Warren, Kim Tell FDIC to Halt Automaker, Tech Bank Reviews (1)

Granting specialty bank charters to General Motors Co., Nissan Motor Co., and other nonbank companies risks destabilizing the financial system, Democrats on the Senate Banking Committee said.

The Federal Deposit Insurance Corp. should stop reviewing applications for nonfinancial companies to open their own banks while Congress examines and potentially closes a legal loophole that subjects those banks to less stringent regulatory requirements, Sens. Elizabeth Warren (Mass.) and Andy Kim (N.J.) said in a Monday letter obtained by Bloomberg Law.

Tightening up the rules for industrial loan companies is critical since tech giants such as Amazon.com Inc., Alphabet Inc.'s ...