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S. 3538 118th Congress Senate

Close the Shadow Banking Loophole Act

Official title: A bill to address applications for deposit insurance submitted by industrial banks to the Federal Deposit Insurance Corporation, and for other purposes.

Introduced: December 14, 2023 See on congress.gov
Finance and Financial Sector
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This bill died when the 118th Congress ended
It never became law before the 118th Congress (2023–2024) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Dec 14, 2023
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Dec 14, 2023
Introduced in Senate
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 Latest action December 14, 2023

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

 Plain-English summary Congressional Research Service

Close the Shadow Banking Loophole Act

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.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 11

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

Bodies those filers lobbied

A filing lists the bills it worked on and the parts of government it contacted in separate sections, so these are the bodies those filers named anywhere in the filing, not a per-bill breakdown.

See all 11 filings →
 Cosponsors 3
All 3 Democratic 1 Republican 2
R
Kennedy, John
Louisiana · Dec 14, 2023
 D
Van Hollen, Chris
Maryland · Dec 14, 2023
 R
Wicker, Roger F.
Mississippi · Dec 14, 2023
Cite this page click to expand
APA
U.S. Congress. (2026). S. 3538: Close the Shadow Banking Loophole Act. 118th Congress. Open America. https://openamerica.io/bill/118-S-3538/
MLA
"S. 3538: Close the Shadow Banking Loophole Act." 118th Congress, 2026, Open America, https://openamerica.io/bill/118-S-3538/.
Bluebook (legal)
S. 3538, 118th Cong. (2026), https://openamerica.io/bill/118-S-3538/.
Markdown link
[S. 3538: Close the Shadow Banking Loophole Act](https://openamerica.io/bill/118-S-3538/)
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