TSYS will no longer process WaMu's operations

TSYS and JPMorgan Chase concluded an agreement to discontinue the servicing of Washington Mutual Bank's (WaMu's) consumer card portfolio by TSYS. Under the terms of their contract Chase will pay TSYS fees for deconversion and termination which both parties have agreed not to disclose. Besides, the two companies decided to extend the processing agreement between TSYS and JPMorgan Chase Bank, N.A. (Toronto Branch) for its Canadian card business through April 30, 2012.

The deconversion is expected to take place in March 2009. After that Chase will process the WaMu portfolio in house on the technology platform it licenses from TSYS. Earlier in September 2008 Chase purchased WaMu's portfolio as a part of its agreement with the FDIC regarding the assets and liabilities of WaMu.

Incomes from WaMu’s operations did not exceeded 4% of TSYS' revenues for the first nine months of 2008. This fact allows believing that the termination of the relationship with WaMu will unlikely impact adversely TSYS' financial condition.