Walmart Wants to Be the Bank of America’s Poor, Which Is a Really Crappy Idea

[xchrom]

http://www.alternet.org/economy/walmart-wants-be-bank-americas-poor-which-really-crappy-idea



The FDIC estimates there are 10 million people living in the U.S. who do not have a bank account — that’s one out of every 13 households. Nearly 33 percent of people living in Starr County, TX can’t write a check. In one census district in Savannah, GA, over 42 percent of residents are unbanked. The unbanked are usually poor, often minorities, and find themselves shunned by banks that can’t make money off them. Typically, they end up turning to predatory check cashers and payday lenders. Many also feel a great sense of social division between themselves and those who have bank accounts.

The crash of 2008 exacerbated America’s growing problem of the unbanked, as many people faced financial ruin and the U.S. saw an increase in distrust of the banking industry. Some people have turned to credit unions, but these institutions generally do not actively recruit lower-income clients, many of whom may be unfamiliar with their services.

There is a quite reasonable way to address the issue of the unbanked, namely, public banking. As Elizabeth Warren has noted, bringing back public post office banks is a particularly good strategy, since the physical and operational structure already exists, and low-income people are comfortable with post offices, which they can usually access easily.

But of course, that idea does not fill the coffers of a giant corporation. Enter Walmart.

For years, big retailers smelling opportunity have been trying to figure out ways to offer banking services to low-income people as a way of boosting in-store sales. Walmart has been pushing hard to get into the banking business, but the retail goliath has been held back from obtaining a U.S. bank charter by a combination of banking industry players, union leaders, activists, political opponents, and experts who have warned that allowing Walmart to bank is a dangerous abandonment of the separation of banking from other forms of commerce, and that it opens the door to too-big-to-fail issues and potential taxpayer bailouts.

[Dustlawyer]

1. Oh Hell No!

[alterfurz]

2. Saint Peter, dontcha call me, 'cause I can't go...

...I owe my soul to the company store.

[liberalmike27]

3. Yea

What I found is, the when I had an account, they took not enough money, and made it less, with stupid little fees. About all Walmart can do is give banking services, with checks for free. When it turns out cashing your check is cheaper at a check-cashing place, than at the bank, I think the bank is charging too much.

This is yet another acknowledgement of the fact the rich, their banks, their insurance companies, almost all of them have no idea how little the lower end earns, or they certainly don't give a crap. Salaries and wages are falling, with no end in sight.

I don't see how Republicans "think" it's going to get better, as it's just going to become ever more like chaos, like the hole someone shot in my roof, for no good reason. Just random shit, making an already tenuous and tough life, even more difficult, for the poorest, while the rich are shielded from it all in their gated communities.

[drm604]

4. We need a return to postal banking.

http://www.slate.com/articles/news_and_politics/history/2014/08/postal_banking_already_worked_in_the_usa_and_it_will_work_again.html

Every other developed country in the world has postal banking, and we actually did too. It is important to remember this forgotten history as we begin to talk seriously about reviving postal banking because the system worked and it worked well. Postal banking, which existed in the United States from 1911 to 1966, was in fact so central to our banking system that it was almost the alternative to federal deposit insurance, and served as such from 1911 until 1933. The system prevented many bank runs during a turbulent time in the nation’s banking history—essentially performing central banking functions before the Federal Reserve was up to the task. Postal banking helped fund two world wars and reduced a massive government deficit after the Great Depression.

[YarnAddict]

7. Interestng

This is something I haven't heard of, except here on DU. Sounds like a great idea, to meet a very rea need.

[hatrack]

5. Yes, and instead of paying cash, they can issue Wal-Mart gift cards!

With a small "service fee" attached, of course.

[Prophet 451]

12. "I owe my soul to the company store" n/t

[JackInGreen]

6. I don't know

why any of them are still standing anywhere. They should be driven out like the parasites they are before they feed on more of the public body.

[wilsonbooks]

8. The walton family own banks

It has been reported by many sources including Forbes that Arvest Bank is owned and controlled by the Walton family of Walmart fame, although Arvest is operated separately from the famous retail chain. Sam Walton's son Jim runs the company.




they are found in many walmart stores

[kcass1954]

9. They're working their way there.

I heard a story on NPR this morning about their new money transfer service to compete with Western Union. WalMart says they will have lower fees.

[jwirr]

10. WalMart already cashes checks, has money orders, same day and 3 day bill pay and ATMs. They are

well on their way to being bankers already. And they already charge for all of these services.

I assume their reason for wanting to become bankers has nothing to do with these services. They must have some other reasons. Like making money off of the deposits of the poor.

[Prophet 451]

11. I still can't figure why you don't have post office banks

We have them here (UK) and, while basic, they work pretty well. I get why the Republicans don't want them (hatred of public institutions and fealty to banking megacorps) but I can't guess why more Dems haven't campaigned on bringing them back.

[951-Riverside]

13. Isnt this already called the Green Dot Card aka The Walmart Money Card?

https://www.walmartmoneycard.com/walmart