Tuesday, November 28, 2006
WAL-MART runz 2 the BORDER 4 $$$!! How LOW can they GO??
~~WAL-MART taps into MEXICOS booming (?) consumer loan market!WHAT THE? Maybe they WILL donate some fence building materials to help secure this great nation.They freaking made a gazzillion bucks on Americans and projecting the image of being ALL AMERICAN.(Hey, have you checked where most of these products are from, or some of the workers for tht matter?) hummm =^.^= ~~ Wal-Mart de Mexico, or Walmex, also said in a conference call with media that the company will initially finance its banking business with its own capital. Last week, Mexico's Treasury secretary approved the opening of five new banks, including one by Walmex, the country's largest retailer. Solorzano said he hopes the company's banking division will bring it closer to its customers, because "a large part of our clients do not have access to banking services." The bank is expected to offer basic deposits and loans, including savings accounts linked to debit cards and checkbooks. In the U.S., where Wal-Mart (nyse: WMT - news - people ) has applied for approval to establish an industrial loan corporation, a kind of industrial bank, it has been met with opposition from existing banks, unions, lawmakers, and consumer and community organizations. Wal-Mart insists it has no plans to compete with community banks and has pledged to stay out of branch banking and consumer lending. Rather, its newly chartered bank would be used to handle the 140 million credit card, debit card and electronic check payments it processes each year, the company says. In July, U.S. bank regulators decided to put on hold for six months any new approvals of such applications. Analysts at Deutsche Bank (nyse: DB - news - people ) said in a report last week: "Mexico offers an attractive potential for growth as loans only represent 13 percent of gross domestic product, in contrast to 70 percent in Chile and 32 percent in Brazil." Solorzano said the banks are also expected to boost business by bringing more people into the stores. However, he believes the banking division will not make a profit until the fourth year. Julio Bosco Gomez, the former general director of Bank One in Mexico, has been put in charge of Banco Wal-Mart de Mexico Adelante SA. In recent years, Mexican retailers have moved into retail banking to sell financial products to their mainly low-income clients. Mexico's large retail banks have typically shunned this market, in favor of lending to middle and upper income individuals and corporations. Mexican retailer Grupo Famsa plans to open Banco Ahorro Famsa, while retailer Controladora Comercial Mexicana SA (other-otc: 8363.PK - news - people ) said it will partner with a unit of French banking group BNP Paribas (other-otc: BNPZY.PK - news - people ) SA to offer consumer and credit card loans in Mexico. Grupo Elektra was the first Mexican retailer to enter banking when it opened its Banco Azteca unit in 2002, which had 17.32 billion pesos ($1.58 billion) in loans at the end of June. Elektra also operates insurance and pension-fund companies. PLEASE RESPECT,SUPPORT & PRAY FOR OUR TROOPS and THEIR FAMILIES ;-)