Thursday, June 30, 2005

Bank of America Buys MBNA

The big news in Delaware is the announced acquisition of MBNA by Bank of America for $35 billion. According to the press release, 6,000 jobs will be eliminated between the two companies. MBNA will become a business unit of Bank of America and retain it's headquarters in Wilmington:
Bruce L. Hammonds, 57, CEO and president of MBNA Corporation, will become CEO and president of Bank of America Card Services and report to Liam E. McGee, 50, president, Bank of America Global Consumer and Small Business Banking. Hammonds will remain in Wilmington, Del., and be part of Bank of America's Risk & Capital Committee, which guides the company's strategic direction.
MBNA had eclipsed DuPont as Delaware's corporate leader in hiring and in visibility in the community. According to the release, MBNA levels of contributions to the community will continue:
Bank of America, a leader in corporate citizenship and philanthropy, intends to build upon its previously announced 10-year, $750 billion community development goal to include a specific community development lending and investment goal for Delaware. The specifics of this goal will be determined based on future dialogue with Delaware community and civic leaders. With MBNA's $60 million annual charitable giving, Bank of America, a worldwide leader in corporate philanthropy, expects to provide more than $200 million in annual giving as a result of this combination.
MBNA's stock is up 25% today on the news.

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