A variety of financial and nonfinancial companies either have obtained or are considering obtaining the market share, low-cost funding, and revenue benefits available from a full service bank charter, i.e., a charter that permits deposit-taking and lending. A bank charter allows a business organization to capture more of a customer’s "wallet" by offering a broader range of services, including: (1) sweeps/retention of customer funds that otherwise would go to banks not affiliated with the organization; (2) loans, including margin loans; (3) escrow services; and (4) trust services.

For example, broker-dealers acquire banks to hold excess cash from brokerage activities, mortgage companies acquire banks to reduce licensing requirements and hold escrow funds, and automakers acquire banks to finance auto loans....

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