Memo to PA Congressional Delegation

On behalf of the 175 community banks PACB represents, we are sharing with you a comment letter we filed today with the FDIC regarding the 14 pending applications before the agency for deposit insurance for their planned Industrial Loan Corporation (ILC). These applications include the giant conglomerates of Wal-Mart and Home Depot.

We are appreciative of the Members of our delegation who have previously sent letters to the FDIC or co-sponsored bipartisan legislation, H.R. 5746, designed to close the loophole that currently permits ILCs to enter the banking system therefore dangerously mixing banking and commerce. These members include: Brady, Doyle, Fattah, Fitzpatrick, Holden, Kanjorski, and Platts.

We urge the remaining members of our delegation to consider adding your name to H.R. 5746 and/or to send a letter to the FDIC urging that the FDIC extend the moratorium set to expire on January 31, 2007. Extending the moratorium will allow the FDIC and Congress to carefully weigh the substantial issues surrounding the explosion of ILCs into the banking system and what Wal-Mart and Home Depots entrance in banking in particular would mean to our economy and the safety and soundness of our current financial structure.

If you have any questions, please feel free to contact Dave Transue, PACB’s Government Affairs Consultant. Thank you for your consideration.