American Express and MBNA??

Posted by Earl Jondro (152.163.252.134) on January 29, 2004 at 23:46:01:

MBNA in deal to issue American Express cards

NEW YORK, Jan 29 (Reuters) - MBNA Corp. , the second-largest issuer of credit cards, signed a deal to offer American Express Co. credit cards, the companies said Thursday.

It's the first time a major issuer of Visa or MasterCard credit cards has issued American Express cards in the United States.

Financial terms were not disclosed.

The companies said the cards will carry the American Express logo and be accepted on the American Express network.

MBNA will own the loans and manage and service the accounts on its own systems.

The announcement follows a court decision last year that struck down a rule by Visa and MasterCard that prohibited its card-issuing banks from putting out cards of other brands, such as American Express or Morgan Stanley's Discover.

Visa and MasterCard have asked a N.Y. federal appeals court not to put the ruling into effect while they plan an appeal to the U.S. Supreme Court.

MBNA President and CEO Bruce Hammonds said at a Smith Barney financial services conference in New York on Wednesday that his company would be interested in issuing American Express cards if it could "strike the right kind of economic

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