Wal-Mart Watch Statement On FDIC Decision
For Immediate Release
Wednesday, January 31, 2007
Washington, D.C. – Wal-Mart Watch executive director David Nassar issues the following statement in response to the Federal Deposit Insurance Corporation’s (FDIC) decision to extend its ban on new Industrial Loan Companies (ILCs) an additional 12 months:
We applaud the FDIC’s decision, and we believe it will give Congress sufficient time to address the serious concerns raised at the public hearings. Wal-Mart’s banking application has generated unprecedented controversy, opposition and questions about the role of retailers in banking.
This decision recognizes that Wal-Mart’s lack of transparency and pattern of disregarding legal accountability are legitimate issues that deserve scrutiny. If Wal-Mart can’t be trusted to abide by wage and discrimination laws, then the FDIC shouldn’t trust it with a bank.
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.
