Is Banking Wal-Mart’s Next Frontier?

It appears Wal-Mart is creeping into every corner of our lives. They must be kept in check!

Did I read on this site or somewhere else that over 30% of WalMart shoppers don’t have a checking account?

Is this true? 

If so, the story above becomes all the more freightening for us all.

one way to keep walmart is to pressure them...thats why these UFCW’s campaigns - wakeupwalmart and walmartwatch - can only succeed with the help of others...I’ve told my friends..but you guys need to pour it on…

Wal-Mart is just trying to get an industrial bank so they can process credit cards without the ripoff charges that your credit cards are charging behind the scenes, which would reduce costs. 

I think the article raises a good point that it’s not wise for a business to be in charge of deciding who gets commericial loans.  But, I really don’t see anything negative about offering savings accounts or personal loans for individual consumers. 

I highly suggest everybody go to the “read the full article” link because WMTWatch did some pretty creative copying and pasting above to give the article more a negative spin than the original. 

This article and the responses above really indicate the hypocrisy on this site.  The common theme according to this site is “we’re not trying to bring Wal-Mart down, just make them a better corporate citizen”.  But these posts really has nothing to do with that, it’s saying “Wal-mart shouldn’t grow/expand in any way”.

In any event, you’re reading way too much into what Wal-Mart is trying to accomplish.  Perhaps reducing credit card fees could raise the profit per employee and allow more raises for employees that you guys want to see happen.

Cory

You know that I generally agree with you but your agreement with the article’s point regarding commercial loan decisions was off the mark. I have explained to everyone on this site that that is how GE makes their money. They don’t profit $17 billion a year from lightbulbs. What GE does is they set up a deal to sell a company a prodcut, be it jet engines or medical devices, and they finance the deal. GE also finances cars, homes, businesses, aircraft, ships, trains, real estate and so on. They are both a commerical seller and a commercial financer and they are ruthless. Yet, GE is one of the best managed and most efficient companies in the history of the world. They have been innovating and profiting for 100 years. Yet, no one complains about GE. I also mentioned Citigroup once. Citigroup is the largest financial services company in America. They own banks, insurance, real estate and so on. They control over $1 trillion in assets, or about 1/7 of our GDP. But Wal-Mart, with its’ $9.99 CDs and $0.89 peanut butter is a major threat? I just don’t get it.

With regard to Wal-Mart suing Visa and Mastercard for their fees, I must say that I agreed with that decision. For too long, we have let credit card companies have their way. You can often get better interest rates from a mafia loan shark. The problem is, mafia loan sharks aren’t controlled by the government, don’t pay taxes, and most likely don’t make campaign contributions. When you do these things, you are a credit card company. When you don’t do these things, you are a loanshark. Is there really a difference between Visa and the Genovese family? At least the Genovese family is honest about their livelihood. Wal-Mart sued these two companies and passed the savings on to consumers. If they were really the greedy bully they are accused of being (especially on this site) they would have pocketed the money and screwed their customer. People should be grateful that a big company stood up FOR the consumer and not AGAINST them.

That is my two cents’ worth.

It seems to me Wal-Mart intends to go after Visa/Master-
card in much the same way it goes at a supplier to lower its
costs. It’s actually hard to feel sorry for the credit card companies as they have it coming to them. A few months ago I could call up my bank and someone there could give
me any information I wanted about my credit account. Now
I have to call a number in Tampa FL and talk to a machine.
Zero notification. This is the same crowd that’s responsible
for compromising the idenity information of up to 40 million accounts. We considered cancelling the account
but finally decided to cut our cap amount from $5000 to $2500. Whether that does any good if something should happen we shall see. And actually Nick most banks aren’t
much better.

Thought throw this one in about how banks(credit cards) are fair.  I just recently purchased a new car.  I have never been late on any payments and have a 18 year credit history.  I have some credit card debts and such.  One card I had a 8.99% rate.  Just the other day.  Right after the company merged I got a new credit card statement from them.  New rate 29.99%.  I was what the hell it must be a typo.  So I called and the person told me something must have changed on my credit.  Only change was the new car purchase.  So I was thinking maybe someone stole my identity and ran up a bill or opened new lines of credit.  I have credit monitoring and nothing showed up.  So I got all 3 credit scores and reports.  Over the last year my credit score has either slightly risen or even rose 20 points from one of the credit bureas.  Maybe Wal-mart would raise its rates but I feel like giving them a chance to fight the blood greedy competition.  Thank God I just recently paid off the balance on the low rate card of 29.99% So now I have to worry each month who will be next to jack up the rate and go from paying off my debts in 2-3 years to filing bankruptcy.

