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Posted: 3/10/2006 5:47:48 PM EDT
[Last Edit: 3/10/2006 5:48:10 PM EDT by 22bad]
Looks like the people that support our congressmen in the style to which they have become
accustomed have told their "employees"(our congressmen) that wal-mart has gone too far

Lawmakers: Wal-Mart threatens US payment system
Mar 10, 2006
Kristin Roberts
today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-03-10T164922Z_01_N10240586_RTRUKOC_0_US-FINANCING-BANKING-WALMART.xml&rpc=23
WASHINGTON (Reuters) - A group of lawmakers on Friday said an industrial bank owned by Wal-Mart (WMT.N: Quote, Profile, Research), the world's largest retailer, could threaten the stability of the U.S. financial system and drive community banks out of business.

In a highly critical letter to the acting chairman of the Federal Deposit Insurance Corp., obtained by Reuters, a group of more than 30 Congress members asked the bank regulator to reject Wal-Mart's application to open a bank in Utah.

"Wal-Mart's plan, to have its bank process hundreds of billions in transactions for its own stores, could threaten the stability of the nation's payments system," the lawmakers wrote.

"Given Wal-Mart's massive scope and international dealings, it is not possible to rule out a financial crisis within the company that could damage the bank and severely disrupt the flow of payments throughout the financial system."

The congressmen said the losses to the FDIC, which insures deposits at banks and thrift institutions, could be staggering if Wal-Mart begins to have financial troubles that bleed into its bank's business.

"Consider the consequences if Enron or WorldCom had owned a bank," the group said.

The group included Ohio Democrats Rep. Stephanie Tubbs Jones and Rep. Tim Ryan, Hawaii Democrat Rep. Neil Abercrombie and California Democrat Rep. Loretta Sanchez. A complete list of signatures was not immediately available.

Wal-Mart is trying to open an industrial bank to handle electronic payment processing.

Industrial banks are state-chartered and state-regulated, and fall under the supervision of the FDIC. Commercial companies may own them because federal laws that bar non-financial companies from engaging in banking activities do not classify them as banks.

But as "industrial loan companies" owned by non-financial companies, they escape a level of federal bank regulation.

Wal-Mart's application has attracted heightened attention in Washington from some members of Congress, consumer groups and banks that fear competing with the retail giant.

Some lobbyists and analysts, however, say the opposition is not surprising, given's Wal-Mart's size and the criticism it regularly receives from labor unions and other groups. Those sources say that if the FDIC follows statute, there is little reason why Wal-Mart's application should be denied when rival Target Corp. (TGT.N: Quote, Profile, Research) succeeded.

The Wal-Mart bid generated a record number of public comments and calls from Capitol Hill for the regulator to slow down its review. The FDIC, under Acting Chairman Martin Gruenberg, has agreed to hold public hearings on the application -- the agency's first formal public hearings on a bank application ever.

Wal-Mart has said it welcomes the public hearings.

Some groups, particularly banks, fear Wal-Mart will use its industrial bank as a base to offer a wider array of services in its branches.

Others who oppose Wal-Mart's application say the bank would violate the historic separation in the United States between banks and enterprises that do not engage primarily in finance. Still, other corporations have already set up industrial banks, such as General Electric (GE.N: Quote, Profile, Research) and General Motors (GM.N: Quote, Profile, Research).
Link Posted: 3/10/2006 5:49:12 PM EDT
Anyone have a list of the 30 Congress members?

Anyone want to bet it's 90% Ds
Link Posted: 3/10/2006 5:52:12 PM EDT
Liberals/socialist are soooo funny when they are out power. They just keep getting more batty by the day.
Link Posted: 3/10/2006 5:56:35 PM EDT

Originally Posted By Red_Beard:
Anyone have a list of the 30 Congress members?

Anyone want to bet it's 90% Ds



I would not take that bet.

Walmart has the funds, the market presence, and the minds to take on the banking industry. The old guard is just worried about competition cutting into their bottom line.
Link Posted: 3/10/2006 6:14:17 PM EDT
[Last Edit: 3/10/2006 6:26:49 PM EDT by warlord]

Originally Posted By bastiat:

Originally Posted By Red_Beard:
Anyone have a list of the 30 Congress members?

