WAGING WAR WITH WAL-MART: A CRY FOR CHANGE THREATENS THE FUTURE OF INDUSTRIAL LOAN CORPORATIONS by ProQuest

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Wal-Mart, America's behemoth one-stop-shop, boasts astronomical statistics: two million employees worldwide; $374.5 billion in sales for the fiscal year ending Jan 31, 2008; more than 4,100 locations in the US alone, spanning approximately 600 million square feet of retail space; and more than 176 million customers per year. After a firestorm of criticism from banking industry officials and consumer watchdog groups, legislative threats from lawmakers, and an extended moratorium freezing all Industrial Loan Corp (ILC) applications by the Federal Deposit Insurance Corp, Wal-Mart withdrew its most recent attempt to secure a bank charter -- an ILC -- on Mar 16, 2007. The purpose of this article is to chronicle the development of the ILC industry and to analyze whether the separation of banking and commerce is a justifiable basis for opposing ILCs. ILCs should continue to receive charters, so long as there is sufficient regulatory supervision to manage the risks inherent in their holding structure.

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