fbpx
Wikipedia

MBNA

January 01, 1970

MBNA Corporation was a bank holding company and parent company of wholly owned subsidiary MBNA America Bank, N.A., headquartered in Wilmington, Delaware, prior to being acquired by Bank of America in 2006.[1][2]

MBNA
FormerlyMaryland National Bank
Company typeBank
IndustryFinancial services
PredecessorBaltimore Trust Company
Founded1982; 42 years ago (1982) in Wilmington, Delaware, United States
FounderCharles Cawley
FateAcquisition by Bank of America in 2006 in the U.S.
Acquisition by Lloyds Banking Group in 2017 in the U.K.

History edit

The former Maryland National Bank, once the largest banking chain in Maryland, originated as the Baltimore Trust Company in the early 1900s. It later was challenged by the expenses and problems from the building of its landmark red brick, masonry, and limestone art deco-style skyscraper in downtown Baltimore at 10 Light Street between East Redwood (known as German Street before World War I) and East Baltimore Streets. Construction began on the new BTC Building in 1924. Upon completion in 1929, it became the tallest building in Baltimore (and Maryland), surpassing the neighboring Citizens National Bank to the south. It opened just before the avalanche of economic disaster and unemployment following the Wall Street Crash of 1929. After a series of reorganizations during the "New Deal" administration of 32nd President Franklin D. Roosevelt (and his bank holiday shortly after taking office in March 1933), the bank was reorganized as the Maryland National Bank.

Maryland National's parent, bank holding company MNC Financial, began offering credit cards in the 1960s.[3]

In the early 1980s, Maryland banks lobbied the Maryland General Assembly for legislation to permit higher interest rates on credit-card charges, but lawmakers refused.[3][4] The neighboring state of Delaware, by contrast, had removed interest-rate restrictions in 1981. When Maryland failed to do the same, MNC Financial moved its credit-card business across the state line. MBNA was founded in 1982 as Maryland Bank, N.A.[3][4][5]

Led by Charles Cawley, MBNA opened its first office in a converted A&P (Great Atlantic & Pacific Tea Company) food supermarket in Ogletown, Delaware.[6] An early driver of MBNA's growth was the creation of "affinity cards" in 1983. Cawley convinced the alumni association at his alma mater, Georgetown University, to allow MBNA to issue credit cards branded with the university's name.[4] This proved to be a successful business, and other affinity affiliations with universities, organizations, and sports teams followed; by 2004, MBNA had more than 5,400 partnerships, making up about 85% of the affinity-card market.[4]

In 1989, Maryland Bank was renamed MBNA America Bank. In 1991, MBNA Corp. spun off from Maryland National and became an independent company. Businessman Al Lerner, a major investor and chairman of Maryland National since 1989, was the new MBNA's largest stockholder and chairman.[5] Lerner became a multi-billionaire and purchased the Cleveland Browns franchise of the National Football League in 1998. He served as chairman of MBNA until his death in 2002.[4]

Maryland National was acquired by NationsBank in 1993.

As MBNA grew, it became one of the most profitable companies in the United States, the world's largest independent credit card issuer, and the largest private-sector employer in Delaware.[4]

In 1995, MBNA moved its headquarters from a suburban location to Rodney Square in downtown Wilmington, Delaware. This investment was credited with helping to revive Wilmington's downtown real estate market.

Historically, many MBNA executives were former employees of the FBI.[7]

Mergers and acquisitions edit

On June 30, 2005, MBNA announced that it was being acquired by Bank of America for stock and cash totaling more than $35 billion, and the deal was closed on January 1, 2006. The acquisition resulted in MBNA being renamed to "Bank of America Card Services" while still based in Delaware. For the first part of 2006, MBNA still issued credit cards under its own name associated with Mastercard, VISA, and American Express, but by the second half of 2006, all credit card products were re-branded as Bank of America rather than MBNA.

