MasterCard Files to Go Private

In a proposal filed with the Securities and Exchange Commission in mid-August, MasterCard International took the first step toward abandoning its structure as a member-run association. Instead, the company proposes to convert to a shareholder-owned company called MasterCard Inc. The 1,600 banks that are currently principal members would become shareholders in MasterCard Inc. No bank could own more than 15 percent of the stock. Robert Selander, MasterCard president and CEO indicated in a press release that "we believe that converting to a stock company will give our principal members, who will become our stockholders, greater incentive to increase their business with MasterCard.