BofA To Issue American Express Cards AsAmEx Drops Suit

December 28, 2005, 1:00 a.m. EST 1 Min Read

NEW YORK - (12/28/05) American Express announced it will dropfrom Bank of America from a lawsuit it has filed against the twomajor credit card associations following a decision by BofA tobegin issuing American Express cards. American Express had filedsuit in 2004 claiming it had lost several-billion dollars in incomebecause rules at Visa and MasterCard had prevented institutionsfrom issuing AmEx cards. Under the agreement, American Express willprocess transactions made with the cards using its proprietaryprocessing network, while Bank of America will handle billing,customer service, and charge authorizations. American Express hadearlier reached similar deals with two other large banks that werealso members of Visa USA and MasterCard International.

For reprint and licensing requests for this article, click here.

MORE FROM AMERICAN BANKER

Payments

Mastercard using open banking to spot fraud, EU warms to Apple Pay policy

Mastercard launches service to fight instant-payment fraud, EU may green-light Apple's NFC-access plan, and more.

By Kate Fitzgerald

1h ago
Consumer banking

20 banks and thrifts with the most assets

The top five banks and thrifts had combined assets of more than $13 trillion as of December 31, 2023.

By Editorial Staff

6h ago
Regulation and compliance

'Through the looking glass': Jamie Dimon sounds off on regulatory burden

The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.

By Catherine Leffert

9h ago
Litigation

If Supreme Court sides with CFPB, 'flurry' of litigation moves forward

Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.

By Kate Berry

April 23
Politics

Democrats push back against Corporate Transparency Act ruling

Lawmakers including one of the original sponsors of the Corporate Transparency Act have filed an amicus brief in the appeal against an Alabama court ruling that the law is unconstitutional, which would throw into question Treasury's newly-established beneficial ownership structure.

By Claire Williams

April 23
Commercial lending

'Credit darling' Webster Financial reports uptick in defaulted loans

The Connecticut bank —a regional traditionally regarded as a cautious lender — said nonperforming loans and leases rose 53% year-over-year. The uptick was in mostly the commercial-and-industrial loan space, although there was one nonperforming commercial real estate loan, executives said.

By Allissa Kline

April 23