Wal-Mart Watch Statement On Withdrawal Of Wal-Mart Banking Application

For Immediate Release
Friday, March 16, 2007

Washington, D.C. Wal-Mart Watch executive director David Nassar releases the following statement in response to Wal-Mart’s decision to withdraw its banking application:

This announcement represents a victory for consumers by a broad based bi-partisan coalition of which we were proud to be a part. It’s a victory for America’s banking consumers, for community banks, for the towns they serve, and for unfettered, free enterprise. The shared opposition was another example of how Wal-Mart’s policies are creating opposition at all levels of American society and inhibiting their ability to grow. We’ve seen this opposition in local communities, where activists have rallied to block stores. We’ve seen it among business leaders who have watched Wal-Mart monopolize their communities. And the people who Wal-Mart needs the most to grow, are the people most worried about Wal-Mart.”

We continue to have serious concerns about Wal-Mart’s desire to get into financial services such as mortgages and payday lending. They have demonstrated for years, and most recently with this ILC application, that they cannot be trusted to do what they say. Given such a history, Wal-Mart should not be trusted with the power to control access to money and wealth, particularly for the most economically vulnerable groups in American society. We hope that future legislation will restrict their ability to get into this sector and permanently block their ability to get 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.
  • March 16,2007: Wal-Mart withdraws ILC application, American Banker reports that Wal-Mart is exploring an entry into consumer lending.