House bill would limit industrial banks (like Wal-Mart) - AP

[Eugene]

Source: Associated Press

House bill would limit industrial banks

By MARCY GORDON, AP Business Writer
24 minutes ago

WASHINGTON - Legislation barring commercial companies like
Wal-Mart and Home Depot from owning a special sort of bank
overwhelmingly cleared the House on Monday.

The bill, which passed 371-16, would prohibit nonfinancial
companies from setting up or owning so-called industrial loan
companies, federally insured institutions that can issue credit
cards, make loans and take deposits.

The industrial loan companies, or ILCs, have been proliferating
in recent years: there are now 58 with a total of about $200
billion in assets. Thirty-one are based in Utah, one of only
seven states that grant charters for such banks.

Critics say the growth of the industrial banks dangerously
blurs the line between banking and commerce, concentrating
assets in the hands of a few big companies, stifling
competition and hurting consumers.

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Read more: http://news.yahoo.com/s/ap/20070521/ap_on_go_co/congress_industrial_banks_2