By George Anderson
If Congress passes legislation allowing retailers, most notably Wal-Mart, to offer checking and savings accounts, it could mean the end for community banks, say opponents, according to a report on the Baltimore Sun's Web site.
Kenneth Guenther, president and chief executive officer, Independent Community Bankers of America said, "Wal-Mart would have the potential to bring, if not the Black Death, at least the plague to thousands of community banks."
Donald Powell, chairman, Federal Deposit Insurance Corp. responded in a speech given to banking executives last month. "While I understand the anxiety some people have on this issue, fear of competition should not be the compelling argument in formulating good public policy."
Moderator's Comment: Should Congress pass legislation enabling retailers to offer banking services? Do you see a problem if commercial concerns such as retailers are permitted to participate in the financial industry?
Alan Greenspan, chairman of the Federal Reserve, does not think it is a good idea to mix commercial ventures such as retailing with banking, saying the proposed amendment "would alter the structure of banking in the United States."
With due respect to Mr. Greenspan, concerns over changing the status quo is not sufficient reason to vote against the legislation. [George Anderson - Moderator]