Last year, we won an important victory when Wal-Mart withdrew its application for an ILC (Industrial Loan Corporation) bank, which is a way for a non-banking company such as a retailer to operate a bank. Then, the mere idea of a Wal-Mart Bank provoked an unprecedented backlash. When the dust settled, the chances of a Wal-Mart Bank seemed like a remote possibility. Unfortunately, it isn't. The FDIC moratorium on corporate industrial bank charters has expired. Today, there is nothing keeping Wal-Mart from pursuing a special ILC bank that would operate with little government oversight and dangerously blur the line between commerce and banking. Commercially owned banks will have an incentive to steer credit away from competitors and towards favored clients. Additionally, if a commercial company that owns a bank fails, it may put the bank and FDIC insurance funds at risk.
Until the loophole allowing for ILCs is closed for good, corporations like Wal-Mart will continue to pose a threat to America's banking industry. Senator Chris Dodd has proposed a piece of legislation that will patch the defect in our banking policy, but the bill is bogged down in a partisan debate. Unless we all act now, the bill may not even make it to the floor for a vote.
We need your help in getting this vital legislation through the Senate. Write your Senators today and tell them to take a stand for sound banking policy. Together, we can keep Wal-Mart out of the American banking industry.
Stop the Wal-Mart Bank: Write a letter to your Senators today.
Wal-Mart already has a history of unfair financial dealings. Last November, Wal-Mart de Mexico opened the first of a string of in-store Wal-Mart banks. Today, those branches prey on poor and under-served customers, offering predatory loans with outrageous 75% interest rates.
In America, Wal-Mart pushes credit cards that downplay absurd 25% APRs and pre-paid Visas chock-full of hidden fees. In 2006, while Wal-Mart pursued an American ILC, it went so far as to lie under oath while giving testimony to FDIC regulators.
Clearly, the facts speak for themselves. We can't allow an irresponsible corporation like Wal-Mart to threaten our nation's banking industry. Please, take action today?tell your Senators to take a stand for consumers and for responsible banking.
Write your Senators in support of Senator Dodd's bill .
Don't forget to forward this message on to your friends and family. With your help, we can end Wal-Mart's banking ambitions for good.
Thanks for all that you do,
The TeamWakeUpWalMart.com
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