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.… Continue Reading

The National Consumer Law Center seems to be urging the CFPB to adopt a “Hotel California” approach to its supervision of larger participants. Referred to as the “Hotel California” provision, the Dodd-Frank Act provides that large bank holding companies that accepted TARP money remain subject to Fed supervision even if they give up their BHC status.… Continue Reading