THEY DECIDED TO NOT DECIDE…
The Federal Deposit Insurance Corporation decided to not decide on whether or not Wal-Mart should have its own bank. The Morning News, reports this afternoon that Wal-Mart will have to wait another year for a decision. Maybe.
…the Federal Deposit Insurance Corp. on Wednesday extended for one year a moratorium on considering applications of nonfinancial companies that want to establish or acquire banks.
The decision puts on hold pending applications from Wal-Mart, Home Depot Inc., DaimlerChrysler AG and American Pioneer, and gives Congress time to consider legislation that would prohibit such companies from owning so-called industrial loan corporations, or ILCs.
John Kelly, director of financial services for Wal-Mart in Washington, said the company was disappointed with the FDIC’s decision.
“We’re mainly disappointed for our customers. This effort has always been about cutting unnecessary costs and saving customers money, and that is all this bank application is about,†he said in a phone interview.
Critics say the growth of ILCs risks blurring the line between banking and commerce, concentrating assets in the hands of a few big companies and stifling competition, which hurts consumers. They also have expressed concern that Wal-Mart opening an industrial bank would lead to it starting a commercial bank in the future.
Well, same time next year?
[...] THEY DECIDED TO NOT DECIDE… The Federal Deposit Insurance Corporation decided to not decide on whether or not Wal-Mart should have its own bank. The Morning News, reports this afternoon that Wal-Mart will have to wait another year for a decision. Maybe. Keep reading… [...]