A Look at Potential Regulatory Impacts on Special Purpose Banks

In an article titled "Reg Plan Could Force GE, Retailers to Divest Banks" in today's American Banker, Maria Aspan writes that the Obama administration proposals for financial industry regulatory reform could result in certain kinds of special purpose banks, such as retailer-owned credit card banks, being eliminated.

As part of her reporting this story, Aspan spoke to a number of industry participants who "stressed that it remained early to understand the proposed reforms' full implications. But they agreed that, if the proposals are enacted as written, the days when retailers could issue their own credit cards would end — forcing the few remaining players to sell or close down their lending arms."