Chase to Take Washington Mutual's Card Business In House
TSYS has announced that an agreement with JPMorgan Chase with respect to the discontinuation of the servicing of Washington Mutual Bank's (WaMu's) consumer card portfolio by TSYS. Chase will pay TSYS fees for deconversion and termination which both parties have agreed not to disclose. The deconversion is expected to take place in March 2009 after which Chase will process the WaMu portfolio in house on the technology platform it licenses from TSYS.
In addition, the parties agreed to an extension of the processing agreement between TSYS and JPMorgan Chase Bank, N.A. (Toronto Branch) for its Canadian card business through April 30, 2012.
Chase acquired WaMu's portfolio in September 2008 as part of its purchase and assumption agreement with the FDIC regarding the assets and liabilities of WaMu.
WaMu accounted for less than 4 percent of TSYS' revenues for the first nine months of 2008. The loss of WaMu is not expected to have a material adverse effect on TSYS' financial condition.
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