Senate looks to block retail banking ventures

WASHINGTON Retailers looking to own banks face a new roadblock, now that the Senate Banking, Housing and Urban Affairs Committee voted to approve a bill that would limit the type of businesses that could own industrial loan companies.

According to reports, the committee voted 11 to 10 to draft a bill presented by Chairman Christopher Dodd, D-Conn., that would prohibit non-financial companies from owning banks. The deal would not affect companies, that already own industrial loan companies, however they would be subject to additional regulation, reports said.

The vote was divided amongst democrats and republicans, with republicans opposed to the bill. Sen. Robert Bennet, R-Utah, reportedly stated that the banks are needed to supply credit to niche markets, and that there have been no issues with existing commercially owned international loan companies.