Community Banker Alert

This week, the FDIC extended its moratorium for one more year on approving deposit insurance applications for commercially owned ILCs. Along with ICBA, PACB urged the FDIC to take this step. This has been part of our strategy to give Congress time to address this issue and shut down the ILC loophole to prevent Wal-Mart, Home Depot and other conglomerates from entering retail banking.

Last week, we urged you to begin contacting your Congressional representatives to support legislation introduced by Rep. Barney Frank (D-Mass), the new Chairman of the House Financial Services Committee, and Rep. Paul Gillmor (R-Ohio) that closes the ILC loophole. HR 698 is critical legislation to the future survival of community banking. Please contact your Congressional representatives ASAP and urge them to co-sponsor the Frank/Gillmor legislation (H.R. 698) to close the ILC loophole.

If you have any questions, please do not hesitate to contact Dave Transue. He can provide you with your contact information for your Congressional representatives if you need that information or provide you with more information on the ILC issue.

It is vital we use this time the FDIC has given us to urge Congress to take action. Grassroots contacts are urgently needed. Thank you for your attention to this important matter.