The Shadow Committee argues thatthe Senate Banking Committeeshould not pass legislation that continues torestrict the ability of retailers and other nonfinancial companies to acquire or charter Industrial Loan Companies. There is little, if any, evidence that the policy of separating banking and commerce makes economic sense.

What will the effect be of the FDIC's decision to extend the moratorium on the approval of new applications by nonfinancial companies to charter or acquire ILCs?

Congress has made a serious error by limiting the control of banks to companies engaged in financial activities. Hopefully the FDIC will not follow suit.

A new House Resolution intended to protect the banking industry against competition will ultimately hurt American consumers and banks.

Without a rational policy basis, the separation of banking and commerce is now only a way to protect banks and non-banks from competition from outside their industries.

H.R. 1375,if enacted, also would allow commercial companies, such as retailers, to compete with established banks.

Testimony on the elimination of policy separating banking and commerce.

The Federal Deposit Insurance Corporation should permit its moratorium on nonfinancial firms acquiring ILC charters to expire as planned on January 31.