Community Bankers Association of Illinois

Legislation to Permanently Close ILC Loophole Still Needed

Senate Banking Committee members voted in favor of legislation, along party lines, to close the ILC loophole and enhance supervision of their commercial owners- which CBAI and ICBA strongly support. However, the bill has not yet been scheduled for Senate floor action.

While the Committee is focused on housing/GSE legislation right now, it is hoped that after the July 4th break, they will once again turn their attention to ILC reform. The clock is ticking, and time is running out for Congress to act on this important legislation.

Your grassroots contacts with Senators Durbin and Obama are needed to get an ILC reform bill moving forward, especially because the party-line vote makes it harder to get the bill to the Senate floor.

Committee Democrats and Republicans (with the notable exception of Utah Senator Bennett) generally agree that mixing banking and commerce is wrong and the ILC loophole should be closed. The partisan vote was as much about procedure as substance.

Unfortunately, there is not much time left for the Senate to act. If the ILC loophole is not closed, it will leave the door open for companies like Wal-Mart and Home Depot to re-file their applications for ILCs.

Please contact Senators Durbin and Obama now to urge Senate leadership to schedule ILC reform legislation for Senate floor action.

Click this link for the Senator's Washington D.C. office locations and telephone numbers. Call or send an email to our Senators. The important thing is to enlist their support for legislation to close the ILC loophole.

A draft e-mail is available by clicking here. You can send the e-mail to Senators Durbin and Obama, or modify it as you see fit.

PLEASE GIVE THIS YOUR TOP PRIORITY. Our Senators will listen to us; if community bankers don't look out for our own interests, we can't expect other to do it for us.

Time is running out, and failure to act could have dire consequences for community banks and the communities they serve. Please act now before it is too late.

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