Bankers still “mad” about Wal-Mart ILC

banknews.com

The Independent Community Bankers of America is urging members to contact their representatives to sign a drafted letter to the FDIC by Rep. Paul Gillmor, R-Ohio, and Rep. Barney Frank, D-Mass. The representatives ask the FDIC to “... impose a moratorium on approving any applications for deposit insurance for any new industrial loan companies owned by commercial firms and on approvals for acquisitions of existing ILCs until Congress has had an opportunity to consider the ILC issue.”

The representatives pointed to House approvals on limitations on ILC activities, legislation introduced that would close the ILC loophole and legislation that is being formulated to address the ILC issue in a comprehensive manner.

“The issue of the powers of ILCs, and the extent of who may own an ILC, is an issue that Congress has begun to address, and the FDIC should wait until Congress has acted before authorizing any additional commercially-owned ILCs,” the letter concludes.