At the same time in June 2005, MBNA bought Loans.co.uk (LCUK), then the United Kingdom's leading finance broker. Although figures were never released, various media outlets including newspapers in Watford, where Loans.co.uk was based, reported the deal made founders David Cowham and Steve Hayes worth £100m.[8] MBNA/Bank of America later decided to close Loans.co.uk.

On January 1, 2006, MBNA merged with and into Bank of America. MBNA America Bank, National Association, (MBNA) then became a wholly owned subsidiary of Bank of America. On June 10, 2006, MBNA changed its name to FIA Card Services, National Association (FIA), which is not an acronym. On October 20, 2006, Bank of America, National Association (USA), a subsidiary of Bank of America Corporation, merged with and into FIA.[9]

This purchase was a reunion of sorts. In 1993, NationsBank (formerly NCNB, and originally North Carolina National Bank) bought MNC Financial (whose credit card division was spun off years earlier to become MBNA). Five years later, the Bank of America that exists today was the result of the merger between the San Francisco-based Bank of America and the Charlotte-based NationsBank. When Bank of America bought MBNA, it was in effect reuniting MNC Financial's credit card portfolio to its original banking assets and combining the Bank of America credit card portfolio with MBNA's.

Employing more than 25,800 people around the world at the time of the merger with Bank of America, MBNA owned or managed more than $122.5 billion in outstanding consumer credit loans. Most of this loan debt was held in securitized portfolios that had been sold to other entities such as insurance companies and pension funds. MBNA virtually invented the process for securitizing credit card debt and this process contributed significantly to the fast growth of the company. It allowed for increasing the amount loaned without having to acquire matching assets to offset the loans.

In Canada and Europe, the MBNA name was retained. MBNA Europe headquarters is in Chester, England, United Kingdom. MBNA Canada's headquarters is located in Ottawa, Ontario. In 2007, the Canadian division was named one of Canada's Top 100 Employers.[10]

On August 15, 2011, MBNA announced that the Toronto-Dominion Bank would be purchasing MBNA's Canadian MasterCard portfolio. The acquisition of MBNA Canada by TD, which was completed on December 1, 2011, saw TD become a dual credit issuer (both Visa and MasterCard), become Canada's largest MasterCard issuer, and one of Canada's largest credit issuing banks.

In January 2013, Virgin Money agreed to buy £1 billion of assets from MBNA, namely the Virgin Credit Card assets which MBNA had serviced and managed in partnership with Virgin Money since 2002. The former Vice Chairman of MBNA Corporation, Lance Weaver, became Virgin Money's President of Virgin Money Cards.[11]

On December 20, 2016, Lloyds Banking Group announced that it would purchase MBNA's UK portfolio from Bank of America for £1.9 billion, its first acquisition after the financial crisis of 2007–2008.[12] The deal was completed on June 1, 2017[13] and since that time, in the United Kingdom, MBNA is a trading style of Lloyds Bank plc and is regulated in the United Kingdom by the FCA.[14]

Controversies edit

MBNA hired Hunter Biden (then 26 years old and a recent law school graduate) during the years when his father, then-Senator Joe Biden, was pushing for bankruptcy reform legislation supported by the company, which became law and makes it more difficult to acquire bankruptcy protection.[15] Because of the close relationship between Biden and MBNA, Byron York called Biden the "Senator from MBNA" in a 1998 article for conservative magazine The American Spectator.[16][17][18]

MBNA was one of the companies mentioned on a 2004 Frontline WGBH Boston PBS special about unfair business practices by credit card companies.[19] Some practices that Frontline claimed MBNA has engaged in included doubling or tripling of interest rates, shifting billing due dates/payment cycles monthly and raising rates for customers whose payments were a day or two late. MBNA has been found to be one of the leading implementors of rate-jacking. For further information and links, see credit card.

