House Mulls Crackdown On "Wal-Mart Banks"

Law360, New York (April 25, 2007, 12:00 AM EDT) -- Concerned over the potential ramifications of a wave of industrial loan companies, a slew of financial officials have urged lawmakers to shut down an alleged loophole that could open the door for a boom of U.S. specialty banks owned by commercial retailers.

On Wednesday, the U.S. House Financial Services Committee, led by Chairman Barney Frank, D-Mass., held a hearing to gather opinion on how best to regulate the ILCs, a special hybrid of state-chartered banks that have access to federal insurance.

In the past, U.S. lawmakers...
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