Mergers and Profits in the Industry

In 2006 Bank of America acquired MBNA, making the nation's third largest bank also the nation's largest credit card issuer. The following year Bank of America also purchased Chicago's largest bank, La Salle. In 2005 and 2006, Capital One bought New York bank North Fork and the Louisiana-based Hibernia Bank.

As a result of mergers and consolidation, the top six card companies now carry about 75% of all outstanding credit card debt. In 2007 industry profits soared to a record $40.7 billion according to Time magazine.