Sources inform ''Globes'' that Israel Credit Cards-Cal Ltd. (ICC-Cal) (Visa) plans to close subsidiary Cal Assets Ltd. and transfer the unit's activities to itself. Cal Assets handles ICC-Cal's international clearing activity, including gambling, pornography, and, until recently, nutritional supplements sites.
Visa Inc. (NYSE: V) recently fined ICC-Cal €9 million over flaws in this activity.
ICC-Cal declined to comment on the report.
The sources added that, as one of the lessons drawn from the debacle, ICC-Cal is considering discontinuing its international clearing business as an independent subsidiary, and instead to set up a separate unit within the company. The unit will be under direct responsibility of the CEO.
No layoffs are expected as a result of the restructuring.
Several months ago, ICC-Cal took over Cal Assets' risk management activity, and it is now taking over money management. Cal Assets continues to handle sales and marketing, and business development.
ICC-Cal is owned by Israel Discount Bank (TASE: DSCT) and First International Bank of Israel (TASE: FTIN1;FTIN5). Its CEO is Boaz Chechik.
Published by Globes [online], Israel business news - www.globes-online.com - on December 3, 2009
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