Pols Saying No To Wal-Mart National Bank
By George Anderson
Members from both sides of the political aisle are joining together to limit the ability of industrial loan companies to branch out.
Industrial loan companies are a type of bank owned by commercial businesses that are currently allowed to operate in five states including Utah, California, Colorado, Minnesota
and Nevada.
Banking industry officials have expressed concern that Wal-Mart or other larger retailer could set up a national banking institution if restraints were not put into new legislation
allowing industrial loan companies to branch out.
A compromise measure would only allow industrial loan companies to expand across state lines if at least 85 percent of its revenue came from financial activities.
Geoffrey Basye, a spokesman for Representative Paul Gillmor (R – Ohio), one of the co-sponsors of the compromise resolution along with Barney Frank (D – Mass.) said, “This isn’t
an anti-Wal-Mart stance. Wal-Mart’s a great company. But in this area, Mr. Gillmor feels: leave it to the financial sector.”
Moderator’s Comment: Should Congress pass a law limiting the ability of industrial loan companies owned by companies
such as Wal-Mart from branching out into other states that those where it is currently legal to operate?
Sure sounds as if Congress is going out of its way to reduce competition in the banking business. – George
Anderson – Moderator