The nation's largest retailer has petioned the FDIC for the right to open their own bank. According to the company, they would save millions of dollars by processing their own credit, debit and electronic check payments.
Their request isn't without its critics though. The banking industry is trying like crazy to squash the idea. Not only do they not like the idea of loosing the millions in fees they're currently collecting from Walmart, but the idea of allowing an eight hundred pound gorilla play in their sandbox has them practically catatonic with fear. Right now, Walmart has over 1000 3rd party bank branches in their stores. If they were replaced with Walmart banks, they'd be a huge industry player over night. Walmart claims that they aren't interested in doing this, but I frankly can't believe that they'd be able to pass up an opportunity that good.
Congress has asked the FDIC to put off making a decision until they have public hearings and fill the vacancy left by Chairman Donald Powell who resigned in November so this isn't going to be decided soon. Keep an eye out for more news as this promises to be an interesting battle.
CNN Money: Wal-Mart Bank faces tough opposition
Their request isn't without its critics though. The banking industry is trying like crazy to squash the idea. Not only do they not like the idea of loosing the millions in fees they're currently collecting from Walmart, but the idea of allowing an eight hundred pound gorilla play in their sandbox has them practically catatonic with fear. Right now, Walmart has over 1000 3rd party bank branches in their stores. If they were replaced with Walmart banks, they'd be a huge industry player over night. Walmart claims that they aren't interested in doing this, but I frankly can't believe that they'd be able to pass up an opportunity that good.
Congress has asked the FDIC to put off making a decision until they have public hearings and fill the vacancy left by Chairman Donald Powell who resigned in November so this isn't going to be decided soon. Keep an eye out for more news as this promises to be an interesting battle.
CNN Money: Wal-Mart Bank faces tough opposition
