WASHINGTON -- Prompted by the growing controversy over the entry of non-banks into the financial services market, the FDIC instituted a six-month moratorium on all new Industrial Loan Company charters. The FDIC ban was enacted by the growing criticism in Congress and the banking industry over an application by retail giant Wal-Mart Stores to enter the banking business by acquiring an ILC charter. Though ILCs are state chartered--Wal-Mart has a Utah charter--they all require federal deposit insurance through the FDIC. The ban will not only affect the Wal-Mart bid, but similar applications submitted by Home Depot, Blue Cross/Blue Shield, Berkshire Hathaway, DaimlerChrysler and the several others. Legislation proposed by Congress would permanently bar non-financial companies like those from operating ILCs.
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As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
July 4 -
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
July 3 -
A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
July 3 -
Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
July 3 -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
July 3