GAO Full Report GAO Report Summary

TIME TO TAKE THE SHACKLES OFF U.S. INDUSTRIAL BANKS New study shows U.S. industrial loan companies “safe, sound and well-regulated” but barriers to expansion prevent significant contribution to economic recovery Salt Lake City, UT (May 16, 2011) — A new study by the Milken Institute into U.S. Industrial Loan Companies (ILCs) makes a clear case for the easing of regulations that prevent this stable and viable segment of the banking industry from making a full contribution to the nation’s economic recovery, the National Association of Industrial Bankers (NAIB) said today. The study,...

The fourth quarter call reports from the FDIC once again demonstrate the strength and soundness of America’s Industrial Banks.  Indeed,  2010 was a great year for the industry.  Despite a sluggish economy, these  financial institutions  offer a strong business model for lending to consumers and small businesses.  The new year offers a different set of challenges for Industrial Banks.  Although expected to succeed financially, we will  respond to proposed regulations that will be promulgated as a result of the Dodd-Frank act.  We look forward to educating new and veteran  regulators and...

The Dodd-Frank bill imposes a three year moratorium on deposit insurance applications for new credit card banks, industrial banks, and trust banks owned by “commercial” companies.  A company is a “commercial firm” if the annual gross revenues derived by the company and all of its affiliates from activities that are financial in nature (as defined in section 4(k) of the Bank Holding Company Act of 1956) represent less than 15% of the consolidated annual gross revenues of the company”. In other words, to be “commercial”  a corporate group must generate more than 85% of gross...

The Utah Governor’s Office of Economic Development and the Nevada Development Authority have retained Dr. James Barth of the Milken Institute and Auburn University to study the industrial banking industry.  The two agencies funded the study to analyze: •The historic impact of Industrial Banks on banking and consumer activities in this country. •How Industrial Banks have weathered the current economic crisis and their • safety and soundness compared to other financial institutions. •The ability of the Industrial Bank model to serve a safe vehicle to dramatically increase investment of ...

We measure a baseball player’s performance by statistics. Quantifiable measurements cannot be disputed as to the quality, consistency and strength of an athelete. Indeed, all the Hall of Famers have great stats. Industrial banks rule the statistical measurements in the financial services arena. The fourth-quarter 2009 FDIC reports are now. And once again, they demonstrate that industrial banks are the most secure financial institutions in the country. Other FDIC insured banks cannot compare to the strength of ILCs. Look at the figures: As a whole, the American banking industry as a capital to...