WASHINGTON - (04/11/06) -- A top official with Wal-Mart Storestried to quell the growing controversy over its pending applicationfor a bank charter Monday by insisting it has no plans to offerretail financial services and that it will only use the proposedWal-Mart Bank to process the $2.6 billion in transactions thatflows through its stores every month. Jane Thompson, president ofWal-Mart Financial Services, acknowledged the company had soughtapproval for branch banking in the past but has changed strategiesand has fully embraced the contracts it has with more than 300credit unions and banks that lease in-store branches in 1,150Wal-Mart stores, instead. Wal-Mart also plans to lease branches inanother 250 of its stores by 2009, most of them long-termcommitments of up to 15 years, she said during public hearings heldby the FDIC. "You will not see a Wal-Mart Bank in a Wal-Martstore," said Thompson. Representatives of all three major bankgroups, American Bankers Association, Independent Community BankersAssociation and America's Community Bankers, urged the FDIC toreject the Wal-Mart application, insisting such an operation couldpose potential threats to banks down the road. Wal-Mart currentlyholds an Industrial Loan Company charter in Utah but requiresfederal deposit insurance from the FDIC to launch the bank. Thenation's biggest retailer seeks the bank charter to be able toprocess its own transactions; credit card and debit card sales andthe conversion of checks to electronic images for transfer to allowWal-Mart to bypass a required sponsor bank to access the paymentssystem. The FDIC plans to continue it unprecedented public hearingon the Wal-Mart application on Tuesday in Washington, and April25th in Overland Park, Kan.
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At a time of mild or nonexistent loan growth, middle-market borrowers in the Lone Star State are providing a boost to Fifth Third Bancorp and Huntington Bancshares.
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New details have emerged about the negotiations that culminated in Capital One's blockbuster $35 billion agreement to acquire Discover. At one point last December, the two parties broke off discussions, according to a securities filing.
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
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The Alabama regional lender says it expects expenses to taper off this year and anticipates challenged loans will gradually rise to historically average levels.
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Truist Financial's top executive leadership team announces departures; First Horizon's chief credit officer is retiring; Ferry teams with Highnote to roll out a new Visa-branded payroll card; and more in the weekly banking news roundup.
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The Dallas-based regional bank tapped a client for its co-pilot capabilities, where employees can message a bot instead of a human to get tech assistance.
April 19