Magazine article American Banker

K Mart Is Ordered to Stop Selling Michigan S&L's Products in Florida

Magazine article American Banker

K Mart Is Ordered to Stop Selling Michigan S&L's Products in Florida

Article excerpt

TALLAHASSEE, Fla. -- A Florida judge Tuesday ordered K mart to stop selling the products of a Michigan thrift in Florida until authorities can determine whether the sale violates interstate banking laws.

Florida Comptroller Gerald A. Lewis won the temporary restraining order after charging that the deposits K mart was collecting for Standard Federal Savings & Loan Association of Troy, Mich., violated state laws that prohibit out-of-state S&Ls from accepting deposits in Florida.

Circuit Judge Donald O. Hartwell of Leon County did not rule on the merits of the case, although he said there was a "substantial likelihood" that Mr. Lewis would win.

A hearing on the merits of the issue was set for Feb. 8 before Circuit Judge Ben C. Willis of Quincy.

The case evolved after K mart, also based in Troy, Mich., began offering Standard Federal certificates of deposit and money market accounts about two weeks ago as a pilot project at stores in St. Petersburg, suburban Orlando, and suburban Fort Lauderdale.

Assistant Comptroller James E. Eaton said in a prepared statement, "We are glad that the judge took prompt action on short notice."

Officials for K mart were unavialable for comment on the decision.

William Yaw Jr., senior vice president for marketing at Standard Federal, said he was "not pleased" by Judge Hartwell's decision. "We felt we did all the things we should have done and were supposed to do to make it legal," he said.

Mr. Eaton said, though, "At no time prior to intiating this program did either K mart or Standard Federal consult with this deparment about Florida law. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.