Bank of America is making headlines again – and it isn’t exactly in a positive light. It seems that SunTrust will no longer issue its cards through Bank of America Corp, which is quite a blow to the corporation since SunTrust is the largest bank to still issue through Bank of America
Wachovia had made the same decision to sever ties with Bank of America earlier this year. As a result, they have been issuing their own cards. SunTrust doesn’t plan to issue their own cards. Rather, they have contracted with First National of Nebraska to have their cards issued. Although First National is one of the largest card issuers in the United States, its branches do not overlap with SunTrust. Therefore, there is no conflict of interest. This is a welcome change since Bank of America is one SunTrust’s competitors.
SunTrust will officially change hands in January of next year. Bank of America claims the change won’t harm them, as they had already accounted for the loss of Wachovia and SunTrust before acquiring MBNA. Bank of America had expected a 7% loss in card revenue as a result of these losses, but claims the increase in business resulting from the merger more than makes up for the loss.
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