Community Bankers Association of Illinois

NEARLY 150 SIGNATURES ACQUIRED ON CONGRESSIONAL LETTER TO PREVENT ILC CHARTERS!
07/11/06

ICBA and CBAI coordinated grassroots efforts to secure support for a letter drafted by Reps. Paul Gillmor (R- Ohio) and Barney Frank (D- Mass) has resulted in nearly 150 signatures! The letter requests the FDIC to impose a moratorium on applications for deposit insurance for any new industrial loan companies (ILC's) owned by commercial companies, but also on approvals for acquisitions of existing ILC's until "Congress has had an opportunity to consider the ILC issue." Thanks to all who made calls to their legislators on this important issue!

Even if your Representative has not taken a position on the ILC/Wal-Mart issue, it is important to point out that our nation's long standing policy of keeping banking and commerce separate is within the purview of Congress, not the FDIC, and that Congress should have the opportunity to conduct substantial oversight before its authority in this area is usurped.

In fact, The House has considered and approved limitations on ILC activities; The Gillmor-Frank Amendment, Rep. Jim Leach (R- Iowa) has introduced legislation to close the ILC loophole, and new legislation is being formulated "...that will address the ILC issue in a comprehensive manner." Also, House Financial Institutions Subcommittee Chairman Spencer Bachus (R- Ala.) said that he would hold hearings on the ILC issue later this year. Click here to view the "Frank-Gillmor Letter".

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