Friday, September 26, 2008

Allow Wal-Mart to Buy Out a Troubled Bank

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?

1 comment:

Anonymous said...

Target was allowed to start their own bank.

I 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."