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J.P. Morgan to buy Citigroup unit for USD 380 mn
New York, Nov 27: .P. Morgan Chase & Co. on Wednesday said it agreed to buy a Citigroup Inc. unit that runs government benefits program for $380 million in cash.
New York, Nov 27: .P. Morgan Chase & Co. on Wednesday said it agreed to buy a Citigroup Inc. unit that runs government benefits program for $380 million in cash.
The Citicorp Electronic Financial Services unit provides government-issued benefit payments, prepaid stored value cards used by state and federal government agencies, and stored value services for private institutions like universities.
Stored value cards hold a specific amount of cash that can be spent, then refilled and are used in places like university book stores.
With the purchase, J.P. Morgan will post more consistent profits and help offset its highly profitable but more volatile operations like bond trading, analysts said.
The unit, the market leader in electronic benefits transfer, serves 30 states, many of which are already J.P. Morgan customers.
Bureau Report
Stored value cards hold a specific amount of cash that can be spent, then refilled and are used in places like university book stores.
With the purchase, J.P. Morgan will post more consistent profits and help offset its highly profitable but more volatile operations like bond trading, analysts said.
The unit, the market leader in electronic benefits transfer, serves 30 states, many of which are already J.P. Morgan customers.
Bureau Report