Blues OKd to open savings bank

February 13, 2007

Page 4

Associated Press.

WASHINGTON The Blue Cross and Blue Shield Association has received federal approval to establish a savings bank to administer consumers' health savings accounts and is dropping its bid to open a special type of bank that has stirred controversy because of similar requests from Wal-Mart Stores Inc.

Last month the Federal Deposit Insurance Corp. extended its moratorium on applications for a special bank, known as an industrial loan corporation, for a year to give Congress time to act on the issue. This extended a moratorium that had lasted six months and had caught up Chicago-based Blue Cross' application, as well as those of Wal-Mart, Home Depot Inc. and other companies.

Blue Cross announced in December that it wanted to establish a bank to administer health savings accounts and other plans offered by its insurers.