 clipped from www.businessweek.comWal-Mart: Your New Banker?
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How would our current financial crisis be different if Wal-Mart had been allowed to operate a bank, as outlined by the above Business Week article from 2005? Would things be different?
Because Wal-Mart has built-in profit from retailing and a conservative management style, I suspect its tactics would have been vastly different from the Wall Street financiers who collateralized subprime mortgage obligations.
Instead of preventing Wal-Mart from entering the banking industry, we should have welcomed its competition and learned from its ideas. Shame on traditional bankers for fearing Wal-Mart's rivalry. Good competition should force rivals to focus on serving customers better.
Because Wal-Mart has built-in profit from retailing and a conservative management style, I suspect its tactics would have been vastly different from the Wall Street financiers who collateralized subprime mortgage obligations.
Instead of preventing Wal-Mart from entering the banking industry, we should have welcomed its competition and learned from its ideas. Shame on traditional bankers for fearing Wal-Mart's rivalry. Good competition should force rivals to focus on serving customers better.
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