FDIC Puts Moratorium on Industrial Bank Bids
The Federal Deposit Insurance Corp. announced it would impose a six-month moratorium on industrial bank applications, seeking more time to weigh the bids of retailers, including Wal-Mart Stores Inc., that want to get into the banking business.
The decision on so-called industrial loan companies came amid pressure from bankers and lawmakers who maintain that allowing non-financial companies to own banks would harm the industry and erode the divide between banking and commerce.
The applications prompted House Financial Services Committee members Barney Frank (D-Mass.) and Paul E. Gillmor (R-Ohio) to introduce legislation that would bar new commercially owned industrial banks as of June 1, 2006.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
