The latest news and advocacy information for industrial bankers.
Updates
Important News Updates
The National Association of Industrial Bankers applauds the Federal Deposit Insurance Corporation’s approval today of Edward Jones Bank to operate as a federally insured industrial bank.
The National Association of Industrial Bankers strongly supports the American Lending Fairness Act of 2026, introduced by Senator Bernie Moreno (OH) and Representative Warren Davidson (OH), which restores clarity to the long-standing interstate banking rules under the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA).
The National Association of Industrial Bankers (NAIB) expressed its strong opposition to newly introduced legislation – the Close the Shadow Banking Loophole Act – introduced by Sen. John Kennedy (R-IA) and Sen. Andy Kim (D-NJ) and designed to curtail the ability of industrial banks to serve market needs that other banks overlook.
The National Association of Industrial Bankers (NAIB) welcomes today’s approval by the Federal Deposit Insurance Corporation (FDIC) of Ford Credit Bank and GM Financial Bank to operate as federally insured industrial banks.
Today, the state of Colorado filed a response in the 10th Circuit Court of Appeals as part of ongoing litigation regarding its attempt to regulate certain out-of-state banks by opting out of the uniform federal interstate banking framework under the Depository Institutions Deregulation and Monetary Control Act (DIDMCA).
The National Association of Industrial Bankers applauds the Senate Banking Committee for advancing the nomination of Travis Hill as Chairman of the Federal Deposit Insurance Corporation and urges swift confirmation by the full Senate.
Last week, the National Association of Industrial Bankers (NAIB) welcomed strong bipartisan support for industrial banks (IBs) from a group of United States Senators. They urged the FDIC to uphold the laws Congress has established to ensure fair treatment of IB applications.
Thrivent Bank is the sixteenth FDIC-insured industrial bank operating in Utah. Thrivent Bank is the first de novo industrial bank to open in the state since 2021.
This week the National Association of Industrial Bankers and the Utah Association of Financial Services announced the speaker lineup and schedule for their upcoming annual convention. This year, the convention will focus on new developments in FinTech, financial innovation, evolving demographics, and management.
In a major victory that will help preserve access to credit for Colorado consumers who need it most, a federal judge has preliminarily enjoined a Colorado statute that would have imposed interest-rate and fee caps on loans made to Colorado residents by state-chartered banks located outside Colorado.
Today, Senator Sherrod Brown again introduced the ‘‘Close the Shadow Banking Loophole Act.’’ This legislation directly targets industrial loan companies (ILCs).
The National Association of Industrial Bankers (NAIB) strongly opposes the anti-consumer and anti-innovation “Close the Shadow Banking Loophole Act” introduced by Sen. Sherrod Brown (D-OH), Sen. Bob Casey (D-PA) and Sen. Chris Van Hollen (D-MD) and being promoted by the big bank trade association, the Bank Policy Institute (BPI).
The National Association of Industrial Bankers (NAIB) expresses gratitude to the members of the House Financial Services Committee (HFSC) who voted against H.R.5912 “Close the ILC Loophole Act” introduced by Representative Chuy Garcia (D-IL) in the June 23 markup hearing. NAIB is especially appreciative of the bipartisan support for the nations’ industrial banks.
The National Association of Industrial Bankers (NAIB) has issued a letter and other materials in response to communications by various trade associations led by the Bank Policy Institute (BPI). In their emails and letters, these organizations made numerous allegations, without documentation, to develop support for H.R.5912 “Close the ILC Loophole Act” introduced by Representative Chuy Garcia (D-IL).
This week the US House Financial Services Committee Subcommittee on Consumer Protection and Financial Institutions conducted a hearing “The Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System”.
Yesterday, the US House Financial Services Committee (HFSC) conducted a hearing “Oversight of Prudential Regulators: Ensuring the Safety, Soundness, Diversity, and Accountability of Depository Institutions.” Federal regulators offered verbal and written testimony regarding their views on various matters confronting financial institutions. FDIC Chairman Jelena McWilliams fielded several questions regarding industrial banks, which her agency supervises.
Today, the Subcommittee on Consumer Protection and Financial Institutions conducted a hearing “Banking Innovation or Regulatory Evasion? Exploring Trends in Financial Institution Charters.” Several witnesses provided verbal and written testimony regarding their views on various banking charters, new advances in technology for financial services, consumer protection and data privacy.
