The FDIC has proposed to formalize the requirements it says have generally governed parent companies of industrial loan companies (ILCs) and other non-traditional insured depository institutions (IDIs) owned by companies exempt from FRB supervision at the parent level.  Doing so would codify practice, provide the FDIC with grounds for parent-company enforcement actions, and better ensure the willingness of parent companies to serve as sources of strength for ILCs and other special-purpose nonbank banks.

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