Wal-Mart bank draws more congressional fire

deadparrot

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Mon Mar-20-06 04:51 PM
Original message

Wal-Mart bank draws more congressional fire

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 (NYSE:WMT - news) scope and international dealings, financial problems within the company might damage the bank and disrupt the U.S. payments system.

The letter strikes similar chords as previous congressional correspondence on the retail giant's application, raising concerns about the lack of full bank regulatory oversight and the risk of loss to the federal deposit insurance fund.

"Without proper regulatory oversight, an industrial bank owner may put the solvency of both the bank and parent at risk," writes the group of more than 20 congressmen, including Ohio Republican Reps. Paul Gillmor and Steven LaTourette and Democratic Rep. Luis Gutierrez (news, bio, voting record) of Illinois.

http://news.yahoo.com/s/nm/financial_banking_walmart_dc

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Fenris

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Mon Mar-20-06 05:00 PM
Response to Original message

1. Interesting that Wal-Mart's application is being criticized...

Edited on Mon Mar-20-06 05:00 PM by Fenris

While Target, GM, and GE have been allowed to obtain bank status.

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kysrsoze

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Mon Mar-20-06 05:10 PM
Response to Original message

2. I owe my soul to the company stoooooooore.

:eyes:

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FloridaPat

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Mon Mar-20-06 08:19 PM
Response to Original message

3. This is crap. A bank is a bank. To operate, it has to obey the rules.

Edited on Mon Mar-20-06 08:20 PM by FloridaPat

Now, a lot of banks, to expand, had to buy other banks to get into different states. Maybe Walmart's plan was to just start up and go across the US. Better yet, maybe BOA and Capital One are upset about the competition. Since banks and credit card companies are one of the biggest contributors to repubs, they have a lot of clout. Besides, Discover is owned by Sears and there's never been a problem there.

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0rganism

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Mon Mar-20-06 08:36 PM
Response to Original message

4. How long before Wal-Mart gets to issue its own currency?

Edited on Mon Mar-20-06 08:38 PM by 0rganism

Waltonia

Wal-Mart States of America

Nation of Walton

Democratic Republic of Mart

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RUMMYisFROSTED

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Mon Mar-20-06 11:01 PM
Response to Reply #4

5. The DRM.

:rofl:

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