21st Nov 2016 06:47
LONDON (Alliance News) - Lloyds Banking Group PLC has become the frontrunner to buy Bank of America Corp's MBNA credit card business in the UK, the Financial Times reported.
The FT, citing two people briefed on the process, said Lloyds had moved ahead of US private equity group Cerberus in the bidding for the MBNA business.
It is understood Lloyds had initially pulled back from the auction after BofA refused to share the future costs of compensating customers for mis-sold payment protection insurance. But BofA is now understood to have agreed to indemnify the buyer of MBNA if PPI costs rise above a certain point.
If a deal is done, it would mark the first acquisition made by Lloyds since it was rescued by the UK government at the height of the 2008 financial crisis.
https://www.ft.com/content/9c958ae6-af0b-11e6-a37c-f4a01f1b0fa1
By Sam Unsted; [email protected]; @SamUAtAlliance
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