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Bank of America is to exit the Irish and UK credit card markets.
The bank, which operates the MBNA credit card business in Ireland, made the announcement today as part of a plan designed to help it comply with new US capital requirements introduced following the banking crisis.
The bank is also planning to sell its Canadian credit card business for a reported $7.5 billion.
Bank of America's portfolios in the UK and Ireland have a combined $19 billion in credit-card loans and more than 4,000 employees.
Minister for Enterprise Richard Bruton said he had been in contact with Bank of America in relation to the development.
He said he was seeking to establish what effect the move would have on the MBNA offices in Carrick-on-Shannon, Co Leitrim, where some 700 people are employed.
MBNA, which has been operating in Ireland since 1997, let 66 Leitrim-based staff go this time last year.
“I have also spoken to the IDA and asked them to work closely with the company with a view to assisting them finding a buyer for the business as a going concern,” Mr Bruton said.
MBNA provides credit cards for companies such as Ryanair, EBS and An Post One Direct. It was fined €750,000 by the Central Bank earlier this year for over-charging customers.
A company spokesman said Bank of America was weighing its options regarding the UK and Ireland businesses but declined to comment on what those options were.
Carrick-on-Shannon Chamber of Commerce said Bank of America left behind a skilled and cost effective workforce which was ready to meet and looked forward to working with new investors.
Bank of America has already struck deals this year to sell an insurer and mortgage-servicing rights as it seeks to comply with new Basel III capital requirements.
Exiting the Canadian and European markets would lower the amount of capital Bank of America needs by eliminating $27.6 billion in risk-weighted assets, according to the International Strategy and Investment Group.
www.frost.ie
Bank of America is to exit the Irish and UK credit card markets.
The bank, which operates the MBNA credit card business in Ireland, made the announcement today as part of a plan designed to help it comply with new US capital requirements introduced following the banking crisis.
The bank is also planning to sell its Canadian credit card business for a reported $7.5 billion.
Bank of America's portfolios in the UK and Ireland have a combined $19 billion in credit-card loans and more than 4,000 employees.
Minister for Enterprise Richard Bruton said he had been in contact with Bank of America in relation to the development.
He said he was seeking to establish what effect the move would have on the MBNA offices in Carrick-on-Shannon, Co Leitrim, where some 700 people are employed.
MBNA, which has been operating in Ireland since 1997, let 66 Leitrim-based staff go this time last year.
“I have also spoken to the IDA and asked them to work closely with the company with a view to assisting them finding a buyer for the business as a going concern,” Mr Bruton said.
MBNA provides credit cards for companies such as Ryanair, EBS and An Post One Direct. It was fined €750,000 by the Central Bank earlier this year for over-charging customers.
A company spokesman said Bank of America was weighing its options regarding the UK and Ireland businesses but declined to comment on what those options were.
Carrick-on-Shannon Chamber of Commerce said Bank of America left behind a skilled and cost effective workforce which was ready to meet and looked forward to working with new investors.
Bank of America has already struck deals this year to sell an insurer and mortgage-servicing rights as it seeks to comply with new Basel III capital requirements.
Exiting the Canadian and European markets would lower the amount of capital Bank of America needs by eliminating $27.6 billion in risk-weighted assets, according to the International Strategy and Investment Group.
www.frost.ie
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