WASHINGTON — House Financial Services Committee Chairman Barney Frank said Thursday that existing industrial loan companies should be grandfathered and not forced to convert to bank holding companies, thus breaking with the Obama administration's regulatory reform plan.

The administration has said that all ILCs and other specialty charters should be forced to convert to bank holding companies five years after a regulatory reform bill is enacted. As a result, many existing ILC owners, including General Electric Co., would be forced to divest their ILCs because they are commercial companies.

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