Rep. Gillmor Dies, Fought for ILC Curbs

WASHINGTON — Rep. Paul Gillmor of Ohio, a key supporter of curbs on commercially owned industrial loan companies, died Tuesday night in his Washington-area home.

Initial reports Wednesday identified a heart attack as the probable cause of death of the 68-year-old lawmaker, though that was not confirmed. The news was a startling end to his recent ascent into the Republican leadership on the House Financial Services Committee. In January he was named the party’s ranking member on the panel’s subcommittee on financial institutions.

His death occurred just as the committee began its busy fall session. The absence of the 10-term congressman could slow momentum for the ILC legislation that he spearheaded with committee Chairman Barney Frank, D-Mass.

The ILC bill was an interest “where he really distinguished himself,” said Ken Guenther, the former leader of the Independent Community Bankers of America, which has steadfastly supported the legislation. “For a Republican to be on note with the chairman for such a big issue is very, very significant.”

Rep. Gillmor was also the chairman of Old Fort Banking Co., a $363 million-asset bank in Old Fort, Ohio, controlled by his family. Given the potential for conflicts of interest, he asked for and received the blessing of the House Ethics Committee to serve in leadership while keeping his business affiliations. Rep. Gillmor had sought a similar opinion from the ethics panel’s members when he first arrived in Congress in 1989.

“I know some people thought his banking experience was a conflict of interest; I never found it that way,” Rep. Frank told reporters Wednesday. “He was a very thoughtful guy,” and “it rippled through the committee in a hard fashion.”

Rep. Gillmor took a hard line on separating banking and commerce, and his resistance stiffened when Wal-Mart Stores Inc. applied to form a Utah ILC in 2005. Community banks — concerned that Wal-Mart could one day open branches — have persistently urged Congress to intervene. (Wal-Mart ultimately pulled its application last March in the face of the controversy.)

In an interview in February, Rep. Gillmor said he doubted the retailer’s assertion that it would use an ILC charter purely to process electronic payments.

“There’s no public purpose served by permitting Wal-Mart to own a bank,” he said. “Secondly, if you look at their track record, why do we have any reason to believe they would self-limit themselves when in the past they’ve made it clear that they want to go much broader than that?”

In March, Rep. Gillmor released internal Wal-Mart documents indicating it was considering offering its own banking products. His bill, which would thwart other commercial firms that sought ILC charters — including Home Depot Inc. — passed the House overwhelmingly in May.

Industry representatives said they believe the death of the bill’s co-sponsor does not doom it, though its future is uncertain. The Senate Banking Committee has not held a hearing on the issue, and Utah Republican Bob Bennett, a member of that committee, has vowed to protect his state’s industrial loan charter.

Camden Fine, the ICBA’s current president, said Alabama Republican Spencer Bachus, the House committee’s ranking minority member, would probably negotiate with senators if a bill passed the Senate and was sent to a conference committee.

“Certainly he will be missed, but it was such an overwhelmingly bipartisan vote” in the House “that I’m sure Congressman Bachus will pick up the voice that Congressman Gillmor had,” said Mr. Fine.

News of Rep. Gillmor’s death circulated Wednesday morning. Staff members reportedly went to his apartment when he did not show up for work.

“He was far more effective than a review of public statements and documents would indicate,” said Floyd Stoner, the head of government relations at the American Bankers Association. “He understood the industry” and “legislatively tried to ensure that the industry was both well-regulated and effective.”

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