The Office of Thrift Supervision approved charters for Allstate Corp. and the Aid Association for Lutherans this week.
The thrift charters are the 10th and 11th granted to nonbanks since 1997 when Congress began discussing plans to eliminate the unitary thrift charter. The House adopted a financial reform bill in May that would bar the OTS from approving new unitary thrift charters, and the Senate Banking Committee may vote on a similar measure in September.
Allstate Federal Savings Bank, Northbrook, Ill., will offer trust services to customers of Allstate Insurance Co. and will provide cash management services to affiliated companies.
AAL Trust Co., Appleton, Wis., will offer trust services primarily to customers of the Aid Association of Lutherans, a $17.7 billion-asset insurance and financial services firm.
The OTS, however, said the trust company may not discriminate against people who are not Lutherans. To ensure compliance with this order, the agency is requiring the trust company to market and advertise its products to the general public.
Both Allstate Federal and AAL Trust must apply to the OTS before offering new products and must follow the Federal Financial Institutions Examination Council's year-2000 compliance program.