Dodd-Frank Retailer Bank Ban Due to Expire

The debate over whether commercial firms should be allowed to own a bank may be renewed as Dodd-Frank's retailer bank ban is due to expire in July.

"Congress delayed the issue in the Dodd-Frank Act by enacting a three-year ban that prevents purely commercial firms from owning industrial loan companies and other limited-purpose banking charters," writes American Banker's Joe Adler.

The Independent Community Bankers of America plan to urge lawmakers to extend the freeze, while many nonbanks have shown that a charter is not necessary for getting into the financial business.

"We plan to pressure Congress to extend the moratorium. But the ILC charter is different now post financial meltdown," Paul Merski, the ICBA's chief economist said. "Congress and regulators are more sensitive to and aware of the dangers of loopholes."

For the full piece see "War Over Retailer Banks Could Reignite, With or Without Walmart" (may require subscription).