I’ve posted previously about Wal-Mart’s $4 drug plan, and how this has put considerable competitive pressure on smaller drug retailers. Apparently, Wal-Mart won’t get to try the same strategy in the banking business.
In July 2005, Wal-Mart filed an application with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation to operate an industrial bank. Wal-Mart’s filing sent regional bank owners into a frenzy.
Why such a commotion? The owners feared it was only a matter of time before Wal-Mart used its economic might to crush local community banks, in the same way that it has demolished mom-and-pop operations across industry after industry.
Apparently the voice of 1,500 small bank and business owners was heard, and today Wal-Mart withdrew its application from the FDIC:
“Wal-Mart made a wise choice,” FDIC Chairman Sheila Bair said in a statement. “This decision will remove the controversy surrounding their intentions.”
Score one for the little guys.
Oh the poor little banking guys?
Those little guys who sit around thinking of new banking fees to invent every month?
Those same little guys who’ve written their software to charge fees and redeem checks on the days and in the order to maximize the chance of bouncing a check – which results in more fees, more bounced checks, more fees etc. etc.? (not a lie. I worked IT at a bank, the software is specifically designed to look for ways to overdraw your account)
Screw them, I hate walmart, but its always fun to watch little sharks getting eaten by big ones.
I hope walmart gets their bank.