Electeds News Roundup

Posted on January 12, 2007 by webteam

The Electeds News roundup is a new weekly feature that summarizes the top stories for electeds and government officials across the country. 

ILC Banking News

In the spring of 2005, Wal-Mart applied for a license to operate an Industrial Loan Corporation (ILC).  The application must be approved by the FDIC and the state of Utah.  To date, the application is pending.  If the application is approved, Wal-Mart will be able to bank in Utah and 22 other states that have a reciprocal agreement with Utah.  This could include branching, business checking or other commercial bank activities and could put local bankers out of business and further increase Wal-Mart’s influence over the economy.

By the end of the month, Wal-Mart may know where federal regulators stand on its effort to establish a Utah-based industrial bank: Wal-Mart bank: Ruling due? The Federal Deposit Insurance Corp., which regulates and provides deposit insurance for industrial banks, is scheduled Jan. 31 to lift its self-imposed six-month moratorium on deposit insurance applications.

If and when the moratorium is lifted, Wal-Mart and such companies as DaimlerChrysler and Home Depot should have a sense of whether they can proceed with plans to get into the industrial banking business. Wal-Mart said it respected the FDIC’s decision to impose the moratorium to give it time to consider the issues surrounding industrial banks, which also are known as industrial loan corporations or ILCs…

In 2006, six states Iowa, Maryland, Missouri, Wisconsin, Virginia, and Vermont passed legislation prohibiting any future Wal-Mart ILC from operating in their states.  On Thursday, in Kansas, the state’s largest banking advocacy group announced plans to introduce a bill in the State legislature this session that will prohibit Wal-Mart and other industrial loan companies “from establishing a Kansas branch on the premises of an affiliate if the affiliate engages in commercial activities.” (See Bankers seek bill on Wal-Mart.)

  • Click here to learn more about the Bank of Wal-Mart.

Elected officials in 3 states this week denied Wal-Mart’s request to build a superstore in their communities:

  • Council denies Wal-Mart proposal [Wichita (Kan.) Eagle]

    The Wichita City Council denied Wal-Mart its request to build a superstore at Kellogg and Oliver on Tuesday, ending a months-long debate– at least for a while.
  • Waxhaw rejects Wal-Mart [Charlotte (N.C.) Observer via Bradenton (N.C.) Herald]

    Town commissioners unanimously rejected Tuesday a request by Wal-Mart to build a Supercenter near Waxhaw’s quaint downtown.
  • Neighbors win long battle against Wal-Mart [WCNC-Charlotte, N.C.]

    In the end, a Wal-Mart Supercenter was going to make a bad traffic problem worse. “That’s my concern, the traffic,” said commissioner David Barnes. “I always come back to the traffic,” said Commissioner Joyce Blythe. She said fire trucks and ambulances would have a harder time getting around and people don’t want to lose a quick response time. Plus, there would be 500 extra cars an hour on a two-lane road with tractor-trailer trucks and cars using the same entrance. “That, folks, is a nightmare waiting to happen,” she said.

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