Opponents speak out about Wal-Mart banking bid
6:06 p.m. Wednesday, April 12, 2006
Washington — Wal-Mart is a name Americans know for everyday low prices.
But the company is no stranger to controversy as well.
Critics of Wal-Mart are speaking out about the retailer in this week's FDIC hearings about the company's bid to enter the banking business.
"For many years now there have been complaints by workers, community organizations, churches and student groups about the various corporate practices of Wal-Mart,” said Sarita Gupta, Jobs with Justice.
Federal bank regulators have the final say in whether Wal-Mart can expand into banking.
The FDIC knows the issue is a controversial one.
So for the first time in its 73-year history, the agency is holding hearings to give Wal-Mart supporters and critics a chance to be heard.
Many people feel a retailer doesn't belong in the financial services industry.
"This is not a regulated industry and their idea is what we can get away with and how best can we get away with it, not how to do we abide by the laws and how do we catch people within our organization who are not abiding by our laws,” said Jack Blum, Americans for Democratic Action.
Wal-Mart has revised its original application to the FDIC. The company now says it has no plans to open retail bank branches, but is applying for bank status to offer and process debit cards and credit cards to its customers.
"Mixing banking and commerce creates conflicts of interest and inherent risks that do not benefit the consumers of our nation,” said Thomas Stevens, National Association of Realtors.
The FDIC has not announced when it will decide on this issue.
The agency has scheduled a final day of testimony for April 25 in Overland Park.
Representatives from the Kansas Bankers Association and the Community Bankers Association of Kansas will be testifying at the April 25 hearing.
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