Home mortgages ............from Walmart?

Tweet

Apprarently, this retail giant is thinking about venturing into the arena of retail banking as well,despite it numerous denials to the contrary. According to an article in msn.com money today, the company is quietly renegotiating lease terms with the banks that reside in their stores to allow Walmart to offer mortgages,home equity and other consumer loans. These new terms coincide with growing opposition from many in the banking industry, congress and activist groups. One lease agreement signed by the retailer gives Walmart the ability to offer debit cards,investment and insurance products through a third party vendor. According to the article, Walmart plans to offer these products at the check out lines,customer service desk,kiosks and all throughout their stores. Walmart is defending their actions by stating that they have been providing services like check cashing,money transfer and credit cards for a long time..they are merely trying to expand their financial services "to save our customers money so the can live better" However, many community banks have tried to block Walmart's ability to own a bank stating that Walmart would "present a dangerous mix of commerce and banking and put the deposit-insurance system at risk" So far federal regulators have put a 12 month hold on Walmart's last attempt to hold a banking charter. Currently a Financial services committe in the House of Rep.is considering a bill to block Walmart efforts to own a bank charter. Do you think that a Walmart "bank" could put the banking industry at risk? Other companies like harley Davidson and Target own banks- do you think that Walmart is being unfairly singled out? Would you consider utilizing Walmart "banking" services if the become available?