Wal-Mart Finds an Ally in Bank Bid Battle

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00008854-wal-mart-finds-an-ally-in-bank-bid-battle/

The American Financial Services Association (AFSA), a trade organization that extends credit to small businesses and consumers, has allied itself with Wal-Mart Stores, Inc. in the retail giant’s industrial bank application before the Federal Deposit Insurance Corp. ASFA intends to testify on behalf on Wal-Mart and Wal-Mart’s efforts to establish a Utah-based industrial bank.

Wal-Mart claims it will use the bank to save money on credit card processing fees. Critics fear, though, that such a move will hurt community banks in the same way opponents of Wal-Mart claim smaller grocery stores are harmed when Wal-Mart opens a new store in a small town.

The hearing will be held in April.

For this complete story, please visit Financial trade group stands with Wal-Mart.