Bank One Says It Will Keep Credit Card Unit

Bank One Corp. said it does not plan to sell its First USA credit card unit despite the earnings drag it has put on the nation’s fourth-largest bank holding company. “We’re not going to sell the company,” John McCoy, chairman and CEO of Chicago-based Bank One, said in a statement. Some analysts had speculated that Bank One might sell First USA, the nation’s second-largest credit card issuer, to focus on its core banking franchise. Bank One warned for the second time in less than three months that 1999 earnings will be worse than expected because of problems at the First USA unit. The company also canceled a much-anticipated meeting with analysts where it was expected to detail future plans. First USA has lost customers because of a decision, since reversed, to eliminate a one-day grace period before customers were charged a late fee. Other customer service problems have also hurt customer retention. Bank One shares closed up 38 cents at $35 on the NYSE.