Walmart's industrial loan company bid (2005)
Walmart applied in 2005 for an industrial loan company charter in Utah, which would have allowed the retailer to operate a bank while avoiding many federal banking regulations. Community banks and Congress pushed back, and the FDIC held hearings on the application.
The FDIC imposed a moratorium on industrial loan company applications in 2006, freezing the charter path for non-bank applicants.
Walmart withdrew its application in 2007, and the industrial loan company charter remained effectively closed to commercial firms for over a decade.
Shows the pattern of non-bank entities seeking special charters to enter banking with lighter oversight, and the pushback from the banking industry when they do.
