Wal-Mart bank bid stirring debate in Washington

Northwestern Financial Review, Jul 1-Jul 14, 2002

A bid by Wal-Mart stores to purchase Franklin Bank, an industrial loan company in California, is colliding with ongoing debate in Congress over whether commercial companies should be allowed to continue buying depository institutions. Congress is weighing whether to give industrial loan companies more bank-like powers under a wider bill that would permit interest to be paid on business checking accounts.

Several industry representatives said Wal-Mart's move makes the bill more controversial, and could kill it. Some have suggested the move may have a longer-term impact - that it could prompt Congress to eliminate the industrial bank charter.