During an appearance on CNBC this morning, Wisconsin Bankers Association president/CEO Kurt Bauer voiced concern over the proposition
of Wal-Mart entering the banking and lending industry.
The world’s largest retailer has asked the government permission to open an in-house banking operation to handle the debit card and electronic
checking payments the company handles. Because of opposition to the plan, the Federal Deposit Insurance Corporation is for the first time ever
holding public hearings on a bank application, today in Arlington, Va., and later this month in Kansas.
Bauer said was skeptical that Wal-Mart would limit itself to that, and said it would be just a matter of time until the corporation branches out
into areas like retail banking and business lending. He said he is concerned Wal-Mart won’t receive the regulatory scrutiny other banking
outlets face.
“There has been a very successful banking policy since the 1930s in the United States separating banking and commerce. This would be a violation
of that,” Bauer said.
Bauer was debated on the appearance by Nick Gillespie, editor-in-chief of Reason Magazine, who said the banking industry is merely afraid of
Wal-Mart from a competitive point of view because the company has a reputation for delivering better services and products cheaper than its
competitors.
