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)
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.