Brown, Casey, Colleagues Introduce Bill to Ensure a Fair Banking System, December 06, 2022, Brown, Casey, Colleagues Introduce Bill to Ensure a Fair Banking System
“Letting Big Tech and commercial companies operate banks without proper oversight will only open doors for predatory lending, invasions of consumer privacy, and broader financial instability,” said Brown. “To protect consumers’ pocketbooks and ensure a strong banking system for Main Street, we need to ensure all banking institutions play by the same rules.”
ILCs are state-chartered banking institutions whose holding companies are not subject to consolidated supervision by the Federal Reserve, as all other bank holding companies are, due to a loophole in the Bank Holding Company Act. The result is that ILCs owned by tech companies like Square have a leg-up on traditional banks with regulatory safeguards.
