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Wal-Mart Banking
For the first time, the Federal Deposit Insurance Corporation (FDIC) is holding public hearings on Wal-Mart’s application for an industrial loan company (ILC) charter in Utah.
Wal-Mart's Application into Banking
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"Wal-Mart Announces Plan to Enter |
So what's an ILC and why does it matter?
ILCs are regulated differently than banks because they were originally small entities permitted by a loophole in the Bank Holding Act. If Wal-Mart, the world’s largest retailer with a history of unethical business practices, is granted access into banking via an ILC charter, there will be far-reaching consequences beyond the original intent of the act. If Wal-Mart charters in Utah, a Wal-Mart bank could branch out into more than 20 states because of state reciprocal branching laws. While Wal-Mart denies it plans to enter retail banking, its previous applications contradict their current publicly stated plans.
Approving the Wal-Mart application risks not only undermining the separation between commerce and banking, but threatens an expansion of “Wal-Mart banks” in multiple states, and in multiple aspects of the banking industry.
Read letters, press releases and statements on the issue:
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Congressional letter to the FDIC urging a moratorium >>> Click Here
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UFCW Statement on the FDIC's Decision to Hold Hearing on Wal-Mart's Application into Banking >>> Click Here
- Statement of the Sound Banking Coalition on the Senate Banking Committee Hearing "Consideration of Regulatory Relief Proposals" >>> Click Here
- Letter from Alan Greenspan to Congressman James Leach
>>> Click Here - Press Release from the Office of Congressman James Leach
>>> Click Here - Press Release from the National Association of Realtors (NAR) on Maintaining the Separation Of Banking & Commerce >>> Click Here
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