Wal-Mart Rolls Out Bank in Mexico

by Mark Friedman  on Monday, Feb. 25, 2008 12:00 am  

Then Wal-Mart was stopped by regulators when it wanted to partner with Canada's Toronto-Dominion Bank's subsidiary TB Bank USA.

And in 2002, Wal-Mart tried to buy an industrial loan company in California, but was blocked by that state's legislature.

Its July 2005 application for a Utah state charter resulted in unprecedented public hearings held by the Federal Deposit Insurance Corp. and was officially withdrawn by Wal-Mart in early 2007, after the FDIC announced a moratorium on approving ILC charters.

Fine said the ICBA is opposed to the mixing of banks and commercial firms.

"We don't believe that the FDIC insurance safety net should be extended to commercial firms," Fine said. "We don't think that retail commercial firms should either directly or indirectly have a hand in insured bank deposits."

The ICBA doesn't have a problem, though, with Target's industrial loan charter.

"This is where the intention comes in," said Stephen Verdier, senior vice president and director of congressional affairs for the ICBA. "Target's ILC is a pretty limited operation, and they've never indicated they are going any farther."

Target offers credit to businesses that are its suppliers, he said.

"It's pretty much what people had in mind when the ILC charter was authorized by Congress in 1987," Verdier said.




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