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BofA to exit Canada, Europe credit card business
Originally posted by 5corpio
NEW YORK (Xetra: A0DKRK - news) (Reuters) - Bank of America Corp (NYSE: IKJ - news) plans to sell its credit card business in Canada to TD Bank Group and will exit its card business in the UK and Ireland (Berlin: IIK.BE - news) .
The agreement with TD Bank covers an $8.6 billion (5.2 billion pounds) card portfolio, according to a Bank of America statement on Monday. It did not disclose the value of the transaction.
TD Group said it will pick up 1.8 million active accounts from the deal and that it would pay a "modest premium" for the card receivables.
The proposed card sale comes as the biggest U.S. bank seeks ways to bulk up its capital cushion as it fights lawsuits and credit problems related to its ill-fated acquisition of home mortgage lender Countrywide Financial three years ago. The bank has lost more than $22 billion in its consumer mortgage division in the last four
quarters. It agreed in June to pay $8.5 billion to mortgage securities investors and is
The agreement with TD Bank covers an $8.6 billion (5.2 billion pounds) card portfolio, according to a Bank of America statement on Monday. It did not disclose the value of the transaction.
TD Group said it will pick up 1.8 million active accounts from the deal and that it would pay a "modest premium" for the card receivables.
The proposed card sale comes as the biggest U.S. bank seeks ways to bulk up its capital cushion as it fights lawsuits and credit problems related to its ill-fated acquisition of home mortgage lender Countrywide Financial three years ago. The bank has lost more than $22 billion in its consumer mortgage division in the last four
quarters. It agreed in June to pay $8.5 billion to mortgage securities investors and is
Read more on this story: BofA to exit Canada, Europe credit card business - Yahoo! UK & Ireland Finance