Democratic Senators introduce bill to close industrial loan company “loophole”; coalition of financial services and consumer organizations voice support for bill

Earlier this week, Senator Sherrod Brown (D-Ohio) introduced a bill, the “Close the Shadow Banking Loophole Act,” (Act) that is intended to close what is often termed a “loophole” in the Bank Holding Company Act (BHCA) because it allows the parent companies of industrial loan companies (ILCs) to operate without the same level of federal oversight that applies to parent companies of other banking institutions. The bill is co-sponsored by Senators Bob Casey (D-Pa.) and Chris Van Hollen (D-Md.)....
By: Ballard Spahr LLP

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