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For Immediate Release: January 20, 2006

Washington, DC- Congressman Barney Frank, the Ranking Democratic Member of the House Financial Services Committee and Congressman Paul E. Gillmor (R-OH), also a senior member of the House Financial Services Committee, today made the following statements in response to a letter from the FDIC regarding Wal-Mart's application for deposit insurance. The FDIC letter is in response to a December 16 letter by Frank, Gillmor and 23 other bipartisan members of Congress asking the FDIC to hold public hearings on the Wal-Mart application and to hold off action until the board has a full complement of members.

"I welcome the FDIC's approach to a major decision impacting federal banking policy. To allow a large wholly commercial entity such as Wal-Mart to enter the banking business raises serious issues, and the FDIC should not consider this request without significant public input and consideration by the full board," said Congressman Frank.

"The announcement by the FDIC to delay a decision on Wal-Mart's application until a full board has been convened and to allow for public hearings demonstrates an awareness of the significance of Wal-Mart's request. Maintaining the historic separation between banking and commerce is essential to our financial safety nets and the FDIC's response to bipartisan Congressional interest is consistent with their mission," Gillmor said. "I look forward to continuing to work with Ranking Member Barney Frank and others on the Financial Services Committee to get legislation to the President that will address the policy concerns inherent in commercially-owned ILCs," Gillmor continued.

Click here to read the 19 January 2006 response letter from the FDIC.

Click here to read the 16 December 2005 bipartisan letter to the FDIC.

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The Committee oversees all components of the nation's housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities. The Committee continually reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, the Federal Reserve Bank, the Federal Deposit Insurance Corporation, Fannie Mae and Freddie Mac, and international development and finance agencies such as the World Bank and the International Monetary Fund. The Committee also ensures enforcement of housing and consumer protection laws such as the U.S. Housing Act, the Truth In Lending Act, the Housing and Community Development Act, the Fair Credit Reporting Act, the Real Estate Settlement Procedures Act, the Community Reinvestment Act, and financial privacy laws.