Edward Jones Abandons Plan to Open Industrial Bank

Source: American Banker

The financial advisory firm Edward Jones has abandoned its effort to open a Utah-based industrial bank following recent discussions with the Federal Deposit Insurance Corp.

The parent company of St. Louis-based Edward Jones last week withdrew its applications with the FDIC and the Utah Department of Financial Institutions, according to an Oct. 7 securities filing. In explaining the decision, the firm cited both its conversations with the FDIC and what it characterized as "the current environment."

Since last year, when Democrats gained a majority on the FDIC's board, industry observers have viewed the agency as unwelcoming to efforts to open new industrial banks, also known as industrial loan companies or ILCs.