Non-banks may be allowed to bid on troubled banks

The San Jose Mercury reports:

Should you have to be a bank to bid for a failed financial institution?
The Federal Deposit Insurance Corp., which has been unable to sell California-based mortgage lender IndyMac Federal Bank since it was seized four months ago, said Wednesday that it didn't think so.
The FDIC, which has dealt with 22 failed banks and thrifts this year, said it hoped to generate more interest by allowing nonbanks to join the auction process.
If it actually won the bidding for a failed institution, a nonbank bidder would have to get a bank charter and qualify for FDIC insurance before assuming the institution's deposits. The federal Office of the Comptroller of the Currency, which regulates national banks, said last week that it would issue "shelf charters" to prospective bidders for failed banks, essentially clearing them in advance.

We can't wait for Wal-Mart to become a bank.