Is Congress spoiling for another fight over ILCs?
By Neil Haggerty
More than a decade ago, Washington was up in arms when Walmart applied for an industrial loan company charter, leading to bipartisan legislation to ban retailers from owning such banks. …This is a bipartisan initiative that used to be powerful, fueled by community banks,” said Karen Shaw Petrou, managing partner at Federal Financial Analytics. “But in my opinion, [it] is even more potent now that the banking industry as a whole is unified in the face of challenger digital banks.” She added that the legislation could be viewed favorably in that it is not a blanket prohibition on tech firms getting in the banking arena. “It’s not a generic tech-finance barrier,” Petrou said. “It’s an industrial loan charter company restriction. While you would see more tech-friendly members opposing this limit, I think there is also a very potent body of support for this.” …
https://www.americanbanker.com/news/is-congress-spoiling-for-another-fight-over-ilcs?brief=00000158-07c7-d3f4-a9f9-37df9bc10000
