FDIC to Wal-Mart: Not so fast with the bank
A major announcement came out today from the Federal Deposit Insurance Corp. (FDIC), who are slowing down Wal-Mart's lastest plan for economic domination, establishing its own bank:
U.S. regulators will likely hold a public hearing on Wal-Mart's controversial application to open a bank before a final decision is made, the supervisory agency told lawmakers in a letter this week.
Wal-Mart says the bank would merely process checks and credit cards for its retail stores, but the story notes that "some in Congress are concerned that the company might use it as a base to offer a much wider array of services."
Also towards the end of the story, we learn why the FDIC putting the brakes on Wal-Mart's bank application:
The application drew more than 1,500 comments from the public and more than 90 requests for hearings, Gruenberg said in the letter.
The heightened interest in Wal-Mart's bank application should come as no surprise given the opposition the retail giant has attracted in recent years, some Washington lobbyists and congressional sources say.
The company faces increasing opposition from labor groups, environmentalists and others who accuse it of paying poor wages and benefits, gobbling up green space and pressuring suppliers to lower prices.
It's been a rough year for Wal-Mart so far -- Maryland's Fair Share Health Care bill passing, the Department of Labor ending its sweetheart deal giving the company 15 days notice about when it's coming to investigate workplace violations, and now this. Maybe the tide is turning.
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Chris Kromm
Chris Kromm is executive director of the Institute for Southern Studies and publisher of the Institute's online magazine, Facing South.