In Ireland, MBNA was accused of calling consumers up to eight times a day who were behind in making payments, which prompted the state debt advisory service to publicly state that harassment is outlawed. Affected people were advised to complain to the relevant authorities.[20] The company in December 2009 admitted overcharging 500,000 Irish consumers up to €18 million.[21][22]

In the UK, circa September 2010, MBNA came under fire for its interpretation of new UK legislation, under which credit card providers must allocate payments to the debt with the highest interest rate first: one consumer site called MBNA's interpretation of these rules a "disingenuous money-making tactic".[23]

See also edit

References edit

  1. ^ Staff writer (February 11, 2009). "Bank Of America Acquires MBNA". CBS News. Associated Press. Retrieved August 9, 2013.
  2. ^ Affiliated staff (June 30, 2005). "Bank of America buys credit card firm MBNA". MSNBC. Associated Press. Retrieved August 9, 2013.
  3. ^ a b c Smitherman, Laura; Adams, Paul (July 2005). "Bank of America to buy MBNA". baltimoresun.com. Retrieved 2019-10-03.
  4. ^ a b c d e f Bergman, Lowell; McGeehan, Patrick (2004-03-07). "Expired: How a Credit King Was Cut Off; Co-Founder of MBNA Meets an Anxious Board, And Loses". The New York Times. ISSN 0362-4331. Retrieved 2019-10-03.
  5. ^ a b Ted Griffith (January 1, 2006). . The News Journal (Wilmington, Delaware). Archived from the original on May 10, 2007.
  6. ^ Nicholas Varchaver (May 13, 2002). "Who's The King Of Delaware?". FORTUNE Magazine.
  7. ^ Havill, Adrian. "Epilogue." Robert Philip Hanssen: The Spy who Stayed out in the Cold. Crime Library. Retrieved on June 10, 2014. p. 15 2014-02-27 at the Wayback Machine. "Following Mueller's appointment, the disgraced Louis Freeh joined a Delaware credit card company, MBNA. Many of the firm's executives are former FBI employees."
  8. ^ "Made it by 40". Daily Telegraph. London. 2006-12-13. Retrieved 2008-12-03.
  9. ^ . Archived from the original on July 16, 2007. Retrieved 2007-01-12.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  10. ^ "Reasons for Selection, 2007 Canada's Top 100 Employers". Archived from the original on 2013-01-15.
  11. ^ "Virgin Money announces launch of own credit card business after £1bn deal with MBNA to buy assets". 2013-01-18. Retrieved 2013-01-20.
  12. ^ "Lloyds Bank buys MBNA credit card firm for £1.9bn". BBC News. December 20, 2016.
  13. ^ "Completion of MBNA Acquisition". otp.investis.com. Jun 1, 2017. Retrieved August 10, 2018.
  14. ^ "Regulatory agencies". mbna. Retrieved 2020-07-05.
  15. ^ Yost, Pete (August 25, 2008). . Associated Press. Archived from the original on September 14, 2008. Retrieved April 24, 2024.
  16. ^ York, Byron (January 1998). . The American Spectator. Archived from the original on February 11, 2001. Retrieved April 24, 2024.
  17. ^ Craven, Jasper (January 26, 2024). "Hunter Biden Snagged a Cushy Bank Job After Law School. He's Been Trading on His Name Ever Since". Politico Magazine. Retrieved April 24, 2024.
  18. ^ Yglesias, Matthew (October 1, 2019). "Hunter Biden, the black sheep who got Trump impeached, explained". Vox. Retrieved April 24, 2024.
  19. ^ "Frontline: Secret History of the Credit Card", PBS.
  20. ^ "Credit card debtors 'harassed'". Irish Independent. October 22, 2009.
  21. ^ "MBNA to refund €18m as interest error comes to light". The Irish Times. December 12, 2009.
  22. ^ "MBNA to pay back €18m to 500,000 in card blunder". Irish Independent. December 15, 2009.
  23. ^ "MBNA's new 'fairer' policy masks hidden costs". Choose. October 27, 2010.

