WALL STREET - (05/25/06) MasterCard International pricedits long-awaited initial public offering Wednesday night at $39 ashare, slightly below the markets expectations. Theworlds second-largest payments company plans to raise asmuch as $2.4 billion with the sale of 61.5 million shares,representing about 46% of the company, when the deal hits themarket Thursday. The remainder of shares will continue to becontrolled by its large bank owners. Four large banks: Bank ofAmerica, Citibank, JP Morgan Chase and HSBC, own more than 30% ofthe cards company. MasterCard had originally planned to price theshares between $40 and $43. Proceeds from the offering will mostlybe used to buy back the companys Class B shares, which areheld by MasterCards 1,400 bank-owners. About $650 million ofthe proceeds will be used to build a legal defense fund to financepotential awards in the more than 40 antitrust suits broughtagainst the cards giant by merchants. Visa USA, the worldslargest payments company and also owned by large banks, has said ithas no current plans to go public.
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The bank is launching KeyVAM, a virtual account management offering it designed with fintech Qolo. Both companies said the nature of the relationship was as important as the technology it produced.
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The top five bank holding companies have combined total credit card loan portfolios of more than $705 billion.
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Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
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Ally Financial ended a six-month search for its next chief executive by hiring Discover CEO Michael Rhodes. The move adds a new wrinkle to Discover's pending sale, though Discover said that Rhodes hadn't been expected to have a long-term role at Capital One following the merger's completion.
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The report seeks to help banks "disrupt rapidly evolving AI-driven fraud," according to Treasury's Nellie Liang. The report found banks have difficulties accounting for AI risks.
March 27 - Yahoo Finance Feed
The banking giant has launched an online platform that links small-business owners and entrepreneurs in need of capital to community development financial institutions. The platform was developed in partnership with Community Reinvestment Fund USA.
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