Wal-Mart is not opening banks, contrary to the rabid anti-Wal-Mart crowd out there. (By the way, if Wal-Mart is so evil, what was Hillary Clinton doing on its Board? Guess that won't be in the Presidential campaign bio.)
The retailing giant is seeking FDIC approval to operate as an industrial bank. Which means instead of having to utilize a third-party financial institution to process a customer's check, debit or charge card payment, Wal-Mart can perform these transaction themselves. Just as Target, GE, Toyota, and General Motors do.
The banks currently performing these transactions for Wal-Mart currently charge the retailer millions of dollars each year for this work. Wal-Mart is simply asking for the same privilege its chief competitor Target enjoys.
So rest easy, Wal-Mart will NOT be "destroying the banking business as we know it".
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