External links edit

  • MBNA Limited (UK)
  • bankcardservices.co.uk
  • MBNA Canada
  • (Archive)
  • Lloyds Banking Group
  • Yahoo! - MBNA Corporation Company Profile
  • PBS video - Secret History of the Credit Card

January 01, 1970
mbna, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, september, 2007, lear. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources MBNA news newspapers books scholar JSTOR September 2007 Learn how and when to remove this message MBNA Corporation was a bank holding company and parent company of wholly owned subsidiary MBNA America Bank N A headquartered in Wilmington Delaware prior to being acquired by Bank of America in 2006 1 2 MBNAFormerlyMaryland National BankCompany typeBankIndustryFinancial servicesPredecessorBaltimore Trust CompanyFounded1982 42 years ago 1982 in Wilmington Delaware United StatesFounderCharles CawleyFateAcquisition by Bank of America in 2006 in the U S Acquisition by Lloyds Banking Group in 2017 in the U K Contents 1 History 2 Mergers and acquisitions 3 Controversies 4 See also 5 References 6 External linksHistory editThe former Maryland National Bank once the largest banking chain in Maryland originated as the Baltimore Trust Company in the early 1900s It later was challenged by the expenses and problems from the building of its landmark red brick masonry and limestone art deco style skyscraper in downtown Baltimore at 10 Light Street between East Redwood known as German Street before World War I and East Baltimore Streets Construction began on the new BTC Building in 1924 Upon completion in 1929 it became the tallest building in Baltimore and Maryland surpassing the neighboring Citizens National Bank to the south It opened just before the avalanche of economic disaster and unemployment following the Wall Street Crash of 1929 After a series of reorganizations during the New Deal administration of 32nd President Franklin D Roosevelt and his bank holiday shortly after taking office in March 1933 the bank was reorganized as the Maryland National Bank Maryland National s parent bank holding company MNC Financial began offering credit cards in the 1960s 3 In the early 1980s Maryland banks lobbied the Maryland General Assembly for legislation to permit higher interest rates on credit card charges but lawmakers refused 3 4 The neighboring state of Delaware by contrast had removed interest rate restrictions in 1981 When Maryland failed to do the same MNC Financial moved its credit card business across the state line MBNA was founded in 1982 as Maryland Bank N A 3 4 5 Led by Charles Cawley MBNA opened its first office in a converted A amp P Great Atlantic amp Pacific Tea Company food supermarket in Ogletown Delaware 6 An early driver of MBNA s growth was the creation of affinity cards in 1983 Cawley convinced the alumni association at his alma mater Georgetown University to allow MBNA to issue credit cards branded with the university s name 4 This proved to be a successful business and other affinity affiliations with universities organizations and sports teams followed by 2004 MBNA had more than 5 400 partnerships making up about 85 of the affinity card market 4 In 1989 Maryland Bank was renamed MBNA America Bank In 1991 MBNA Corp spun off from Maryland National and became an independent company Businessman Al Lerner a major investor and chairman of Maryland National since 1989 was the new MBNA s largest stockholder and chairman 5 Lerner became a multi billionaire and purchased the Cleveland Browns franchise of the National Football League in 1998 He served as chairman of MBNA until his death in 2002 4 Maryland National was acquired by NationsBank in 1993 As MBNA grew it became one of the most profitable companies in the United States the world s largest independent credit card issuer and the largest private sector employer in Delaware 4 In 1995 MBNA moved its headquarters from a suburban location to Rodney Square in downtown Wilmington Delaware This investment was credited with helping to revive Wilmington s downtown real estate market Historically many MBNA executives were former employees of the FBI 7 Mergers and acquisitions editOn June 30 2005 MBNA announced that it was being acquired by Bank of America for stock and cash totaling more than 35 