Industry News

ABA opposes Wal-Mart deposit insurance application

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An official from a major U.S. banking industry group is scheduled to testify today at a Federal Deposit Insurance Corporation hearing on Wal-Mart's deposit insurance application for a proposed industrial loan company in Utah, the organization said.   Art Johnson, chairman of the American Bankers Association's Government Relations Council, is scheduled to testify at the FDIC hearing today and will oppose the application, the ABA said. Wal-Mart hopes to charter Wal-Mart Bank in Utah, according to the ABA.   "Congress has on numerous occasions reinforced the basic principle of separating banking from non-financial commerce," said ABA witness Art Johnson, chairman and CEO of United Bank of Michigan in Grand Rapids and chairman of ABA's government relations council, in a statement. "That issue, from a congressional and public policy viewpoint, should be considered settled."   The ABA believes the ability of non-financial commercial firms to own ILCs (industrial loan comp...