Monday, July 12, 2010

Wal-Mart's Sort-Of Foray Into Banking

Behold the wonders of the pithy headline. Reading the news over the past couple of days, you would think something big has happened - namely, that Wal-Mart (NYSE:WMT) is getting into the banking business and will begin making small business loans through its Sam's Club subsidiary. 

Not so fast. 

What Is Really Going On
When you look a little deeper, you see that Wal-Mart is actually partnering with Superior Financial Group, a non-bank lender, to offer Superior's financial services through its Sam's Club locations. In other words, by engaging in this move, Wal-Mart is as much a bank as having Verizon (NYSE:VZ) kiosks makes Wal-Mart a cell phone/telecommunications company. 



The full piece is at:
http://stocks.investopedia.com/stock-analysis/2010/Wal-Marts-Sort-Of-Foray-Into-Banking-WMT-VZ-COST-KEY-AXP-COF-WFC0712.aspx

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