Tuesday, April 5, 2011

Bank of America (BAC) Sells Barclays (BCS) Credit Card Portfolio

Saying it didn't see the MBNA Europe's small business credit card portfolio as a core part of its consumer-lending business, Bank of America (NYSE:BAC) sold it to Barclays (NYSE:BCS) for an undisclosed amount.

Bank of America said, "We did not see this as core to our consumer-lending business within MBNA. About 50 people support the portfolio and will be needed for about a year. We hope to redeploy their positions by that time."

"Following on from our recently announced intention to purchase the Egg credit card assets, this deal further reflects the growing diversification of our payments business and is priced at a small discount to outstanding balances," said Valerie Soranno Keating, CEO of Barclaycard.

The portfolio acquired includes about 60,000 accounts with close to $211 million in outstanding balances.

Bank of America was trading at $13.43, down $0.01, or 0.11 percent, as of 1:00 PM EDT.

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