Congressional Committee will investigate FDIC’s role in no new bank charters
WHAT: House Committee on Oversight and Government Reform will hold a hearing regarding oversight of the FDIC application process.
WHEN: Wednesday, July 13, 2016 at 10 a.m. (EDT)
WHERE: Rayburn House Office Building, room 2154 – A live stream can be accessed at
https://oversight.house.gov/hearing/oversight-of-the-fdic-application-process/ or the Committee’s
YouTube Channel https://www.youtube.com/user/oversightandreform
WHO: The Committee has called to the following individuals to testify: FDIC Chairman Marty Gruenberg, Guy Williams, President and CEO of the Gulf Coast Bank and Trust Company (New Orleans, Louisiana), Matthew Browning, former officer of the National Association of Industrial Bankers and the Utah Bankers Association (Salt Lake City, Utah), and Dr. Simon Johnson, Professor of Global Economics and Management, MIT Sloan School of Management.
WHY: Only three state-chartered banks have been approved for FDIC insurance in the last eight years. “We look forward to raising this policy issue with the FDIC and show how it negatively impacts families and small businesses across the country. State-chartered banks, that include community banks, are the backbone to every state’s economy,” stated Howard Headlee, President of the Utah Bankers Association. Matt Browning, a former officer with the National Association of Industrial Bankers and the Utah Banker’s Association, will testify to how the FDIC’s policies have had a chilling effect upon the bank application process.
While the FDIC states that it is open to accepting applications, it has established an unreasonable standard and grueling pre-application process that prevents anyone from applying for a bank charter. Browning stated “A healthy economy requires a healthy banking system. A vibrant and innovative banking system is critical for job growth and economic expansion. The nation needs new banks, and the time is overdue to allow banks of every kind to resume playing their natural role in the economy. “
“Finally, the FDIC will have to answer the questions regarding the policy of diminishing state-chartered financial institutions. The dual banking system is under threat. We applaud Chairman Chaffetz and the Ranking Member Cummings efforts to address this important problem,” stated Frank Pignanelli, Executive Director of the National Association of Industrial Bankers.
For more information, please contact: Aimee McConkie at Aimee@uafs.net.
The National Association of Industrial Bankers (NAIB) is a national trade organization of industrial banks. First chartered in 1910, industrial banks operate under a number of titles: industrial loan banks, industrial loan corporations, or thrift and loan companies. These banks engage in consumer and commercial lending on both a secured and unsecured basis. They do not offer demand checking accounts but do accept time deposits savings deposit money market accounts and NOW accounts. Industrial banks provide a broad array of products and services to customers and small businesses nationwide, including some of the most underserved segments of the US economy.
The Utah Bankers Association (UBA) is the professional and trade association for Utah’s commercial banks, savings banks, and industrial banks. Established in 1908, the UBA serves, represents and advocates the interests of its members, enhancing their ability to be preeminent providers of financial services.