If you're a UFCW member concerned about Wal-Mart's entry into the banking industry, you may want to use this letter as a guide in writing your Senator or Representative.
The Honorable [Full Name of Senator or Representative]
United States [Senate or House of Representatives]
Washington, DC [20510 or 20515]
Dear [Name of Senator or Representative]:
As one of your constituents, I am writing to urge you to oppose any legislation that would make it easier for a company like Wal-Mart to enter into the banking industry. Industrial banks (also known as Industrial Loan Companies or ILCs) have been targeted by commercial firms like Wal-Mart as a loophole into the banking industry. ILCs are banks that may be owned by commercial firms but are subject to less federal oversight than traditional banks. There is legislation currently being considered in Congress that will, if enacted in its current form, allow big commercial firms to enter banking and threaten our communities and our economy.
For example, H.R. 1375, the Financial Services Regulatory Relief Act of 2003, contains a provision which would permit a company like Wal-Mart to purchase a small ILC in Utah, open branches in all 50 states, avoid both state and federal regulation, and change banking forever. In Congress' zeal to provide "regulatory relief," it is important to preserve the stability and soundness of America's banking system.
Wal-Mart is actively seeking to enter the banking industry and represents a real threat. They have already attempted to acquire a bank several times. The company does not hide its intent to do banking "the Wal-Mart way."
If Wal-Mart were to become the only banker for my community, there would be huge potential for mischief. Retail businesses that compete with Wal-Mart would be forced to share their business plans with their largest competitor in order to obtain financing. Suppliers eager to curry favor with the largest retailer would be tempted to transfer their banking business in hopes of receiving more favorable consideration. Finally, the one million Wal-Mart employees could face pressure to consolidate their banking business with their employer.
The reasons against expanding the ILC loophole are strong and compelling. As my elected representative I strongly urge you to oppose this provision and preserve a safe and sound banking system that serves consumers, communities, business, and the economy.
Sincerely,
[Insert Name Here]
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