The Jones Financial Companies withdrew its application to establish an industrial loan company.
Withdrawal: The Edward Jones Investments parent company said it withdrew plans to establish the Edward Jones Bank ILC following recent conversations with the FDIC and Utah Department of Financial Institutions.
ICBA Opposition: ICBA continues to oppose ILC applications and exploitation of the ILC loophole, which allows parent companies to skirt regulatory oversight and violate the separation of banking and commerce. Most recently, it urged the FDIC to reject Ford Credit Bank’s ILC deposit insurance application.
Congressional Action: The House Financial Services Committee earlier this year advanced ICBA-advocated legislation to close the loophole. ICBA continues working to advance the bill through Congress.
More: In a comprehensive white paper, ICBA details the transformation of the ILC charter into the fashionable charter of choice for firms seeking to benefit from the federal safety net while avoiding oversight.