billion and the deal was closed on January 1 2006 The acquisition resulted in MBNA being renamed to Bank of America Card Services while still based in Delaware For the first part of 2006 MBNA still issued credit cards under its own name associated with Mastercard VISA and American Express but by the second half of 2006 all credit card products were re branded as Bank of America rather than MBNA At the same time in June 2005 MBNA bought Loans co uk LCUK then the United Kingdom s leading finance broker Although figures were never released various media outlets including newspapers in Watford where Loans co uk was based reported the deal made founders David Cowham and Steve Hayes worth 100m 8 MBNA Bank of America later decided to close Loans co uk On January 1 2006 MBNA merged with and into Bank of America MBNA America Bank National Association MBNA then became a wholly owned subsidiary of Bank of America On June 10 2006 MBNA changed its name to FIA Card Services National Association FIA which is not an acronym On October 20 2006 Bank of America National Association USA a subsidiary of Bank of America Corporation merged with and into FIA 9 This purchase was a reunion of sorts In 1993 NationsBank formerly NCNB and originally North Carolina National Bank bought MNC Financial whose credit card division was spun off years earlier to become MBNA Five years later the Bank of America that exists today was the result of the merger between the San Francisco based Bank of America and the Charlotte based NationsBank When Bank of America bought MBNA it was in effect reuniting MNC Financial s credit card portfolio to its original banking assets and combining the Bank of America credit card portfolio with MBNA s Employing more than 25 800 people around the world at the time of the merger with Bank of America MBNA owned or managed more than 122 5 billion in outstanding consumer credit loans Most of this loan debt was held in securitized portfolios that had been sold to other entities such as insurance companies and pension funds MBNA virtually invented the process for securitizing credit card debt and this process contributed significantly to the fast growth of the company It allowed for increasing the amount loaned without having to acquire matching assets to offset the loans In Canada and Europe the MBNA name was retained MBNA Europe headquarters is in Chester England United Kingdom MBNA Canada s headquarters is located in Ottawa Ontario In 2007 the Canadian division was named one of Canada s Top 100 Employers 10 On August 15 2011 MBNA announced that the Toronto Dominion Bank would be purchasing MBNA s Canadian MasterCard portfolio The acquisition of MBNA Canada by TD which was completed on December 1 2011 saw TD become a dual credit issuer both Visa and MasterCard become Canada s largest MasterCard issuer and one of Canada s largest credit issuing banks In January 2013 Virgin Money agreed to buy 1 billion of assets from MBNA namely the Virgin Credit Card assets which MBNA had serviced and managed in partnership with Virgin Money since 2002 The former Vice Chairman of MBNA Corporation Lance Weaver became Virgin Money s President of Virgin Money Cards 11 On December 20 2016 Lloyds Banking Group announced that it would purchase MBNA s UK portfolio from Bank of America for 1 9 billion its first acquisition after the financial crisis of 2007 2008 12 The deal was completed on June 1 2017 13 and since that time in the United Kingdom MBNA is a trading style of Lloyds Bank plc and is regulated in the United Kingdom by the FCA 14 Controversies editMBNA hired Hunter Biden then 26 years old and a recent law school graduate during the years when his father then Senator Joe Biden was pushing for bankruptcy reform legislation supported by the company which became law and makes it more difficult to acquire bankruptcy protection 15 Because of the close relationship between Biden and MBNA Byron York called Biden the Senator from MBNA in a 1998 article for conservative magazine The American Spectator 16 17 18 MBNA was one of the companies mentioned on a 2004 Frontline WGBH Boston PBS special about unfair business practices by credit card companies 19 Some practices that Frontline claimed MBNA has engaged in included doubling or tripling of