Wal-Mart Enters Investment Services Market--House to Vote on Bill Barring Retailers from Operating Own Bank

After withdrawing its bid to start an industrial bank in March, Wal-Mart announced that it will offer discount brokerage services.  Wal-Mart will team with ShareBuilder Corp., a Bellevue, Washington-based discount brokerage in what is sure to be the first of many Wal-Mart ventures into the financial services market.  Link to Wall Street Journal article. (subscription required for full article).  On the Wal-Mart website it is described as "Wal-Mart Easy Investing by ShareBuilder."   

In other Wal-Mart news, the House is scheduled to vote today on a bill barring retailers such as Wal-Mart from opening their own banks.  The bill would "block non-financial companies from setting up or owning so-called 'industrial loan corporations,' which can issue credit cards, make loans and, in some cases, take deposits."  http://www.businessweek.com/ap/financialnews/D8P8N38G1.htm.  A similar bill passed the House last year, but ultimately stalled in the Senate.

For more information contact Howard O. Hagen or Jeffrey J. Andersen.