Well, Congress has allowed Goldman Sachs (GS) and Morgan Stanley (MS) to convert to a Bank. Why not allow Wal-Mart to buy the next set of troubled banks?
In my opinion, allowing Goldman Sachs and Morgan Stanley to convert to a bank is far worse that Wal-Mart (WMT) entering the sector.
Fundamentally, why was General Electric allowed to enter the financial services sector and
Walmart be exluded? I know the two companies are in different primary sectors (industrial vs. retail), but how much difference does that make?
Target was allowed to start their own bank.
ReplyDeleteI think it has to do with the vocal minority of Wal-Mart haters who lobby against Wal-Mart's efforts to obtain a bank charter.
I was wondering the same thing last week..."if Goldman and Morgan can become banks in a weekend, why not approve Wal-Mart because they've been trying for YEARS."