Friday, April 28, 2006

"Visa Names First 4 Independent Directors" (Reuters)

Reuters® reported that Visa USA Inc.® has appointed four outside directors as part of its long anticipated move to distance itself from the banks' control. The balance of the director appointments, as reported by Reuters® might not occur until next year. (Why the glacial-like slowness when the world's largest credit card company is facing tens of billions of dollars in potential economic liabilities).

It is also unclear whether the new, non-bank affiliated directors will be involved with voting on future merchant interchange rates. If the "independent" board representatives will not be playing a key role in voting on interchange fee adjustments, then this entire exercise nothing more than window dressing and a shell game.