Community Bankers Association of Illinois

CONGRESS ASKS FDIC TO EXTEND ILC MORANTORIUM AS DECISION DEADLINE NEARS
02/27/07

The current moratorium on deposit insurance applications for new industrial loan companies (ILC's) is scheduled to expire on January 31, 2007. Sheila Bair, Chairman of the FDIC has made statements that seem to indicate a desire on the part of the FDIC to reach a decision regarding certain ILC applications when the moratorium is scheduled to expire at the end of the month. However, the newly anointed Chairman of the House Financial Services committee, Rep. Barney Frank (D-MA), is on record as opposing such an action. Chairman Frank recently submitted a letter to the FDIC asking for a six-month extension of the moratorium. The letter was also signed and supported by more than a hundred of his colleagues, including 4 from Illinois. Illinois Reps. Tim Johnson, Ray LaHood, Danny Davis and Luis Gutierrez have signed on to the most recent letter asking for the six-month extension of the moratorium. In addition, Reps. Judy Biggert, Jesse Jackson, Dan Lipinski and Jan Schakowsky have signed previous letters urging similar action by the FDIC.

You can see the "Frank-Gillmor Letter" by clicking here. If your Representative's name is not included above please reach out immediately to encourage their support of this important issue. CBAI's zip code directory is available for those not sure who their U.S. Representative is; or, simply call CBAI's Department of Governmental Relations for assistance.

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