Congresswoman Asks FDIC to Reject Industrial Bank Charter Application for Wal-Mart

Friday, Congresswoman Stephanie Tubbs Jones sent a letter to Federal Deposit Insurance Corporation (FDIC) Vice Chairman Martin Gruenberg urging them to reject the Industrial Bank Charter Application of Wal-Mart Stores, Inc. Rep. Tubbs Jones was joined in this effort by 39 of her colleagues in Congress.

“I oppose Wal-Mart’s application for an ILC Charter because of their demonstrated predatory business model. If Wal-Mart expands its operations into banking, there is nothing to stop them from expanding their operations into the retail banking industry. This not only threatens community banks and credit unions but national banking institutions as well.

“There is also the issue of the potential failure of a bank of this nature. What if Enron or WorldCom owned banks? The failure of these companies would have not only been detrimental to the many employees who lost their jobs and retirement plans, but it also would have been a tremendous blow to local and national financial systems.

“Community banks and credit unions have a vested interest in the communities in which they serve. They fund and support local businesses and they are community partners. Additionally, community bankers live in these communities, and their children attend school in these communities. If Wal- Mart bank decided to abandon a town, the repercussions would be devastating to the survival of a city, even a region. Therefore it is important that we continue to have a diversified financial service industry that remains strong through fair and healthy competition.”