MBNA profits fall 94%,sells to BofA,drops 6000 jobs, Execs get millions!

[cyberpj]

Profits dive:

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

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Execs get out with Millions and Billions:
Oh, and by the way...they got top level jobs in the new, Bank of America corporation too.

Sale nets millions for top MBNA execs
Lerner family to receive $2.3 billion; Hammonds will get $126 million
By TED GRIFFITH / The News Journal
07/06/2005
MBNA Chief Executive Bruce L. Hammonds will be able to cash in stock and options worth an estimated $126 million when Bank of America completes its $35 billion buyout of the Wilmington-based credit card company late this year, according to The News Journal's review of a company regulatory filing.

And Hammonds isn't the only one who could see a big payday. John R. Cochran, the chief operating officer and the No. 2 executive at MBNA, could receive even more than Hammonds if he sells all his stock and exercises all his options, which have a total estimated value of $140.5 million. Cochran and Hammonds were part of the team that started MBNA in 1982 in a former supermarket in Ogletown. Lance L. Weaver, a vice chairman who joined the company in 1991, could get about $69.5 million.

The biggest gain of all will go to the family of the late Alfred Lerner, MBNA's chief executive until his death in 2002. Lerner's widow, Norma, and son, Randolph, and daughter, Nancy, will split about $2.3 billion. The Lerner family, through a trust, is the largest single shareholder of MBNA, owning 6.7 percent of the company.

The takeover, announced Thursday, is expected to result in about 6,000 job cuts nationally between MBNA and Bank of America. Company officials haven't said how many jobs will be shed in Delaware, where MBNA employs about 10,500, making it the state's largest private employer. Bank of America employs about 1,300 in credit card call centers in Dover and near Christiana.

http://www.delawareonline.com/apps/pbcs.dll/article?AID=/20050706/NEWS01/507060328/1001/NEWS

[jojo54]

1. New motto for the future unemployed

A larger corporation is born, CEO's get millions and all you got was FIRED!

Can you imagine how those who are nearing retirement time, will get screwed out of their pension or severance in some way, shape or form? Gawd, I hate 'em all.