Community Bankers Association of Illinois

WAL-MART WITHDRAWS ILC APPLICATION!!
06/07/07

FDIC Chairman Sheila Bair is quoted as saying the Wal-Mart "made a wise choice" in confirming the withdrawal of its Industrial Loan Charter application. Wal-Mart first applied to receive an ILC charter in Utah in July of 2005, causing the Independent Community Bankers of America and the Community Bankers Association of Illinois to oppose the possible negative impact of a Wal-Mart with retail banking powers. Today's welcome news does not remove completely the threat of Wal-Mart entering in to some aspects of banking. According to reports in American Banker, Wal-Mart is expected to pursue financial services activities, such as offering consumer loans, through either state licenses or indirectly through partners, sources have indicated.

This decision may also have an impact on legislation sponsored by House Financial Services Committee Chairman Barney Frank, which seeks to address the ILC issue in a comprehensive manner (H.R. 698 - click here for details). Some observers speculate that this decision by the retail giant may slow the momentum of this legislation. Currently there are 85 House co-sponsors listed on the bill. There are currently only three members of the Illinois Delegation (LaHood, Gutierrez and Schakowsky) listed as co-sponsors of this important legislation. It is still important to pass this legislation and maintain the separation of banking and commerce! Please contact your U.S. Representative and encourage them to sign on as a co-sponsor. Call CBAI's Department of Governmental Relations at 800/736-2224 or reply to this e-mail for assistance.

  800.736.2224 (IL) | 217.529.2265  
  DISCLAIMER: The association is not responsible for and has no control over the subject matter, content, information, or graphics when viewing links attached to this association's site.