John, a quick tip?  Depending on the balance of your card, Close the Account!  That shuts them up REAL fast.  If there is a balance, move it to another card.  When they ask why, tell them kindly that you don’t like the way the shot up their rate.  I’ve had them back off % rates when they see business leaving.

Nick, I’m not privvy to all the facts on the Visa/MC lawsuit, but I know that when I had my business, I signed the agreement with full knowledge of the rates being charged by the provider.  Wal-Mart had to have done the same thing.  I am generally not favorable of someone suing after they signed the agreement *in good faith*. Now, maybe there’s more (or a lot more) to the story, but that’s my general spin on it.  Also, they can always re-negotiate if they are feeling a raw deal.

Saying GE is the best managed and most efficient company in the world is a bit questionable… a well managed company shouldn’t have to lay a huge batch of people off every 5-6 years....  granted if you think overhiring and layoffs are a necessary part of the business cycle then I’ll give it to you.

Fortune 500 released the top 50 most profitable companies recently.  Here’s the top five… I couldn’t find a complete list for free anywhere.  Notice which corporation isn’t on this list.  This is for all you goobs that keep saying that Wal-Mart should be able to pay for world peace based on their revenue.

“Exxon Mobil was the most profitable corporation in the world, with income of $25.3 billion, followed by Shell ($18.2B), Citigroup ($17.0B), GE ($16.8B) and BP ($15.3B). “

If Wal-Mart can donate enough money to bring forth socialistic utopia, Exxon could do it about 3 times.  Why isn’t anybody bugging them?

Cory,

I have no doubt whatsoever that GE is the best managed company in the world. Of course, you have to question how a conglomerate this big has managed to meet or exceed estimates and increase its’ profit every quarter for several decades. A lot of GE’s top line growth came from acquisitions and its’ bottom line grew from sleight of hand accounting, mass firings, outsourcing, use of IT and better focus on costs. Sig Sigma was a great help to this as well. None of this diminishes my respect for GE but Jack Welch took over a Gulfstream II and turned it into a Gulfstream V. If he had taken over a Piper Cub and turned it into a Gulfstream V, that would have been a turnaround worthy of God-like status. As much as I admire Jack, he didn’t exactly take over a turkey in 1980. GE at the time was one of the most admired companies in the world and had one of the most recognizable corporate names anywhere. The company was very healthy and very profitable and it had tremendous assets. Its’ CEO, Reg Jones, was perhaps the most admired CEO on the planet. Not exactly a losing situation for Jack to handle. GE has done things such as book losses and extraordinary gains in the same quarter to offset each other to beat estimates and show increasing profit. However, GE’s greatest achievement has been its’ people factory. There are probably 200 executives at GE who could manage a Fortune 500 company. In fact, I think that 8 or 9 current Fortune 500 companies, outside of GE, are managed by former GE executives. They are a management dream. Of course, I would like to see Jack come out of retirement and take over a real tough situation. Maybe a company in a rut. GE or Ford perhaps. Or maybe Wal-Mart could hire him as an outside consultant. Mass firings and shady accounting won’t cut it at Wal-Mart but Jack sure knows how to motivate. One of his rules is CONSTANT personnel evaluation and feedback. This is designed to track every employee and weed out the deadbeats. His idea was to fire the bottom 10% of employees as often as possible. Of course, you get to a point where your bottom 10% are very good but they may get the boot simply because they are not quite as good as the middle 70% or the top 20%. I am digressing again. Isn’t this board supposed to discuss Wal-Mart? (Another excellent company with outstanding mangement)?

Man, that sucks for you John.  You should switch your balance to a Cabela’s club visa.  It is great!  Plus you get a 1% credit for anything at their store.  Then you won’t have to buy all your outdoor products from Wal-Mart - even though walmart is great company.  Hey, I believe in fostering competition - not by government regulations though.

