Why are retailers trying to be banks? Spiegel, owner of the Eddie Bauer line of clothing, has filed for bankruptcy. Troubles at its credit card unit are to blame:

The company's troubles were largely linked to its credit card business, which it has been trying to sell for more than a year. To boost sales, the retailer extended credit to risky borrowers and the plan backfired, industry watchers said...

"By owning their own credit card company, they lost the discipline that is required in not extending credit to riskier borrowers," said Marty Zohn, a bankruptcy lawyer at Proskauer Rose LLP.

I hope Sears is paying attention.