Sen. Clinton Urges Caution on Wal-Mart Bank Bid

By Kristin Roberts, Reuters

New York Democrat Sen. Hillary Clinton has entered the debate over Wal-Mart’s controversial bank application, telling regulators she has “serious reservations” about allowing companies to enter financial services by exploiting a “loophole” in U.S. law, according to a letter obtained by Reuters on Wednesday.

Clinton, in a Feb. 3 letter to the Federal Deposit Insurance Corp., said Wal-Mart’s bid to open an industrial loan company (ILC), if successful, could have a significant impact on the financial services sector.

“After hearing from very concerned constituents about Wal-Mart’s application for federal insurance for their ILC, I see this as a time to urge the FDIC to give serious and careful review to the relevant issues before moving forward on any application for federal insurance,” Clinton wrote to the FDIC’s acting chairman.

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