interest rates shifting billing due dates payment cycles monthly and raising rates for customers whose payments were a day or two late MBNA has been found to be one of the leading implementors of rate jacking For further information and links see credit card In Ireland MBNA was accused of calling consumers up to eight times a day who were behind in making payments which prompted the state debt advisory service to publicly state that harassment is outlawed Affected people were advised to complain to the relevant authorities 20 The company in December 2009 admitted overcharging 500 000 Irish consumers up to 18 million 21 22 In the UK circa September 2010 MBNA came under fire for its interpretation of new UK legislation under which credit card providers must allocate payments to the debt with the highest interest rate first one consumer site called MBNA s interpretation of these rules a disingenuous money making tactic 23 See also edit nbsp Philadelphia portal nbsp Banks portalReferences edit Staff writer February 11 2009 Bank Of America Acquires MBNA CBS News Associated Press Retrieved August 9 2013 Affiliated staff June 30 2005 Bank of America buys credit card firm MBNA MSNBC Associated Press Retrieved August 9 2013 a b c Smitherman Laura Adams Paul July 2005 Bank of America to buy MBNA baltimoresun com Retrieved 2019 10 03 a b c d e f Bergman Lowell McGeehan Patrick 2004 03 07 Expired How a Credit King Was Cut Off Co Founder of MBNA Meets an Anxious Board And Loses The New York Times ISSN 0362 4331 Retrieved 2019 10 03 a b Ted Griffith January 1 2006 MBNA gone but what about jobs New owner ready to pull the trigger The News Journal Wilmington Delaware Archived from the original on May 10 2007 Nicholas Varchaver May 13 2002 Who s The King Of Delaware FORTUNE Magazine Havill Adrian Epilogue Robert Philip Hanssen The Spy who Stayed out in the Cold Crime Library Retrieved on June 10 2014 p 15 Archived 2014 02 27 at the Wayback Machine Following Mueller s appointment the disgraced Louis Freeh joined a Delaware credit card company MBNA Many of the firm s executives are former FBI employees Made it by 40 Daily Telegraph London 2006 12 13 Retrieved 2008 12 03 Yahoo Finance Form 8 K for FIA CARD SERVICES NATIONAL ASSOCIATION Archived from the original on July 16 2007 Retrieved 2007 01 12 a href Template Cite web html title Template Cite web cite web a CS1 maint bot original URL status unknown link Reasons for Selection 2007 Canada s Top 100 Employers Archived from the original on 2013 01 15 Virgin Money announces launch of own credit card business after 1bn deal with MBNA to buy assets 2013 01 18 Retrieved 2013 01 20 Lloyds Bank buys MBNA credit card firm for 1 9bn BBC News December 20 2016 Completion of MBNA Acquisition otp investis com Jun 1 2017 Retrieved August 10 2018 Regulatory agencies mbna Retrieved 2020 07 05 Yost Pete August 25 2008 MBNA paid Biden son at critical time for bill Associated Press Archived from the original on September 14 2008 Retrieved April 24 2024 York Byron January 1998 The Senator from MBNA The American Spectator Archived from the original on February 11 2001 Retrieved April 24 2024 Craven Jasper January 26 2024 Hunter Biden Snagged a Cushy Bank Job After Law School He s Been Trading on His Name Ever Since Politico Magazine Retrieved April 24 2024 Yglesias Matthew October 1 2019 Hunter Biden the black sheep who got Trump impeached explained Vox Retrieved April 24 2024 Frontline Secret History of the Credit Card PBS Credit card debtors harassed Irish Independent October 22 2009 MBNA to refund 18m as interest error comes to light The Irish Times December 12 2009 MBNA to pay back 18m to 500 000 in card blunder Irish Independent December 15 2009 MBNA s new fairer policy masks hidden costs Choose October 27 2010 External links editMBNA Limited UK bankcardservices co uk MBNA Canada MBNA Archive Lloyds Banking Group Yahoo MBNA Corporation Company Profile PBS video Secret History of the Credit Card Information about MBNA s Corporate Foundation Retrieved from https en wikipedia org w index php title MBNA amp oldid 1220587069, wikipedia, wiki, book, books, library,

article

, read, download, free, free download, mp3, video, mp4, 3gp, jpg, jpeg, gif, png, picture, music, song, movie, book, game, games.