Tubbs Jones Addresses Recent Findings of Inaccuracies in Wal-Mart Bank Application19 May 2006
Today, Congresswoman Stephanie Tubbs Jones released this statement in response to recent news articles citing potential discrepancies in Wal-Mart's application for a Utah industrial loan corporation (ILC) charter.
"Recent news articles have called attention to discrepancies in Wal-Mart's testimony regarding their ILC application to the FDIC.
"In their testimony Wal-Mart stated that it had no plans to replace community banks in its stores that currently had branches. Additionally, they stated that they had no plans to enter full-service banking citing leases signed by banks in its stores as evidence that renewal of leases was at the banks discretion alone. However, news media obtained copies of lease documents that require both the bank and Wal-Mart to agree to renew their leases. This provision would allow Wal-Mart to simply choose not to renew a bank's lease, making way for them to open their own retail bank.
"Yesterday, American Banker reported that Wal-Mart had posted a job advertisement seeking a 'senior product manager' to oversee 'mortgages, strategic banking and access cards.' Wal-Mart claims that this new hire would oversee Wal-Mart's mortgage program for employees with Nationwide Advantage Mortgage and their relationship with Atlanta's Sun Trust Banks, Inc. Yet, it seems odd that a company that claims to not be interested in entering retail banking would seek to hire a banking specialist who would receive a six-figure salary and report directly to senior Wal-Mart executives.
"While Wal-Mart continues to claim their testimony was truthful, these recent findings have begun to pull the thread on their intricately woven web of misleading testimony. Simply put, Wal-Mart is increasingly looking like a wolf in sheep's clothing attempting to fool both the FDIC and the American people into thinking that their intentions with this bank are honorable.
"I believe it is important that we continue to have a diversified financial service industry that remains strong through fair and healthy competition. I continue to encourage the FDIC to oppose this application. We cannot allow Wal-Mart's demonstrated predatory business model to infiltrate the banking industry."
Source: prnewswire
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