Community Bankers Association of Illinois


Your attention is needed immediately! Time is running out! CBAI is attempting to secure as many signatures as possible from Illinois U.S. House members on a letter drafted by Reps. Paul Gillmor (R-Ohio) and Barney Frank (D-Mass.) requesting the FDIC to impose a moratorium on applications for deposit insurance for any new industrial loan companies owned by commercial companies (ILCs), but also on approvals for acquisitions of existing ILCs until "Congress has had an opportunity to consider the ILC issue."

Please contact your representative ASAP and ask him or her to sign the Gillmor-Frank letter. Call 202-225-3121 and ask for your representative by name. Tell your representative to call Dave Oxner (Gillmor) at 225-6405 or Ken Swab (Frank) at 226-7320 to sign the letter.

The letter notes that Congress is looking into the ILC issue. The House has approved, three times, 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.

A letter demonstrating substantial bi-partisan support for an FDIC moratorium could have a significant impact on the FDIC. Even if your representative has not taken a position on the ILC/Wal-Mart issue, you can 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.

Call today. The time-frame for getting signatures is short. Congress must be given an opportunity to act on the ILC issue before the FDIC makes an irreversible decision that will have an effect on the community banking industry and your local communities.

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