More states weigh laws to bar Wal-Mart banks

Wal-Mart Stores Inc. faces legislation in at least five more states that would bar it and other non-financial companies from operating banks.

Since the end of November, legislators in Nebraska, Texas, Colorado, Kansas and Maine have introduced bills to stop such companies from opening bank branches.

Wal-Mart’s 2005 application to start a Utah-based bank to process electronic transactions has drawn opposition from community banks and legislators who say the retailer might ultimately open bank branches in its stores and drive other financial institutions out of business. Wal-Mart has said it has no intention of becoming a commercial bank.