Utah has set itself up as a haven for industrial banks; the likes of Goldman Sachs, GE and many others have set up units there. These banks make loans to companies, but they are not bound by Fed rules or required to hold capital reserves. They do not offer checking accounts and most have no retail operations. They are being swept up in the reform movement, and are mounting a huge fight--so far it's been fairly successful.

Sheila Bair and Barney Frank are among those who agree that owners of existing industrial banks should be able to maintain these operations, notes the New York Times. It also notes that while no industrial bank has failed in the last year, two--Capmark Bank and Marlin Business Bank--have sustained losses, enough to curtail operations. The FDIC has asked Advanta Bank Corporation to stop taking new customers because of their troubles. The issue is whether these banks can be used to circumvent regulations and standards.

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- here's the article

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