The announcement that FDICinsured deposits would be provided through Wal-Mart stores has drawn sharp criticism from the Independent Community Bankers of America (ICBA).
Kenneth A. Guenther, ICBA president and CEO, charged that the agreement between TD Bank Financial Group, Toronto, and Wal-Mart "flies in the face of the Congressional determination that banking and commerce should remain separate. By closing off the ability of commercial companies to own thrift institutions in the Gramm-Leach-- Bliley Act of 1999, Congress thwarted Wal-Mart's attempt to buy a thrift and get into the banking business."
He said that regulators should reject the TD Bank/Wal-Mart application.
TD Bank Financial Group announced that its TD Bank USA, FSB would offer banking products and services in as many as 100 Wal-Mart stores, subject to the regulatory approval. TD Bank anticipates expanding its checking and savings accounts offerings to other Wal-Mart locations in the United States as well as offering Internet and telephone banking.
In Canada, the TD organization operates 74 in-store branches in Wal-mart stores, as well as providing automated banking machines and cash management services. TD is already offering retail financial services to some two million U.S. customers through self-directed brokerage TD Waterhouse and its affiliate, TD Waterhouse Bank.
Wal-Mart said it has no plans to change in-store banking agreements that now exist. TD Bank USA will provide in-store banking services at U.S. Wal-Mart stores going forward.
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