Lloyds to Acquire BofA's U.K. Credit Card Business

Lloyds Bank acquires Bank of America's UK credit card portfolio, MBNA, for £1.9 billion to increase its market share and offset lower mortgage income. Bank of America, having purchased MBNA in 2006, aims to exit the UK market, making a minimal post-tax gain. The UK government, holding a small stake in Lloyds, views the deal as neutral but notes potential risks due to Brexit. The focus shifts to Bank of America's future strategies post-sale.

What is the primary reason Lloyds is acquiring MBNA from Bank of America?

• To increase their mortgage lending

• To offset lower income from mortgage lending

• To reduce their market share

• To enter the US market

Why did Bank of America decide to sell its UK credit card portfolio?

• They have been looking to exit this area for a while

• They were forced by the UK government

• They wanted to expand their UK operations

• They wanted to increase their market share in the UK

How much did Bank of America originally pay for the UK credit card portfolio?

• $35 billion

• $1.9 billion

• $50 billion

• $10 billion

What is a potential concern for the UK government regarding Lloyds' acquisition?

• The government will lose its stake in Lloyds

• Lloyds will stop mortgage lending

• Higher risk consumer credit in a slowing economy

• The deal might lead to a monopoly

What percentage of the UK credit card market will Lloyds control after the acquisition?

• 50%

• 7%

• 26%

• 11%