American Capital One Financial Corporation will purchase HSBC credit card business in the USA. In the official press-release Capital One informs that it will get HSBC clients whose credit card debts amount to 30 billion dollars.
Capital One agreed to pay HSBC a reward in addition to the mentioned amount equaling 8.75% of debt volume which results in 2.6 billion dollars. Reuters notes that before the financial turmoil the reward was equal to 20% but reduced after the crisis. Besides, sometimes banks had to sell card business with a discount.
In July 2011 HSBC has already concluded such deal on the American market: the major European bank sold 195 its branch offices in New-York to the financial organization First Niagara Bank. The deal cost around a billion dollars.
HSBC is selling its assets according to the cost saving program. Besides, it sells the assets both inside the USA and abroad. Thus, HSBC decided to get rid of retail business in Russia. It was reported at the beginning of August that the bank would cut about 30 thousand jobs around the world.
Capital One, in its turn, actively buys the assets on the American market. In June it arranged the purchase of the Internet branch of Dutch corporation ING-ING Direct. It allowed Capital One to jump to the seventh position by the volume of its assets among other American banks.