Community Banker Alert

The very real threat of Wal-Mart, Home Depot and 12 other Industrial Loan Corporations entering banking remains a grave concern to PACB. Along with ICBA, we continue to push at the federal level for the Congress to close the ILC loophole before it is too late. We also continue to push the FDIC not to grant deposit insurance to these conglomerates although ultimately the FDIC may have to do so given the precedent they set by granting previous ILCs deposit insurance.

We also continue to push for a state response to this issue. As a result, I am sending you a copy of a letter I sent to the Chairman of the Senate Banking and Insurance Committee following a recent meeting on this issue. Candidly, there is a good deal of educational work that needs to be done on this issue with the members of the state Legislature. On the surface, most members will be for greater competition. We need them to understand what the long-term implications for true competition is if Wal-Mart, Home Depot et al. enter banking. You have our pledge that we will continue to make this a top priority recognizing this is a serious threat to community banking in the 21st Century.

If you have any questions, please feel free to contact me or Dave Transue, our Government Affairs Consultant.