AFSA Advocates ILCs
A bipartisan group of Representatives recently led by Rep. Blake Moore (R-UT) sent a letter to FDIC Chair Martin Gruenberg, urging the withdrawal of the proposed rule governing parent companies of industrial banks and industrial loan companies. The letter highlighted the uncertainty that would occur if the rule was finalized and how that would impede the ability of ILCs to offer crucial products and services to consumers. The letter states emphatically that the proposed rule “overturns the governance regime of existing banks and lengthens the already complex application process for new charters, despite no congressional authorization or evidence that the present regulatory structure is not working.” ILCs are subject to the same laws and regulations as other state banks, and already must comply with the same regulatory requirements and oversight as any other FDIC-insured depository institution.
AFSA also submitted a letter to the FDIC, reiterating that industrial banks continue to demonstrate financial strength in meeting the needs of the communities that they serve. This rule would hamstring these institutions and hinder the tangible benefits offered by these structures. AFSA urged Chair Gruenberg to withdraw the rule, which would enable the FDIC to diversify the concentration of risk to the insurance fund, that is currently posed by a few large institutions.
This issue affects a number of industries, as the Alliance for Automotive Innovation and National Automobile Dealers Association also submitted a letter to Chair Gruenberg.
We are grateful to all these members for their leadership in this space:
Congressman Blake Moore (R-UT)
Congressman John Curtis (R-UT)
Congressman Burgess Owens (R-UT)
Congresswoman Celeste Maloy (R-UT)
Congressman Bill Huizenga (R-MI)
Congressman Frank Lucas (R-OK)
Congressman Mark Amodei (R-NV)
Congresswoman Dina Titus (D-NV)
Congresswoman Lisa McClain (R-MI)
Congressman Shri Thanedar (D-MI)
Congressman Steven Horsford (D-NV)
Congressman C.A. Dutch Ruppersberger (D-MD)
Congresswoman Haley Stevens (D-MI)
Congressman Steve Cohen (D-TN)
Congressman Ritchie Torres (D-NY)
Congressman Vicente Gonzalez (D-TX)
Congressman Joseph Morelle (D-NY)
Congressman Pete Sessions (R-TX)
Congressman Timothy Kennedy (D-NY)
October 16th, 2024
