First Union Drops Out

In last month's Spotlight we noted that the "current buoyant economy has not been as helpful to the bank credit card business as one might expect." Further evidence of the stress is provided by the report that First Union Corp. Charlotte, NC, has sold its $4.4 billion credit card portfolio to MBNA Corp. for an undisclosed purchase price. However, First Union will report a $1 billion gain on its books. First Union previously disposed of its remaining Money Stores that specialized in loans to consumers with poor credit records.