Community Bankers Association of Illinois

WAL-MART MISSTATED LEASES TO FDIC
06/06/06

While Wal-Mart told the FDIC its leases for in-store independent banks were renewable at the discretion of the banks, at least some of the contracts require both Wal-Mart and the bank to agree to a renewal, Reuters reported on May 10 after obtaining several leases. Wal-Mart says it is an oversight. Prior to Reuters breaking the story, House Financial Services ranking member Barney Frank (D-Mass.) requested a list of Wal-Mart leases to evaluate the reliability of Wal-Mart's account. "Credibility and honesty are the two most important assets bankers must possess," ICBA President and CEO Cam Fine said, "Wal-Mart has already failed on both counts and should not be granted federal deposit insurance."

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