Bank of America Acquires MBNA (2006)
January 2006What Happened
Bank of America paid $35 billion for MBNA, then the largest independent credit card issuer, creating a company with 20% market share. MBNA pioneered affinity marketing—co-branded cards with 5,000+ organizations. The deal made Bank of America the top U.S. card issuer overnight.
Outcome
Bank of America cut 6,000 jobs and saved $850 million annually. MBNA's brand was retired within months.
Bank of America eventually sold MBNA's Canadian and UK operations. The acquisition delivered scale but not the differentiation Capital One now seeks through technology.
Why It's Relevant Today
Like the Discover deal, MBNA was about market share through consolidation. The Brex acquisition signals Capital One wants technology and talent, not just accounts—a fundamentally different bet.
