ICBA is calling on community bankers to urge their senators to support Senate legislation to permanently close the industrial loan company loophole.
Grassroots Alert: Community bankers can use ICBA’s Be Heard grassroots action center to express support for the Close the Shadow Banking Loophole Act (S. 3538).
Bill Details: Introduced by Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and Sen. John Kennedy (R-La.), S. 3538 would require companies that acquire an ILC to be subject to the same consolidated supervision by the Federal Reserve as any other bank holding company.
Industry Support: In a recent joint letter, ICBA and affiliated state community banking associations said the legislation would prevent large commercial firms from exploiting this loophole to gain access to the federal deposit insurance safety net without equivalent oversight and supervision.
