Wal-Mart Ends Bank Bid

BENTONVILLE, Ark. – Seeking to put another controversy behind, Weal-Mart Stores announced Friday it has withdrawn its application for a U.S. bank charter. The company, embroiled in numerous fights over its labor practices, made the decision after the FDIC decided last month to extend its moratorium on all new industrial loan company charters, the kind of bank charter the retail giant was seeking, for another year. Wal-Mart, which is building a retail bank branch network in Mexico, insisted throughout it has no plans to develop its own branch network in the U.S., but wanted access to the Federal Reserve payments system in order to process its own transactions at significant cost-savings. Critics, lead by the nation’s community bankers, worried the company had future plans to kick out the 300 banks and credit unions operating 1,300 branches in Wal-Mart stores and establish its own retail banking operation. There worries were fueled by Wal-Mart’s continued expansion into financial services, as the company has created one of the nation’s biggest check cashing networks, has expanded its credit cards operations, and is building its own ATM network. The decision to pull its bank aplication comes as five credit unions are opening in-store branches in Wal-Marts this month, Service CU, Granite CU, Desert Schools FCU, Members CU and Members Alliance CU.