to be subject to the same consolidated supervision by the Federal Reserve as any other bank holding company.
ICBA Response: In a national news release, ICBA President and CEO Rebeca Romero Rainey called on lawmakers to advance the legislation to ensure any company that wishes to own a full-service bank is subject to the same restrictions and supervision that apply to any other bank holding company. ICBA also expressed support in a joint letter to the co-sponsors, with ICBA’s support for the bill covered by Politico and included in the Senate Banking Committee’s announcement of the bill.
More: In a comprehensive white paper, ICBA details the transformation of the ILC charter into the fashionable charter of choice for firms seeking to benefit from the federal safety net while avoiding oversight.
Previous News
The Securities and Exchange Commission denied Coinbase’s request for the agency to develop a new regulatory framework for cryptoasset securities.
ImageDec 18, 2023
Rep. Andy Barr (R-Ky.) formally introduced his ICBA-advocated bill to clarify the Consumer Financial Protection Bureau’s authority to oversee unfair, deceptive, and abusive acts and practices, known as UDAAP.
ImageDec 18, 2023
The Farm Credit Administration board met last week to receive a quarterly report on economic conditions affecting the agricultural economy and Farm Credit System institutions.
ImageDec 18, 2023
Related News Taxonomy
