Posted 3/10/2006 11:47 am
Updated 1 year ago
The legislators say the industrial bank, if chartered, "could threaten the stability of the nation's payments system." They ask the FDIC to reject Wal-Mart Stores Inc.'s application to open a bank in Utah.
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The letter comes just after the regulator scheduled two public hearings on the Bentonville-based retailer's attempt to open an industrial bank, which will be the first time the FDIC has held formal public hearings on a bank application.
The hearings will take place from 9 a.m.-5:30 p.m. April 10-11 in Washington, D.C., and from 9 a.m.-5:30 p.m. April 25-26 in Kansas City, Mo.
Wal-Mart has applied to open an industrial loan company to handle electronic payment processing. The bank would be headquartered in Salt Lake City.
Critics of Wal-Mart's application have said Wal-Mart could use the bank to offer other financial services. They also say the Wal-Mart bank would cross the line between banks and other businesses that primarily offer financial services.
But regulators in Utah have said that the state's laws make it unlikely that an industrial bank charter obtained by Wal-Mart could be used to further the company's hopes of owning a retail bank.