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Wal-Mart applies for limited banking charter

October 27, 2005

CNN/Money:Is retail banking next on Wal-Mart's agenda? That's certainly the fear among regional and community banks throughout the United States as bankers rushed in droves to protest the retailer's application to obtain a limited banking charter. In late July the company filed an application with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corp. to operate an industrial bank. Wal-Mart said the bank would process credit, debit and electronic-check payments, and save the company millions of dollars in fees currently paid to other financial institutions.

A Wal-Mart spokesperson said the bank itself, located in Salt Lake City, "will never be seen by consumers," and that Wal-Mart plans to continue attracting independent, community banks to open branches within its stores. The FDIC isn't expected to make a decision about Wal-Mart's application before spring 2006.

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