FDIC to Seek Public Comment on Industrial Banks

The Federal Deposit Insurance Corp. will be asking for public feedback soon on the potential risks and benefits of large companies opening up industrial loan companies, according to a story by Dow Jones Newswires. The notoriety of the lending loophole has increased following applications by retail giants Wal-Mart and Home Depot to open their own branches.

In July, the FDIC placed a six-month freeze on existing applications for deposit insurance ? a requirement of the loan companies — on industrial banks, and prohibited new ones.

FDIC Chairman Sheila Bair told Dow Jones Newswires Monday that the FDIC was seeking “further information and views on the issues that we identified in the resolution (that led to the freeze). I’m hoping that over the next six months, we can find some common ground. We may not be able to, but I’m hoping we can.”