GE, First USA In Joint Venture

GE, First USA In Joint Venture

By Lynn Woods

GE Capital and First USA, the credit card subsidiary of Bank One Corp., are joining forces to strengthen both companies' credit card operations.

The private-label joint venture will combine $1 billion in GE Capital private-label credit card receivables with First USA's $1.6 billion private-label credit card portfolio. GE Capital will act as managing partner of the new venture.

In addition, GE Capital is selling its $2.2 billion in receivables to First USA, and the two companies are forming a cobrand partnership, in which First USA will market and issue Visa and MasterCard cards featuring the GE brand. GE Capital will continue to operate its corporate card business, issued by its subsidiary GE Capital Financial Inc., as well as its GE-branded bank cards and retailer cobranded bank cards outside the United States.

First USA chairman and CEO Richard Vague said, "This truly is a win-win transaction that plays to the strengths of both companies and provides an opportunity to build stronger customer relationships.