FIB Selling Some Credit Card Operations: Los...
From Times Staff and Wire Reports
FIB Selling Some Credit Card Operations: Los Angeles-based First Interstate said the operations being sold to First Bank System in Minneapolis involve 175,000 credit card accounts through 162 non-affiliated banks. The banks typically are small institutions that are too small to issue credit cards, so First Interstate does it for them. The premium being paid is 13.5% over the book value of the $110 million of credit card receivables. A bank spokesman said First Interstate expects to post a small gain from the transaction that has yet to be determined.
