Industry News

NAR takes on Wal-Mart’s banking proposal

Trade group's president sends message to new Fed chief

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The National Association of Realtors trade group is asking Ben Bernanke, the new chairman of the Federal Reserve Board, to oppose Wal-Mart's pending application to the Federal Deposit Insurance Corp. for an industrial loan company charter. "NAR strongly believes that Wal-Mart's effort to obtain a federally insured (charter) will establish a dangerous precedent that will inevitably lead to an erosion of the separation of banking and commerce," said Thomas M. Stevens, NAR president, in the letter to Bernanke. "We see serious consequences for the continued stability and growth of the nation's financial system if the FDIC approves the application. Accordingly, we ask that, early in your term, you actively oppose approval by the FDIC of deposit insurance for the proposed Wal-Mart ILC," he stated. Stevens' letter charges that banks that were created by commercial firms operate "under an inherent and irreconcilable conflict of interest." NAR also has aggressively opposed efforts by banks to ...