MasterCard Enters Remittance Mkt
PURCHASE, N.Y.-Credit cards giant MasterCard is planning to enter the international money transfer market with a wireless service aimed at the unbanked. The No. 2 credit card company said it has signed with the GSM Association, which represents more than 700 mobile phone operators, to pilot the new service. Some of the company's 25,000 bank and credit union members will participate in the pilot.
Western Union Reports Profits Down
DENVER-Western Union, spun off from First Data Corp. last October, said that first quarter earnings declined 12%, compared to the first quarter last year when the company was part of First Data. First quarter earnings of $193.2 million, or 25 cents a share, were hindered by $15 million of expenses accrued as a public company. Revenues grew by 8% for the quarter to $1.13 billion, slower than expected, because ongoing challenges within the U.S. and Mexican markets that were affected by the ongoing immigration debate. Domestic transactions declined by 6% in the first quarter, as the immigration debate continued to take a toll.
LaSalle Deal Extends BofA Network
CHARLOTTE, N.C.-Bank of America's acquisition of LaSalle Bank will add another 1,500 ATMs to the banking giant's fleet of 17,200 machines. The LaSalle machines are located in Illinois, Indiana and Michigan. BofA operates the largest bank-owned network and the second largest fleet of ATMs, behind only ISO Cardtronics' 25,000 or so ATMs in the U.S. The second largest bank-owned fleet is the 8,500 machines operated by JP Morgan Chase. BofA has agreed to acquire Chicago-based LaSalle from ABN AMRO for $21 billion as part of the Dutch bank's blockbuster takeover by Barclay's Bank.
Exec Earns $160M On Being Fired
CALABASAS, Calif.-Countrywide Financial, known for its well-paid executives and directors, reported that Sanford Kurland, its former president and chief operating officer, took home more than $160 million last year-for just nine months work. Kurland, who was fired last September, realized $109 million on his outstanding options that were vested upon his termination, and another $42.5 million in compensation, according to the company's annual proxy statement field with the Securities and Exchange Commission. That included: salary of $1.5 million; option awards worth $15 million; and retirements benefits totaling $25.7 million. In addition, Kurland will be paid $15.75 million severance; a $6 million bonus, among other compensation.
The 54-year-old Kurland, chief operating officer of Countrywide since 1988 and was named president in 2004, was widely seen as the heir apparent to co-founder and CEO Angelo Mozilo until the two had a falling out, leading to Kurland's exit.
Small Biz Incubator Gets Funding
SANTA CRUZ, Calif.-Wells Fargo awarded $50,000 in funding, the second payment of a $100,000 commitment to a small business development center founded by Santa Cruz Community CU and two partners.
The banking giant was attracted to the venture because of its unique approach in which each of the three participants, which also includes El Pajaro Community Development Corp. and the Central Coast Small Business Development Center, are offering the area's small business owners services that compliment each other. In return for its financial support, Wells Fargo earns Community Reinvestment Act credits.
