SAN JOSE, Calif. – Wal-Mart’s bid to buy an industrial bank was thwarted by a bill that prevented the retail giant from doing so. The state’s banking committee voted 5-2 to forbid any company that is not a bank holding company or credit union from buying industrial banks. Industrial banks offer savings accounts and business and personal loans but are not permitted to offer so-called “demand accounts” including checking accounts. Wal-Mart wanted to buy Franklin Bank of California, an industrial bank in Orange County with $2.4 million in assets, one branch and three employees to save expenses for processing debit-card transactions. Critics argued that Wal-Mart’s entry into banking would be the first step to the world largest retailer becoming a banking giant. Wal-Mart had $219 billion in revenue in 2001. Bob McAdam, a Wal-Mart lobbyist, said the retailer would need permission from the state’s Department of Financial Institutions if it wanted to expand into other areas of banking beyond debit-card processing.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.