“We agree with the BPI that examining Industrial Banks in today’s environment is important and necessary. Failing to include anyone on the panel representing Industrial Banks makes me wonder if the actual purpose of the panel was to obfuscate the facts about Industrial Banks rather than educate interested stakeholders,” stated Frank Pignanelli, Executive Director, The National Association of Industrial Bankers. (“Industrial Banks” is the most accurate label for these institutions.)
“Square and Nelnet are great additions to the U.S. banking sector. We congratulate them for succeeding through the rigorous federal and state application process,” said Frank Pignanelli, Executive Director of the National Association of Industrial Bankers.
In a new development in the case National Association of Industrial Bankers, et al v. Weiser, et at, the 10th Circuit Court of Appeals has granted our motion for a full panel rehearing.
The National Association of Industrial Bankers (NAIB) along with American Financial Services Association, Financial Technology Association, Innovative Lending Platform Association, Online Lenders Alliance, TechNet, and The Payments Coalition letter.
The National Association of Industrial Bankers (NAIB) congratulates UBS on its successful transition from an industrial bank to a nationally chartered bank, marking an important milestone in the firm’s continued growth in the United States.
Comment letter to the House Corporations Committee of the State of Rhode Island General Assembly regarding opposition to H 7850, opting out of DIDMCA
Industrial loan charters and new bank formations are featured in recent testimony by Treasury Secretary Scott Bessent. Read the article from PYMNT.
A food-truck operator, a hometown car dealership, and a woman-owned neighborhood bakery seeking to grow their business and achieve their American dream choose an industrial bank as their financial partner.
“We are confident Chairman Hill will ensure the consistent regulatory framework that is essential to safety, soundness, and diversification across the banking industry,” said NAIB Executive Director Frank Pignanelli.
The National Association of Industrial Bankers (NAIB), issued the a statement today regarding the filing of a new industrial bank application with the Federal Deposit Insurance Corporation (FDIC) by PayPal Holdings, Inc.
The National Association of Industrial Bankers today expressed deep concern over the Tenth Circuit’s decision upholding Colorado’s effort to extend its interest-rate laws to out-of-state, federally insured banks.
A letter to FDIC Acting Chairman Travis Hill reaffirming that industrial banks are among the nation’s best-performing, best-capitalized, and safest financial institutions—operating under robust FDIC oversight that is as strong or stronger than that applied to bank holding companies.
The Kem C. Gardner Policy Institute finds that Utah benefits from a high concentration of commercial banks, industrial banks, and other financial institutions that engage in Community Reinvestment Act (CRA) activities throughout the state. Their new report summarizes Utah’s community needs that can be addressed by CRA activities, including the needs of low- and moderate-income individuals, small businesses, and the general community.
The National Association of Industrial Bankers, the Utah Bankers Association, and the Nevada Bankers Association appreciate the FDIC’s ongoing support in improving the transparency, timing, and consistency of the current application process.
A new report from the Utah Center for Financial Services at the David Eccles School of Business at the University of Utah finds that industrial banks have consistently demonstrated resilience and a strong financial condition, even during periods of economic stress.
NAIB filed a letter of support for OneMain Bank's application for an industrial bank charter. OneMain Financial has been a long-term member of the Utah Association of Financial Services, an affiliated organization of NAIB.
Stellantis on Feb. 11 applied to form an industrial bank through the Utah Department of Financial Institutions. The application for the bank, dubbed Stellantis Bank USA, is pending approval by the Federal Deposit Insurance Corporation
The National Association of Industrial Bankers welcomes the 119th Congress and looks forward to working with members toward our shared goal of a strong and safe banking sector.
GM Financial resubmitted its application for an industrial loan company charter Friday to the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions.
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved a deposit insurance application submitted by Thrivent Financial for Lutherans (TFL) based in Minneapolis (through its wholly owned subsidiary Thrivent Financial Holdings), to create Thrivent Bank, a newly chartered industrial bank headquartered in Salt Lake City, Utah.
Romney made the request to the FDIC in a letter that was also signed by Sens. Catherine Cortez Masto, Susan Collins, Kyrsten Sinema and Debbie Stabenow.
A bipartisan group of senators led by Sen. Mitt Romney (R-Utah) sent a letter to the Federal Deposit Insurance Corp. this morning urging the bank regulator to give industrial banks fair regulatory treatment, particularly among new entrants.
