Talk of MBNA sale spreads across Delaware

[cyberpj]

(They're a very smart corporation that's made lots o' money - what might they know that we don't... yet.)

====================================================================
Senate minority leader concerned enough to inform colleagues

By MAUREEN MILFORD and PATRICK JACKSON / The News Journal
06/30/2005

Speculation that MBNA Corp., the state's largest private employer, is about to be acquired by or merge with another bank spread throughout Delaware Wednesday, from Legislative Hall, through downtown Wilmington office towers, to trendy neighborhood bars and Internet chat rooms.

Wachovia Corp. of Charlotte, N.C., widely seen on Wall Street to be a likely suitor, was most often named as the bank that would acquire MBNA. London-based HSBC also was said to be interested in employee-dominated Internet chat rooms.

Sources said MBNA officials were scheduled to meet today over a major business development.

MBNA spokesman company Brian Dalphon refused to comment saying the company "wouldn't comment on rumors and speculation." Numerous calls to MBNA executives, including a call to Chief Executive Bruce L. Hammonds, were not returned.

(cont'd...)
http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20050630/NEWS01/506300337/1006/NEWS

[whistle]

1. MBNA is in big financial trouble....

...but is a credit corporation which is known to be extremely hostile to consumers.

<snip>
Bankruptcy law scaring people into paying down debt - April 25, 2005
The credit card industry was patting itself on the back when the new bankruptcy law it has been pushing for finally got passed recently. But the banks and credit card companies may soon regret what they wished for.

The new bankruptcy law has gotten so much publicity that people are scared and they’re paying down their credit card bills at an unprecedented rate. People are realizing that there is no second chance with this new law. If you borrow a lot of money, you’re going to have to pay it back now. And people don’t like paying money back, so they’re being more careful with credit.

MBNA, for example, has already had a decline in profits of 94 percent. Capital One has also seen its outstanding balances decline. As a result, these companies are going to flood your mailbox with solicitations for cards. It’s a move of desperation, and you don’t want to get involved. So, keep paying down your debts and let the credit cards reap what they sow.

http://clarkhoward.com/library/tips/credit_cards.html

[cyberpj]

2. 94% is hard to believe - I mean....... 94% !?

And there it is, in the article. Could that be a typo?

[whistle]

5. I don't think so, I have been an MBNA user for ten years....

...have kept my balances relatively low and current. I got a letter two months ago stating that my CC interest rate would be raised to the maximum limit of 29.75%. It has been 16.75% for about a year now. The instructions were that I had 30 days to respond, but it had to be in writing. The cover letter specifically stated that I could not call any representative. I won't use their card any longer and I just sent to pay-off balance to them.

[SkipNewarkDE]

3. Bank of America

It was announced this morning on NPR that Bank of America will acquire MBNA. Both boards have agreed to the terms, and it merely awaits regulatory approval. This will result in the loss of some 6000 jobs.

I am curious to see how the MBNA corporate culture changes. This company puts the "cult" into culture - I worked there from some five years, and still have a great revulsion for the company.

[cyberpj]

4. Wow. I just found that on the net and posted it here. Just wow.

Just when Joe sold us out for the bankruptcy bill and now they're going to leave town and take 6,000 jobs with them.

Wow.

[whistle]

7. Another big corporate tax write-off where MBNA losses will be...

...rolled over to Bank America, effectively allowing both parties to earn huge bonuses at taxpayer expense.

[SkipNewarkDE]

6. CNN Money Reported it this morning

Here's the article:

BofA to But Credit Card Issuer MBNA for $35B

[oscar111]

8. Dirty Dozen financials: pls add to list

Other Wall Street Firms
On December 18, 2002, news reports stated that the following investment firms face huge potential fines as a result of improper activities:
Goldman Sachs
Morgan Stanley
UBS Warburg
Lehman Brothers
Bear Stearns
Deutsche Bank
J.P. Morgan
U.S. Bancorp Piper Jaffray
Thomas Weisel
EARLIER PARA'S mentioned----
Credit suisse first boston
Merrill lynch
salomon smith barney
Please add others you know of.

[woodsprite]

9. Joe B. had to know ahead - his son is one of their lawyers, right? n/t

[cyberpj]

10. Well. Sort of. Wonder how the merger will affect him?

Family Employment:
In 2003, the New York Times reported this:

The company also has ties to Senator Biden's son, R. Hunter Biden, a lawyer in Washington. Hunter Biden joined MBNA as a management trainee after graduating from Yale Law School and rose to be an executive vice president. Now a partner in Oldaker, Biden & Belair, a lobbying and law firm, he receives a $100,000 annual retainer from MBNA to advise it on "the Internet and privacy law," Mr. Freeh said. He added that Hunter Biden was not a registered lobbyist and did not lobby on legislation for the company.