U.S. House Passes Bill Banning Industrial Banks for Retailers

The U.S. House of Representatives on Monday voted 371-16 to pass a bill that would separate the conjoined twins of commercial companies and banks.

Or, in other words: Wal-Mart is really not going to get that bank it’s always wanted.

The vote comes in the middle of an industrial loan company (ILC) moratorium, instigated, in part, by Wal-Mart’s last year’s relentless pursuit of a bank – ostensibly to process credit card charges. And in a further slap to Wal-Mart’s face, the bill would grandfather in pre-existing ILCs, though with some restrictions on certain ILCs that changed ownership after October 2003.

"It is my hope that the Senate can find a consensus approach as well to remove the cloud of uncertainty over the ILC charter and allow the ILC industry to continue as a strong, safe and sound component of the banking sector," FDIC Chairman Sheila Bair said.