Did we miss something?
It was surprising that the May 16 Barron's online profile about MasterCard's® planned IPO did not mention in detail the merchant antitrust litigation. From reading the article, potential investors might at first be intoxicated by the perceived value of the MasterCard® brand, but will quickly sober up once they read the "Risk Factors" which might include a complete loss of shareholder investments.
From the recent articles on the IPO, in our opinion, it seems that the banks might be using this opportunity to cash out of their potential liability. Further, as reported in BusinessWeek®, the company is preparing to spend upwards of $650 million to fight the interchange suits.
[Source: Commentary - WayTooHigh.com]
Ed note: Disclosure. From time-to-time we post updates to remind readers that the co-editors of WayTooHigh.com - The Credit Card Interchange Report are co-owners of 30 Minute Photos Etc., a retail and nationwide online boutique photo service which is represented as lead plaintiff in The Payment Card Interchange Fee and Merchant-Discount Antitrust Litigation. These postings are independent and represent the opinions and views of Mitch Goldstone and Carl Berman. Named defendants in the class action suit include Visa®, MasterCard®, Bank of America®, Citigroup®, JP Morgan Chase®, MBNA®, Barclays Bank®, Wachovia Bank® and other member banks.