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Personal finance observation, musing and decisions in a journey toward financial independence by 36 with at least $1 million.

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Citigroup to Buy 2 Card Lines





Remember Citi bought Sear's private label credit card a couple years' ago? Citi seems to be determined to become the credit card king now.

From Wall Street Journal:

The Federated and May portfolios contain about 17 million active accounts. The deal calls for Citigroup to pay an upfront premium of about 11.5% for $6.6 billion of total receivables, or about $760 million. Citigroup will make $6.6 billion of payments for the receivables, in three stages, through late 2006.

...

Steven J. Freiberg, chief executive of Citigroup's card operations, said that such private-label card programs give banks another way to reach new customers. "Instead of trying to compete in the mailbox with everyone else, it's important for us to have unique distribution channels," he said.

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