Nordstrom Wins OK to Open Thrift

Nordstrom Inc. received government permission to operate a federally chartered thrift, a move that retailers Wal-Mart Stores Inc. and Dillard’s Inc. had sought but were denied by new legislation. Seattle-based Nordstrom, which operates department stores in 23 states, asked the Office of Thrift Supervision a year ago for permission to convert its national credit card operation into a thrift. It beat the May deadline for nonfinancial companies to submit applications for thrift charters, established as part of new legislation rewriting the financial services laws signed by President Clinton last month. The new company, to be named Nordstrom FSB, plans to offer new “starter” credit cards nationally for people with little or no credit history, as well as mortgage loans, home equity loans, and individual and business credit cards. Nordstrom stock fell $1.06 to close at $23.88 on the NYSE.