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MBNA selling credit card business...

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  • MBNA selling credit card business...

    I heard yesterday that Bank of America are getting out of credit cards in the UK. Anyone know any more?

    Depens on who takes them over but couldn't be any worse than these cowboys.


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  • #2
    Re: MBNA selling credit card business...

    The potential closure of the Irish office has led to calls for Irish PM Enda Kenny to return from his holiday to tackle the jobs threat.
    He has so far not made any comment on the closure, which could cripple Carrick-on-Shannon and the surrounding region.
    Critics say Mr Kenny has left himself vulnerable to claims of aloofness as one of the country’s poorest regions loses a major employer.
    Bank of America is one of largest credit card companies in Europe, with around $19bn in loans, with the sale of the company coming as part of a major restructuring of the across the globe.
    The bank has already sold its Canadian credit card arm for $6.8bn to the TD Bank.

    More gloom for the economy as unemployment soars by 38,000 - despite predictions it would fall by 10,000
    Bosses condemn 'useless' degrees which leave graduates unemployable because they lack basic skills
    And in April it sold off its $200m portfolio of British small business card loans to Barclays.
    John McIvor, head of Head of International Communications at the bank said: 'On Monday, Bank of America announced the sale of its credit card business in Canada and that it will review strategic alternatives regarding its consumer credit card businesses in the UK and Ireland.

    Local MP Mark Tami said that the decision had come 'out of the blue'
    'Our European consumer credit card business is a successful and profitable operation with a highly skilled workforce in Chester and Carrick on Shannon, and we will be seeking to bring certainty for our employees by identifying an appropriate solution as quickly as possible.
    'We are in the early stages of the process and our ultimate decision will be based on what is in the best interest of our shareholders, employees, customers, and partners. In the meantime, it is business as usual.'
    Many of the workforce at the Chester site travel from north Wales to work at the office.
    Local MP Mark Tami, who represents the Alyn and Deeside constituency, told the BBC that the news had come 'out of the blue.'
    He said: I've just spoken to the company and they say there isn't any buyer at the moment.
    'it's a profitable business, it's very successful, but the company claim it doesn't really fit into their core strategy.'
    'It clearly leaves a lot of uncertainty for the employees.'
    Mr Tami's comments were echoed by Chester representative Stephen Mosley.
    He said: While the announcement will undoubtedly cause concern for many employees, I'm sure that whoever buys the business will find Chester an excellent place to do business.'
    So far both Virgin Money and Santander have been touted as potential buyers of the company.
    A Virgin Money spokesman said the company would consider buying the business as MBNA already issue their credit cards.
    They added: 'No doubt we will be involved in the process as it goes forward.'
    Meanwhile a Santander spokesman said the company would not comment on market speculation that it might also bid for MBNA.

    Read more: http://www.dailymail.co.uk/news/arti...#ixzz1VMJPydGX


    • #3
      Re: MBNA selling credit card business...

      So far both Virgin Money and Santander have been touted as potential buyers of the company


      • #4
        Re: MBNA selling credit card business...

        And here we all go shuffling bank accounts again ,we will all be running out of options to not be associated with any bank we have debts with.
        If we manage to open an account with the ATM news today our money wont be easily accessible so the Banks win again


        • #5
          Re: MBNA selling credit card business...


          here's the good news --- BANK OF AMERICAS CREDIT RATING WAS lowered yesterday by Moody's making it more expensive to borrow money ... this fits in with talk of closing down in the Uk

          bloomberg says quote

          "Failure Risks
          The government is “more likely now than during the financial crisis to allow a large bank to fail should it become financially troubled, as the risks of contagion become less acute,” Moody’s wrote in statements today on Bank of America and Wells Fargo. While Citigroup may lose backing as well, its stand-alone credit has shown improvement, Moody’s said, confirming the New York-based bank’s long-term rating of A3 and cutting its short-term credit rating to Prime 2 from Prime 1

          Bank of America, the biggest U.S. lender by assets, had its ratings cut two levels to Baa1 from A2 for long-term senior debt, and to Prime-2 from Prime-1 for short-term debt, Moody’s said in a statement. The outlook on long-term senior ratings remains negative, indicating another cut may be ahead."

          now this second quote from Bloomberg yesterday fits perfect with what has been posted earlier on this thread to quote Bloomberg again

          "Downgrade Costs
          Rating-firm downgrades could weaken liquidity, limit access to credit markets and pressure businesses that rely on trading revenue, Bank of America said in an Aug. 4 regulatory filing. A downgrade of the bank by one level at all rating firms could cost the company $1.5 billion in collateral-posting and termination payments tied to derivatives and trading agreements as of June 30, the bank said"

          well cowboys you are in double trouble now.

          What goes around comes around.


          • #6
            Re: MBNA selling credit card business...

            another "variation" of the facts here 10 days ago :beagle:

            BBC News - Bank of America plans to cut about 30,000 jobs


            • #7
              Re: MBNA selling credit card business...

              MBNA sale still on despite reports of a break up - Business News - LDP Business - Liverpool Daily Post


              • #8
                Re: MBNA selling credit card business...

                Originally posted by QCKate View Post
                I heard yesterday that Bank of America are getting out of credit cards in the UK. Anyone know any more?

                Depens on who takes them over but couldn't be any worse than these cowboys.
                On behalf of cattle herdsmen everywhere, I demand that you retract that vile calumny against cowboys.


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