Wal-Mart Moves to Buy Southland Bank
Wal-Mart Stores Inc. is seeking regulatory approval to buy a small Southern California bank in a move to reduce the amount it pays to process debit card payments.
The world’s largest retailer said it filed an application with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions for permission to acquire Franklin Bank of California, an Orange-based bank with about $2.39 million in assets.
Wal-Mart said it would gain an industrial bank charter through the purchase, granting it access to the system by which customers’ checking accounts are tapped for payments. The retailer now has to pay a fee on debit card transactions to the bank that sponsors its access to the network.
The FDIC said it couldn’t comment because it hasn’t yet accepted an application from Wal-Mart. That could mean the agency wants additional information, an FDIC spokesman said. Franklin Bank declined comment.
Shares of Bentonville, Ark.-based Wal-Mart shares rose $1.58 to $58.35 on the NYSE.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
