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Mobile Checking a "Scheme" or Good for Competition?

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John Berlau discusses mobile checking with One News Now:

"This week, an article in Salon calls it a scheme to prey on America's poor. AlterNet calls it a "crappy idea." John Berlau, senior fellow for finance and access to capital at the Competitive Enterprise Institute (CEI), has a different opinion.

"I will always welcome new competition, and I have said repeatedly that stores like Wal-Mart, also Home Depot and others, that had applied for the industrial lending charter, bank charter before there was a moratorium in the Bush administration, should have gotten that," he comments. "Actually, interestingly enough, Target has a bank because it was grandfathered in."

Berlau adds that Wal-Mart is not the bank here, rather Green Dot, which is federally insured. And Wal-Mart already offers prepaid cards through Green Dot.

"I think the irony is ... what Wal-Mart is offering existed for the vast majority of consumers of all income levels from the mid-90s until the enactment of Dodd-Frank in 2010, and Wal-Mart was one that lobbied for these rules, specifically the Durbin Amendment that caused all these new fees," the CEI senior fellow notes."

Continue reading this article at One News Now.