Archive for the 'Industry News' Category

American Express continued its assault on Visa and MasterCard by partnering with more card issuing banks in December. American Express signed deals with Citibank, Bank of America Corp. and HSBC – North America Holdings Inc. What does this mean? It means these banks will be issuing American Express credit cards with their brands on them just like they do for Visa and MasterCard. Having this kind of push for their credit cards should significantly increase the reach of American Express to attract new members.

From the Greensheets:

On Dec. 16, 2005, First Data Corp. announced both a 3% workforce reduction, most of which would occur in its struggling card-issuing unit, and a restructuring charge of approximately $0.05 per share taken in the fourth quarter. Additional charges aimed at further reducing overall operating costs would be taken prior to year-end, according to a company statement announcing the news.

“While these decisions are difficult, my focus continues to be on taking the steps necessary to position the company for growth, reduce operating costs and build shareholder value,” said First Data Chief Executive Officer Ric Duques. A restructuring charge is a company’s estimate of future costs related to a drastic change in business strategy or operations, undertaken to improve future profitability, according to the “Academy of Accounting and Financial Studies Journal.”