Thanks Aaron but actually on the card(29.99%) I have a zero balance and most cards that I carry a balance the rates range from 2% to 6% so I am okay there as long as no other card(s) decide to highjack my rates

So much financial capital, so little time and space. Financial capital grows over everything, stressing real productivity, overthrowing govt structures, creating and expanding its logic across the over ripe planet. Massive capital, destroying towns with WAlmArts, financing the biggest debt bubble in history, rules the minds and souls of those subjugated under its cold rule. Jobs shipped overseas for profits, monopolists bankrupting the individual businessman, wars created to retain circulation of the fianncial beast, creative destruction to create new markets for an oversaturated capitalist world where the rate of profit has been declining for decades in the productive economy, so powerful capiltal must use speculation to increase its return. This process destroys your towns:the economy, increasng pollution, decreasing wages, less meaningful work...and you all support it, giving it lifeblood as it represents your retirement prospects...destroy the planet for your peaceful yuppie retirement...how cute.

Karl Marx

Karl,

Real wages and S&P;500 growth have grown dramatically throughout our history, even adjusted for inflation. Pollution is much less than it was during the industrial periods. Home ownership is at record high, tax receipts, adjusted for inflation, are at a record high (despite tax cuts) and our debt/deficit as a percentage of GDP, adjusted for inflation, are nowhere near record highs. Our trade deficit sucks but with people overseas working for $1.50 a day, how can we compete? America took over as the world’s economic leader in the 19th century, supplanting England. We had the natural resources, the freedom, the limited government, the capital, the land, the intelligence, the workforce and the capitalist spirit. China may not have all of these things but they have enough to make them a tough economic competitor. We have to accept that we cannot compete in a global economy if we don’t go back to the things that made us an engine of economic growth to begin with.

Real wages have fallen for 70% ofthe population over the last 30 years when the United States decided to delink the US dollar from the 35 dollar an ounce gold standerd in 1971. S&P;inflated along with the dollar over the last 3 decades, while in truth the top 10% of incomes owns 90% of stocks. The bourgeoisie are having a grand time while the bottom 70% are falling deeper and deeper in debt with lower wages and inflating asset prices.

The US is in no way a “free market” engine of ingenuituy but a semi-command economy ruled by monopolies based in Pentagon and NASA spending. the only free market are those who must sell their labor or attempt entrepeneurship without the protective State that multinational corporations utilize.

The US economy, dependent on consumer demand falters, with too many cars being produced, too many homes being bought and sold on financial speculation, whereby individual families have been priced out of the market.

By delinking USD$ from gold the US gained the ability to continually inflate away deflation, but this comes to an end soon. Soon debt burdens, increasing production costs through increased energy prices will smash consumer demand. By inflating dollars with reckless abandon the Fed will be forced to raise interest rates to match the decline in demand for the insolvent US debt position. The USD$ falls dramatically, further smashing consumer demand by rapid reduction in purchasing power. Deflation sets in and the depression ensues.

Karl

Hard to argue with much of what Karl says here---though the debt burden, increases in production and energy costs are already here and likewise the Fed manipulating interest rates. We’re borrowing from foreign countries (again China)
just to pay the interest on our deficts. With this particular president there is no will to solve the problem and I’m not
sure the democrat would have been any different. The thing is there are solutions to all this in evidence too. Unfortunately
it seems that the multi-national idea of globalization is going
to run its course first.

Anyway I ran across this today. And the reason I bring it up
is I’ve been accused more than once of being envious of the
rich here. This is from the latest novel by the Italian writer
Umberto Eco. The protagonist (as a young boy) is recalling a conversation he had with an older man (an anarchist fighting
with the partisans in WW2 Italy). And the man brings up a
priest they both know---and it goes like this:

Don Cognasso (the priest) will tell you that this commandment prohibits envy, which is certainly an ugly thing. But there’s bad envy, which is when your friend has a
bicycle and you don’t, and you hope he breaks his neck going down a hill, and there’s good envy, which is when you
want a bike like his and work your butt off to be able to buy one, even a used one, and it’s good envy that makes the world go round. And then there’s another envy, which is justice envy, which is when you can’t see any reason why a few people have everything and others are dying of hunger.

We’ve seen the problems caused by its dominance of the retail industry.

I’ve seen a lot more benefits than “problems.”