Industry News

Bankers trade group agrees with NAR

Associations oppose Home Depot's purchase of industrial loan company

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In a move that puts banks and real estate on the same side of a debate, the American Bankers Association opposes the Home Depot's application to the Federal Deposit Insurance Corp. to acquire EnerBank USA, an industrial loan corporation, the association said Tuesday in a comment letter. In early May, the Atlanta-based retailer announced it was buying EnerBank USA, which has a Utah-based industrial loan charter that allows it to make loans and offer other banking services. "As with the application of Wal-Mart Stores Inc. to obtain deposit insurance for its proposed ILC, the Home Depot jeopardizes the continued separation between banking and non-financial commerce that has served our banking industry and our nation so well," ABA said. ABA noted that current bills in Congress continue to reflect a heightened interest in preserving the separation between banking and non-financial commerce by restricting the authority of ILCs that are controlled by commercial firms. Moreover, House ba...