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NCRC Statement On Edward Jones Withdrawing Its ILC Charter Application

In response to Edward Jones’ decision to withdraw its application to form an Industrial Loan Charter (ILC) company, the National Community Reinvestment Coalition released the following statement from President and CEO Jesse Van Tol:

“ILCs are fundamentally harmful and deceptive corporate structures designed to elude banking regulations and oversight while still seeking to profit from banking activities – which is why NCRC has worked to cajole regulators into cracking down on this ugly trickery. Edward Jones is one of the largest nonbank financial companies in the world. If even the titans of finance can be successfully discouraged from seeking ILC charters, that’s a win for the American consumer.

“The speed of the shift in corporate and regulator attitudes toward ILCs is especially gratifying. Regulators like FDIC were greenlighting these cheap tricks as recently as two years ago. Thankfully staffers and leaders at the agency have listened to the concerns that NCRC and other organizations have raised, and have begun to take a sterner line. And members of Congress are working to close this glaring loophole that has previously allowed corporations to abuse the system. We look forward to seeing this whole-of-government progress continue.”

For more information on the threat ILCs pose to American borrowers and depositors, please see the following items from NCRC staff:

 

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

Complete the form to download the full report: