Bank of America agrees to buy MBNA

[cyberpj]

Bank of America agrees to buy MBNA
Bloomberg News

FRIDAY, JULY 1, 2005

NEW YORK Bank of America, the second-largest U.S. bank by assets, agreed Thursday to buy MBNA for about $35 billion in stock, challenging Citigroup, the market leader, and J.P. Morgan Chase in the credit card field.

Bank of America, based in Charlotte, North Carolina, said it planned to cut 6,000 jobs after the purchase.

The deal reshapes the U.S. credit card industry by taking out the largest nonbank issuer and by vaulting Bank of America ahead of American Express in one of the fastest-growing U.S. financial-services markets.

"This will be the biggest deal in the credit-card industry for the foreseeable future, unless American Express is acquired," said David Robertson, president of The Nilson Report, a card industry publication.

(cont'd...)
http://www.iht.com/articles/2005/06/30/business/bofa.php

[NewJeffCT]

1. and soon there will be only 1

One bank, I mean...

The only good I can see with this is MBNA is a red company, while BOA is like 50-50 red/blue.

[Chef]

4. One

One Bank - One Oil Company - One God - One Party or,

One Scotch, One Bourbon, One Beer?

[derby378]

2. Say goodbye to competition, folks...

It's now the two biggest kids on the block slugging it out. In this corner, Saudi-dominated Citigroup. In that corner, outsourcing fanatics Bank of America. Whoopi-ti-doo!!

[loudestchick]

3. I work for BoA....I haven't been outsourced...for now.

[Captain Hilts]

5. I hate MBNA

and since it's hard to find a card that isn't them, I just don't use mine nearly so much.

I pay my bill in full. I've had a few late charges and have been able to talk them out of some of them because I travel. But a $29 late charge for a bill of $100 made me really, really angry.bv

[derby378]

6. That's not so unusual

I hate to sound like the credit card companies, but sometimes you've just got to read the fine print.

This, however, does not excuse those companies for their bad behavior.

If you find an ethical credit card company, though, stick with them - and try to pay your balance on time.

[cyberpj]

7. Look for local credit union if you can. AND welcome to DU!

:hi:

[Captain Hilts]

8. thanks for the welcome, and I do belong to a credit union...

Navy Federal Credit Union - and the consistently hold my money wires for a week before they credit them to my account!!!!

[Captain Hilts]

9. BofA probably writes the purchase off on their taxes...

which means that the taxpayers subsidize a company's efforts to lay off six thousand people.

[LynneSin]

10. Looks like DE may be ok with this merger

I work for an MBNA competitor and when we heard the news this morning it worried us that there would be a glut of unemployeed folks hurting the economy in DE. But the 6k layoff is not immediately but through 2007 which means a bulk of those layoffs will probably come from normal turnover - people who leave a position either through retirement/new job and the bank will just not fill the position.

I just read today that Tom Carper met with BoA officials and they will probably move the credit card division to Delaware. We have the best tax laws in the country and yes, those credit card companies fuel our ecomony. As angry as I am over the bankerupcy bill, I have to remind myself I am a part of it because one of those major DE credit companies employs me and I really do love my job

http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20050630/NEWS01/50630013

Sen. Tom Carper, D-Del., emerged from a morning meeting with Bank of America Northeast President Anne Finucane relieved to hear that the company would be moving its credit card operations to Delaware instead of shuttering operations there and keeping its current credit card headquarters in Charlotte, N.C.

<<<mor>>>>


BTW, the reason BoA bought MBNA - MBNA has American Express in its portofolio and it's the fast growing card right now out there. The AmEx deal only happened a few years ago so this is going to mean massive money for BoA

[cyberpj]

11. I hope you're right. I understand your feelings completely.

I feel the same way as a retired DuPonter now that chemicals are coming back to haunt them big time and the secrets they kept are nasty. Benalate... C8 now... lots more most never hear about. I had a great job for 17 years at the campus-like Experimental Station with some great people. My parents AND grandparents worked for "The Company" as we all called it and I have to say when it was a family business it was a generous and rewarding place to work.

It makes total sense for the credit card business to stay here. Let's just hope they follow through on the talk of attrition.

[LynneSin]

12. I think the Banking industry is so much better for the state

Unfortunately Credit Cards are here to stay but at least the companies aren't spewing chemicals in the air. But I know friends who have worked for the chem/pharma businesses in DE and are always worried about the job situation

[cyberpj]

13. Do you know... is it true... that there will only be 2 now?

Citigroup (Saudi) and Bank of America (US) that parent all the cards?

[LynneSin]

14. um........no

You forgot Chase, Providian, Capital One plus a ton of little guys out there with their cards. Up until the BoA/MBNA merger I think Chase was #1 after their merger with BankOne. And remember, just about every dinkie bank offers their own credit card.

We're fine - for now