On January 31, the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) announced that it would continue for an additional year its moratorium on applications for deposit insurance and change in control notices for industrial loan companies (ILCs) submitted by commercial companies. ILC applications submitted by financial companies were not included in the moratorium. Related to these announcements, the FDIC also published for public comment a proposed rule (Part 354) which provides a framework for consideration of applications or notices for “industrial banks owned by financial companies not subject to federal consolidated bank supervision.” Comments on this proposal are due 90 days after publication in the Federal Register. According to the press release, “the comments received during the original moratorium demonstrated that the growth of the ILC industry, the trend toward commercial company ownership of ILCs and the nature of some ILC business models have raised significant questions about the risks to the deposit insurance fund.” The press release also pointed out that the moratorium will give Congress additional time to address issues related to the ownership and operation of ILCs  According to the press release, 58 ILCs currently operate in 7 states. Currently pending before the FDIC are eight ILC applications for deposit insurance and one notice of change in control for an existing ILC. Given the new parameters for review as part of this announcement, four of the filings will be subject to the continued moratorium and the FDIC may move forward with the remaining five applications. http://www.fdic.gov/news/news/press/2007/pr07007.html