Wachovia & MBNA Split, Wachovia to Re-Enter Credit Card Issuing
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Wachovia
& MBNA Split, Wachovia to Re-Enter Credit Card Issuing
With MBNA
poised to merge with Bank of America, Wachovia announced Thursday
its intention to end its partnership with MBNA and begin issuing
credit cards directly to its customers.
Wachovia
will begin directly issuing credit cards this coming January,
although its relationship with MBNA will not come to a formal
end until October of next year.
MBNA
shareholders approved the Bank of America acquisition today.
Assuming the merger with Bank of America is consummated, MBNA
will pay a $100 million termination fee to Wachovia to end their
joint-marketing agreement. That money will offset what Wachovia
will spend to become a direct issuer again.
MBNA
will continue to service existing Wachovia-branded credit card
customers.
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Published (Modified )