Bank of America Receives Federal Reserve Approval for MBNA Merger
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CHARLOTTE, Dec 15, 2005 /PRNewswire via COMTEX News Network/ -- Bank of America Corporation today received approval from the Board of Governors of the Federal Reserve System of its application to merge with MBNA Corporation. The merger is expected to close on Jan. 1, 2006. With today's action, Bank of America has received approval from all necessary regulatory organizations as well as overwhelming approval from MBNA shareholders.
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The merger will create the largest credit card issuer in the United States as measured by balances. The new Bank of America Card Services organization will have more than 40 million active U.S. accounts and nearly $140 billion in managed balances. Bank of America is already the leader in debit card transactions.
"We are excited about how the combination of MBNA and Bank of America will benefit our customers and investors," said Ken Lewis, chairman and CEO of Bank of America. "We look forward to integrating MBNA's world-class sales, marketing and innovation capabilities with Bank of America's scale, distribution channels and low cost structure."
"MBNA's marketing and product development capabilities are significant," Lewis continued. "They deliver innovative products to market faster than anyone in the industry. And selling is integrated into every process, such as customer service, collections and technology."
MBNA is the leader in affinity marketing through relationships with more than 5,000 organizations, such as the NFL, the National Education Association, L.L. Bean and hundreds of medical organizations. Today more than 72 percent of all physicians in the United States carry an MBNA affinity card.
"MBNA's core strength is affinity marketing," said Liam McGee, president of Bank of America Global Consumer and Small Business Banking. "Affinity customers typically carry larger balances, demonstrate higher credit card usage and have a greater propensity to purchase multiple products. We look forward to providing these customers with continued excellent service through Bank of America's efficient customer service platform."
Bank of America Card Services will be led by Bruce Hammonds, who is currently chairman and CEO of MBNA. Hammonds will report to McGee and will be a member of the Bank of America Risk & Capital Committee, which oversees allocation of capital to all business lines.
Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 38 million consumer and small business relationships with more than 5,800 retail banking offices, more than 16,700 ATMs and award-winning online banking with more than 14 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 150 countries and has relationships with 97 percent of the U.S. Fortune 500 companies and 79 percent of the Global Fortune 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
SOURCE Bank of America
Investors, Kevin Stitt, +1-704-386-5667, or Lee McEntire, +1-704-388-6780, or Leyla Pakzad, +1-704-386-2024, or Media, Terry Francisco, +1-704-386-4343, all of Bank of America