4000 jobs at risk at nbma in chester...desperate news.

geoffky

This is the areas major employer and a very high number are women..This is a massive blow to Chester and the surrounding areas.I have loads of friends whose wifes work there..

http://www.liverpooldailypost.co.uk/liverpool-news/regional-news/2011/08/16/4000-bank-of-america-jobs-at-risk-in-chester-after-credit-card-plan-announced-92534-29241862/

StevieJ

I thought that was the only thing keeping Bank of America afloat, Bar Lounge and Hickory's won't be very happy either
And you just having bought your house an all :eek:

Mr_Mumble

There are always concerns when businesses are put up for sale. But, credit cards are a rather profitable business and Bank of America's reason for selling is understandable (This Bloomberg piece gives a good account of BofA's need to sell because of capital requirements).

BofA have been able to sell the Spanish and Canadian operations and should be able to sell the UK's (the one big difference and possible problem being the PPI liabilities).

Assuming MBNA UK is sold the new employer may want to cut workers or use other call centres other than Chester but this is pure conjecture and there's a good chance a buyer will just keep operations as they are right now.

movilogo

In this forum we advice people how to stooge using credit cards and then we cry when bank wants to exit credit card market.

Does it mean that people are now not buying on credit?

OP should change the thread title - it is MBNA and nbma

Jennifer_Jane

movilogo wrote: »

In this forum we advise people how to stooze using credit cards and they we cry when bank wants to exit credit card market.

Does it mean that people are now not buying on credit?

Just corrected things a bit . So what is different from stoozing to paying off your credit card in full every month? You are simply using money - for which you have paid their initial fee - and then you pay it back. What's wrong with that?

There are plenty of people who, for whatever reason, get into debt and have to pay heavy interest rates. But stoozing and paying off in full each month - why would you think that's putting them out of business.

PS - Sorry to hear about this, I'm also in Cheshire, so am aware that it's another major local employer to make redundancies. I hope that another buyer comes along quickly - but feel with Barclaycard's taking over Egg, and the other banks being cautious, that it's a small hope.

StevieJ

I think they will be OK, maybe the previous owners would be interested.

adyj73

As much as I feel for the workers I have to say MBNA are an example of all that's gone wrong over the last 20 years and as the West re adjusts it's expectations I feel no sorrow to see them go. I just hope that whatever takes their place is more robust and socially responsible.....hell who am I kidding!

Degenerate

The MBNA UK credit-card operation is a profitable, market-leading business. The fact that the parent company (which only bought them a few years ago) has to sell them to raise cash for it's own reasons should not spell disaster.

michaels

problem it is a business built on unsecured debt = mucho capital required under Basle 3 so who has the spare capital and wants to buy - presumably a highly leveraged venture capital/mbo type deal is ruled out on these grounds so we need a bank with lots of capital - the only one's of those around are the 'boring' ones like HSBC but then being boring they won't want a racy credit card business - may be an insurance company or similar but then getting in to financial services doesn't seem like as sexy a business model as it did a few years ago...

Thrugelmir

michaels wrote: »

but then being boring they won't want a racy credit card business .

No longer can the banks make money out of selling PPI.

So the returns are no longer exciting.