Unlike
dozens of prior ILC applications, Wal-Mart’s has been surrounded
by manufactured controversy since it was submitted nearly two
years ago.
Jane Thompson, President, Wal-Mart Financial Services
Thompson slammed pundits for what she called a manufactured
controversy. “Unlike dozens of prior ILC applications,
Wal-Mart’s has been surrounded by manufactured controversy since
it was submitted nearly two years ago," Thompson said in a
statement issued today. "At no stage did we intend to use the
ILC to establish branch banking operations as critics have
suggested -- we simply sought to reduce credit and debit card
transaction costs."
Thomson also said the company would continue to pursue
alternative financial services products, regardless of FDIC
approval. Thompson said, “Since the approval process is now
likely to take years rather than months, we decided to withdraw
our application to better focus on other ways to serve
customers. We fully intend to continue to introduce new products
and services that champion those who deserve convenient, lower
priced financial services.”
FDIC Chairman Sheila C. Bair said, "Wal-Mart made a wise choice.
This decision will remove the controversy surrounding their
intentions. They don't need an ILC to play an important role in
expanding access to financial services, they can do so by
partnering with banks and others. We look forward to working
with Wal-Mart in meeting the need for low-cost financial
services across all populations."
Ever the regulator, Financial Services Committee Chairman Barney
Frank added, "I appreciate the constructive step by Wal-Mart not
to pursue an ILC charter, but it does not in my judgment, remove
the need to legislate in this area."