Anyone want to bet it's 90% Ds



I would not take that bet.

Walmart has the funds, the market presence, and the minds to take on the banking industry. The old guard is just worried about competition cutting into their bottom line.


Up until now, it was pretty easy to make money at being a bank. Most of the competition up till now has always been "friendly," so to speak. Even though other company such as GMAC(Gen. Motors Accept. Corp), Ford Credit, GECC(Gen Elec) etc, they not nearly big enought to threaten the banking industry, now there is a kid on the block, that could change the whole landscape of financial services.
Link Posted: 3/10/2006 6:17:21 PM EDT
sounds like a bunch of whining by banks that would lose some income. As much money as wal mart handles, it makes sense they would want their own bank.

i don't see much difference between that and gmac or any of the other auto companies lending banks.

Link Posted: 3/10/2006 6:19:32 PM EDT
Target already does it...why can't WM? Doesn't Sam's already do it anyway?
Link Posted: 3/10/2006 6:22:15 PM EDT

Originally Posted By danonly:
sounds like a bunch of whining by banks that would lose some income.



Yup, banking is a sales job, they have LARGE production goals, this would interfere with them
Link Posted: 3/10/2006 6:34:01 PM EDT
so, the Saudis can own Citicorp and Bank Of America, but WalMart can't get into banking?
Link Posted: 3/10/2006 6:47:16 PM EDT

Originally Posted By JarheadPatriot:
so, the Saudis can own Citicorp and Bank Of America, but WalMart can't get into banking?



well, right now there are some pretty determined folks who want nothing better than to kick walmart in the nutz. denying them a commercial bank center would pretty much connect really good with a nut.

Link Posted: 3/10/2006 6:58:58 PM EDT

Originally Posted By JarheadPatriot:
so, the Saudis can own Citicorp and Bank Of America, but WalMart can't get into banking?



What!!!1! Those dirty A-rabs own AMERICAN companies?!? THIS CANNOT STAND, WHERE IS CHUCK SCHUMER WHEN YOU NEED HIM??????????????

In all seriousness, what a bunch of shit. Fuck I hate Washington. Stay out of the goddamned private sector.
Link Posted: 3/10/2006 7:10:53 PM EDT
Hell, if walmart wants to get into banking...I hope they do...

I just can't wait till WalMart tries to buy out the ports!!!

Link Posted: 3/10/2006 7:20:50 PM EDT
I refuse to shop at Wal*Mart
Link Posted: 3/10/2006 7:23:26 PM EDT

Originally Posted By bvmjethead:
I refuse to shop at Wal*Mart



because of product quality, or some esoteric political stance?

Link Posted: 3/10/2006 7:23:27 PM EDT
Hey, Home Depot is going to start selling milk, so why the hell not?
Link Posted: 3/10/2006 7:25:02 PM EDT

Originally Posted By Yossarian:
Hell, if walmart wants to get into banking...I hope they do...

I just can't wait till WalMart tries to buy out the ports!!!





wait 'til the WalMart-Halliburton merger and subsequent acquisition by the Carlyle Group.........then it'll get interesting!
Link Posted: 3/10/2006 7:29:51 PM EDT
More special-interest pleading. Bigger banks can be better than small ones--much easier to spread the risk around.
Link Posted: 3/11/2006 2:46:52 AM EDT
Leave my ChinaMart alone dammit!
Link Posted: 3/11/2006 3:19:50 AM EDT
[Last Edit: 3/11/2006 3:35:21 AM EDT by callgood]



Lost another transaction to Wal Mart. BUUUUUUUUUUUUURRRRRRRP!

Ed­ited for poor Hut spelling
Link Posted: 3/11/2006 3:23:01 AM EDT

Originally Posted By callgood:
i13.photobucket.com/albums/a288/callgood/jabba.jpg


Lost another transactin to Wal Mart. BUUUUUUUUUUUUURRRRRRRP!



LOL!
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