First USA, GE Capital in Credit Card Deal

First USA bought $2.2 billion of Visa and MasterCard receivables from GE Capital Services Corp. for undisclosed terms, leapfrogging Citicorp to become the largest U.S. credit card issuer and allowing GE to exit the business. The companies also said they formed a 50-50 joint venture for private-label credit cards. The General Electric Co. unit will contribute $1 billion of its private-label card accounts for retailers such as Macy’s and Home Depot. Wilmington, Del.-based First USA, a division of Bank One Corp., will contribute $1.6 billion in receivables for companies such as Sony Corp. and leave the private-label card business. The private-label venture will be managed by Stamford, Conn.-based GE Capital. On the New York Stock Exchange, GE shares fell $2.25 to close at $86.81; Bank One fell $1.13 to close at $51.56.