Over the past while, Wal-Mart has been trying to start up a bank. Much like their retail operations, their proposed bank would probably have cut fees and saved consumers a great deal of money and introduced a much-needed low-cost competitor into the banking industry.So, naturally, the government took the side of the established businesses and cut out competition by basically red-taping Wal-Mart out of the game.
“Wal-Mart said it made the decision because a move by federal regulators to
extend a moratorium on new applications for industrial loan
corporations (ILCs) would mean approval of its request would take years
instead of a few months as initially expected.”
The critics don’t even try to cover up why their protesting this:
“Resistance to Wal-Mart stemmed primarily from fears that its entry into
financial services would blur the lines between banking and commerce,
and destabilize the banking sector much as Wal-Mart’s decision to sell
groceries and toys changed the rules for other sellers of those goods.” [emphasis added]
As far as I know, the only rules changed by Wal-Mart in the retail arena is the rule of ridiculous markups. This is just business speak for “I’m scared that Wal-Mart will take all of our customers and leave us high and dry”.