Wal-Mart Stores, Inc. (WMT): Concerns About Regulation

Though Wal-Mart Stores, Inc. (NYSE:WMT) should certainly be regulated regarding the products it offers, much as banks are, there seems no reason to limit financial services simply because banks are fearful of the consequences of competing with the retail giant. After all, prepaid debit cards aren’t regulated any more tightly for banks than they are for Walmart, so why would retail banking be any different?

As Wal-Mart Stores, Inc. (NYSE:WMT) continues to offer financial products that entice customers, it will only be a matter of time until the arguments against its entry into retail banking lose steam. Of course, banks could blunt the blow by offering their own free banking products. Come to think of it, that may be exactly what they are afraid of.

The article Here’s Why Banks Are Afraid of Walmart originally appeared on Fool.com.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends American Express Company (NYSE:AXP). The Motley Fool owns shares of PNC Financial Services (NYSE:PNC).

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