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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