Today, AFSA wrote a letter to the Senate Banking Committee in opposition to the recently introduced the Close the Shadow Banking Loophole Act, which targets the ability of Industrial Loan Companies (ILCs) charted entities to exist in the financial service marketplace.
Bipartisan Senators including Sherrod Brown (D-OH), Bob Casey (D-PA), Chris Van Hollen (D-MD), John Kennedy (R-LA), Roger Wicker (R-MS), and Mike Braun (R-IN) sponsored an anti-ILC bill will hinder financial innovation that provides unique solutions for many niche types of businesses in the banking system, including major automobile manufacturers and other diversified companies.
Industrial banks are heavily regulated, subject to the same banking laws, and regulated in the same manner as other depository institutions. They are supervised and examined by the states that charter them (Utah, California, Colorado, Nevada, Hawaii, Indiana, or Minnesota) and by the Federal Deposit Insurance Corporation (FDIC). They are subject to the same safety and soundness, consumer protection, deposit insurance, Community Reinvestment Act, and other requirements as other FDIC-insured depository institutions.
AFSA expects a House version to be introduced soon and will update you if the Close the Shadow Banking Loophole Act moves through the legislative process.
Senators Introduce Anti-ILC Legislation
Dec 15, 2023
Today, AFSA wrote a letter to the Senate Banking Committee in opposition to the recently introduced the Close the Shadow Banking Loophole Act, which targets the ability of Industrial Loan Companies (ILCs) charted entities to exist in the … Read the rest
Senator Reed’s Lump of Coal for Consumers
Dec 15, 2023
Sponsors in the U.S. Senate of the latest national rate cap bill apparently aren’t clear on the concept of holiday giving. The goal should be to give a gift, not take things away. Yet that is what Sen. Jack Reed’s “all-in” 36% APR cap legislation… Read the rest
Jay Powell Dons His Santa Hat
Dec 14, 2023
Yesterday’s decision by the Federal Reserve to hold the short-term interest rate steady for the third consecutive meeting at a range of 5.25 to 5.5 percent came as no surprise. Indeed, financial markets had consistently in recent weeks put… Read the rest
Marginally Important House Events
Dec 14, 2023
Due to some surprising announcements and actions in the past few weeks, Congressional math will look different after the New Year. As Congress heads into 2024, an election year, here are the most recent changes to the House of Representatives… Read the rest
FTC Releases Shopping Rule in Time for Holidays
Dec 13, 2023
The Federal Trade Commission (FTC) released a final rule related to vehicle shopping yesterday. AFSA and the Consumer Bankers Association (CBA) submitted a comment letter on the proposed rule in September 2022. We are pleased that a few of… Read the rest
CONFIRMED! INDUSTRY KEYNOTE SPEAKER
Dec 07, 2023
AFSA is pleased to announce Robert H. Kurnick, Jr., Vice Chairman of the Penske Corporation and President of Penske Automotive Group, Inc., as the Industry Keynote speaker at its 2024 Vehicle Finance Conference and Expo.
Kurnick, whose career… Read the rest
A Call for CFPB Clarity
Dec 07, 2023
Earlier this week AFSA encouraged other trade organizations to join a letter requesting that President Joe Biden support clear rules of the road in the financial services industry that take into account both the benefits and costs of regulation.… Read the rest
Director Chopra Testifies on Capitol Hill
Dec 05, 2023
Last week, Congress returned from the Thanksgiving holiday recess and CFPB Director Rohit Chopra testified before the House Financial Services and Senate Banking Committees. While most of the conversation centered around supporting … Read the rest
Industry Expertise | Behind the Wheel: Allied Solutions Reflects on Used Car Week
Dec 05, 2023
AFSA’s Industry Expertise allows Business Partners to provide thought leadership and best practices information directly with AFSA member companies. For more information about taking part, contact Dan Bucherer.
Behind the Wheel: Allied… Read the rest
Featured Business Partner | PayNearMe
Dec 01, 2023
The featured Business Partner for the month of December is PayNearMe.
PayNearMe is the modern, reliable payments platform that facilitates debit, credit, ACH and mobile-first payments, including Cash App, PayPal, Venmo, Apple Pay and … Read the rest