Bipartisan Agreement: ILCs Crucial
A bipartisan group of Senators sent a letter today expressing their support for industrial loan company (ILC) charters to Martin J. Gruenberg, acting chair of the Federal Deposit Insurance Corporation (FDIC). Led by Senators Mitt Romney (R-UT) and Catherine Cortez Masto (D-NV), the group highlighted how ILCs are an integral and necessary part of the financial services marketplace. Sen. Romney also published an article in the American Banker highlighting the letter.
“We write today to express support for the industrial loan company (ILC) charter and respectfully remind you to ensure the Federal Deposit Insurance Corporation (FDIC) continues to follow the laws that Congress carefully designed for the FDIC to consider new deposit insurance applicants, including ILCs,” the letter stated.
In a time of higher consumer prices, even higher inflation rates, and increased uncertainty about employment in the face of the economic downturn, AFSA appreciates the Senators’ support for more financial services options for American consumers and businesses, not fewer.
ILCs are safe and secure financial institutions fully regulated at the state and federal level. Moreover, the ILC applications that have been filed will prioritize investments in a clean energy economy and help expand domestic mobility. The FDIC should encourage, if not maintain, ILC activities and not hinder charter application processes.
The full list of senators on the letter includes Senators Mitt Romney, Catherine Cortez Masto, Marsha Blackburn (R-TN), Roy Blunt (R-MO), Bill Hagerty (R-TN), Mike Lee (R-UT), Gary Peters (D-MI), Jacky Rosen (D-NV), and Krysten Sinema (D-AZ).
For almost 50 years, AFSA has worked to protect and expand the use of ILCs to expand responsible credit options for all Americans, including through congressional testimony and numerous comment letters.
September 15th, 2022 by Dan Bucherer