Wal-Mart Branches Into Mortgages, Consumer Loans
For Immediate Release
Thursday, March 15, 2007
Washington, D.C. – In separate stories, the New York Times and Wall Street Journal today report on a Wal-Mart’s attempted expansion into mortgages and consumer loans. The expansion directly contradicts Wal-Mart’s banking application, FDIC testimony and the following denial from a Wal-Mart spokesperson last year:
Wal-Mart spokesman Martin Heires said interpreting the company’s [mortgage] executive search as proof of a move into commercial banking is ‘absolutely off base.’ He said the search is related to an employee benefit program to help Wal-Mart workers in 43 states obtain relatively cheap home mortgages. [Cox News, 5/11/06]
Wal-Mart Watch executive director David Nassar releases the following statement in response:
Wal-Mart’s banking application has been contradicted no fewer than three times and its credibility on the issue is in tatters. Wal-Mart executives are telling the FDIC that they only intend to process backroom transactions, but their banking plans are much broader and deserve additional FDIC and Congressional scrutiny. If Wal-Mart can’t be trusted to present accurate, factual information to the FDIC, then the FDIC shouldn’t trust it with a bank.
- New York Times: Wal-Mart Is Said to Have Big Banking Plans
- Wall Street Journal/Dow Jones: Wal-Mart, in New Leases, Frees Itself for Banking Push
Timeline Of Wal-Mart’s Attempted Expansion Into Banking
- 1999-2003: Wal-Mart attempts to buy banks in Okla. (1999), Canada (2001, 2003) and Calif. (2002).
- July 18, 2005: Wal-Mart files application with FDIC.
- February 23, 2006: FDIC announces that it will hold public hearings on the Wal-Mart’s banking application.
- April 10, 2006: Wal-Mart Watch delivers 14,000 signed letters to the FDIC in opposition to Wal-Mart’s application.
- April 11, 2006: Wal-Mart Watch testifies at public FDIC hearings in Arlington, Va.
- May 9, 2006: Reuters report exposes Wal-Mart’s application as inaccurate.
- May 11, 2006: Cox News reports on Wal-Mart’s efforts to expand into mortgage banking.
- May 22, 2006: Wal-Mart executive Jane Thompson tells bankers that she needs “a book on combat duty” in order to respond to critics.
- July 28, 2006: FDIC announces six month moratorium on all new ILC applications, including Wal-Mart’s.
- January 29, 2007: Rep. Barney Frank (D-Mass.) and Rep. Paul Gillmor (R-Ohio) introduce H.R. 698, prohibiting new ILCs.
- January 31, 2007: FDIC announces 12 month extension of ILC moratorium.
