Citigroup analysts in their Consumer ABS Weekly published today examined the near-term impact of the interchange settlement on credit card master trusts and determined it was marginal.

The proposed agreement entails Visa, MasterCard, and several major banks and retailers entering into a Memorandum of Understanding (MOU). This settlement would resolve the merchants’ antitrust lawsuit if finalized before its planned trial in September. If approved by a judge, it would relieve the parties from litigation risk and finally end the uncertainty relating to this issue, Citi analysts said.

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