The Fed ordered a moratorium on non-bank banks.

Citing a federal court ruling against the Comptroller of the Currency, the Federal Reserve announced that it is suspending the processing of pending applications from bank holding companies to acquire or establish so-called non-bank banks. Federal bank supervisors last year approved the new type of financial institution, also known as consumer banks, which can accept demand deposits--checking accounts--or make commercial loans but not do both. Since then, large commercial banks nationwide and a diverse group of other businesses have filed to establish such institutions in dozens of states.