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Old March 20th, 2006, 11:14 AM   #2
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Originally Posted by Lothos
Wal-Mart bank draws more congressional fire
Reuters News 03/20/06
by Kristin Roberts
(C) Reuters Limited 2006.


WASHINGTON (Reuters) - A bipartisan group of U.S. congressmen will this week ask regulators to deny Wal-Mart's bank application, the latest push from some on Capitol Hill to oppose the bid as public hearings near.

The House members, in a letter to the U.S. Federal Deposit Insurance Corp. obtained by Reuters say that due to Wal-Mart's (WMT.N: Quote, Profile, Research) scope and international dealings, financial problems within the company might damage the bank and disrupt the U.S. payments system.
I dont see the risk they state as any more of a risk than an independent bank. Wallmart is very stable and strong and growing almost at a staggering rate. What financial problems would wall mart have than any other bank? At any rate i see such problems as less likely with wall mart and its a non issue.

wall mart is very smart and very lean. They no doubt can run a bank more effeciently than the banks that currently service them. By starting there own bank to handle charge cards etc they can save themselves a few percent on sales and further lower prices below what other retailers can offer.

Opposition. 1, lobbyists from the banks that dont want to lose there easy money handling wall mart.

2. lobbyist from other large mulitnational retailers, and any supermarket chain like A&P, etc dont want to see wall mart gain another effeciency that they can't compete with.

Thats my take.
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