The deal is the second major agreement that American Express has struck with a major bank since a Supreme Court ruling allowed companies other than Visa and MasterCard to partner with banks to issue cards. AmEx previously formed an alliance with MBNA. After the ruling was handed down, American Express and Discover sued Visa and MasterCard for damages. AmEx also sued several banks that issue Visa and MasterCard cards but did not bring charges against Citi, leading to speculation that a deal might be in the works. American Express expects the new card developed with Citibank will be available in late 2005.
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