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Close the Shadow Banking Loophole Act

S. 3538 Sen. Sherrod Brown (D-OH) In committee
Bill text PDF
  1. Introduced Dec 14
  2. Committee Dec 14
  3. Passed Senate Next
  4. Passed House Not yet
  5. To President Not yet
  6. Law Not yet
Where it stands
In committee, Dec 14, 2023Next: Senate vote
1049d ago Dec 14, 2023: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Final votes
No roll callsNo recorded vote on this bill yet
Lobbying
2companies, 4 filings
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Companies lobbying on this bill

2 companies
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Summary

Close the Shadow Banking Loophole Act

Full summary2 paragraphs

This bill provides for the federal regulation and supervision of industrial banks, also known as industrial loan companies (ILCs), and their parent companies. ILCs are state-chartered institutions owned by nonfinancial businesses (parent companies) that provide several services similar to banks, such as originating loans and processing payments. Under current law, the parent companies are not subject to federal banking supervision, however, the Federal Deposit Insurance Corporation (FDIC) may grant deposit insurance to these institutions.

Under the bill, certain pending ILC deposit insurance applications must receive votes from two-thirds of the FDIC board to be approved. The bill also sets a deadline for FDIC to consider pending applications. If FDIC does not approve an application before this deadline, the application is deemed to have been denied.

Library of Congress summary, Dec 14, 2023

Summary versions
  • Introduced in SenateDec 14, 2023

Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 27, 2026.