What's regulation about? Fear of competition.
Lawmakers: Wal-Mart threatens US payment system (from The
Drudge Report)
Wal-Mart operates industrial banks that help process
electronic payments. Industrial banks
"are state-chartered and state-regulated, and fall under
the supervision of the FDIC. Commercial companies may own them because federal
laws that bar non-financial companies from engaging in banking activities do
not classify them as banks."
Some members of Congress are having a fit about these banks.
Here's what they say about them:
"Given Wal-Mart's massive scope and international
dealings, it is not possible to rule out a financial crisis within the company
that could damage the bank and severely disrupt the flow of payments throughout
the financial system."
Here's what the author of the article states a little later:
"Wal-Mart's application has attracted heightened
attention in Washington from some members of Congress, consumer groups and
banks that fear competing with the retail giant." (emphasis mine)
Bingo.
That's where the money is, right there. Who wants to bet the
'threatened' banks have donated millions to precisely those Congressmen who
view the Wal-Mart bank as a threat?
Target, General Electric and General Motors all have
industrial banks. Aren't those three companies large and 'dangerous?'
Nope. Wal-Mart is the devil to some people.
I wish this nation's leaders would put national over personal
interests and eliminate the vast majority (if not all) of federal regulation.
The government simply does a piss poor job of it. It always has and it always
will. All regulation does is hurt the consumer by causing higher prices for
unimproved goods and services.
