Bill would block Wal-Mart from opening banks
Bill would block Wal-Mart from opening banks
By April M. Washington, Rocky Mountain News
January 16, 2007
A bill that would block Wal-Mart and Home Depot from owning and operating banks in their stores sailed through a Senate committee today.
The move to protect small community banks from what some lawmakers called "big-box" stores' predatory practices comes as Wal-Mart and Home Depot seek to charter and operate banks within their stores across the nation.
"The community banks can not compete against Wal-Mart," said Barbara Walker, executive officer of the Independent Bankers of Colorado. "Just as it has wiped out mom and pop stores in Main Street America, it will wipe out small community banks."
Senate Bill 40, sponsored by Sen. Lois Tochtrop, D-Thornton, and Rep. Rosemary Marshall, D-Denver, would ban retailers from operating affiliated industrial banks.
The measure is aimed at closing a loophole in federal banking laws.
Industrial loan companies, or ILC’s, can offer nearly the same financial services as traditional chartered banks, but with much less scrutiny and oversight, said Walker.
The Senate Business, Labor and Technology Committee voted 6-1 to forward the measure to the full Senate.
Similar legislation will be introduced in the House.
The lone dissenting Republican, Sen. Jack Taylor of Steamboat Springs, rejected claims that banks owned and operated by Wal-Mart and Home Depot would drive community banks out of business.
"It’s implied that in a small community, the big-box stores could reduce them down to one bank," he said. "I’m having trouble accepting the argument."
2006 © The E.W. Scripps Co
By April M. Washington, Rocky Mountain News
January 16, 2007
A bill that would block Wal-Mart and Home Depot from owning and operating banks in their stores sailed through a Senate committee today.
The move to protect small community banks from what some lawmakers called "big-box" stores' predatory practices comes as Wal-Mart and Home Depot seek to charter and operate banks within their stores across the nation.
"The community banks can not compete against Wal-Mart," said Barbara Walker, executive officer of the Independent Bankers of Colorado. "Just as it has wiped out mom and pop stores in Main Street America, it will wipe out small community banks."
Senate Bill 40, sponsored by Sen. Lois Tochtrop, D-Thornton, and Rep. Rosemary Marshall, D-Denver, would ban retailers from operating affiliated industrial banks.
The measure is aimed at closing a loophole in federal banking laws.
Industrial loan companies, or ILC’s, can offer nearly the same financial services as traditional chartered banks, but with much less scrutiny and oversight, said Walker.
The Senate Business, Labor and Technology Committee voted 6-1 to forward the measure to the full Senate.
Similar legislation will be introduced in the House.
The lone dissenting Republican, Sen. Jack Taylor of Steamboat Springs, rejected claims that banks owned and operated by Wal-Mart and Home Depot would drive community banks out of business.
"It’s implied that in a small community, the big-box stores could reduce them down to one bank," he said. "I’m having trouble accepting the argument."
2006 © The E.W. Scripps Co
posted by Walking Contradiction at 9:37 PM
0 Comments:
Post a Comment
<< Home