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Unions Seek Denial of Wal-Mart Bank

From Reuters

U.S. labor groups asked bank regulators to deny retail heavyweight Wal-Mart Stores Inc.'s application to open a financial institution in Utah as officials Thursday extended the comment period on the bid.

AFL-CIO President John J. Sweeney asked the Federal Deposit Insurance Corp. to reject the Bentonville, Ark.-based company’s bid to open an industrial loan corporation in Salt Lake City. Utah is one of five states where commercial firms may own such companies.

“A Wal-Mart-owned bank will create increased risk to the federal deposit insurance system,” Sweeney said in a letter.

The comment period was extended to Sept. 30 from late August.

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