The Wall Street Journal this morning reports that Sen. Sherrod Brown (D-Ohio) is confident that Congress will be able to pass legislation that he introduced that would prevent retailers and other non-financial services companies from owning banks.
There is something of a deadline for the proposed law. On January 31, 2008, a moratorium on the Federal Deposit Insurance Corporation (FDIC) ruling on any such applications will expire, and Brown says he believes the bill can get passed before that date. The House of Representatives already has passed a version of the bill.
Wal-Mart filed just such application earlier this year, but withdrew it in the face of significant opposition; Target still has an application pending before the FDIC. Traditional banks and financial services companies have objected to competition coming from companies outside their circle.
"I don't think it would strengthen our communities for Wal-Mart or Home Depot or companies like that to get into the banking business," Brown said Wednesday in a speech to the National Association of Federal Credit Unions.
There is something of a deadline for the proposed law. On January 31, 2008, a moratorium on the Federal Deposit Insurance Corporation (FDIC) ruling on any such applications will expire, and Brown says he believes the bill can get passed before that date. The House of Representatives already has passed a version of the bill.
Wal-Mart filed just such application earlier this year, but withdrew it in the face of significant opposition; Target still has an application pending before the FDIC. Traditional banks and financial services companies have objected to competition coming from companies outside their circle.
"I don't think it would strengthen our communities for Wal-Mart or Home Depot or companies like that to get into the banking business," Brown said Wednesday in a speech to the National Association of Federal Credit Unions.
- KC's View:
- To which I’m sure the credit union folks stood up and said, “Say Hallelujah!” Which is generally what happens when you preach to the choir.