As bank failures rattle investors and test regulators, it's time to rethink America’s financial system. One old solution, despised by regulators, might be just what the doctor ordered.
After a year when crypto tanked and regulators have become increasingly skeptical of bank-fintech partnerships, observers say the prospect of new industrial loan company applications being approved is increasingly remote.
The White House on Monday announced its intent to nominate Martin Gruenberg to be chairman of the Federal Deposit Insurance Corp., giving the Democrat another turn at the head of the bank regulator’s board.
A bipartisan group of senators is warning the Federal Deposit Insurance Corp. to give new industrial loan company charter applications due consideration, urging the regulator to "follow the laws that Congress carefully designed."
We write today to express support for the industrial loan company (ILC) charter and respectfully remind you to ensure the Federal Deposit Insurance Corporation (FDIC) continues to follow the laws that Congress carefully designed for the FDIC to consider new deposit insurance applicants, including ILCs.
The Biden administration’s picks to fill out the remainder of the Federal Reserve Board are a high-water mark for racial and gender diversity on the central bank’s governing body, but it remains to be seen how the nominees will be received by the Senate.
Federal Deposit Insurance Corp. Chair Jelena McWilliams announced she will resign early next year, a decision that comes just weeks after a partisan struggle on the agency's board threatened her leadership.
Doyle Bartlett and Blair Hancock, members of NAIB’s federal government relations team, were recognized by the noted publication The Hill on their 2021 list of top lobbyists.
Congress is considering eliminating the exemption for industrial loan companies (“ILCs”) from the definition of a bank under the Bank Holding Company Act (“BHCA”). State regulators believe there are several misconceptions regarding ILCs and the permissible activities of ILCs and their commercial parents.
NAIB member banks understand the importance of managing third party relationships in a safe and sound manner. We hope the comments provided will be helpful in developing well balanced and effective guidelines without regulatory burdens that may be overkill and without adequately considering the impact on the banks.
The Golden Apple from Eris Group
After an eventual two-week Easter Recess, the Senate returns to session this evening, and the House joins tomorrow. The news cycle during the recess was primarily dominated by the Iran War and the resulting economic and diplomatic fallout.
The District of Columbia retreated indoors today when threatened with heavy rains and tornado-like winds. Such was the level of concern that the House cancelled its Monday vote series. The House is in after a week-long recess; the Senate returns for another week.
The House has a short week this week, voting on Wednesday and Thursday of this week after cancelling votes on Tuesday and Friday. The Senate will convene later today. Primary season also starts tomorrow with Texas, Arkansas, and North Carolina on the ballot. Mississippi and Illinois will take place later this month.
It is a fairly quiet week legislatively, as the State of the Union slows activity on the House floor due to added security measures.
The focus this week continues to be on DHS funding. Last week, Congress passed appropriations bills for all other agencies, with an agreement to work on an agreement on changes to ICE procedures. That deadline expires on Friday, so we expect a good amount of back-and-forth this week.
We are looking forward to the Winter Olympics, beginning this Friday, February 6th. If you are looking for a thrill, tune in to the biathlon—any event, really, but the relay is particularly exciting.
The House Financial Services Committee will hold its first markup of 2026 this Thursday, with measures related financial reporting, artificial intelligence, bank tailoring, and terrorism risk insurance reauthorization.
We are returning after the holiday break and first week of session for both chambers. Last week, the House advanced a partial funding package that will be considered in the Senate.
The US Senate will take up the confirmation of 97 nominees under the new Senate rule that permits considering nominees together rather than individually. Included in this group will be Travis Hill to be Chairman of the Federal Deposit Insurance Corporation and Michael Selig to be the Chairman of the Commodity Futures Trading Commission.
Due to the angle of the sun in relation to the Earth, it is colder in December than in March when the spring equinox occurs. Regardless, it looks and feels like winter here in the nation’s capital.
The government is reopened and the House and Senate are back to work, at least until Thursday. The House and Senate are in recess next week for Thanksgiving and return on December 2.
Last night, the Senate voted 60-40 to take up a package that would reopen the federal government and fund parts of the government for FY26. Included in the package are three of the 12 annual appropriations bills, including Military Construction and Veteran Affairs, Agriculture, and the Legislative Branch.
The federal government has entered the second month of FY 2026 without a passing any appropriations bills so the government remains closed for the most part. If the shutdown continues until Wednesday, which it most certainly will, we will break the record for the longest federal government shutdown.
