- Listening to American Express (AXP -1.7%) explain the details behind the Costco breakup at its investor day yesterday, Susquehanna's James Friedman and John Coffey see a "silver lining."
- Costco's demands, say the two, would have lowered returns and forestalled AmEx from pursuing better deals due to rigid non-competes. One of these deals could be the Plenti multi-partner program announced last week - CEO Ken Chenault says this could not have been done 60 days ago.
- Though management wouldn't comment on plans for selling the Costco loan book or their plans for retaining existing card holders, they did say efforts to retain spending from the Costco-Canada portfolio were "encouraging."
- Previously: AmEx seeks to reassure at investor day; Munger questions competitive edge (March 25)
- Previously: American Express to launch loyalty program (March 18)