Tuesday, August 16, 2011

It intends to “exit” the UK credit card market

4000 Bank of America jobs at risk in Chester after credit card plan announced

The news came as a shock to staff who were summoned to a company-wide meeting at the bank’s Chester Business Park European head office yesterday lunchtime.

Posted by mark @ 02:31 PM (1740 views)
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6 thoughts on “It intends to “exit” the UK credit card market

  • Thecountofnowhere says:

    I had a BoA credit card and had problems when I cancelled it. They tried to talk me into not leaving, quite doggedly.When i finally got them to agree to cancel it I’m pretty sure the call center pleb said “you’ll now have a blot on your credit record’ !!! Since then I tried to take out another credit card and was refused it.

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  • Mark, must you be so on topic?

    Personally, I liked the unpredictability of your previous haphazard form.

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  • thats mbna that bought abbey credit cards then hiked the rate to 35%….yes 35%

    one of the problems I hear is that they defaulters realised mbna didn’t have signed consumer credit agreements and the debt was unenforceable in a uk court

    what a shower….35% after being bailed out themselves!

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  • Mark – did you pick up on this one from a few weeks back? could be a taste of things to come for retail deposits !

    Bank of New York Mellon Corp. (BK), the world’s largest custody bank, will charge institutional clients a fee for “extraordinarily high” cash deposits to stem a flight of capital into the safety of bank deposits.

    “I’ve never seen this happen, not in 25 years,” Gerard Cassidy, an analyst with RBC Capital Markets in Portland, Maine, said an interview. Other banks may follow BNY Mellon’s lead, Cassidy said.

    Investors are seeking the safety of bank accounts as concern increases that the global economy may relapse into a recession and governments in the U.S. and Europe struggle with a rising debt load. A legislative stalemate last week over the U.S. debt ceiling prompted institutions to pull $103 billion from money funds in the week ended Aug. 2, the most since the bankruptcy of Lehman Brothers Holdings Inc. in September 2008.

    Money market rates, which surged during the debt ceiling debate, dropped below zero percent today as Europe’s sovereign- debt crisis bolstered U.S. government securities’ appeal as the world’s safest assets. With little scope to reinvest deposits in short-term debt at a profit, banks like BNY Mellon are left with the cost of insuring the deposits with the Federal Deposit Insurance Corp.

    “I suspect more banks will do this for their wholesale customers, saying we love you guys but every dollar you put in here costs us money,” said Bert Ely, a banking consultant in Alexandria, Virginia. “I’m not sure that this has ever happened in the U.S.”

    Full Story @ http://www.bloomberg.com/news/2011-08-04/bny-mellon-sets-13-basis-point-charge-on-clients-excess-cash-deposits.html

    The FT and Telegraph etc.. also covered this one on 4th August 2011

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  • I don’t think the MBNA story is much of an issue. A buyer will be found; they’d rather sell the business for £1 than close it down and suffer all the redundancy costs. There will likely be a few cuts, mainly to higher management, but I expect most of the peons will keep their jobs.

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  • if there is a buyer it will be like egg, they will relocate and close chester down, the same as MBNA have done in canada when they sold a business the new buyer centralised the business and reduced overheads (staff)

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