Spiegel Makes Agreements With MBIA, OCC

Share this content:
The Spiegel Group, Downers Grove, IL, yesterday announced an agreement with MBIA Insurance Corp. involving certain asset-backed securities issued by its credit-card bank subsidiary, First Consumers National Bank.


Spiegel also said that the bank entered into an agreement with the Office of the Comptroller of the Currency, the bank's primary federal regulator.


The company said the deal resolves the declaration of a "pay out event" by MBIA regarding two asset-backed securities offerings involving credit-card receivables originated by FCNB. The company agreed to dismiss its litigation against MBIA and The Bank of New York, and MBIA agreed to withdraw its letter declaring the pay out event. Spiegel said the agreement strengthens the insured transactions.


FCNB's deal with the OCC calls for the bank to comply with certain requirements regarding capital, liquidity, growth, product offering and transactions with affiliates. The agreement includes restrictions on extending credit to certain customers and requires the bank to obtain a $198 million guarantee, which has been provided through the company's majority shareholder. Also, the bank must provide to the OCC the details of a plan to sell, merge or dispose the bank.


On Feb. 21, the company announced plans to sell its credit-card operations this year, including the bank. The company said that it plans to form a relationship with a third party to continue to provide private-label credit-card programs to customers of its retail brands.


close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above