[By going public and appointing a new board, with independent directors making up a majority, MasterCard may be trying to be viewed as more independent and to steer some potential litigation costs away from its member banks, said Kenneth Posner, an analyst with Morgan Stanley.] Payment associations have market power because they are owned and controlled by groups of banks, ... The public MasterCard would have independent directors and a governance system that would make it clear that it would not be attempting to collude in setting an interchange fee. |
Critics tend to talk about subsidies and look at Fannie and Freddie in isolation, forgetting that banks and thrifts are also subsidized, |
Critics tend to talk about subsidies and look at Fannie and Freddie in isolation, forgetting that banks and thrifts are also subsidized. |
It is not clear that the issues raised in the Dow Jones report would be material financially, |
Payment associations have market power because they are owned and controlled by groups of banks. The public MasterCard would have independent directors and a governance system that would make it clear that it would not be attempting to collude in setting an interchange fee. |
The stock appears to be excessively discounting concerns over accounting and political risk and overlooking the recent pick-up in growth in the credit guarantee business. |