MasterCard & American Express Settle Litigation (MA, AXP)

Banking, finance, and taxes

Published: June 25, 2008 7:06 am

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

Travel Cards Are Getting Too Good To Ignore

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.