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Report: BofA rejects PPI indemnity requests from MBNA bidders


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Report: BofA rejects PPI indemnity requests from MBNA bidders

Bank of AmericaCorp. rejected attempts by several parties interested in to get themselves covered againstfuture payment protection insurance costs, Sky News reported Oct. 5, citingsources.

Bidders are seeking to curb their exposure to costs relatedto insurance mis-selling ahead of an expected for redress claims. BofArejected their requests, partly due to an expected increase in such claims,sources told Sky News. This could affect the price bidders wouldbe willing to pay for MBNA, as well as raise red flags for financial regulators.

Meanwhile, BofA also reportedly asked bidders, including andCerberus Capital ManagementLP, to submit revised offers for the U.K. credit card issuer in acouple of weeks.

BancoSantander SA unit Santander UK Plc has also for MBNA, according to Sky News.

MBNA has provisioned more than £500 million for the PPIscandal in the last two years, Sky News noted. The 2019 deadline is due to beconfirmed by the U.K. Financial Conduct Authority before 2016-end.