Tomorrow night's new moon should provide a dark sky for viewing two comets, Lemmon and SWAN, which will be closest to the earth in our lifetimes. Commet Lemmon will not make its way around to earth for another 1300 years and Comet SWAN for another 700 years.
Tonight is the Harvest Moon and the first of three Super Moons this year. It is the Harvest moon because it is the full moon closest to the autumnal equinox.
With the end of FY 2025 looming on Tuesday at midnight, all indications are that Congress will fail to pass a Continuing Resolution (CR) to keep the government funding into FY 2026.
Today marks the end of summer with the autumnal equinox. I am always a bit melancholy about the end of summer; fall is also a lovely if you ignore the shorter days and the ubiquitous pumpkin spice.
We are 15 days from the end of the fiscal year. The House is expected to release a short-term Continuing Resolution later this week that will fund the federal government through November 20th.
This is the last scheduled session week before the August break for the House of Representatives; the Senate is in next week and then set to break. However, President Trump has urged the Senate to stay in session and work to confirm nominees.
In DC, this week has been dubbed “Crypto Week” with multiple digital asset bills up for floor consideration in the House. We will be keeping an eye on those vote tallies.
The Senate is in session this week, but the House has canceled votes after staying in D.C. last week to pass the reconciliation package.
Both chambers are back this week before a scheduled recess next week for the 4th of July. It is a busy week ahead, but we are still basking in the glow of the OKC Thunder’s clinching of the NBA title yesterday. The extra sunlight from the solstice doesn’t hurt, either.
May was an eventful month, with the reconciliation bill sticking to timelines (against many predictions) and passing the House of Representatives. This month will be devoted to the Senate, as Majority Leader John Thune pushes to get the bill on the President’s desk by July 4th.
We write this knowing that the moment we hit send, it will become obsolete, because such is the pace of change these days. The main event we are watching continues to be reconciliation.
Last week, several committees in the House marked up their portions of the reconciliation bill, marking another step in the process toward completion of President Trump’s signature legislative effort.
Members are coming back to Washington, DC, today after a two-week recess for Easter. This four-week stretch will take us to Memorial Day and will be largely focused on getting the reconciliation package across the floor.
The Senate held a marathon vote session on Friday night, ending with the early Saturday passage of a budget resolution that advances President Trump’s widespread agenda. The measure, as passed, departs from the House version in a few key areas and has sparked criticism from deficit hardliners.
This is week two of a three-week work period ahead of the Easter recess, and both Chambers are feeling urgency to act on a unified budget resolution. In addition, the Trump administration plans to unveil a new, expansive set of tariffs on Wednesday.
A week-long recess for the House and Senate passed last week with no shortage of activity from the executive branch to keep everyone busy. As lawmakers return to the Hill this week, conversations will continue on a joint budget resolution and strategy to proceed with reconciliation.
This week will be focused on government funding, as the March 14th shutdown deadline looms. Over the weekend, Congressional Republicans released text for a continuing resolution that would extend funding through September.
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Life on Mars?
It was not exactly a snow—er, slow news week, and we send our warmest wishes to friends in Texas who are still waiting for power, water, and a break in the weather. But the most exciting news of the week was the Perseverance Mars Rover landing, 140 million miles away. The average temperature on the surface of Mars is about -80F, just for comparison.
House committees speed through budget work
With a deadline of February 16, twelve House committees marked up legislation this week to apportion the $1.9 trillion in COVID relief approved by the House and Senate.
Senate, House approve $1.9 trillion relief plan through reconciliation
You’d think something called “vote-a-rama” would be more fun. The Senate voted to proceed on S.Con.Res. 5, a resolution that lays out the budget framework for President Biden’s $1.9 billion COVID relief package, on Tuesday, and took its final vote on the resolution after 5:00 this morning.
Careful, fire will burn you
The four members of the Securities and Exchange Commission, which currently lacks a confirmed chair, issued a statement today reminding investors that “extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence.”
The greatest there ever was
We feel a baseball-sized hole in the world today. His career lasted 23 years, his record lasted 30 years, but his legend lives forever. We raise our caps to Henry Aaron, Hammerin’ Hank, who retired with 755 home runs and a lifetime batting average of .305, o never got that much attention until people realized he was within striking distance of Babe Ruth’s home-run record. His life of quiet, consistent excellence, often in the face of race-based hatred, will be a model for generations.
