ACORN, WARN Oppose 'Wal-Mart Bank'

ACORN, WARN Oppose 'Wal-Mart Bank'

8/23/2005 12:16:00 PM

To: National Desk, Labor Reporter

Contact: Allison Conyers, 202-547-2500 or acorncomm [at] acorn.org

WASHINGTON, August 23 /U.S. Newswire/ -- ACORN, and WARN (the Wal-Mart Alliance for Reform Now) today submitted official comments to the FDIC opposing Wal-Mart Stores, Inc. request for a charter and deposit insurance protection for a proposed Wal-Mart Bank. The community groups expressed strong opposition to Wal- Mart's request that its new bank be exempt from the Community Reinvestment Act.

"Wal-Mart wants to do an end run around the Community Reinvestment Act, which requires banks to make at least some credit available in low income and minority communities," said Alton Bennett, spokesman for ACORN. "History shows what the effect will be: if you remove the money from our most distressed neighborhoods, they will even become worse."

WARN is a Florida based alliance of community, religious, environmental, civil rights, and labor organizations which engages Wal-Mart on the controversial impact of its corporate citizenship, policies, and expansion on all aspects of local communities. WARN joined ACORN an organization with a long track record of promoting community reinvestment with banks, in calling on the FDIC to hold hearings around the country before deciding on Wal-Mart's bank application.

"Wal-Mart's proposed bank will weaken local economies," said Rick Smith, Florida Director for WARN. "Wal-Mart says they should not have to follow the rules of the Community Reinvestment Act, because they will only provide 'selected core banking services' and not make loans. In other words, they plan to drain resources from local banks that play by the rules, and invest in their communities, to boost their bottom line."

The comments submitted by the community groups cite the fact that Wal-Mart already faces allegations of extensive gender and racial discrimination in lawsuits around the country.

"Given Wal-Mart's track record in of mistreating communities and workers, is this who we want running rampant in the banking industry?" asked Bennett.

The comments also asked the FDIC to require Wal-Mart to release more information to the public about its proposed bank, and how it would affect local economies.

------

WARN, the Wal-Mart Alliance for Reform Now, WARN is a Florida based alliance of community, religious, environmental, civil rights, and labor organizations which engages Wal-Mart on the controversial impact of its corporate citizenship, policies, and expansion on all aspects of local communities.. In conjunction with the Wal-Mart Workers Association (WWA), WARN is building a national organization that has the power to affect change in the business practices of Wal-Mart and its affiliated businesses. With our base in Tampa and Orlando, WARN is currently expanding to give a voice to citizens across the country who are committed to challenging and reforming Wal-Mart's concept of corporate and community citizenship (http://www.warnwalmart.org).

ACORN is the nation's largest community organization of low- and moderate-income families, with over 175,000 member families organized into 800 neighborhood chapters in over 80 cities across the country. Since 1970 ACORN has taken action and won victories on issues of concern to our members. Our priorities include: better housing for first time homebuyers and tenants, living wages for low-wage workers, more investment in our communities from banks and governments, and better public schools. We achieve these goals by building community organizations that have the power to win changes -- through direct action, negotiation, legislation, and voter participation (http://www.acorn.org).

http://www.usnewswire.com/

-0-

/© 2005 U.S. Newswire 202-347-2770/