Congress’s inaction on ILCs, fintech charters worries bankers
By Neil Haggerty
Critics of nontraditional bank charters like trusts and industrial loan companies have often looked to Congress to intervene and hold back a potential wave of new entrants into the banking system.“The longer these nontraditional charters, particularly those aligned with powerful tech platform companies, are allowed to operate, the more they restructure the financial services market,” said Karen Petrou, managing partner at Federal Financial Analytics. “The market doesn’t care what Congress does until Congress does it. So things are going to change irreparably.”