BPI Responds to FDIC Approval of Final Rule on ILCs

Washington, D.C. – Today, BPI Executive Vice President and General Counsel John Court issued the following statement in response to a vote by the FDIC to approve a final rule on Industrial Loan Companies (ILCs):

Unfortunately, and if anything, the ILC final rule serves only to try to legitimize a statutory loophole that allows big tech companies to expand into banking in a way that totally avoids the regulatory and supervisory framework that applies to ordinary banks, sacrificing along the way the safeguards that promote financial stability and protection of consumer privacy and data security. It remains clear that congressional action is necessary to prevent the ownership of these institutions by companies that are not subject to comprehensive, consolidated supervision by the Federal Reserve and to ensure that large commercial and technology companies are not granted access to the banking system.

Media Contact:
Sean Oblack