Post by Shadow on Mar 12, 2006 10:21:20 GMT -5
Reuters
By Kristin Roberts
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."
By Kristin Roberts
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."