The GAO recently concluded that, due to these differences in authority, exempt ILCs may pose more risk to the deposit insurance funds than banks operating in a bank holding company structure.
The exemption for ILCs in the BHC Act also permits a diversified securities, insurance or financial firm to acquire an FDIC-insured bank without complying with the enhanced capital, managerial and Community Reinvestment Act (CRA) requirements established by Congress in the GLB Act for financial holding companies.