NAR announces opposition to proposal for new Wal-Mart Bank

Wal-Mart Bank is a proposed industrial loan company that would have its headquarters in Salt Lake City and handle electronic payment processing.

NAR officials said the group opposes Wal-Mart’s application for the same reason it opposes permitting national banks to broker real estate: banking and commerce should not be mixed.

The association has requested the opportunity to testify at an April Federal Deposit Insurance Corp. hearing in Washington, D.C. and Kansas City.

“We believe that approval of this application would set a serious precedent and lead to the erosion of the national policy against mixing banking and commerce,” said Thomas M. Stevens, president of NAR, in a news release.

The announcement is part of the association’s continued opposition to the mixing of banking and commerce, through both the entry into the banking industry of nonbanking companies and the entry by banks into real estate and property management.

Specifically, NAR has raised questions about three deals approved by the Office of the Comptroller of the Currency, granting three different banks approval to build hotels and mixed-use projects.

The OCC approved Bank of America’s plans to build and own a $65 million Ritz Carlton Hotel in Charlotte to provide lodging for its out-of-area visitors. The OCC also has approved PNC’s plans to build and own a $170 million, mixed-use building in Pittsburgh, which would include office space for the bank, and Union Bank of California received OCC approval for an equity investment in 70 percent of a wind-energy project, which enables the bank to take advantage of federal tax credits.

“We don’t think the policing prohibiting the mixing of banking and commerce can be applied selectively,” Stevens said. “If the banking industry opposes Wal-Mart’s entry into banking, they should also oppose the entry of big banking conglomerates into real estate brokerage and development. The same arguments apply. What’s good for the goose should be good for the gander.”

NAR represents more than 1.2 million members involved in all aspects of residential and commercial real estate.[[In-content Ad]]