Washington prepares for change
We admit it: current events exceed our vocabulary. If you saw any news at all this week, you already know that the House of Representatives voted 232-197 on Wednesday to impeach President Donald J. Trump, whose term ends at noon next Wednesday.
Farewell to a friend
The relentless pace of events over the past year has made it hard to stop and note individual losses as they’ve happened. But we would be remiss if we didn’t pay our respects to our dear friend and mentor Richard Bates, Disney’s longtime man in Washington. It would not be an exaggeration to say that this office wouldn’t exist if not for Richard.
COVID relief/omnibus spending legislation passes, veto watch begins
You should already have received our summary of the massive bill Congress passed on Monday night: $900 billion in COVID-19 relief, $1.4 trillion to fund government operations for FY 2021, and dozens of unrelated authorizations added to a must-pass piece of legislation.
So close, so far
It’s rare to find something as universally supported as the Paycheck Protection Program, created by the CARES Act earlier this year. As Senate Small Business Committee Chairman Marco Rubio (R-FL) said at a hearing yesterday, the PPP has been the single most effective part of the CARES Act, and one of the most effective federal fiscal programs in US history.
Sorry, Santa, no emotional support reindeer
If Santa’s flying commercial this year, he’ll have to leave the reindeer at home, or else check them as cargo. This week the Department of Transportation announced a final rule that that, for the purposes of all things aircraft-related defines service animals as “a dog that is individually trained to do work or perform tasks for the benefit of a person with a disability.”
House, Senate choose leaders for 117th Congress
Although party control of the Senate remains undetermined, Democrats and Republicans on both sides of Capitol Hill elected their respective leaders this week. We’ll see few changes.
Neither hurricane, nor pandemic, nor . . .
It’s been a rough week, as Hurricane Eta hit Florida and hundreds of thousands of Americans — that’s not a typo, it’s hundreds of thousands — tested positive for COVID-19. We hope that you and yours are safe and sound.
We’re still sifting through the election results, waiting for vote counts to finish in several states
We’re still sifting through the election results, waiting for vote counts to finish in several states — Alaska, Arizona, Georgia, New York, Nevada, North Carolina, and Pennsylvania, specifically, though states will not certify the results of their elections until next week at the earliest, and in some cases not until December.
Wear your mask!
Some of us were still awake last night when the President announced that he and the First Lady had tested positive for COVID-19. This morning, Senator Mike Lee (R-UT) announced that he had tested positive as well.
A pioneer passes
Supreme Court Justice Ruth Bader Ginsburg lies in state at the U.S. Capitol this afternoon. “Women belong in all places where decisions are being made,” she said, making it all the more appropriate that she is the first woman ever to lie in state at the Capitol. Before she became the second woman Supreme Court justice, she argued the landmark cases that established that the 14th Amendment’s “equal protection” includes protection from discrimination on the basis of gender.
FHFA will extend moratoria on foreclosures, evictions if needed, Calabria says
Appearing before the House Financial Services Committee on Wednesday, Federal Housing Finance Agency (FHFA) Director Mark Calabria said that if necessary, he will extend the moratoria on foreclosures and evictions for homes and multifamily housing financed by Fannie Mae and Freddie Mac past December 31.
Governors ask for more pandemic relief
The governors of Kansas, Guam, New Mexico, and Minnesota appeared before the House Financial Services Committee yesterday to ask for additional federal funding to support their pandemic responses. Despite federal assistance from the CARES Act and other measures, states are facing deficits from a combination of emergency-related expenses and reduced revenues.
Surprise! It’s a baby panda, maybe
Come on, not all the news is bad. Veterinarians at the National Zoo announced today that Mei Xiang, one of the Zoo’s two giant pandas, is showing signs of an unexpected pregnancy, confirmed by ultrasound images.
Stimulus negotiations continue
Negotiations continue among the House, Senate, and Administration on a new pandemic relief package. We expect these talks to continue over the weekend and into next week, with elements changing day to day and even hour to hour. Stay tuned.
In the eye of the hurricane
We hope this will remain metaphorical for all of us this weekend, as Hurricane Isaias moves in on the south and east coasts of Florida. Stay safe, stay dry, and stay healthy, everybody. We’ve almost made it through July. Only five months left in 2020.