Banks vs. Wal-Mart: Round Two

When last we checked in on the banking industry’s fight with retailers over the Dodd-Frank Act, the banks had lost their battle against caps on debit-card fees. Now U.S. lenders are squaring off against the world’s largest retailer, Wal-Mart Stores.

The banking industry is arguing that the Consumer Financial Protection Bureau, created by Dodd-Frank, should be able to regulate Wal-Mart, because the retailer qualifies as a so-called larger participant in financial services under the act. The new agency must issue a rule on larger participants in less than a year and had requested public comments by Aug. 15. “If you’re going to play in the financial sector, you play by the rules,” says Richard Hunt, president of the Consumer Bankers Assn., a lobby group that represents retail banks.