GE Capital and First USA have announced three recent developments, all planned to expand the ever increasing First USA dynasty:
1. First USA is purchasing $2.2 billion of GE's Visa/MasterCard receivables.
2. Through a co-brand partnership agreement, First USA will issue and market Visa and MasterCard credit cards featuring the GE brand.
3. The two companies will jointly release a private-label credit card.
First USA Chairman and Chief Executive Officer Richard W. Vague reiterated a common theme when he said, "The acquisition of approximately $2.2 billion in credit card receivables from GE Capital represents a continuation of First USA's strategy of purchasing credit card portfolios."
After First USA acquires GE Capital's Visa and MasterCard domestic credit card portfolio, GE will continue to own and expand its GE-branded bankcards and retailer co-branded bankcards outside the U.S. It will also continue to operate its corporate card business. Each company will own 50% of the private label venture but GE Capital will act as the managing partner.
GE Capital is a subsidiary of General Electric Company and has assets of over $250 billion. First USA is a subsidiary of Bank One Corp., and is one of the nation's largest credit card lenders.
