MasterCard & American Express Settle Litigation (MA, AXP)

Banking, finance, and taxes

Published: June 25, 2008 7:06 am

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

MasterCard Incorporated (NYSE: MA) has just announced it has reached an agreement to settle its outstanding litigation with American Express (NYSE: AXP). The company says the tax-affected net present value of the settlement will be $1 Billion.

The agreement calls for 12 quarterly payments by MasterCard to American Express starting in Q3-2008 of $150 million per quarter. The payments are contingent upon the performance of American Express’s U.S. Global Network Services business.

MasterCard will take a charge for the settlement in the current quarter and it has noted that the maximum nominal amount of the settlement is $1.8 Billion.

Jon C. Ogg
June 25, 2008

The Average American Is Losing Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.

Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.

But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.