Audio – FDIC could enforce conditional approvals to retailer applications
Faced with Congressional ire about big retailers owning banks known as industrial loan companies, federal regulators could choose to approve ILC applications with narrow conditions, Comptroller of the Currency John Dugan says. U.S. banking laws generally wall off banking and commerce, but an exception allows nonfinancial firms to own ILCs, which are state-chartered and regulated by the FDIC. A six-month moratorium on ILC applications is set to expire at the end of this month.
Dugan spoke at the Reuters Regulation Summit in Washington.