After the Connecticut General Assembly approved a law last year to allow for the speedy formation of banks by seasoned industry professionals, the legislature is now considering expanding the law to allow those bankers to acquire multiple institutions in expedited fashion.
The bill is intended to allow investors to swiftly bid on failed banks being auctioned off by the Federal Deposit Insurance Corp.
The proposal would also authorize banks to merge with non-banking affiliates; and would authorize the Connecticut Department of Banking to conduct national criminal background checks on organizers and directors of banks.
A separate bill under consideration would allow the banking commissioner to suspend the license of any bank controlled by an individual who has served prison time the previous 10 years.
Legislators have proposed creating a revolving loan fund for use by economic and community development agencies in assisting small businesses.
The proposed vehicle would be funded from 2 percent of the annual fines collected by the Banking Department and would be administered by the Department of Economic and Community Development.
Mortgage Crisis Job Training Program managers want $300,000 from the state banking fund to support the program in the upcoming fiscal year.
The program was started by The Workplace Inc., a work force investment board covering lower Fairfield County, in response to the mortgage crisis to provide emergency job training to people in danger of losing their homes to foreclosure.
