{"id":41900,"date":"2026-03-04T00:25:45","date_gmt":"2026-03-04T00:25:45","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/edward-jones-gets-fdics-nod-for-ilc-charter\/"},"modified":"2026-03-04T00:25:45","modified_gmt":"2026-03-04T00:25:45","slug":"edward-jones-gets-fdics-nod-for-ilc-charter","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/edward-jones-gets-fdics-nod-for-ilc-charter\/","title":{"rendered":"Edward Jones gets FDIC\u2019s nod for ILC charter"},"content":{"rendered":"


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This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. <\/i><\/p>\n

The Federal Deposit Insurance Corp. has approved investment firm Edward Jones\u2019 application for an industrial loan company charter, the agency <\/span><\/span><\/span><\/span><\/span><\/span>announced Friday<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The approval caps a nearly six-year journey for Edward Jones. The company first filed for an ILC charter <\/span><\/span><\/span><\/span><\/span><\/span>in 2020<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> but <\/span><\/span><\/span><\/span><\/span><\/span>withdrew it two years later<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>, citing \u201cthe current environment\u201d at the time and \u201crecent conversations\u201d with the FDIC.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Edward Jones resubmitted its ILC charter application <\/span><\/span><\/span><\/span><\/span><\/span>last April<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> to the FDIC and the Utah Department of Financial Institutions.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The investment firm, in a Friday <\/span><\/span><\/span><\/span><\/span><\/span>press release<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>, called the charter approval a \u201cpivotal step\u201d in Edward Jones\u2019 evolution.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cWe recognize when client needs are shifting,\u201d David Chubak, the company\u2019s head of wealth management and field management, said in a statement. \u201cBy bringing together our client’s entire financial picture, we\u2019re empowering our financial advisors to provide deeper, more meaningful advice and support clients through every stage of their financial journey.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Edward Jones is not the only firm recently to get the green light to launch an industrial bank. <\/span><\/span><\/span><\/span><\/span><\/span>Ford and General Motors<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> in January received ILC nods from the FDIC. And other similar applications await: <\/span><\/span><\/span><\/span><\/span><\/span>Nissan<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> applied for an ILC charter in June 2025, and <\/span><\/span><\/span><\/span><\/span><\/span>PayPal<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> submitted an application in December.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The FDIC under President Donald Trump in 2020 <\/span><\/span><\/span><\/span><\/span><\/span>approved its first new ILCs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> in more than a decade, but green lights in the Biden era were sparse.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

FDIC Chair <\/span><\/span><\/span><\/span><\/span><\/span>Travis Hill<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> last year touted the ILC charter as one of a handful of ways to boost the establishment of new banks.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Lawmakers on both sides of the aisle, though, have long argued the ILC designation exempts companies from the definition of a \u201cbank\u201d under the Bank Holding Company Act. As long as industrial banks don\u2019t offer demand deposit accounts, they can bypass oversight by the Federal Reserve, opponents have said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cThe <\/span><\/span><\/span><\/span><\/span><\/span>Rakutens and the Googles<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> of the world shouldn\u2019t be able to circumvent the Fed,\u201d Sen. John Kennedy, R-LA, said in 2019, introducing a bill to close that \u201cloophole.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cIf they\u2019re allowed to handle your banking services, they\u2019re going to turn into continents,\u201d he said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

To that end, Sens. Elizabeth Warren, D-MA, and Andy Kim, D-NJ, last October <\/span><\/span><\/span><\/span><\/span><\/span>proposed a moratorium<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span> on commercially owned ILC charters until such entities are defined as \u201cbanks\u201d under the BHC Act.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n

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Under the approval the FDIC granted Friday, Edward Jones Bank must maintain a leverage capital ratio of at least 9% and must open within a year. It also must gain the FDIC\u2019s non-objection for any changes to its board or senior executive team in its first three years and receive an annual independent audit.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The bank will launch with no less than $330 million in initial funds, and must finalize and implement a Community Reinvestment Act strategic plan, according to the FDIC\u2019s order Friday.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The industrial bank, which will be headquartered in the Salt Lake City area, will expand the availability of Edward Jones\u2019 reserve line of credit portfolio to all 50 states and Washington, D.C. The bank, which aims to open in 2027, will also take deposits and offer certificates of deposit, the company said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

\u201cPlanning for what\u2019s next looks different to every person and every family,\u201d Penny Pennington, the managing partner of Edward Jones, said in a statement Friday. \u201cThis expansion, along with meaningful partnerships with our financial advisors, will allow us to further help millions of families achieve what matters most to them.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

The FDIC approval \u201ccomplements\u201d a partnership Edward Jones <\/span><\/span><\/span><\/span><\/span><\/span>holds with U.S. Bank<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>, through which the investment firm\u2019s clients can get co-branded checking and credit card products, the company said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n

Edward Jones counts 9 million customers and $2.5 trillion in assets under care, the company said<\/span><\/span><\/span><\/span><\/span><\/span>.<\/p>\n<\/p><\/div>\n


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<\/p>\n","protected":false},"excerpt":{"rendered":"

This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. The Federal Deposit Insurance Corp. has approved investment firm Edward Jones\u2019 application for an industrial loan company charter, the agency announced Friday. The approval caps a nearly six-year journey for Edward Jones. The […]<\/p>\n","protected":false},"author":1,"featured_media":41901,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10],"tags":[4498,4502,4496,2257,4497,4499,4500,4501],"class_list":["post-41900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-charter-application","tag-david-chubak","tag-edward-jones","tag-fdic","tag-ilc","tag-industrial-bank","tag-investment-firm","tag-utah-department-of-financial-institutions"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/diyhaven858.wasmer.app\/wp-content\/uploads\/2026\/03\/6eef9e6a2f3d8400c0f9208261834141.jpeg","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/41900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/comments?post=41900"}],"version-history":[{"count":0,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/posts\/41900\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media\/41901"}],"wp:attachment":[{"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/media?parent=41900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/categories?post=41900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/diyhaven858.wasmer.app\/index.php\/wp-json\/wp\/v2\/tags?post=41900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}