PACB Letter to Senator Robert Casey

June 25, 2007

The Honorable Robert P. Casey, Jr.
United States Senate
Room B40C Dirksen
Washington, DC 20510

Re: Urgent Request for Co-sponsorship of S. 1356

Dear Bob:

I am writing in follow up to my letter of May 14 and our conversation in early May with Dick Spiegelman and Nathan Steinwald of your staff. I am renewing my request, on behalf of the nearly 200 community banks that PACB represents, that you co-sponsor S. 1356. As a member of the Senate Banking Committee, and representing a state that has a strong tradition of community banking, we believe it is imperative you add your name to this legislation to demonstrate support for a much needed public policy to once and for all shut down the loophole in law that would allow commercial conglomerates like Wal-Mart and Home Depot to breach the separation of banking and commerce and enter retail banking.

The FDIC has imposed a one-year moratorium (expires January 31, 2008) on pending deposit insurance applications by ILCs that at one time included up to 14 commercial conglomerates including Wal-Mart, Home Depot, Ford and others. The moratorium was placed to give the Congress time to develop sound public policy to address this very serious issue and the FDIC has made it clear they will not extend the moratorium. The House of Representatives overwhelmingly passed its legislation (371-16) on this issue, H.R. 698, the Frank/Gillmor proposal that would close the ILC loophole and maintain the separation of banking and commerce. To date, 10 members of our Congressional Delegation have co-sponsored, on a bi-partisan basis, H.R. 698 including: Altmire, Carney, Doyle, Gerlach, Holden, Murtha, Patrick Murphy, Platts, Sestak, and Schwartz. We are grateful for this strong Congressional support for this very important issue to community banking.

We are also grateful that we have a United States Senator who has a strong and deep relationship with community banking and understands the importance of maintaining Main Street banking. At our recent Legislative Conference in Harrisburg, I was asked by well over 20 community bankers, why you had not yet added your name to S. 1356 given the long-standing relationship we enjoy with you and your support of community banking extending back now many years and I could not answer these members. I’m hoping that you and your staff take the time to review this issue and come to the conclusion I have that it is only a plus for you to co-sponsor S.1356.

If you have any questions, please do not hesitate to contact me or Dave Transue. PACB appreciates your consideration of this vital issue.

Sincerely,

Frank A. Pinto
President/CEO

Cc: All Pennsylvania Community Bankers