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Cutting The Discover Card

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The Discover Card advertisement above encouraged consumers to get rid of their credit cards by asking, “What if you could get rid of the things you don’t like about credit cards? The hype. The confusion. And this time do it right?”
Today Morgan Stanley announced it was doing exactly that, cutting off its troubled Discover credit card business. The card had always had a low rent feel to it, its growth potential was seen as very limited and investors had been calling on the investment bank to jettison the business for some time. Last year the John Mack had frustrated some investors by seeming to close off the possibility of a sale. But this past Spring, the bank eased its stance and said it would explore the possibility of the spin-off. The definitive news of the spin-off will probably reassure investors that the bank is flexible and responsive to shareholders, which is sending stock prices higher today.

Morgan Stanley to spin off Discover, profit falls