WASHINGTON (Reuters) - A group of congressmen on Friday said an industrial bank owned by Wal-Mart, the world's largest retailer, could threaten the stability of the U.S. financial system and drive community banks out of business. (Comment: Blah, blah, Blah.......)
In a highly critical letter to the acting chairman of the Federal Deposit Insurance Corp., obtained by Reuters, a group of more than 30 congressmen 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."