Short-term job losses 'far from reality'

A PROMINENT member of the team which brought MBNA to Carrick-on-Shannon has urged workers not to panic following the decision by Bank of America to withdraw from its UK and Irish credit card operations.

The source, who requested anonymity, said the prospect of anybody losing their jobs in the short term was “very far from reality”.

He said it should be possible for the MBNA credit card business in the UK and Ireland to be sold as a going concern, though there was no obvious buyer at present because of the state of European banks.

“If there was a front runner, I would expect some rumours about it. I’m quite close to these things and I don’t hear any rumours. An obvious acquirer is hard to see,” he believed.

A buyer could come from a private equity company such as Apollo, which bought MBNA Spain, or cash-rich funds in the Middle East or Asia, he added.

“I don’t think there is a buyer who is ready to acquire it in the next week. This will occur over a period of time. Let’s assume a deal is done in the next six months; the integration will take another number of months. I don’t think anything is going to happen in the next three months.”

The source said the workforce was well-regarded within MBNA.

“Historically they have done very well. I think any business would look at it and say that these people are the cream of the crop,” he said. However, he cautioned that the workforce was based in a troubled industry, and the bottom line for any future employer was whether or not the business would make money in the future.

“It is right there should be concern within the community, but it does not follow that anything bad is going to happen. I would not say to anyone that they should be walking around in a pessimistic frame of mind.” He dismissed suggestions that Bank of America might use the Carrick centre for some other purpose as “nonsense and wishful thinking”.

MBNA was first brought to Carrick-on-Shannon by locally born businessman Shane Flynn, who was a senior executive in the credit card company.