NEW YORK ( TheStreet) -- JPMorgan Chase ( JPM) is the second-largest stakeholder in The Tribune Company ( TRBAA). This isn't news in the technical sense. JPMorgan owned a 9% stake in The Tribune Company when it emerged from bankruptcy protection on Dec. 31. 2012, and some news reports even bothered to make mention of this fact at the time. Still, chances are that if you told a regular follower of business news that JPMorgan is the second-largest owner of Tribune Co., you'd be met with surprise. Following Monday's announcement that the Tribune will pay $2.7 billion to buy 19 television stations, making it the nation's largest owner of commercial television stations, JPMorgan's stake becomes more significant. Oh, and of course JPMorgan is the main lender on the deal. While this is nice for JPMorgan, it makes us wonder about those supposed laws separating banking and commerce. The bank holding company act in 1956, which was strengthened in 1970 said commercial companies can't own banks, explains Mehrsa Baradaran, University of Georgia law school professor who has written about the separation of banking and commerce. This law stymied efforts by Wal-Mart ( WMT) to get a banking charter in 2005, Baradaran says. Nonetheless, an exception was created in Utah 1987 allowing the creation of "industrial loan companies" (ILCs). This exception has allowed companies including American Express ( AXP), Target ( TGT), Volkswagen and General Electric ( GS), Goldman Sachs ( GS)and Morgan Stanley ( MS) to obtain banking charters. "First it was grandfathered in and then it became a loophole," Baradaran says. However, Wal-Mart's application in 2005 was met with fierce lobbying from the banking industry, causing the FDIC to create a moratorium on ILCs. The 2010 Dodd-Frank law reinstated that moratorium and, according to Baradaran "it
now looks like no one will be able to get an ILC." On the other hand, rules such as the 1933 Glass Steagall Act regulate what kind of businesses banks can own. "This is very murky. It's very controversial, and it's constantly in flux," Baradaran says. In 1933 it was very clear cut. Banks couldn't underwrite securities, engage in proprietary trading or sell insurance. Those laws were contested in the 1980s and were essentially thrown out with the 1999 Gramm Leach Bliley Act.