Bank of America has agreed to a deal that would pull them from the international credit card market with the sale of its Canadian credit card business which is valued at $8.6 billion. The TD Bank Group have offered to purchase the business but the amount of the agreed upon sale price has not been disclosed.
The announcement comes with the news of Bank of America’s continued push towards streamlining their business after taking a major hit in its mortgage division. Selling the international credit card business will help to strengthen the United States credit card sector and other major divisions.
“Our strategy is clear: We have been transforming the company to deliver the franchise to our core customer groups, and building a fortress balance sheet behind that,” said the chief executive of Bank of America, Brian T. Moynihan in a statement. “While the credit card remains a fundamental core product for our U.S. customers, an international consumer card business under another brand is not consistent with that strategy.”
Bank of America has suffered some serious loss recently so it is a smart move to regain a better edge and improve capital ratios.
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