SAN FRANCISCO - (07/06/06) Visa USA and First Dataannounced Wednesday they have agreed to settle a four-year-oldlawsuit over the processing of Visa card transactions. A 2002 suitby Visa and subsequent counter-suit by First Data surrounded FirstDatas use of its own network to process Visa transactions,which Visa requires all processors to run through its own VisaNetprocessing network. First Data hoped to save on transactions costsby bypassing VisaNet with its own system, called First Data Net.Under the settlement, First Data agreed to move existing Visa cardtransactions conducted over its private network onto VisaNet, whilethe two firms pledged to work together to build a stronger businessrelationship to focus on streamlining the payments processingbusiness. Visa sued in First Data in 2002, claiming creation ofFirst Datas own closed-loop system violated Visa rules thatrequire all Visa card transactions be run through VisaNet. FirstData countersued, claiming that Visas position constituted aviolation of antitrust laws. The settlement allows Visa, whichalong with MasterCard is the target of more than three dozenantitrust suits brought by merchants, to put one big legalchallenge aside. it is also believed to provide a stream of incomefor First Data, though neither side would disclose financial termsof the deal.
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Strong loan and deposit growth led to a double-digit increase in revenues and an even bigger jump in profits at the Columbus, Ohio-based regional bank.
October 17 -
Flagstar shareholders approved a plan to merge its holding company into the bank; Huntington tapped a new chief auditor, along with two new business leaders; First Foundation hired a new chief credit officer; and more in this week's banking news roundup.
October 17 -
In a tough quarter for the auto industry, the Detroit-based lender posted earnings that sped past Wall Street's expectations.
October 17 -
Approximately three years after the one-time non-depository bought Roscoe (Texas) State Bank, Cornerstone Capital Bancorp agreed to purchase Peoples Bancorp.
October 17 -
Regional banks say their asset quality is solid amid skittish investors. The KBW Nasdaq Regional Banking Index was largely stable Friday after falling by as much as 7% the day before.
October 17 -
Coordinated sanctions target two networks behind so-called pig butchering scams, human trafficking and money laundering for North Korean cybercrime groups.
October 17